Survey: Malaysians trust media more in 2024, but confidence in corporations drops

Malaysians' trust towards corporates and institutions has seen a drop in 2024 compared to the year before, but their trust towards media has increased, according to Ipsos' latest Trust Track 2024. 

The report revealed that after three years of stability at score 56 out of 100, the overall trust of citizens towards corporates and institutions has declined by 7 points to 49 in 2024. This year has seen a continuation of boycotts, impacting trust in corporations.

In 2024, Apple emerged as the most trusted entity among over 160 brands covered in the Trust Track. Following closely were local automotive brands, Perodua and Proton. Utility company Tenaga Nasional (TNB), which was the most trusted entity in 2023, now shares its position with Shopee and Honda at a trust index of 70.

Majority of the incumbents managed to keep its position within their industry and sectors. This year, PLUS is back to be the most trusted company in infrastructure and same goes to Touch n’Go in the mobile wallet category.

For consumer goods (FMCG), Nestlé retains its top spot, while the Employees Provident Fund (EPF) stays as the leader among government-owned and government-linked companies.

On the other hand, most industries experience a decline in their trust score, with the airline and QSR industries showing the most significant decline at 17 points. Media industry is the only exception with improved trust, with 16 local media companies recording a 4-point increase in net trust to 52 on the trust index, compared to 48 in 2023.

Within the media industry itself, the report revealed that YouTube had overtaken Astro as the most trusted brand. For video platforms and over-the-top video services, Netflix has retained its spot on the trust index.

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Other sectors such as oil and gas, automotive, government-linked companies, and fast-moving consumer goods (FMCG) experienced drops of more than 5 points.

“Our Ipsos Trust Track 2024 data reveals a significant shift in Malaysian consumer trust towards corporations. After three years of stability at 56 (2021-2023), overall trust has declined by 7pt in 2024,” said Evelyn Tan, interim country manager for Ipsos Malaysia.

“This year has seen a continuation of boycotts, impacting trust in corporations,” added Tan. However, she did not elaborate on what the boycotts entailed.

Tan also said, “This decline is widespread, but there are bright spots. The media industry is a notable exception, showing increased trust levels. Device and e-commerce sectors demonstrated more resilience with a slower decline in trust, amidst a general downward trend observed across other essential services, including utilities, telecommunications, and FMCG.”

“Trust is the foundation of a strong corporate reputation. It is important for corporations to continue building trust to strengthen its reputation among Malaysians,” she added.

Looking back on the boycotts

Last year, several consumer brands faced boycotts for their perceived support for Israel instead of Palestine in the Gaza war. Some of the hardest hit companies were Starbucks, McDonald’s and QSR Brand’s KFC.

McDonald’s Malaysia had released a statement to say that it does not support or is complicit in any conflicts or wars. The company added that it is proud to be a 100% Muslim-owned business and member of the local community, and that its heart goes out to the "innocent victims in Gaza".

The statement came after it withdrew a brand defamation legal suit against the Boycott Divestment Sanctions Malaysia (BDS Malaysia), a Palestinian-led movement for freedom, justice and equality that has been vocal in calling out brands who have affiliations with Israel.

Separately, Berjaya Food, the operator of Starbucks Malaysia outlets, posted a net loss of RM42.6 million in its second quarter, against a net profit of RM35.5 million a year ago, amid continued boycotts.

Speaking at a press conference in March 2024, Founder and advisor for Berjaya Corporation, Vincent Tan reportedly told media that Starbucks Malaysia is owned by BFood, a Malaysian company, and is a franchise. Therefore, it is not owned by Americans or Starbucks America. He appealed for the boycotts to stop, saying it does not benefit anyone.

Meanwhile, FamilyMart Malaysia was also not spared. The Malaysian branch saw its brand sentiments plummet to 72.6% negative amidst calls on social media for a boycott of the store back in February 2024. This was due to links between its Japanese parent company Itochu Corporation with Israel-linked defense company Elbit Systems.

As for KFC Malaysia, its owner QSR Brands reportedly shuttered more than 100 outlets amid the months-long pro-Palestine boycott. QSR Brands owns and operates the KFC fast-food franchise in Malaysia. It also operates the restaurants in Singapore, Brunei and Cambodia. According to the Straits Times, Kelantan was the hardest hit, with nearly 80% or up to 21 branches temporarily shut.

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