MALAYSIA FINDINGS

ACTIONS

TRUST MATTERS

Trust is a Manageable Asset, determining:

• Consumer purchasing behaviour

• Proactive recommendations or criticism

• Investment

EDELMAN'S 13TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST

3

MARKET COMPARISONS Developed: US, UK, France, Germany and Japan Emerged: Brazil, Mexico, Russia, India and China

ONLINE SURVEY IN 26 COUNTRIES

• 31,000+ respondents

• 5 years in 20+ markets

• 8 years in 10+ markets

GENERAL POPULATION

• 1000 respondents per country surveyed

• Ages 18+

• 2 years of data

INFORMED PUBLICS

• 200 respondents in Malaysia & 24 countries, 500 respondents in U.S. and China

• Ages 25-64

• College-educated

• In top 25% of household income per age group in each country

• Report significant media consumption and engagement in business news and public policy

• 13 years of data

Indicates Global Data

Indicates Malaysia Data APAC SELECT COUNTRIES: China, Japan, India, Malaysia, Singapore, South Korea, Indonesia, Australia, Hong Kong

STATE OF TRUST

STATE OF TRUST 2013

5

TRUST SHIFTS BACK TO NEUTRAL AFTER A TUMULTOUS 2012

GLOBAL 57 China 80

Singapore 76

India 71

Mexico 68

Hong Kong 67

UAE 66

Malaysia 64

Canada 62

Indonesia 62

U.S. 59

Netherlands 59

Brazil 55

Germany 55

France 54

Sweden 54

UK 53

Italy 51

Australia 50

Poland 48

S. Korea 47

Ireland 46

Argentina 45

Spain 42

Turkey 42

Japan 41

Russia 36

2013 2012

DIS

TRU

STER

S T

RU

STER

S N

EUTR

AL

GLOBAL 51 China 76

UAE 68

Singapore 67

India 65

Indonesia 63

Mexico 63

Netherlands 61

Hong Kong 61

Canada 58

Malaysia 57

Italy 56

Argentina 54

Australia 53

Brazil 51

Sweden 49

U.S. 49

South Korea 44

Poland 44

U.K. 41

Ireland 41

France 40

Germany 39

Spain 37

Japan 34

Russia 32

EDELMAN TRUST INDEX: EUROPE MOVES FROM DISTRUSTERS TO NEUTRAL, MALAYSIA NOW 7TH MOST TRUSTING NATION

Composite score is an average of a country’s trust in all four institutions. Informed Publics ages 25-64 in 20-country global total 6

Big Changes from 2012

Germany +16 France +14 UK +12 US +10

2013

7

GLOBAL 57 China 80

Singapore 76

India 71

Mexico 68

Hong Kong 67

UAE 66

Malaysia 64

Canada 62

Indonesia 62

U.S. 59

Netherlands 59

Brazil 55

Germany 55

France 54

Sweden 54

UK 53

Italy 51

Australia 50

Poland 48

S. Korea 47

Ireland 46

Argentina 45

Spain 42

Turkey 42

Japan 41

Russia 36

GLOBAL 48 China 70

India 64

UAE 63

Singapore 63

Indonesia 61

Malaysia 61

Mexico 59

Hong Kong 54

Canada 52

Brazil 51

Netherlands 50

Argentina 48

U.S. 45

Germany 44

UK 43

S. Korea 43

Turkey 43

France 41

Italy 40

Sweden 40

Australia 39

Spain 37

Japan 35

Poland 34

Ireland 33

Russia 30 Composite score is an average of a country’s trust in all four institutions. General population and Informed Publics ages 25-64 in 26 country global total and across 26 countries

Largest Differences between Gen Pop & Informed Publics

Poland, US, Sweden: - 14 points

Singapore, Ireland, Hong Kong,

France: - 13 points

General Population is 9 points lower than

Informed Publics

INFORMED PUBLIC 2013

GENERAL PUBLIC D

ISTR

UST

ERS

TRU

STER

S N

EUT

RA

L

LOWER TRUST AMONG GENERAL POPULATION THAN INFORMED PUBLICS, TRUST HIGH WITH BOTH GROUPS IN MALAYSIA

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics ages 25-64

ROBUST RISE IN TRUST IN MALAYSIA, DOUBLE DIGIT GROWTH IN GOVERNMENT AND MEDIA. HOWEVER, IMPORTANT TO NOTE FRAGILITY OF TRUST

TRUST A GREAT DEAL

TRUST IN INSTITUTIONS – MALAYSIA, APAC & GLOBAL

8

GOVERNMENT BUSINESS

MEDIA NGOS

Total: 47%

Total: 60% Total: 66%

Total: 57%

Total: 68% Total: 76%

Total: 68% Total: 63%

Total: 49% Total: 60%

Total: 60%

Total: 48%

Total: 65% Total: 63% Total: 64%

Total: 58%

Malaysia 2012

Malaysia 2013

APAC 2013

Global 2013

21% 21% 24% 16%

11% 15% 22% 17% 20% 23% 25% 22%

16% 23% 20% 17%

85%

82%

81%

81%

79%

78%

76%

76%

74%

66%

56%

Technology

Banks

Energy

Telecommunications

Automotive

Food and beverage

Consumer packagedgoods

Financial services

Pharmaceuticals

Media

Brewing and spirits

TRUST IN ENERGY SECTOR JUMPS, OTHER INDUSTRIES STABLE. MEDIA AND BREWING STILL LEAST TRUSTED, THOUGH DOUBLE-DIGIT INCREASE

9

TRUST IN INDUSTRIES – MALAYSIA

2013 2012

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 (only industries tracked from 2012 to 2013 shown)

33%

51%

67%

70%

74%

75%

75%

77%

78%

81%

85%

Brewing and spirits

Media

Energy

Consumer packaged goods

Pharmaceuticals

Automotive

Food and beverage

Financial services

Banks

Telecommunications

Technology

2013 APAC

#1 83%

72%

71%

72%

#2 78%

71%

#3 73%

68%

71%

63%

64%

2012 APAC

#1 85%

69%

#3 70%

63%

67%

#2 76%

67%

66%

65%

62%

57%

CULTURAL DIVIDE - BIG BUSINESS TRUSTED MORE THAN SMALL IN APAC

TRUST IN SMALL BUSINESS VS. BIG BUSINESS

70%

76%

70% 66%

70%

62%

53%

79%

72%

77%

GLOBAL DEVELOPED EMERGING APAC MALAYSIA

SMALL BUSINESSES

BIG BUSINESSES

Q15-17. Thinking about different types of businesses, please indicate how much you trust each type of business to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. {Small Businesses or Companies; Big Businesses or Companies) (Top 4 Box, Trust) Informed Publics ages 25-64 in 26-country global total, Developed Markets (includes US, UK, Germany, Japan, France), Emerging Markets (includes Mexico, China, Brazil, Russia, India) , Malaysia and APAC

10

11

86% 86% 82%

77% 75% 74% 73% 73% 72%

70%

55% 51%

46% 45%

Q26-Q42. [TRACKING] Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. Q202A-204A. Now we would like to focus on global companies headquartered in specific countries. Please indicate how much you trust global companies headquartered in the following countries to do what is right. Use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 box – Trust) Informed Publics Ages 25-64 in Malaysia

DEVELOPED-MARKET HEADQUARTERED COMPANIES MOST TRUSTED – EMERGING MARKETS STILL LAG

MALAYSIA’S TRUST IN COMPANIES HEADQUARTERED IN THE FOLLOWING COUNTRIES

EU, LATAM, North America

APAC countries

Q11-14. [NGOs TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries

N/A

50%

NGOS MOST TRUSTED INSTITUTION IN MALAYSIA, TIED FOR 3RD OUT OF 26 COUNTRIES; LICENSE TO LEAD?

TRUST IN NON-GOVERNMENTAL ORGANIZATIONS (NGOS)

2008 67% of markets surveyed have a trust score above 50% 2013 88% of markets surveyed have a trust score above 50%

12

2008 China: 48%

58%

78% 79%

68% 70%

64%

66%

58% 60%

67% 66% 67%

75%

48%

65%

53%

74%

55% 54%

49%

59%

51% 53%

41%

28%

30%

63%

83% 81%

76% 76% 75% 73%

70% 69% 69% 67%

66% 66% 64%

64% 63% 63% 62%

61%

59% 57% 56% 55%

51% 46%

40%

37%

2012

2013

52%

79%

70%

80%

65% 65%

61% 65%

42%

54%

47%

61% 61%

41% 45% 46%

57%

45%

37% 38%

49%

35%

48%

36%

43%

33%

57%

81% 79%

77%

70% 68% 66% 66%

61% 61% 60% 59% 57%

54%

51% 50% 50% 49%

47% 47% 47%

45% 45% 43% 42%

38%

26%

2012

2013

Q11-14. [Media in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) and across 26 countries

N/A

50%

STEADY GROWTH IN TRUST IN MEDIA OVER TIME; RESULT OF DIVERSIFICATION OF OPTIONS AND STRONG COVERAGE OF ISSUES

TRUST IN MEDIA

2008 50% of markets surveyed have a trust score 50% or above 2013 62% of markets surveyed have a trust score 50% or above

13

58% 58%

43% 41% 40%

51% 47%

32% 26%

30%

65% 71%

56% 58% 52%

64% 63%

52% 49% 47%

61%

70%

56% 59% 58%

TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA

Global Developed Emerging APAC Malaysia

Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you "do not trust it at all" and nine means that you "trust it a great deal". General Population in 26-country global total, Developed (US, UK, France, Germany and Japan) vs. Emerging Markets (Brazil, Mexico, Russia, India and China); Age breakdown for general population in 26-country global total, Malaysia, and APAC

HIGH TRUST IN ONLINE SOURCES OF INFO UNDENIABLE, TRADITIONAL STILL HAS AN IMPORTANT ROLE TO PLAY

TRUST IN TYPES OF MEDIA SOURCES FOR GENERAL NEWS AND INFORMATION

59% 61%

49% 47% 44%

61% 60%

48% 45% 43%

56% 56%

40% 37% 37%

54% 49%

29% 29% 31%

TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA SOCIAL MEDIA OWNED MEDIA

18-29 30-44 45-64 65+

GLOBAL AGE BREAKDOWN

14

SKEPTICISM AND DISPERSION REQUIRES REPETITION

Q165. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? (Provide Space to Insert Number) Informed Publics Ages 25-64 in 26-country global total (excludes Don’t Know Responses)

4% ONCE (1)

14% TWICE (2)

64% THREE TO FIVE TIMES

12% TEN OR MORE TIMES (10+)

6% SIX TO NINE TIMES (6-9)

29% FOUR OR FIVE TIMES (4-5)

MAJORITY NEEDS TO HEAR COMPANY INFORMATION 3-5 TIMES TO BELIEVE MESSAGES

35% THREE TIMES (3)

15

CRISIS OF LEADERSHIP

Q1

21 DEC – WIDESPREAD DISTRUST IN MAYANS ! 2

IMAGE OF VIRGIN MARY IN SUBANG, KLCI HITS ALL-TIME HIGH (1688)

LYNAS ALLOWED TO OPERATE / ETP IN FULL SWING YEAR 2

SEX BLOGGER STUDENTS IN SINGAPORE VILLIFIED Q4

PEOPLE-FRIENDLY BUDGET UNVEILED

MALAYSIANS RALLY AROUND PANDALELA AND CHONG WEI

EDUCATION BLUEPRINT POLARISE OPINIONS

Q3

RAPID PENGERANG LAUNCHED / MINIMUM WAGE POLICY ANNOUNCED

BERSIH 3.0 TURNS VIOLENT

JANJI DITEPATI CAMPAIGN LAUNCHED Q2

ERYKAH BADU BANNED / CHUA SOI LEK vs LIM GUAN ENG DEBATE

ANWAR ACQUITTED ON SODOMY II CHARGES

PM REITERATES ‘NAMBIKEI’ CALL FOR INDIANS TO TRUST BN

MALAYSIA 2012 RETROSPECT

17

69%

67%

61%

51%

51%

50%

43%

36%

Academic or expert

Technical expert in thecompany

A person like yourself

Financial or industry analyst

NGO representative

Regular employee

CEO

Government official orregulator

EXPERTS AND PEERS ARE STILL MOST TRUSTED, CEO & GOVERNMENT OFFICIAL LESS CREDIBLE. THIRD PARTY VALIDATION BECOMES IMPORTANT

CREDIBLE SPOKESPEOPLE GLOBAL VS MALAYSIA

29%

38%

46%

50%

50%

65%

66%

68%

Government official orregulator

CEO

Financial or industry analyst

NGO representative

Regular employee

A person like yourself

Technical expert in thecompany

Academic or expert

2013 2012

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore, Turkey and UAE) (only spokespeople tracked from 2012 to 2013 shown) 18

71%

73%

69%

63%

54%

43%

55%

48%

2013

26%

10%

13%

15%

34%

32%

18%

64%

37%

42%

50%

68%

67%

50%

Malaysia

France

Germany

US

India

China

Global

Trust in Business Trust Business Leaders to tell the Truth

21%

8%

6%

10%

20%

24%

13%

59%

33%

38%

38%

55%

71%

41%

Malaysia

France

Germany

US

India

China

Global

Trust in Government

Trust Government Leaders to tell the truth

LEADERSHIP TRUST GAP GAP IN TRUST IN INSTITUTION VS. TRUST IN LEADERSHIP

Q11 -14. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust); Q144A-147A. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust business leaders to do the following? Q144B-147B. [“To Tell the Truth Regardless of how Complex or unpopular it is”] How much do you trust government leaders to do the following? (Top Box, Trust A great Deal) General Population

-32

-35

-34

-35

-27

-28

-47

-35

-28

-25

-29 -32

19

-38 -38

30% 35%

29% 26%

SOLVE SOCIAL OR SOCIETAL ISSUES CORRECT ISSUES WITHIN INDUSTRIES THAT ARE

EXPERIENCING PROBLEMS

MAKE ETHICAL AND MORAL DECISIONS

TELL YOU THE TRUTH, REGARDLESS OF HOW COMPLEX OR UNPOPULAR

IT IS

CRISIS IN LEADERSHIP – TRUST IN ETHICS AND MORALITY VERY LOW MALAYSIANS’ TRUST BUSINESS AND GOVERNMENT LEADERS TO DO THE FOLLOWING:

27% 25% 28% 21%

SOLVE SOCIAL OR SOCIETAL ISSUES CORRECT ISSUES WITHININDUSTRIES THAT ARE

EXPERIENCING PROBLEMS

MAKE ETHICAL AND MORALDECISIONS

TELL YOU THE TRUTH, REGARDLESSOF HOW COMPLEX OR UNPOPULAR

IT IS

GOVERNMENT LEADERS

20

BUSINESS LEADERS

Q144A-147A. [SPLIT SAMPLE] How much do you trust business leaders to do the following? (Top Box- Trust A great Deal) General Population in Malaysia

TRUST BUILDING

16 ATTRIBUTES TO BUILDING TRUST

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

PLACES CUSTOMERS AHEAD OF PROFITS

INTEGRITY (58%)

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICES

PURPOSE (47%)

OPERATIONS (39%)

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES

PRODUCTS & SERVICES (54%)

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS

ENGAGEMENT (59%)

Edelman Trust Barometer research reveals 16 SPECIFIC ATTRIBUTES which build trust.

These can be grouped into FIVE PERFORMANCE CLUSTERS listed here in rank order of importance.

22

24%

31%

27%

34%

27%

31%

30%

33%

27%

29%

32%

32%

30%

36%

42%

37%

40%

42%

45%

46%

47%

49%

50%

50%

54%

55%

56%

58%

58%

59%

59%

60%

PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESSSOCIETAL ISSUES

RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIESTO WORK FOR OR MOST ADMIRED COMPANIES

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY INWHICH THE COMPANY OPERATES

ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

TREATS EMPLOYEES WELL

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITSBUSINESS

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

PLACES CUSTOMERS AHEAD OF PROFITS

HAS ETHICAL BUSINESS PRACTICES

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

23

-23

-17

-23

-28

-26

-24

-26

-27

-17

-20

-18

-20

-12

-18

-11

-16

Q80-Q96. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in Malaysia(excludes ‘Don’t Know’ responses Q114-Q129. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in Malaysia

TRUST BUILDING ATTRIBUTES – LARGE GAP IN EXPECTATION VS. PERFORMANCE BUSINESS IMPORTANCE VS. COMPANY PERFORMANCE – MALAYSIA

Gap

Importance Performance

24

THE NEW DYNAMIC – DIAMOND OF INFLUENCE: INCLUSIVE MANAGEMENT

PYRAMID OF COMMUNITY (Horizontal)

PYRAMID OF AUTHORITY (Vertical)

Traditional ACTION CONSUMERS

EMPLOYEES

G E N E R A L P O P U L A T I O N

SOCIAL ACTIVISTS

CEO

BOARD OF DIRECTORS

GOVERNMENT OFFICIALS

ACADEMICS

TECHNICAL EXPERTS

ELITE MEDIA

Search & Content

TO 2013 FROM 2000

FEW MANY

DICTATE CO-CREATE

FIXED FLEXIBLE

MONOLOGUE DIALOGUE

CONTROL EMPOWERMENT

LESSONS FOR ALL LEADERS

25

Observe re-ordering of authority

Old values are not sufficient

Clear opportunity for collaboration

Trust is fragile and perceived behaviors are an anchor

On the cover credits: HSBC: REUTERS/ Bobby Yip; UBS: REUTERS/Luke MacGregor; Bob Diamond: REUTERS/ Luke MacGregor; Bo Xilai: REUTERS/ Cheryl Ravelo ; Lance Armstrong: by Sebastian David Tingkæ r; Angela Merkel: REUTERS/ Sebastien Pirlet; Rajat Gupta: REUTERS/ Brendan McDermid; George Entwistle: Associated Press/ Rex Featu