KUALA LUMPUR: Kenanga Research expects a better advertising expenditure (adex) outlook for the media sector moving into 2022, as businesses return to operating at optimal levels, coupled with the strong domestic demand.

       “The World Bank expects Malaysia’s economy to recover by 5.8% in 2022, predominately driven by strong domestic demand and continued growth in exports.

       “As domestic demand strengthens, we expect businesses to follow suit in increasing marketing budget for their products and services; thus, bumping up adex moving forward,” it said in a research note yesterday.

       According to Kenanga Research, a decline in quarter-on-quarter adex was not surprising as the national lockdown in the third quarter of 2021 inhibited businesses from operating at optimal level, requiring them to preserve cash at a most crucial time.

       “With the relaxation of standard operating procedures and lockdowns in the fourth quarter, we believe fourth-quarter 2021 will prove to be a better quarter for media players,” it added. — Bernama