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Wealth in Malaysia: Sizing the Market Opportunity

Wealth in Malaysia: Sizing the Market Opportunity

Summary

Wealth in Malaysia: Sizing the Market Opportunity analyzes Malaysia's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2013 Global Wealth Managers Survey, our Global Wealth Markets Analytics, and our Global Retail Investments Analytics.

Synopsis

  • Size your potential client base using our proprietary data, presenting the number of affluent individuals by liquid asset band to 2018.
  • Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
  • Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
  • Export the graphics from the dashboard, or if you are more at ease using Excel, export the data into your own worksheets.
Reasons To Buy
  • How large is the HNW market in Malaysia?
  • What is the penetration of affluent individuals?
  • What is the current and future mix of asset class balances in Malaysia?
  • How much of their wealth do Malaysian HNW individuals still invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

The small though fast-developing Malaysian wealth market suffered a dramatic deceleration in 2014 as global economic trends, particularly slowing growth in China and falling oil prices, negatively impacted retail investment values.

2014 was the first year to see the proportion of retail investments in deposits fall below 60% of the total portfolio, highlighting the continued evolution of Malaysian investment preferences.


  • Executive Summary
    • The Malaysian wealth market weathered a rough 2014 well
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Malaysian Wealth Market
    • 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
  • Drivers of Growth in the Malaysian Wealth Market
    • The retail investment market will see strong growth
      • Retail investments are expected to experience improved growth going forward
      • The Malaysian investment market is more developed than most markets in Asia Pacific but its retail sector is still focused on deposits
    • Malaysia's emphasis on developing its financial markets is fueling the growth in assets
      • Economic growth will be steady rather than spectacular, but will sustain growth in savings and investments
      • The Kuala Lumpur Stock Exchange suffered in 2014, with foreign investors draining capital
  • HNW Investment Preferences
    • Onshore HNW portfolios are concentrated in simple traditional assets
      • One third of Malaysian HNW assets are in non-traditional classes
      • Alternatives are forecast to grow as a proportion of HNW investments
    • Offshore banking is a not insignificant drain on onshore assets
      • Offshore investments among HNW investors is below average for Asia Pacific
      • The lack of onshore investment options is preventing AUM from coming home
      • Tax considerations are important, mainly as they relate to income or property
      • Singapore and Hong Kong are the primary beneficiaries of offshore investment
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Malaysia: adult population segmented by affluent category and asset band (000s), 2008-13
      • Table Malaysia: adult population segmented by affluent category and asset band (000s), 2014e-18f
      • Table Malaysia: total liquid wealth segmented by affluent category and asset band ($bn), 2008-13
      • Table Malaysia: total liquid wealth segmented by affluent category and asset band ($bn), 2014e-18f
    • Definitions
      • Affluent
      • Domicile
      • HNW
      • Liquid assets
      • Bonds
      • Cash
      • Deposits
      • Equities
      • Mutual funds
      • Mass affluent
      • Onshore
      • Residency
      • Sharia investments
      • Tax information exchange agreements
    • Methodology
      • Global Wealth Model methodology
      • The main sub-model
      • Global Retail Investments Analytics methodology
        • Table Malaysian ringgit-US dollar exchange rate, December 31, 2013 and December 31, 2014
      • Verdict Financial's 2013 Global Wealth Managers Survey
    • Bibliography
    • Further reading

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