SG ranked Asia's strongest nation brand, 5 ASEAN countries see brand value growth

Singapore has been ranked Asia's strongest nation brand with a score of 82.6 out of 100, coming in fourth overall globally after Switzerland, Canada and Netherlands. According to Brand Finance Nation Brands report, Singapore scored particularly high in business and trade and governance and the country's Brand Strength Index (BSI) score has remained stable over the years and during the COVID years.

Singapore has used a mix of compulsory and non-compulsory measures during the pandemic to control the spread of the virus. The country's adaptability and the quicker response cycle to the ever-changing pandemic situation has kept Singapore ahead of other ASEAN and Asian nations, the report said.

At the same time, Brand Finance APAC's MD Samir Dixit told MARKETING-INTERACTIVE that Singapore's response to the pandemic scored highly, with the country's domestic score being 9.9 out of 10 and specialist score being 10 out of 10. This is the main factor for its increase in brand strength and move up from 6th to 4th in the brand strength ranking. 

The nation brand strength methodology includes the results of the Global Soft Power Index, which surveyed opinions of over 75,000 people based in more than 100 countries. The United Arab Emirates, Japan and South Korea have also broken the Western monopoly in the brand strength ranking, claiming 11th, 15th and 19th positions respectively.

When asked by MARKETING-INTERACTIVE about the ranking, Singapore Economic Development Board's SVP, Chan Ih Ming, said Singapore’s strong connectivity, established physical and digital infrastructure, rule of law and good governance, robust intellectual property rights protection regime, as well as skilled and educated workforce, are advantages that will enable businesses to continue to drive growth and innovation. According to Chan, these fundamentals and Singapore's reputation for being a trusted and open place to do business are critically important in a fast-changing and increasingly uncertain environment.

"EDB will continue to work with companies and industry stakeholders to drive sustainable economic growth, to create vibrant business and good job opportunities for Singapore and Singaporeans," he added.

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Meanwhile, China and Indonesia were among the top 20 most valuable nation brands. China maintained its spot at second after the US and saw a 5.8% nation brand value increase to US$19,851 billion this year. Meanwhile, Indonesia jumped two spots to 15th this year and saw a 6.6% brand value increase to US$790 billion. It was the only ASEAN country to make the top 20 rankings, with Singapore coming in at 27th and Malaysia at 20th.

Teuku Faizasyah, director general for information and public diplomacy for Indonesia's Ministry of Foreign Affairs said in Brand Finance's report that it will continue to campaign that the country's tourism, especially in Bali, offers a unique blend of rare natural beauty, rich culture, and local hospitality.

"Tourism is one of the economic sectors hardest hit by COVID-19. In the process of opening up the tourism industry post-pandemic, Indonesia is preparing all infrastructure needed to make prospective tourists more confident that throughout their visit to Indonesia, from arrival to departure, they are safe and well taken care of," he added.

In total, five out of seven ASEAN nations ranked in the study saw steady brand value growth and performed well overall. Thailand and Myanmar both slipped in rankings. Myanmar, in particular, was one of the two fastest-falling nation brands alongside Ethiopia due to the unrest in these countries. Meanwhile, Vietnam was ranked ASEAN's fastest-growing nation brand, recording a 22% brand value growth from last year and a 6.5 increase in BSI score.

Brand Finance APAC MD, Samir Dixit, said this is a testament to Vietnam’s intent to double its brand value through a focused nation brand value growth agenda announced by the Prime Minister’s office. "Vietnam’s national brand programme has helped not only develop tourism and attract investment but has also helped increased the value of domestic products and services and promote the image of brand Vietnam in the international community," he said, adding:

This is how most countries should be managing their nation brand – in a focused and structured manner.

Dixit also explained to MARKETING-INTERACTIVE that Indonesia's high 15th position in the nation brand value ranking reflects the size of its GDP, thanks to successful sectors such as manufacturing and commodities. According to him, Singapore (+1.2 points), Malaysia (+1.3 points) and Indonesia (+1.3 points) all saw their familiarity scores increase with certain segments according to our research.

"Familiarity is a key factor in driving other perceptions up. All of the ASEAN countries in the brand strength ranking saw their brand equity increase this year, with the exception of Myanmar which saw a marginal -0.1 point decrease. This is where the US and China both lost ground, seeing a -14.9 and -5.0 point decrease respectively," he said.

To remain competitive as the world gradually recovers from COVID-19 and opens up, ASEAN countries need to focus on their vaccine rollouts and look to open up their economies, internally and externally, as soon as possible. According to Dixit, this needs to be followed up with a concerted effort to ensure both international and domestic travel is safe, they can then start promoting travel to their respective countries. Doing so will require a targeted and focused approach in nation brand marketing as everyone will be trying to attract travellers. In this case, Indonesia has already identified the need to do this with the government launching the new “Thoughtful Indonesia” nation brand in the wake of the pandemic.

Despite making it to the rankings, the ASEAN countries are still far off from China. GDP is a key factor and is intrinsically linked to nation brand value, which means the US and China are in a league of their own compared to the rest of the world. However, Dixit said other countries can, and do, compete when it comes to the brand strength ranking.

"Malaysia currently has the same BSI score (68.4) as China and Singapore ranks well ahead of it in sixth place with a BSI score of 82.6. So the focus should surely be on the management and growth of the brand strength by countries," he said, adding:

The world’s strongest and most established nation brands maintain high levels of investment in their nation brand marketing.

To increase their presence on the global stage, ASEAN countries need to mirror this approach and ensure they are actively working on, monitoring and investing in their nation brand. "That does not mean promoting tourism. Tourism campaigns are not attractive to one set of audience, the holiday seekers and that cannot be treated as nation brand building," Dixit explained.

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