Wealth in Malaysia: Sizing the Market Opportunity

Wealth in Malaysia: Sizing the Market Opportunity

Code: VF-VF0135CI | Published: May-2016 | Pages: 41 | GlobalData
Price :

* Required Fields



The small but fast-developing Malaysian wealth market slowed down in 2015 as global economic trends - particularly weak growth in China and falling oil prices - negatively impacted retail investment values. Fortunately, the market continued to grow and expand as a proportion of the population, and although the heady growth rates of recent years are largely a thing of the past, wealth managers can still rely upon steady expansion within the countrys investor class.

Key Findings
- The affluent investor class in Malaysia will number 1 million individuals by 2017, adding almost 200,000 people to the market.

- Going forward, the proportion of retail investments in deposits is set to fall, highlighting the continued evolution of Malaysian investment preferences.

- HNW investors have led the way in branching out into more sophisticated investments, with roughly one quarter of their onshore liquid wealth held in non-traditional investments as of 2015.

- Given its proximity and range of sophisticated investments Singapore remains a constant draw for Malaysian wealth, particularly for HNW individuals.

Verdict Financials "Wealth in Malaysia: Sizing the Market Opportunity" analyzes the Malaysian wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically the report:

- Sizes the affluent market (both by the number of individuals and the value of their liquid assets) using our proprietary datasets.

- Analyzes which asset classes are favored by Malaysian retail investors and how their preferences and the development of the local finance industry impact the growth of the total savings and investments market.

- Examines HNW clients attitudes towards non-liquid investments, such as hedge funds, property, and commodities.

- Identifies key drivers and booking centers for offshore investments by Malaysian HNW clients.

Reasons To Buy
- Benchmark your share of the Malaysia wealth market against the current market size.

- Forecast your future growth prospects using our projections for the market to 2019.

- Identify your most promising client segment by analyzing penetration of affluent individuals in Malaysia.

- Evaluate your HNW proposition by understanding how FATCA and CRS are affecting your HNW clients.

- Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.

Table of Contents

The Malaysian wealth market weathered a rough 2014 well
Key findings
Critical success factors
Malaysia is developing as a financial center and as a wealth market
The affluent population is still shy of the 1 million mark
Investible assets are concentrated within the upper tiers of the wealth market
The retail investment market will see strong growth
Retail investments are expected to experience improved growth into the future
The Malaysian investment market is more developed than most markets in Asia Pacific but its retail sector is still focused on deposits
Growth will be healthy across all asset classes, but investors will turn to mutual funds going forward
Retail deposit growth will continue to outstrip GDP growth
Deposit growth moderated in 2015 but will pick up over the forecast period
Economic growth will be steady rather than spectacular, but will sustain growth in deposits
The robust bond growth of 2015 will not persist, returning to 2014 levels
Local wealth managers are highlighting their fixed income offerings
Equities and mutual funds will rebound to stronger growth in 2016
The Kuala Lumpur Stock Exchange suffered in 2015
Equities are a major asset class but have not experienced widespread take-up among consumers
Mutual funds in Malaysia are mainly equity and bond plays
Onshore HNW portfolios are concentrated in simple traditional assets
Just under one quarter of Malaysian HNW assets are in non-liquid asset classes
Offshore banking is a not insignificant drain on onshore assets
Offshore investments among HNW investors is slightly below the Asia Pacific average
The lack of onshore investment options is preventing wealth from coming home
Australia, Singapore, and Hong Kong are the primary beneficiaries of offshore investment
Abbreviations and acronyms
Supplementary data
Liquid assets
Mutual funds
Mass affluent
Sharia investments
Global Wealth Model methodology
The main sub-model
Global Retail Investments Analytics methodology
Verdict Financials 2015 Global Wealth Managers Survey
Further reading
About Verdict Financial

List of Tables

Table 1: Malaysia: adult population segmented by affluent category and asset band (000s), 2009?14
Table 2: Malaysia: adult population segmented by affluent category and asset band (000s), 2015e?19f
Table 3: Malaysia: total liquid wealth segmented by affluent category and asset band ($bn), 2009?14
Table 4: Malaysia: total liquid wealth segmented by affluent category and asset band ($bn), 2015e?19f
Table 5: Malaysian ringgit-US dollar exchange rate, December 31, 2014 and December 31, 2015

List of Figures

Figure 1: The core affluent investor market remains restricted to a tiny (but growing) elite
Figure 2: More than half of all financial assets in Malaysia are held by mass affluent investors
Figure 3: Growth moderated in 2015, reflecting a weaker oil and gas sector, but is expected to improve in 2016
Figure 4: Deposits dominate Malaysian investors onshore holdings
Figure 5: The outsized share of deposits in the Malaysian market has held back growth
Figure 6: Retail deposits should see steady growth over the forecast period, but the heights of 2011?12 are behind the market
Figure 7: Bond growth was healthy in 2015, but a return to 2014 growth seems likely
Figure 8: The stock market in Malaysia has struggled since 2013
Figure 9: Equities and mutual funds will see stronger growth in 2016
Figure 10: Mutual funds in Malaysia are still mainly a way to gain equity exposure
Figure 11: HNW investors have been relatively open to alternatives, strongly favoring property
Figure 12: HNW Malaysians rank well below other Asia Pacific markets in terms of offshore investments, but the share is increasing
Figure 13: Perceptions of a better range of investments compels HNW investors to book assets abroad
Figure 14: Local booking centers attract the bulk of Malaysian offshore investment
Figure 15: Malaysia has pursued comprehensive DTAs

Report Format

Following are different modes of Licenses.

a. Single User License:
This license allows only one person to use the report. This person can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people. Unless you purchase a Site License or a Global Site License, a Single User License must be purchased for every single person that wishes to use the report within the same enterprise.

b. Single Site License:
This license allows unlimited users to use the report within one company location, e.g. a regional office. These users can use the report on any computer and may take print outs of the report but must take care of not sharing the report (or any information contained therein) with any other individual or people.

c. Global Site License:
A Global Site License (or Enterprise wide Site License or Global License) is a license granted to original purchaser, who can share a report with other employees and authorized Users of the same organization.

Quick Help

1. How do you deliver the reports?
The delivery of reports is depends on format & mode of license of report(s). Following are different kinds of formats of report(s) and their delivery options :

a. Electronic Format – Through email from Publisher
Report will be sent to your username email address in PDF, Excel, PowerPoint or any other electronic / softcopy format by publisher.
Delivery Time: 12 to 48 hours [depending on time difference or occurrences of national holidays]

b. Hard Copy or Printed Format or CD-Rom – Through Mail or Courier from Publisher
Report will be sent through mail / courier delivery to your shipping address by publisher.
Delivery Time: Less than, few weeks [depending on time difference or occurrences of national holidays]

2. How can I make payment for publications I purchase?
You could be able to make the payment, in following ways:

a. Online Secure Payment through Credit Card Payment : We accept Visa, Master, AMEX Cards & CCAvenue
b. Transfer of fund to our bank account via Bank transfer or Wire transfer
c. Payment via DD or Cheque
d. Paypal

3. Is it safe to use my credit card on MarketinfoResearch?
Your personal information and online tranaction on Marketinfo Research is secure, private, and tamper-proof. All credit card payments are processed through secure and trusted payment gateways.

If you have a more question about our publications please see our FAQs section or contact us now at cs@marketinforesearch.com.


There are no reports matching the selection.

Browse similar reports by category:
Banking, Finance & Insurance
Verdict Financial

Our Clients