Welcome to the third edition of Faqcheck Insights! Here, businesses and organizations can gain valuable insights into trends and potential informational threats that could impact their brand's reputation.

Our biweekly blog is crafted to assist both local and international companies operating in Malaysia in navigating the complex online content landscape, helping them identify and counteract sources of misinformation and disinformation.

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Troubled Boeing

Boeing's reputation continues to be the talk of the town with reports surfacing about its operations, production problems and quality concerns.  As pointed out in Faqcheck’s last edition, reports about incidents involving this plane manufacturer raises the need to have verified information and facts shared with the public about safety of flying.  And, consequently, these reports affect its reliability as a provider of aircraft to commercial airlines all around the world.

Unverified video posts like this, which displays questionable content on an alleged crash, brings home the crucial need for companies to be across misinformation on social media.   Leaving such content to go viral, sparks anxiety, fear and unnecessary backlash on a company’s product and brand.

Some users in the online community are quick to associate bad news with a brand regardless of what the news source is or whether it is verifiable.  Small but significant news of a Boeing plane being pushed by winds, a plane door from an Alaskan airlines flying off mid-flight, plus the delay and issues of the Boeing Starliner are examples of negative news that impacts its reputation.

The airplane manufacturer does not necessarily face the impact of a reputational crisis directly, but its consumer-facing clients do.  According to this report, some airlines are frustrated with Boeing’s delays and production quality.  Dubai-based Emirates, one of Boeing’s largest customers at US$52 bil worth of plane purchases, was “visibly angry” with the slow delivery of its latest plane order. Managing customers’ relationship is key, on top of keeping across any form of disinformation before it becomes an issue particularly when public confidence is affected.  

Airlines that use Boeing planes do continue to prioritize passenger safety, adhering to rigorous maintenance and operational standards. Despite media reports about Boeing’s planes, flying continues to be very safe. Data from the International Air Transport Association saw a significant achievement of  2023 saw no fatal accidents or hull losses for jet aircraft, leading to a record-low fatality risk rate of 0.03 rate per million sectors. Boeing itself in its 3rd Annual Safety Report highlighted several extra safety features, training and reporting channels to ensure their reliability. 

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Diesel subsidies removed

Malaysia has initiated the partial removal of diesel subsidies in Peninsular Malaysia, intended to help with the government’s fiscal health and streamline subsidies for those in lower-income groups.  Price of diesel will be floated each week, and that’s subject to market forces. 

Public response has been mixed, with some reactions to worries about price hikes leading to increased cost of living, and others praising the government policy as a sustainable approach to manage costs and encourage use of renewable energy sources.

Online chatter from this post and this one point to a general mistrust of the government’s intended targeted approach, and  some calling for the return of blanket subsidies to all sectors.   

There are two camps to this policy shift. Private diesel car owners are voicing their discontent over the move, worried the price fluctuations will impact their personal vehicle use and raise prices of goods. This Tiktok video shows public distrust about its impact and how these price fluctuations could possibly be passed on to end-consumers, with conversations here of how much it would cost to fill up a vehicle.

But on the other hand, commercial vehicle operators are countering the narrative by highlighting how subsidies are still in place for them, thus negating arguments for higher prices of goods. 

News about this rationalisation could generate confusion, anger, or even misinformation about price gouging, “greedflation” and unreasonable price hikes. Unethical price hiking could lead to consumers seeking alternative products, akin to boycotting the offending brand. Companies need to be careful about adjusting their price of goods and services, as any hikes need to be factually relevant and justified, and ensure this is communicated clearly to its customers to maintain trust. And because these topics are likely to dominate public conversations, companies affected by this policy shift need to stay alert to stem any rumours that affect their consumer base.

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Israel-Palestine war: ZIM Containers

The Malaysian government has imposed an immediate and indefinite ban on vessels owned by the Israeli shipping company ZIM from docking at any of its ports. This decision, announced in December 2023, also extends to all Israeli-flagged ships and those en route to Israel from loading cargo at Malaysian ports. 

The ban comes in response to Israel's military actions in Gaza, which Malaysia views as violations of humanitarian principles and international laws.

The move affects not only future docking schedules but also requires logistics companies, importers, exporters, and shipping companies to make alternative arrangements for their cargo. This policy reversal marks a significant shift since ZIM had been docking at Malaysian ports since 2002​. 

What is interesting about this development is how quickly port authorities and the customs department responded to the news and online chatter when such news broke. Swift responses like this allows public or private sector organisations to take control of narratives to avoid rumour-mongers and misinformation.  

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Beware of scams

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Scams - everyone can be affected by it, as proven by seemingly countless reports in the media.  It’s all too familiar, as news organisations churn out reports of sophisticated schemes and significant financial losses with around RM1.2bil lost in 2023 alone in Malaysia. These scams range from telecommunications fraud, such as SMS contest scams and phone impersonations, to online investment scams promising unrealistic returns​.

Investment scams have notably involved using the images of celebrities, politicians, and well-known preachers to create a facade of legitimacy. For instance, "Shariah-compliant investment" scams promised returns up to 50 times the investment value and used the images of public figures without their consent, leading to over RM11 million in losses this year​.  

A few recent examples include national badminton player Lai Pei Jing who said she nearly lost all her savings, and former shuttler Tan Boon Heong who admitted he lost RM2.5mil to another scheme. Social enterprise Picha Eats was not spared either after they were tricked into preparing for a 500-pax event based on a forged letter from a local university.  

This case acts as a public service announcement for businesses to be on the alert for fake contracts or jobs. Aside from appealing for help with the case, Picha Eats also helpfully reminded other businesses to always check suspicious phone numbers on the Royal Malaysian Police Forces’ semakmule website.

The National Credit Counseling and Debt Management Agency (AKPK) has some useful tips on how to avoid scams, and Malaysian banks have acted with stricter measures to verify large transactions made based on social media advertisements.

As a regulator, Bank Negara Malaysia has also rich resources to help companies and individuals to spot misinformation, fake news and suspicious transactions. 

Local banks have also been encouraged to take action to deter scams, and these include tightening fraud detection rules, verification and cooling-off period for first-time enrolment for ebanking services or secure devices, and 24/7 dedicated complaint channel for customers. 

These approaches were noted to have an effect according to the Industry Task Force on Measures to Combat Financial Scams and Association of Banks in Malaysia.  The organisations note that RM383mil of suspicious transactions were prevented from January to December 2023. 

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