ETF annuity and asset trusts target wealthy Malaysians plan 52% cash deposit

According to the latest “Wealthy Investor Briefing 2024” released by HSBC, wealthy people in Malaysia are in a leading position in financial investment and plan to invest more than half (52%) of their cash in hand over the next 12 months.

In addition to cash, unit trusts, stocks, time deposits, and bonds are the top 4 savings and investment products currently held by wealthy investors.

As for future investments, they are considering investing in exchange index funds (ETFs), commodities, annuities, and industrial investment trusts (REITs).

“Wealthy Investor Briefing 2024” surveys the investment behavior of wealthy investors in 11 markets. The survey results show that wealthy Malaysian investors (individuals with $100,000 to $2 million in investable assets) are in a leading position in investing in financial products.

Cash accounts for only 27% of the investment portfolios of wealthy Malaysian investors. This ratio is similar to that of Singapore, but lower than the UK (37%), Hong Kong (33%), and Taiwan (33%).

In terms of savings and investment products, wealthy Malaysian investors prefer unit trusts (58%), stocks (54%), term deposits (52%), and bonds (31%).

In terms of investment topics, the survey found that the top 3 topics most interested in wealthy Malaysian investors are: e-commerce and digital payments, renewable energy and clean technology, and artificial intelligence and automation.

Wealthy investors in Malaysia also advocate diversification of financial portfolios. Their portfolios hold an average of 5 products and asset classes, which is higher than the global average of 4 products and asset classes.

The survey also found that wealthy Malaysian investors showed a high level of participation in investment. On average, they monitored investments up to 9 times a month, which was higher than the UK (6 times a month) and China (5 times a month), but lower than the UAE (10 times a month).

70% of wealthy Malaysian investors believe that banks, insurance companies, and financial advisors are their primary channels for obtaining guidance on wealth management.

In response to the survey results, Ye Qingyu, head of wealth and personal banking at HSBC Malaysia, said that the HSBC “Wealthy Investor Briefing” assesses the investment behavior and trends of wealthy people in 11 markets. According to the Malaysian survey, wealthy investors are strengthening their investment portfolios by adopting asset diversification strategies and making more effective use of cash.

“We think this is an encouraging trend as these investors want to build a sound financial portfolio, and this is where HSBC can help, providing comprehensive wealth management tools and providing excellent banking customers with HSBC. ”

She said that Malaysia is a rapidly growing wealth center, and HSBC Malaysia hopes to further promote this development trend, help customers strengthen their financial portfolios and accumulate wealth.

“Wealthy Investor Briefing 2024” is a special survey of HSBC's global “Quality of Life Report”. The report thoroughly explores the opinions of 11,230 individual investors in 11 markets: Hong Kong, India, Indonesia, China, Malaysia, Mexico, Singapore, Taiwan, the United Arab Emirates, the United Kingdom and the US.