Industry Research Reports and Market Analysis at MindBranch.com
  

The Malaysian Wealth Market 2006

Product Type: Market Research Report
Published by: Datamonitor
Published: January 2007
Product Code: R313-18863
Description
Introduction
The Malaysian Wealth Market 2006 is Datamonitor’s guide to the affluent wealth landscape in Malaysia. Following the popularity of Datamonitor’s recent research in the Indian and Chinese markets, the report explores one of the less high-profile emerging wealth markets in the Asia-Pacific region.

Scope
Data was collected directly from governmental sources such as central banks, mutual fund associations and stock exchanges.

Insight into the respective financial services market was obtained through in-depth interviews with the main wealth managers and private bankers.

Sizing and forecasting of high net worth individuals was generated by Datamonitor's proprietary Global Wealth Model

Report Highlights
In 2005 inflation picked up to 3.1%, driven by the government’s raising of gasoline prices to cut the amount it pays to subsidize fuel costs. The government also increased taxes on tobacco and alcohol to help trim the budget deficit.

There is some consensus that it is not the high net worth individuals that are the key to the Malaysian market. Rather, it is those individuals with more than EUR100,000 (USD130,000) that are the most attractive market segment.

For local banking players like Alliance, it is important that they are prepared to face foreign competition head on when it enters at the end of 2006. The provision of wealth management and advisory services is likely to be a key area of improvement for these local players if they are to hang on to their affluent clients going forward.

Reasons to Purchase
Find out why Malaysia is an attractive market and its advantages over other emerging economies.

Find out how large the market is now and how large it will be in 2010

Find out how big the gaps are and what the opportunities for growth will be going forward
Table of Contents
TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION 9

What is this report about? 9

Who is the target reader? 9

How to use this report 9

CHAPTER 2 MACROECONOMIC OVERVIEW 11

Market comparisons 11

The four economies 11

Inflation and consumer prices 14

Population and unemployment 15

CHAPTER 3 THE MALAYSIAN WEALTH MARKET 18

Market background 18

Savings and investments 18

Size of the affluent market 20

Financial services and the regulatory environment 24

Financial services 24

Capital markets 25

Competitive dynamics 27

The local players 27

The foreign players 28

Developments in 2006 28

November 2006 - CIMB launches Malaysian fund-of-funds 31

Future focus 33

The affluent outlook 33

CHAPTER 4 APPENDIX 37

Data 37

Definitions 42

AAGR 42

Affluent 42

CAGR 42

Gini index 42

Liquid assets 43

Liquid asset bands 43

Research methodology 44

The Global Wealth Model 45

The UK sub model 45

Asia-Pacific sub model 45

Forecasting methodology 45

Datamonitor’s wealth numbers compared with others’ numbers 46

Bespoke Wealth Market Sizing 47

Further reading 48

Datamonitor Asia-Pacific Wealth Reports 48

Datamonitor Asia-Pacific Insight Reports 48

Datamonitor Global Wealth Service: Competitor Tracking 48

Asia-Pacific contacts 49





LIST OF TABLES

Table 1: The local players have a much larger share of the Malaysian banking market than the foreign players 28

Table 2: Sectoral breakdown of GDP in Malaysia, Thailand, South Korea and Taiwan, 2005 37

Table 3: Indexed GDP growth, 1999=100 37

Table 4: TypeTableTitleHere 37

Table 5: Consumer Price Indices of Malaysia, Thailand, South Korea and Taiwan, 2000-2005 38

Table 6: Rate of unemployment in Malaysia, Thailand, South Korea and Taiwan, 2000-2005 38

Table 7: Population breakdown by age in Malaysia, Thailand, South Korea and Taiwan, 2005 38

Table 8: Malaysian retail savings and investments, 2000-2005 39

Table 9: Onshore liquid wealth owned by individuals in Malaysia, 2001-2005 39

Table 10: Number of affluent individuals in Malaysia, 2001-2005 40

Table 11: Onshore liquid wealth owned by individuals in Malaysia, 2006-2010 40

Table 12: Number of affluent individuals in Malaysia, 2001-2005 41

Table 13: Wealth markets that have been modelled using the Global Wealth Model 47





LIST OF FIGURES

Figure 1: Report structure and research model 10

Figure 2: A sectoral breakdown of the four economies reveals varying reliance on the services sector, with Taiwan’s economy being the most reliant 12

Figure 3: After a slow 2000-2002, the Malaysian economy grew rapidly between 2001 and 2005 13

Figure 4: Malaysia’s economy is the smallest of the four but saw good average annual growth over the 2001-2005 period 14

Figure 5: All four economies have seen low inflation of consumer prices over the 2000-2005 period 15

Figure 6: Of the four countries Malaysia has the youngest population profile 16

Figure 7: All four countries have low unemployment on a global scale, with Thailand’s rate the lowest in 2005 17

Figure 8: Retail savings and investments outgrew GDP growth over the 2000-2005 period 19

Figure 9: The investible assets of affluent individuals in Malaysia amounted to more than USD112bn at the end of 2005 21

Figure 10: The number of those with between USD60,000 and USD500,000 grew at an average annual rate of 9.4% between 2000 and 2005 22

Figure 11: The number of individuals with more than USD500,000 in investible assets grew by 8,600 between 2000 and 2005 23

Figure 12: Mass affluent individuals with between USD60,000 and USD500,000 will own almost half of all retail liquid assets in 2010 33

Figure 13: The number of individuals with between USD60,000 and USD500,000 in investible assets will grow by almost 40% between 2005 and 2010 34

Figure 14: The overall liquid wealth of affluent individuals will grow at a rate of 8.1% compounded annually over the 2005-2010 period, primarily benefiting the most affluent individuals 35

Figure 15: The fastest growing high net worth sub-segment over the 2005-2010 period will be that composed of individuals with USD3m-4m in onshore liquid assets 36
Ordering and More Information
Price and Delivery Options


MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence.