The Malaysian Wealth Market 2006

TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION 9
What is this report about? 9
Who is the target reader? 9
How to use this report 9
CHAPTER 2 MACROECONOMIC OVERVIEW 11
Market comparisons 11
The four economies 11
Inflation and consumer prices 14
Population and unemployment 15
CHAPTER 3 THE MALAYSIAN WEALTH MARKET 18
Market background 18
Savings and investments 18
Size of the affluent market 20
Financial services and the regulatory environment 24
Financial services 24
Capital markets 25
Competitive dynamics 27
The local players 27
The foreign players 28
Developments in 2006 28
November 2006 - CIMB launches Malaysian fund-of-funds 31
Future focus 33
The affluent outlook 33
CHAPTER 4 APPENDIX 37
Data 37
Definitions 42
AAGR 42
Affluent 42
CAGR 42
Gini index 42
Liquid assets 43
Liquid asset bands 43
Research methodology 44
The Global Wealth Model 45
The UK sub model 45
Asia-Pacific sub model 45
Forecasting methodology 45
Datamonitor’s wealth numbers compared with others’ numbers 46
Bespoke Wealth Market Sizing 47
Further reading 48
Datamonitor Asia-Pacific Wealth Reports 48
Datamonitor Asia-Pacific Insight Reports 48
Datamonitor Global Wealth Service: Competitor Tracking 48
Asia-Pacific contacts 49


LIST OF TABLES
Table 1: The local players have a much larger share of the Malaysian banking market than the foreign players 28
Table 2: Sectoral breakdown of GDP in Malaysia, Thailand, South Korea and Taiwan, 2005 37
Table 3: Indexed GDP growth, 1999=100 37
Table 4: TypeTableTitleHere 37
Table 5: Consumer Price Indices of Malaysia, Thailand, South Korea and Taiwan, 2000-2005 38
Table 6: Rate of unemployment in Malaysia, Thailand, South Korea and Taiwan, 2000-2005 38
Table 7: Population breakdown by age in Malaysia, Thailand, South Korea and Taiwan, 2005 38
Table 8: Malaysian retail savings and investments, 2000-2005 39
Table 9: Onshore liquid wealth owned by individuals in Malaysia, 2001-2005 39
Table 10: Number of affluent individuals in Malaysia, 2001-2005 40
Table 11: Onshore liquid wealth owned by individuals in Malaysia, 2006-2010 40
Table 12: Number of affluent individuals in Malaysia, 2001-2005 41
Table 13: Wealth markets that have been modelled using the Global Wealth Model 47


LIST OF FIGURES
Figure 1: Report structure and research model 10
Figure 2: A sectoral breakdown of the four economies reveals varying reliance on the services sector, with Taiwan’s economy being the most reliant 12
Figure 3: After a slow 2000-2002, the Malaysian economy grew rapidly between 2001 and 2005 13
Figure 4: Malaysia’s economy is the smallest of the four but saw good average annual growth over the 2001-2005 period 14
Figure 5: All four economies have seen low inflation of consumer prices over the 2000-2005 period 15
Figure 6: Of the four countries Malaysia has the youngest population profile 16
Figure 7: All four countries have low unemployment on a global scale, with Thailand’s rate the lowest in 2005 17
Figure 8: Retail savings and investments outgrew GDP growth over the 2000-2005 period 19
Figure 9: The investible assets of affluent individuals in Malaysia amounted to more than USD112bn at the end of 2005 21
Figure 10: The number of those with between USD60,000 and USD500,000 grew at an average annual rate of 9.4% between 2000 and 2005 22
Figure 11: The number of individuals with more than USD500,000 in investible assets grew by 8,600 between 2000 and 2005 23
Figure 12: Mass affluent individuals with between USD60,000 and USD500,000 will own almost half of all retail liquid assets in 2010 33
Figure 13: The number of individuals with between USD60,000 and USD500,000 in investible assets will grow by almost 40% between 2005 and 2010 34
Figure 14: The overall liquid wealth of affluent individuals will grow at a rate of 8.1% compounded annually over the 2005-2010 period, primarily benefiting the most affluent individuals 35
Figure 15: The fastest growing high net worth sub-segment over the 2005-2010 period will be that composed of individuals with USD3m-4m in onshore liquid assets 36