Malaysian 4As waives IRDA's pitch fee

KUALA LUMPUR - A disagreement between the Iskandar Region Development Authority (IRDA) and the 4As has moved towards a resolution after the advertising industry body conceded that IRDA does not have to pay a pitch fee now mandatory for large advertisers in Malaysia.

The government department invited agencies to pitch for its advertising business earlier this month via an open brief published in the national press. The 4As has since criticised IRDA for not agreeing to pay a fee to pitching agencies (Media, 24 July).

In a letter to Media, Donovan Foong, the executive director of the Malaysian 4As, wrote: "The council upon further investigation of the charter of IRDA, have found them to be a non-profit organisation and as such exempts them from paying pitch fees."

But Foong maintained that he is not happy with the way IRDA's pitch is being managed. He said: "We still do not advise clients to call for open pitches as it wastes [pitching agencies'] undue costs and manpower.

Nasser Bin Ismail, IRDA's VP of strategic communications, responded: "We definitely do not fall into that category as our RFP advertisement states specifically that only members of the 4As will be considered. They [agencies] are also required to produce a copy of their membership to the 4As."

So far 14 agencies have answered IRDA's RFP. The deadline for submissions is 1 August.