Challenges and Opportunities for the Wealth Sector in Malaysia 2014

Published: Nov, 2014 | Pages: 55 | Publisher: WealthInsight
Industry: Wealth Management | Report Format: Electronic (PDF)

Synopsis

This report is the result of WealthInsight’s extensive research covering the high net worth individual (HNWI) population and wealth management market in Malaysia.

The report focuses on HNWI performance between the end of 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country's HNWIs have performed through the crisis.

Summary This report is a thorough analysis of Malaysia's Wealth Management and Private Banking sector, and the opportunities and challenges that it faces. Scope

Independent market sizing of Malaysia HNWIs across five wealth bands

HNWI volume and wealth trends from 2009 to 2013

HNWI volume and wealth forecasts to 2018

HNWI and UHNWI asset allocations across 13 asset classes

Number of UHNWIs in each state and all major cities

Fastest growing cities and states for UHNWIs (2009-2013)

Insights into the drivers of HNWI wealth

Reasons To Buy

The Challenges and Opportunities for the Wealth Sector in Malaysia 2014 is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.

With the wealth reports as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.

Report includes comprehensive forecasts to 2018.

Key Highlights

At the end of 2013, Malaysian HNWIs held 25.3% (US$38 billion) of their wealth outside their home country, which is level with the worldwide average of 20–30%.

WealthInsight expects foreign asset holdings to increase to US$49 billion by 2018, accounting for 23.6% of total HNWI assets.

In 2013, the Asia-Pacific accounted for 54.1% of Malaysian HNWIs’ foreign assets.

It was followed by South America with 11.4%, Africa with 9.5%, North America with 9.4%, the Middle East with 8.0% and Europe with 7.7%.

Malaysian HNWI allocations to South America increased compared with other regions during the review period, from 6.7% in 2009 to 11.4% in 2013. Asia-Pacific was the other emerging region in terms of global investments.

Over the forecast period, HNWIs are expected to increase their levels of investment in South America to 13.5% of foreign HNWI assets by 2018, with investments increasingly being diverted to emerging economies.

 Table of Contents

1 INTRODUCTION
1.1 Details of this Report
1.2 Definitions

2 EXECUTIVE SUMMARY

3 WEALTH SECTOR FUNDAMENTALS
3.1 Political Background
3.2 Economic Background
3.3 Benchmarking Malaysian Wealth in Context
3.3.1 Distribution of wealth in Malaysia
3.4 HNWI Volume and Wealth Trends

4 COMPETITIVE LANDSCAPE OF THE WEALTH SECTOR
4.1 Competitive Landscape
4.1.1 Domestic private banks
4.1.2 Foreign private banks
4.1.3 Wealth managers
4.1.4 Family offices
4.1.5 Financial advisors
4.2 Malaysian Wealth Management Industry – Clientele Model and Maturity
4.3 Behavioral Mapping of Wealth Management and Private Banking in Malaysia

5 APPENDIX
5.1 Additional Components of the Wealth Sector in Malaysia
5.1.1 Philanthropy
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 MYR to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investments – inflow and outflow
5.4.7 Inflation rate
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdowns

6 ABOUT WEALTHINSIGHT

List of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Regions in Malaysia by Population (Volume), 2013
Table 3: Leading Domestic Private Banks in Malaysia by local AuM (US$ million), 2013
Table 4: Leading Foreign Private Banks in Malaysia by local AuM (US$ million), 2013
Table 5: Leading Wealth Managers in Malaysia by AuM (US$m), 2013
Table 6: Malaysian Income Tax Bands (MYR), 2013–2014
Table 7: MYR per US$ Exchange Rate, 2009–2018
Table 8: Malaysian Real GDP Growth (%), 2009–2018
Table 9: Malaysian GDP per Capita (US$), 2009–2018
Table 10: Malaysian Domestic Market Capitalization (US$ Billion), 2009–2013
Table 11: Malaysian Commodity Indices, 2009–2018
Table 12: Malaysian Foreign Direct Investment (US$ Billion), 2007–2011
Table 13: Malaysian Inflation Rate (%), 2009–2018
Table 14: Malaysian Money Market Rate (%), 2009–2018
Table 15: Malaysian Balance of Payments (US$ Billion), 2009–2013
Table 16: Malaysian Government Debt as a Percentage of GDP, 2009–2018
Table 17: Malaysian Stock Market Performance, 2009–2013
Table 18: Malaysian HNWI Wealth vs GDP Ratio, 2009–2018
Table 19: Malaysia – Appendix One
Table 20: Malaysia – Appendix Two

List of Figures
Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of Malaysia
Figure 3: Malaysian Asset Price Performance (%), 2009–2013
Figure 4: Malaysian HNWI Performance (US$ Billions and HNWI Volume), 2009–2018
Figure 5: Malaysian vs Global HNWIs (%), 2009–2018
Figure 6: Malaysian Wealth Management Industry – Maturity Level of Operators, 2014
Figure 7: Malaysian Wealth Management Industry Behavioral Mapping, 2013
Figure 8: MYR to US$ Exchange Rate, 2009–2018
Figure 9: Malaysian Real GDP Growth (%), 2009–2018
Figure 10: Malaysian GDP per Capita (US$), 2009–2018
Figure 11: Malaysian Domestic Market Capitalization (US$ Billion), 2009–2013
Figure 12: Malaysian Commodity Indices, 2009–2018
Figure 13: Malaysian Foreign Direct Investment (US$ Billion), 2007–2011
Figure 14: Malaysian Inflation Rate (%), 2009–2018
Figure 15: Malaysian Money Market Rate (%), 2009–2018
Figure 16: Malaysian Balance of Payments (US$ Billion), 2009–2013
Figure 17: Malaysian Government Debt as a Percentage of GDP, 2009–2018
Figure 18: Malaysian Stock Market Performance, 2009–2013
Figure 19: Malaysian HNWI Wealth vs GDP Ratio, 2009–2018
Figure 20: Malaysian HNWIs – Volume by Wealth Band, 2009–2018
Figure 21: Malaysian HNWIs – Wealth by Wealth Band (US$ Billion), 2009–2018
Figure 22: Malaysian HNWIs – Wealth per Capita (US$ Million), 2009–2018