+ | - | reset

The COVID-19 pandemic has had a profound impact on businesses in Malaysia. Issues like falling consumer confidence, job loss and supply chain disruption have occupied not just the news, but also the consciousness of business executives and the public.

What does all this mean for trust in business?

We believe that businesses can and should measure and proactively manage their trust levels in authentic ways. Up until now, our studies on trust as well as The Building Trust Awards have been focused on companies with large market capitalisation. In an attempt to widen the trust conversation, we’re expanding our focus to look at trust in the context of medium-sized public companies in Malaysia in times of crisis.

Using our proprietary trust analytics framework, we’ve set out on a journey to find out:

  • How medium-sized public companies in Malaysia build trust with their stakeholders in difficult times
  • What factors drive the level of trust in these companies
  • What businesses can do to shape their trust narrative during times of crisis

This report summarises key learning points from our study of the FTSE Bursa Malaysia (FBM) Mid 70 Index companies based on data collected between January and June 2020.

What COVID-19 has taught us about trust in business in Malaysia

Agility and customer-centricity drive capability trust

Companies with high capability trust in our study show great agility and put a strong focus on their customers when the crisis hit.

The strong positive correlation between capability trust scores and market performance suggests that these traits have the potential to move markets.

trust adversity 01
trust adversity 02

Building trust goes beyond paying lip service

Transparency in the context of building trust means more than providing information to your stakeholders. Companies that achieve a high transparency score during the first 6 months of 2020 also display honesty, fulfill their promises and prioritise health and safety.

CEOs must take the lead in engendering trust within the organisation through transparency. We offer four questions to kick-start the thinking.

Responsible businesses win trust

The top five industries in our study have one thing in common: they also score highly in responsibility trust.

Healthcare companies lead the pack, while real estate companies hone in on trust amid uncertainties.

trust adversity 03

High-trust companies suffered smaller initial loss and rebounded quicker

High-trust companies in our study would lose 13.57% in value, collectively, in the month when WHO declared COVID-19 a global pandemic. And when June arrived, they recovered that initial loss and went on to gain 14.74% more than where they started in February.

Medium- and low-trust companies suffered greater initial losses and were slower to rebound.

trust adversity 04

This article was first published here.

Photo by Markus Winkler on Unsplash.

Rate this article

0 / 5. 0

Is this article good for you?
deepmind s2TPKAD6fag unsplash 1 scaled
9  Read

Why it’s Important to Make the Metaverse an Enabler of Sustainability

12 January 2023

timon studler ABGaVhJxwDQ unsplash scaled
5  Read

How Businesses Can Step Up for Human Rights During this Global Crisis

03 November 2022

pexels pixabay 209224 scaled
4  Read

The Rising Importance of Managing Tax Risks

29 August 2022

testalize me KWb 41kG0GE unsplash scaled
11  Read

What Went Wrong with Theranos

28 July 2022

nastuh abootalebi yWwob8kwOCk unsplash
9  Read

Tunnel Vision or the Bigger Picture

31 May 2022

marek piwnicki Dcp3sz56P g unsplash scaled
23  Read

Building Credible Climate Commitments – A Road Map to Earning Stakeholder Tr...

20 April 2022