KUALA LUMPUR: Prasarana Malaysia Bhd’s ongoing tender exercise for its Naming Rights initiative for its rail transit system will make Kuala Lumpur the first in Asean to apply the new tender model.
“We have received a lot of interest and tenders from banks, telcos, consumers brands and property developers to secure the locations and with the tender exercise closing on Oct 17, we are very excited about soon delivering a new experience for everyone,” said chief executive officer (CEO) of Prasarana Integrated Development Sdn Bhd (PRIDE), Rudyanto Azhar, in a press release yesterday.
Prasarana said under the Naming Rights exercise, corporations or brands can bid for the right to transform a station to reflect the brand’s corporate identity and name the station after themselves in exchange for a fee, for example “XBrand Bukit Bintang”, while enhancing the overall experience for commuters using it.
Each station has a reserve price but the lowest is RM1 million a year for a minimum of three years and to be eligible, parties tendering must be established in Malaysia for at least two years as well as be financially stable.
“As the concept of Naming Rights is relatively new and we appreciate that there is some caution in committing to it, the tender model offers the best transparency for an opportunity to be a daily and direct touch point with consumers,” said Rudyanto.
Prasarana added that Naming Rights have already been successfully implemented in transit systems in other parts of the world such as the New York Metro, Metro Madrid, Dubai Metro and Mumbai Metro and is among the most exclusive forms of sponsorship and marketing that exist today.
“This is an opportunity to secure some of the most visible, high traffic sites in Kuala Lumpur at a very competitive price because this is the first time it is ever being done,” said Jeff Cheah, CEO of Big Tree Outdoor Sdn Bhd, which is managing the tender.
“Emulating corporate social responsibility commitment, the winning brand will have an obligation to give something back to the city and fulfill the needs of the commuters,” said Cheah, adding that the present trend is such that the public wants corporations to care for their community.
This article first appeared in The Edge Financial Daily, on October 8, 2014.