Malaysia Wealth Management – High Net Worth (HNW) Investors 2021

Pages: 33 Published: February 18, 2022 Report Code: GDFS0565CI

Most high net worth (HNW) individuals in Malaysia earned their wealth through entrepreneurship and are showing strong demand for planning and lending products. However, a multi-service proposition is a must as demand is expected to increase across all planning services and mandates, especially robo-advice services as HNW investors show greater demand for digitization of advisory services.

The Malaysia wealth management report sizes the opportunity within Malaysia’s wealth market and analyzes the investment preferences, service requirements, and portfolio allocations of Malaysian HNW investors. The report is based on GlobalData’s proprietary Global Wealth Managers Survey.

What are the market dynamics in Malaysia wealth management industry?

In 2020, despite the adverse economic consequences of the outbreak of the COVID-19 pandemic, the Malaysian entrepreneurial segment remained resilient. In the period of January-November 2021, new companies and new businesses were registered in Malaysia. This can be attributed to various government initiatives that support entrepreneurs and SMEs. In June 2020, the government launched Dana Penjana Nasional, for venture capital firms to invest in startups. To further nurture the development of a startup ecosystem, in February 2021, the Malaysian government launched the MyDIGITAL initiative as part of the Malaysian Digital Economy Blueprint plan (2021-2030). Clearly, supporting the young entrepreneur segment presents a significant opportunity in Malaysia. While not all will succeed, targeting entrepreneurs early on, even if they do not qualify as HNW yet, has the potential to create goodwill in the long-term.

The inheritor segment currently represents a small proportion of the Malaysian HNW wealth market. However, this is expected to grow over the years given the current aging HNW cohort. Keeping in mind the intergenerational wealth transfer, wealth managers should update their service offering to cater to the preferences of the second and third generations, many of whom are taking over or will take over the family wealth.

What are the various investment services for HNW investors in the Malaysia wealth management market?

Advisory asset management, automated investment services, discretionary asset management, execution-only asset management, and life insurance are the various investment services for HNW investors in Malaysia’s wealth management market.

While advisory mandates dominate in terms of managed HNW wealth in Malaysia, their forecast demand is among the lowest. In addition, contrary to other wealth markets, discretionary mandates rank low in forecast demand, highlighting the lack of absolute trust in wealth managers’ services as a factor affecting demand for advisory services. While automated investment services are not currently among the most popular forms of investment mandates in Malaysia, they are slowly growing traction. This may be driven by the growing availability of financial technology and information that allow investors to receive similar advisory services at reduced overall costs. The Malaysian government is actively promoting digitization, resulting in various wealth management firms embracing technological advancements by developing in-house digital platforms or entering the wealth management market as sole provider of robo-advisory services.

Malaysia wealth management market, by investment services

Malaysia wealth management market, by investment services

For more investment service insights, download a free sample

What are the major asset classes of wealth allocation for HNW investors in the Malaysia wealth management market?

Equity, cash and near cash, bonds, property, alternatives and commodities are the major asset classes of wealth allocation for HNW investors in Malaysia’s wealth management market.

In line with the trend observed in the wider region, equities and bonds are the major asset classes to which the Malaysian HNW investors allocate their wealth. While Malaysians tend to be conservative, the high predominance of Muslims in the population and the popularity of Islamic finance contribute to the popularity of equity as an asset class.

Malaysia wealth management market, by wealth allocation

For more wealth allocation insights, download a free sample

For more wealth allocation insights, download a free sample

What are the major asset classes of offshore investment for HNW investors in the Malaysia wealth management market?

Equity, cash and near cash, bonds, property, alternatives, and commodities are the major asset classes of offshore investment for HNW investors in Malaysia’s wealth management market. The Malaysian offshore investment portfolio is mainly exposed to asset classes, such as property and alternatives, that provide avenues to investors to diversify the overall risk on overseas investments. Investment in properties abroad has the potential for healthy long-term returns.

Malaysia wealth management market, by offshore investment

Malaysia wealth management market, by offshore investment

For more offshore investment insights, download a free sample

Market report scope

Major asset classes of wealth allocation Equity, Cash and Near Cash, Bonds, Property, Alternatives, and Commodities
Major asset classes of offshore investment Equity, Cash and Near Cash, Bonds, Property, Alternatives, and Commodities
Investment services Advisory Asset Management, Automated Investment Services, Discretionary Asset Management, Execution-Only Asset Management, And Life Insurance

Scope

  • Expats constitute a mere 5.8% of the local HNW population. However, they represent an attractive target market thanks to their more complex service requirements.
  • Robo-advice accounts for just 2.0% of the Malaysian HNW portfolio. But demand for robo-advisory services is expected to grow at the strongest rate compared to other investment mandates over the next year.
  • Malaysian HNW individuals spread their investments almost in line with the Asian average, with equities, bonds, and property dominating.

Reasons to Buy

  • Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
  • Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
  • Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.
  • Develop your service proposition to match the demand expressed by Malaysian HNW investors and react proactively to forecasted changes in demand.

Key Players

MYTHEO

Table of Contents

Table of Contents

Demographics

Expats

Investment Style Preferences

Asset Allocation Preferences

Offshore Investment Preferences

Products and Services

Appendix

Frequently Asked Questions

Advisory asset management, automated investment services, discretionary asset management, execution-only asset management, and life insurance are the various investment services for HNW investors in the wealth management market in Malaysia.

Equity, cash and near cash, bonds, property, alternatives and commodities are the major asset classes of wealth allocation for HNW investors in wealth management market in Malaysia.

Equity, cash and near cash, bonds, property, alternatives, and commodities are the major asset classes of offshore investment for HNW investors in the wealth management market in Malaysia.

$1,295

Can be used by individual purchaser only

$2,590

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

Get in touch to find out about our multi-purchase discounts

reportstore@globaldata.com
Tel +44 (0) 20 7947 2960

Every customer’s requirement is unique. We understand that and can customize the report basis your exact research requirements pertaining to market insights, innovation insights, strategy and planning, and competitive intelligence. You can also avail the option of purchasing stand-alone sections of the report or request for a country specific report.

Still undecided about purchasing this report?

Enquire Before Buying

Request a Free Sample

Testimonial

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods