Ranks 36th in the Global Soft Power Index 2025, with notable strides in governance, values, and educational development
KUALA LUMPUR, 25 February 2025 – Malaysia continues to enhance its global standing, ranking 36th with a score of 46.1 out of 100 in the Global Soft Power Index 2025, according to a new report from Brand Finance, the world's leading brand valuation consultancy. This year’s results emphasise significant improvements across key pillars such as People & Values, Governance, and Education & Science, highlighting the nation’s rising influence on the world stage.
A major highlight this year is the country’s leap to 12th place in the ‘future growth potential’ attribute, climbing seven spots and bolstering Malaysia’s optimistic economic outlook. This improvement reflects the country’s increasing role in shaping the global economic landscape, with greater prospects for business and trade.
Malaysia has made notable progress in the People & Values pillar, advancing seven spots to 32nd place. This rise reflects growing global recognition of the country’s friendly and welcoming nature, as evidenced by a remarkable 11-place jump to 25th in the ‘friendly people’ ranking. The nation’s reputation for trustworthiness has also strengthened, securing a solid 30th place in global perceptions. These shifts highlight Malaysia's increasing stature as a country that values warmth, openness, and integrity in its interactions on the world stage.
Alex Haigh, Managing Director Asia Pacific, Brand Finance, commented:
"Malaysia’s ascent in the Global Soft Power Index highlights its evolving stature as a global influencer. The country’s substantial progress across critical pillars such as Governance, and Education & Science, underscores its strategic alignment with the forces of economic and geopolitical change. With its commitment to transparent governance, enhanced ethical standards, and an increasingly robust educational system, Malaysia is establishing itself as a hub for innovation and long-term growth on the global stage”
Malaysia ranks 35th in the Governance pillar and has made notable progress in the ‘high ethical standards and low corruption’ attribute, rising to 29th place. This advancement reflects the country’s continued dedication to strengthening governance practices and reinforcing a transparent, ethical leadership model amidst global challenges.
Malaysia’s 11-place rise to 30th in educational systems underscores the country’s ongoing efforts to strengthen its education infrastructure. This progress is a clear reflection of the nation’s commitment to enhancing educational standards and preparing future generations for success in an increasingly competitive global environment. As the nation continues to invest in academic innovation and skill development, it is enhancing its role as a key contributor to global academic growth and a destination for high-quality education.
Brand Finance publishes the Global Soft Power Index based on responses from over 170,000 global participants across more than 100 countries. This comprehensive research assesses perceptions of all 193 United Nations member states across 55 metrics, delivering a detailed view of how nations influence preferences and behaviours on the global stage through attraction and persuasion rather than coercion.
The Global Soft Power Index offers invaluable insights into the evolving dynamics of soft power as nations navigate complex global challenges, providing a comprehensive benchmark for assessing a nation’s influence and appeal on the world stage.
Global Insights: U.S. Leads Global Soft Power, China Rises to Second Spot
The United States maintains its position at the top of the ranking with an all-time highest Global Soft Power Index score of 79.5 out of 100. Once again, it leads in the Familiarity and Influence Key Performance Indicators (KPIs), three out of eight Soft Power pillars, and ranks highest in 12 out of the 35 nation brand attributes.
For the first time, China has surpassed the UK to rank 2nd with a score of 72.8 out of 100 - its highest ever position. Since 2024, China has recorded statistically significant growth across six of the eight Soft Power pillars, and in two-thirds of measured attributes, stemming from strategic efforts including Belt and Road projects, an increased focus on sustainability, stronger domestic brands, and post-pandemic reopening to visitors.
At the same time, the United Kingdom’s drop to third place behind China reflects a period of stagnation in its nation brand perceptions. While scores remain relatively stable, a lack of progress across key pillars – especially Business & Trade, down to 6th, and Governance, down to 3rd, are an argument that the UK should bolster its Soft Power strategy.
El Salvador is 2025’s fastest-rising nation, climbing 35 spots to 82nd with a +3.2-point increase in its Soft Power score. El Salvador has significantly reduced gang violence and homicides, with improving views of El Salvador as ‘safe and secure’ and ‘politically stable and well governed’. El Salvador has also advanced in Business & Trade - its 2021 decision to accept Bitcoin as legal tender, though controversial, has attracted significant attention.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
