0 7 min 4 mths

Affluent Wealth Market is expected to approximate to add 200,000 people. Singapore is the most attractive for HNWI because of its propinquity and variety of investments. Discusse data on Wealth markets using proprietary databases on affluent markets, factors responsible for segment growth, the asset classes preferred by investors and attitude of investors to non liquid assets. Put forward how the new and existing players can use such information on dynamics of the investment preferences to gain an edge in the market. Additionally, include investment options, keeping in mind all the changes taking places in the wealth segment.

The economy of Malaysia is one of the strongest and the most competitive economies of Asia. With its GDP growth rate averaging to about 6.7% since 1950s, it stands only second to Philippines in this race. Demarcation of HNWI from the affluent ones is generally recorded at around USD 1.0 million in liquid financial assets.

The report predicts that the affluent ones will be about 1.0 million of the population in 2017. Steady growth in this segment of the wealth market is forecasted as a percentage of the population but these growth rates will not tower in the coming time. The ratio of retail investments to total investments is declining, earmarking the advancement of these investments in more productive areas. The existing players in the wealth market can gain the edge by analyzing their offshore investment strategies and make them the most lucrative ones since most of the HNWI, approximately a quarter, are transferring their funds into onshore liquid assets. Also, the investors in Malaysia are switching to more sophisticated investment havens. Most of them are directed towards Singapore as it is close to the nation and it provides a variety of investment types to choose from.

In a nutshell, the Malaysian wealth market continues to remain diminutive and mushrooming. Although this growth has been swift historically, it seems to have turned sluggish. There are a few reasons to be considered blameworthy like the dropping price of oil which is inversely related to retail investments and the slowdown of China.

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