Introduction
This report looks at the size and composition of the wealth market in Malaysia, analyzing the opportunities that exist for regional and local players and providing the best strategies for entry. Competitive dynamics and customer tendencies are analysed, including an insight into the offshore nature of investors in these markets.
Scope of this report
- Macroeconomic and savings and investment data collected directly from governmental sources such as the Bank Negara Malaysia
- Insight into the Malaysian financial services market obtained through in-depth interviews with the main wealth managers and private bankers
- Sizing and forecasting of mass affluent and high net worth individuals generated from Datamonitors proprietary Global Wealth Model
Research and analysis highlights
Much of Malaysias economic growth in the 1990s was driven by strong foreign direct investments (FDI). However, since 2000, Malaysia has faced challenges in attracting FDI which include both domestic and international factors.
The majority of competitors targeting affluent individuals are competing in the mass affluent segment and have relatively simplistic product and service propositions.
A much more developed service line than wealth management is bancassurance, which all of the commercial banks offer in some form or another, either distributing their own products or those of third parties.
Key reasons to read this report
- This report forecasts the market to 2008, allowing competitors to plan strategies on the basis of detailed market information
- Allows wealth managers to monitor threats and opportunities posed by their main competition
- Helps competitors plan products and services by giving key information on their customers financial services preferences
CHAPTER 1 INTRODUCTION
What is this report about?
Who is the target reader?
How to use this report
CHAPTER 2 MALAYSIA
Introduction and macroeconomic background
Population and GDP
Malaysias population is diverse
Economic growth has been varied in recent years
Inflation and interest rates
FDI
Retail Savings & Investments
Islamic assets and liabilities
Affluent individuals
Offshore tendency
Malaysians contribute heavily to flows into the main offshore centers
Singaporean competitors are looking to attract money out of Malaysia
Affluent individuals and their assets
Mass affluent
High net worth
Regulatory environment
Financial services
The Financial Sector Master Plan
Capital markets
Securities and fund management companies
Banking structure
Local players
Foreign entrants
Onshore services
Competition is clustered around the mass affluent customer segment with few true private banking services availiable
The concepts of wealth management and private banking are developing in Malaysia
Premier banking is a more populated market
Islamic banking
Offshore services
Malaysian offshore territories
HSBC the only player to advertise offshore services
Future outlook
Customer outlook
Mass affluent segment
High net worth segment
Wealth market outlook
A population ripe for wealth creation
Strong commitment to financial reform
Stock market development
And an offshore market to back it up
Data
CHAPTER 3 APPENDIX
Definitions
AAGR
CAGR
Gini index
Liquid assets
Liquid asset bands
Research methodology
The Global Wealth Model
The UK sub model
Asia-Pacific sub model
Forecasting methodology
Datamonitors wealth numbers compared with others numbers
Bespoke Wealth Market Sizing
Further reading
Datamonitor Asia-Pacific Wealth Reports
Datamonitor Asia-Pacific Insight Reports
Datamonitor Global Wealth Service: Competitor Tracking
Datamonitor Financial Services Consulting
Asia-Pacific contacts
List of Tables
- Table 1: Datamonitors wealth market coverage
- Table 2: The local players have a large share of the Malaysian banking market
- Table 3: Services offered by financial institutions in Malaysia
- Table 4: GDP and S&I growth over the 1998-2003 period
- Table 5: Interest rates, inflation and adult population, 1998-2003
- Table 6: Components of GDP, 2003
- Table 7: Malaysian retail liquid assets, 1998-2003
- Table 8: Number of Malaysian mass affluent individuals, 1998-2003
- Table 9: Liquid assets of Malaysian mass affluent individuals, 1998-2003
- Table 10: Number of Malaysian HNW individuals, 1998-2003
- Table 11: Liquid assets of Malaysian HNW individuals, 1998-2003
- Table 12: Forecasted retail liquid assets, 2003-2008
- Table 13: Forecasted number of Malaysian mass affluent individuals, 2003-2008
- Table 14: Forecasted liquid assets of Malaysian mass affluent individuals, 2003-2008
- Table 15: Forecasted number of Malaysian HNW individuals, 2003-2008
- Table 16: Forecasted liquid assets of Malaysian HNW individuals, 2003-2008
- Table 17: Wealth markets that have been modeled using the Global Wealth Model
List of Figures
- Figure 1: Major components of Malaysian GDP, %, 2003
- Figure 2: Malaysias interest rates have fallen in recent years alongside US rates
- Figure 3: Savings and investment assets in Malaysia have exhibited strong growth over the last five years
- Figure 4: Deposits were the slowest growing investment vehicle for Malaysian investors between 1998 and 2003
- Figure 5: The liquid wealth of mass affluent individuals in Malaysia grew at a rate of 8.6% CAGR over the 1998-2003 period
- Figure 6: The number of Malaysian HNW individuals grew by 9.3% AAGR over the 1998-2003 period
- Figure 7: The Islamic banking logo, which must be used alongside all Islamic products in Malaysia
- Figure 8: HNW individuals will own more than a third of total retail liquid wealth in 2008
- Figure 9: The mass affluent population will grow at a rate of 7.6% over the 2003-2008 period
- Figure 10: There will be 22,500 more high net worth individuals in Malaysia in 2008 than in 2003
