The decision by Pelaburan Mara Bhd to invest in the The Red Warriors (TRW) last year was based on a commercial policy to enhance branding and marketing activities to boost the company's profit.

According to a statement from Mara Bhd yesterday, the decision to sponsor the Red Warriors football team was a normal practice and the allocation was from the advertising and marketing budget approved by the board of directors.

"Sponsoring the football team was a marketing strategy, just like marketing in the electronic media or print media, online and out of home marketing strategies.

"The sponsorship was an initiative to maximise the identity of the brand to the public," said the statement.

Pelaburan Mara Bhd said it took part in the TRW sponsorship programme in 2016 by spending RM200,000 to buy an advertising package offered for commercial purposes by TRW.

The amount was nine percent of the overall allocation by the company for advertising and marketing, said the statement.

The statement said Pelaburan Mara Bhd was a commercial entity that differed from Mara and served as a profit-based company, with business and marketing strategies that can bring in revenue.

Pelaburan Mara Bhd is the biggest contributor to Mara, since 60 percent of the overall profit for 2016 was from the company.

Last year, the company's profits were 300 percent more than what was earned in 2015.

- Bernama