Survey: Rich Malaysians Getting Richer

Rich Malaysians are now even richer and many have plans to live abroad, a recent survey revealed.

Affluent Malaysians have reported that they are now 55 per cent wealthier than before compared to 35 per cent earlier this year.

And those Malaysians who want to move are looking at Australia, New Zealand, Singapore and the US.

The HSBC Affuent Asian Tracker, a survey conducted by Nielsen for HSBC, surveyed a total of 1,700 affluent individuals between 30 to 55 years of age in eight key markets in September and October 2009.

The survey gauged views of people in the top 10 per cent of the population by income and liquid assets.

HSBC in a press release said the data was a clear indication that savvy affluent Malaysians came through the financial turmoil at the end of 2009, relatively unscathed.

Some 86 per cent of Malaysian respondents gained their wealth through employment. Generally, 56 per cent of their income is spent on daily and recurring expenses while 26 per cent committed towards savings, insurance and investment.

HSBC Bank Malaysia Bhd's general manager for personal financial services Lim Eng Seong said that the high net worth Malaysians were riding on Asia's recovery and improved market sentiment, their confidence is returning as investors are providing momentum towards a more robust wealth management market in Malaysia.

Questions on planned changes in investment risk appetite over the next six months, revealed that 50 per cent were willing to increase their investments. Of this an equal number were planning to invest in direct stocks and in unit trusts.

However, they were mostly moderate risk takers and will not change their risk appetite in the next six months.

The asset holding of most surveyed skewed towards saving and unit trusts (73 per cent), properties (65 per cent) and life insurance (61 per cent).

Fourty-seven per cent of Malaysians felt that Asia Pacific was a better option followed by Greater China, but 35 per cent have no plans to invest in funds or equities abroad.

The survey's investment risk index showed that most Malaysians are leaning towards more secured long-term investment products.

"Growing affluence is the key driver for investment activities and diversification of asset holdings. While market sentiment will continue to remain an important driver, other factors will also influence the psyche of the affluent Malaysian investor," Lim said.

The survey showed that advice from independent financial advisers (53 per cent), financial media (40 per cent) and friends (29 per cent) were the top three role players in shaping their investment portfolio.

Some 44 per cent of Malaysians preferred to spend their earnings on dining out, entertainment and hobbies with another 40 per cent on travel and 36 per cent on property.

Meanwhile, although 52 per cent of those surveyed have no plans to live abroad, 30 per cent of those of who do, are looking to live in Australia or New Zealand, following by Singapore (18 per cent) and the US (10 per cent).

In Asia, mainland China leads the wealth surge with a 70 per cent rise in net worth compared to 46 per cent in the first half of 2009.