Asia business robust despite UK troubles: M&C Saatchi

After months of being embroiled in an accounting scandal that resulted in the departures of Maurice Saatchi and three non-executive directors this week, M&C Saatchi has said its Asian business remains robust and unaffected by any aftershocks.

"Asia is the fastest-growing region for M&C Saatchi network globally," Richard Morewood, CEO of M&C Saatchi Asia, told Campaign Asia-Pacific. "M&C Saatchi Australia, Malaysia and Shanghai—three out of the top six offices globally—are in Asia and lend a strong foundation to M&C Saatchi's global operations," he said. Newer offices in Jakarta, Mumbai and Hong Kong have been adding new business and staff, he said.

M&C Saatchi returned to Hong Kong in September last year, after a five-year break. A spokesperson pointed out that the agency had managed to retain several marquee clients--such as Malaysian Airlines--which it has held for 15 years. By operating as independent offices, the agency is mostly insulated from any aftershocks of the UK accounting mess.

Morewood joined M&C Saatchi in October 2016 after a five-year stint with DDB.

In the past couple of years, the agency has been building out its Asia business, adding heft to its capabilities by acquiring creative agencies such as Scarecrow in India and bringing on top talent such as Anish Daryani in Jakarta, Spencer Wong in Hong Kong and Manish Bhatt in Mumbai. It has also won key accounts such as Tourism Australia and the Asian mandate for French football club Paris St. Germain.

As M&C Saatchi continues to grow, Morewood said that the fallout from the "accounting miscalculation" was limited to the UK and two or three companies in the network, (of over 140 globally), which are being re-structured to ensure their profitability going into 2020. "The Chairman, CEO and two other executive directors remain, and they will be working to reconstruct the board with new independent directors as soon as possible," he added.

There are no layoffs or redundancies planned at M&C Saatchi Asia, with the region operating profitably, as it has done for over 15 years, according to Morewood. "It continues to produce great work, and we have strong growth plans for 2020 and beyond," he added.