HNWI Asset Allocation in Malaysia 2014

Published: Nov, 2014 | Pages: 63 | 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 provides the latest asset allocations of Malaysia HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocations of Malaysia HNWIs to 2018 and a comprehensive and robust background of the local economy. 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

Insights into the drivers of HNWI wealth

Reasons To Buy

The HNWI Asset Allocation 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 report 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

In 2013, real estate was the largest asset class for Malaysian HNWIs, with 26.7% of total HNWI assets, followed by equities with 24.2%, business interests with 19.9%, cash and deposits with 12.6%, fixed-income with 11.0%, and alternatives with 5.6%.

Equities, real estate and business interests recorded growth at respective review-period rates of 88.5%, 86.8% and 56.4%.

Alternative assets held by Malaysian HNWIs decreased during the review period, from 6.1% of total HNWI assets in 2009 to 5.6% in 2013. HNWI allocations to commodities increased from 1.7% of total assets in 2009 to 2.0% in 2013.

Over the forecast period, allocations in commodities are expected to decline to 1.4% of total HNWI assets by 2018, as global liquidity will tighten due to a forecast near-term drop in demand for raw materials from China.

In 2013, Malaysian HNWI liquid assets amounted to US$72.4 billion, representing 47.8% of wealth holdings.

 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 ANALYSIS OF MALAYSIAN HNWI INVESTMENTS
4.1 Analysis by Asset Class
4.1.1 Trends in alternative assets
4.1.2 Trends in ‘art, wine and wheels’
4.1.3 Trends of investments in real estate
4.1.4 Trends of investments in cash and deposits
4.1.5 Trends of investments in fixed-income
4.1.6 Investment trends in equity
4.1.7 Investments trends in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in North America (including the US, Mexico and the Caribbean)
4.2.3 Investments in Asia-Pacific
4.2.4 Investments in Central and South America
4.2.5 Investments in the Middle East
4.2.6 Investments in Africa
4.3 Alternative Breakdown: Liquid vs. Investable Assets
4.4 Analysis of Malaysian UHNWI Investments

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: Malaysian Allocations of HNWI Assets (%), 2009–2018
Table 4: Malaysian HNWI Holdings Growth (%), 2009–2018
Table 5: Malaysian HNWI Alternative Asset Composition (%), 2009–2018
Table 6: Malaysian HNWI Trends of Investments in Alternative Assets (%), 2009–2018
Table 7: Malaysian Trends in ‘Art, Wine and Wheels’, 2009–2013
Table 8: Global Prime Real Estate Prices per m2 (US$), 2014
Table 9: Malaysian HNWI Foreign Investment Allocations (%), 2009–2018
Table 10: Malaysian HNWI Liquidity Breakdown (US$ Billion), 2009–2018
Table 11: Malaysian HNWI Liquidity Breakdown (%), 2009–2018
Table 12: Malaysian UHNWI Allocations and Share of HNWI Assets (%), 2013
Table 13: Malaysian Income Tax Bands (MYR), 2013–2014
Table 14: MYR per US$ Exchange Rate, 2009–2018
Table 15: Malaysian Real GDP Growth (%), 2009–2018
Table 16: Malaysian GDP per Capita (US$), 2009–2018
Table 17: Malaysian Domestic Market Capitalization (US$ Billion), 2009–2013
Table 18: Malaysian Commodity Indices, 2009–2018
Table 19: Malaysian Foreign Direct Investment (US$ Billion), 2007–2011
Table 20: Malaysian Inflation Rate (%), 2009–2018
Table 21: Malaysian Money Market Rate (%), 2009–2018
Table 22: Malaysian Balance of Payments (US$ Billion), 2009–2013
Table 23: Malaysian Government Debt as a Percentage of GDP, 2009–2018
Table 24: Malaysian Stock Market Performance, 2009–2013
Table 25: Malaysian HNWI Wealth vs GDP Ratio, 2009–2018
Table 26: Malaysia – Appendix One
Table 27: 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 HNWI Asset Class Composition (%), 2009–2018
Figure 7: Malaysian HNWI Trends in Alternative Assets (US$ Billion), 2009–2018
Figure 8: Malaysian Trends in ‘Art, Wine and Wheels’, 2009–2013
Figure 9: Malaysian HNWI Foreign Investment Allocation and Growth (%), 2013
Figure 10: Malaysian HNWI Global Distribution of Foreign Investments (%), 2009–2018
Figure 11: Malaysian HNWI Liquidity Breakdown (%), 2009–2018
Figure 12: Malaysian UHNWI Asset Class Composition (%), 2009–2018
Figure 13: MYR to US$ Exchange Rate, 2009–2018
Figure 14: Malaysian Real GDP Growth (%), 2009–2018
Figure 15: Malaysian GDP per Capita (US$), 2009–2018
Figure 16: Malaysian Domestic Market Capitalization (US$ Billion), 2009–2013
Figure 17: Malaysian Commodity Indices, 2009–2018
Figure 18: Malaysian Foreign Direct Investment (US$ Billion), 2007–2011
Figure 19: Malaysian Inflation Rate (%), 2009–2018
Figure 20: Malaysian Money Market Rate (%), 2009–2018
Figure 21: Malaysian Balance of Payments (US$ Billion), 2009–2013
Figure 22: Malaysian Government Debt as a Percentage of GDP, 2009–2018
Figure 23: Malaysian Stock Market Performance, 2009–2013
Figure 24: Malaysian HNWI Wealth vs GDP Ratio, 2009–2018
Figure 25: Malaysian HNWIs – Volume by Wealth Band, 2009–2018
Figure 26: Malaysian HNWIs – Wealth by Wealth Band (US$ Billion), 2009–2018
Figure 27: Malaysian HNWIs – Wealth per Capita (US$ Million), 2009–2018