There is no such thing as bad publicity. This quote is often associated with showman, politician, and businessman Phineas T. Barnum or P.T. Barnum from The Greatest Showman.
Today, every Gen Z and Y can very easily recognise P.T. in the form of Hugh Jackman who’s song “The Greatest Show” is truly a reflection of our world’s politics and commerce.
In the world of PR, issues that often cause commercial stress and pain is bad publicity. A story that comes from death and taxes has never really been any good at bringing smiles. Yes, social media can be filled with dangerous, fake news, I guess this was one story that the communications industry secretly wished was REAL FAKE news. Alas, the source is from the very credible Professor Harmandar Singh, publisher of MARKETING magazine who published the story which was picked up on LinkedIn entitled “Double taxation uproar will decimate marketing communications industry” which connotes that the cost of business is soon set to rise and how will it affect the clients? Will it be passed down?
A former business partner once said its vital that as citizens, we do our duty by paying taxes. I agree. However what if the burden of one’s business revenue/income being taxed eventually leads to one throwing in the towel? Sounds a bit too extreme? Well, let’s not allow it to come to that.
In our everyday lives, what we eat, whatever assets we acquire gets taxed, that blood, sweat and tears get taxed. Taxes are a certainty in life unless you’re a super high net worth individual.
It’s no surprise as it was clearly clarified by our Prime Minister Tun Dr Mahathir Mohamad during “Malaysia: A New Dawn Investors’ Conference” that the Government does not create wealth. They only tax the wealth of the people.
Therefore, business AD agencies, PR Consultancies, Creative Communications firms and design houses will eventually be subjected to not ONLY SST but a DOUBLE SST on top of the corporate tax. The PM did say, in the same conference, that your business profits, 24% belongs to the Govt.
How will this affect the bottom line, especially international agencies, who are required to set healthy ROI back to HQ in New York, London, Tokyo or Singapore and the rest of the world?
If memory serves me right, some international brands are required to return 25% of the profits generate back. How can they build a sustainable business here, unless they move away to cities that are business friendlier, as we have seen a couple of international PR firms exiting Malaysia to service its clients from a nearby location?
Its time the Communications industry be it Advertising, PR, Media etc come together and start to review the future and be part of policy building as the digital economy will create more new tax regimes that will affect the channels we operate in or we may be belting out the song “Never Enough,” from the Greatest Showman!
Syed Idid is the Chief Engagement Officer of Syed Idid Associates, a boutique of PR firm and the EXCO member of the Public Relations Consultants Association of Malaysia PRCAM as well as the Institute of Public Relations Malaysia IPRM Chairman of Publicity and Membership.
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