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, and thereby encouraging more advertising activities.

       "The World Bank expects Malaysia’s economy to recover by 5.8 per cent 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 today.

       According to Kenanga Research, a decline in quarter-on-quarter (QoQ) ADEX was not surprising as the national lockdown in the third quarter of 2021 (3QCY21) inhibited businesses from operating at optimal level, requiring them to preserve cash at a most crucial time.

       "With the relaxation of standard operating procedures (SOPs) and lockdowns in 4QCY21, we believe 4QCY21 will prove to be a better quarter for the media players as non-traditional segments like newspapers, billboard marketing, and radio will see more advertisement spend from businesses," it added. - Bernama