Wealth in Malaysia: HNW Investors 2016; Understanding HNW investors and wealth management strategies.

Publisher Name :
Date: 30-Sep-2016
No. of pages: 48


The Malaysian HNW sector has seen a shift from self-made wealth towards inherited assets and family ownership as former entrepreneurs pass their wealth on to new generations and family businesses focus on consolidation. Resident investors dominate the market, and the vast majority of expats have been in the country for more than three years. Within the country, investors are increasingly confident and seek more sophisticated products and services, especially within the popular equity space, with high returns and increased convenience the primary drivers for accessing wealth management advice. However, the use of planning services is still limited and notable opportunities exist in this field, especially in the areas of inheritance and pensions.

Key Findings

  • Family wealth dominates the HNW sector, and earned income has lost ground against inherited assets.

  • Malaysia has been negatively affected by recent economic and political problems that have impacted the net worth of many HNW individuals and reduced overall wealth.

  • Advisory mandates are far preferred to discretionary, but self-directed investment is increasing in popularity as investors gain confidence.

  • Fintech is changing the way investors operate, and HNWs are very interested in mobile, online, and digital applications.

  • Equities and cash dominate asset allocation, although fixed income investments are growing in popularity.

  • Demand for planning services is limited, but is expected to grow rapidly in the coming years.


Verdict Financial's "Wealth in Malaysia: HNW Investors 2016" analyzes the investing preferences and portfolio allocation of Malaysian HNW investors. The report is based on our proprietary Global Wealth Managers Survey.

Specifically the report:

  • Profiles the average Malaysian HNW investor in terms of their demographics and analyzes the expat opportunity in Malaysia.

  • Analyzes which wealth management mandates are preferred among Malaysian HNW investors and how demand will develop going forward.

  • Examines the allocation of Malaysian HNW investors' portfolios into different asset classes and how the allocation is expected to develop in the future.

  • Analyzes product and service demand among Malaysian HNW investors.

Reasons To Buy

  • Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.

  • Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors' drivers for seeking investment advice vs. self-directing.

  • 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 service and product demand expressed by Malaysian HNW investors and react proactively to the forecasted change in demand.

Companies Mentioned

  • Maybank

  • The Hong Piow

  • Affin Islamic Bank

  • Bank Islam Malaysia

  • Bank Muamalat Malaysia

  • Maybank Islamic

  • Bank Kerjasama Rakyat Malaysia

  • and Bank Simpanan Nasional

  • Citibank

  • Standard Chartered

  • HSBC Amanah

  • and OCBC

Wealth in Malaysia: HNW Investors 2016; Understanding HNW investors and wealth management strategies.

Table of Contents

Executive Summary
Malaysian wealth is a family affair dominated by increasingly sophisticated and confident local residents
Key findings
Critical success factors

Profiling the Malaysian HNW Investor
Family wealth dominates the Malaysian HNW market
Malaysia has a higher proportion of inherited wealth than its regional peers
Construction and real estate are the biggest sources of wealth for Malaysian HNW investors
Malaysia is dominated by resident investors
Expat opportunities are limited
Specific initiatives, such as the MM2H investor visa program, attempt to attract overseas investors
Wealth managers planning to set up dedicated expat desks require expertise on the Greater China and India markets
Expat HNW investors seek more control over their investments

HNW Investment Style Preferences
Malaysian investors are becoming more demanding
HNW investors expect their advisors to provide better returns
Advisory mandates are the most popular form of investment
Overall demand for other forms of investment mandates is weak
Advisory asset management will remain the service of choice
All services are expected to see strong demand
Malaysian HNW investors are confident and increasingly sophisticated

Understanding Asset Allocation Trends Among Malaysian HNW Investors
Cash and equities dominate asset allocation
Malaysian investors are most comfortable with equity investment
Equities constitute an enduring component of the typical Malaysian HNW portfolio
Malaysian bond investments are growing in popularity
Cash and near-cash products constitute more than a quarter of the average portfolio
Property is a small but significant element of Malaysian HNW portfolios
Alternative investments make up a tiny proportion of HNW portfolios
Malaysians are even less interested in commodity investment than the rest of the Asia Pacific region

HNW Product and Service Demand
Compared to their peers in Asia Pacific, Malaysian HNW individuals show less interest in planning services
Inheritance planning is a surprisingly low priority
New tax changes for HNWs are likely to spur demand
Pension planning services are expected to grow significantly
A depressed property market has reduced the need for investment advice
Demand has slumped while oversupply has flooded the market
Investors are reluctant to increase their risk exposure through loans
A pessimistic outlook means low demand for loans is unlikely to improve
Providing Sharia-compliant products and services is a must in Malaysia

Abbreviations and acronyms
Verdict Financial's 2015 Global Wealth Managers Survey
Secondary sources
Further reading
About Verdict Financial

List of Table

Table 1: Malaysian REITs, September 2016

List of Figures

Figure 1: Family businesses and inherited wealth dominate the Malaysian HNW sector
Figure 2: Construction and real estate are the primary sources of HNW wealth
Figure 3: Expats make up a relatively small proportion of Malaysia's HNW population
Figure 4: The Greater China region accounts for the majority of HNW expats in Malaysia
Figure 5: HNW expats living in Malaysia want to stay in control of their investments
Figure 6: Malaysian HNW clients want better returns and more sophisticated products
Figure 7: Advisory mandates are the most popular form of investment for Malaysian HNWs
Figure 8: Demand for discretionary and execution-only is much lower than for advisory mandates
Figure 9: Execution-only mandates are set to see a strong increase in demand
Figure 10: Malaysian investors are confident, sophisticated, and keen on digital banking tools
Figure 11: Standard Chartered launched video banking services in 2016
Figure 12: Equities are the most popular asset class for Malaysian HNWs
Figure 13: Fund-based strategies are largely preferred to direct investments
Figure 14: Better returns and capital appreciation are key drivers of equity investment
Figure 15: Most investors prefer direct fixed income investment, preferably in corporate bonds
Figure 16: Malaysian bond investment demand is set to rise above the regional average
Figure 17: Malaysians hold most of their cash in local currency deposits
Figure 18: Risk aversion and asset diversification are the key drivers of cash holdings
Figure 19: Property holdings are a small but significant part of HNW portfolios
Figure 20: Capital appreciation is the primary reason for property investment
Figure 21: Alternative investments are forecast to increase in popularity
Figure 22: Commodities have taken a beating over the past year
Figure 23: Malaysian HNWs are less interested in planning services than their regional peers
Figure 24: Demand for financial planning is expected to increase significantly
Figure 25: Demand for investment property advice is muted in Malaysia
Figure 26: Demand for property advice and margin loans is forecast to stagnate

  • Increasing New Outlets And Striking Offers To Drive Global Pizza Market
    The global pizza market is predicted to grow at a steady CAGR of about 3% by 2020. Pizza has been gaining massive acceptance globally in the last few years. Consequently, the global pizza market is anticipated to observer considerable progress in the coming years. The growing number of pizzerias is one of the major elements [...]
  • Healthy Diet Demand In Developed Economies To Boost Nutraceuticals
    As customers scuffle to keep up with the frantic lifestyles, the necessity for healthy nutrition rises owing to dearth of time to spend on laborious exercises.  Customers are shifting their attention to swift and healthy food behaviours. Increase in intake of beverages and functional food has offered makers of nutraceuticals with money-spinning prospects to benefit [...]
  • World Economic Forum Unveils Top 10 Emerging Technologies of 2016
    The World Economic Forum (WEF) and Scientific American lately unveiled the major technological innovation list of the top ten emerging technologies of 2016. This list emphasizes on the technological developments which have the supremacy to transform industries, protect the planet, and improve lives. It also presents an opening to discuss any societal, human, economic or [...]
  • Siemens Adds To the Growth of Wind Power Generation Market
    Siemens has been presenting ground-breaking strategies and pioneering solutions for energy generation for an intelligent power supply globally. With an expansive portfolio and wide-ranging proficiency in wind power generation, Siemens is likely to aid in increasing the share of wind power in the US energy mix. With New Mexico’s vicinity to significant wind energy areas, [...]
  • Global Public Safety LTE Ecosystem Overview
    In view of its flourishing ecosystem, spectrum flexibility and performance metrics, LTE has emerged as the leading candidate for public safety mobile broadband networks. Public safety organizations and establishments have already begun planning to advance their networks to LTE-based public safety solutions. LTE provisions a varied range of services, from high bandwidth data services to [...]
  • Wealth Management Super League 2016; Comparing the performance of the world's leading wealth managers
    Published: 15-Oct-2016        Price: US 5250 Onwards        Pages: 45
    Summary At the end of 2015, client assets booked with the world's 25 leading private wealth managers grew by 0.9%. The top three rankings remained unchanged, with Switzerland's UBS leading the way, followed by the US players Bank of America (BoA) Merrill Lynch and Morgan Stanley. Although industry-wide growth was much weaker than a year ago, pushed down by challenging market conditions and exchange rate fluctuations, most competitors maintained positive new money flow......
  • HNWI Asset Allocation in the Netherlands 2016
    Published: 05-Oct-2016        Price: US 1995 Onwards        Pages: 52
    Synopsis This report provides the latest asset allocations of Netherlands HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocations of Netherlands HNWIs to 2020 and a comprehensive and robust background of the local economy. Summary This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management ma......
  • High Net Worth trends in the Netherlands 2016
    Published: 04-Oct-2016        Price: US 1995 Onwards        Pages: 71
    Synopsis This report provides projections of the volume and wealth of Netherlands HNWIs. This includes demographic trends (2011-2015) and findings of the proprietary Wealth Insight HNWI Database. Summary This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in Netherlands. The report focuses on HNWI performance between the e......
  • Challenges and Opportunities for the Wealth Sector in the Netherlands 2016
    Published: 03-Oct-2016        Price: US 1995 Onwards        Pages: 40
    Synopsis This report is a thorough analysis of Netherlands Wealth Management and Private Banking sector, and the opportunities and challenges that it faces. Summary This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in Netherlands. The report focuses on HNWI performance between the end of 2011 and the end of 2015. This en......
  • Wealth in the Philippines: Sizing the Market Opportunity; Sizing the wealth market in one of Asia's fastest growing economies.
    Published: 30-Sep-2016        Price: US 3450 Onwards        Pages: 37
    Summary The Philippines is home to a relatively small affluent population, and the country's financial services sector is somewhat unsophisticated relative to many of its ASEAN-6 neighbors and other developed nations. Retail participation in the equities and mutual fund markets is very low, with the bond market traditionally more popular but the majority of allocations still held in deposits. However, very strong economic performance over recent years and a new govern......
  • Netherlands Wealth Report 2016
    Published: 30-Sep-2016        Price: US 4995 Onwards        Pages: 94
    Synopsis This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in Netherlands. Summary This report reviews the performance and asset allocations of HNWIs and ultra-HNWIs in the Netherlands. It also includes an evaluation of the local wealth management market. Scope Independent market sizing of Dutch HN......
  • Super League In-Depth Analysis: RBC Wealth Management 2016
    Published: 29-Sep-2016        Price: US 1295 Onwards        Pages: 35
    Summary Royal Bank of Canada (RBC) is a Canada-based financial services provider that operates five main business segments. The company's wealth management division offers clients a range of investment, trust, and other wealth management solutions. Led by Douglas A. Guzman, RBC Wealth Management has focused on strengthening its presence in its core markets, Canada and the US, through a series of divestments and acquisitions. In Canada, RBC Wealth Management targets HN......
  • The Global Wealth Market in 2016; Analyzing 69 country wealth markets worldwide.
    Published: 28-Sep-2016        Price: US 5250 Onwards        Pages: 59
    Summary The global wealth market is on a continuous growth path. Worldwide liquid onshore assets will exceed $100tn no later than 2017. But the market is not homogenous: rates and reasons for growth differ between affluent segments, the level of economic development in any given nation, and local conditions. Volatile exchange rates affect not only the relative strength of regional wealth markets but also investors' preferences with regards to different asset classes. ......
  • High Net Worth trends in France 2016
    Published: 26-Sep-2016        Price: US 1995 Onwards        Pages: 73
    Synopsis This report provides projections of the volume and wealth of France HNWIs. This includes demographic trends (2011-2015) and findings of the proprietary Wealth Insight HNWI Database. Summary This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in France. The report focuses on HNWI performance between the end of 2011......
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - sales@rnrmarketresearch.com / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs