Friday May 4, 2012
Rich Malaysians grow wealth aggressively
KUALA LUMPUR: A study covering nine Asian markets described rich Malaysians as ambitious and aggressive in growing their wealth, with 75% aiming to be worth about US$4mil (RM12mil) within the next 10 years.
The Future Priority 2012 Report, the second series survey conducted by Standard Chartered Bank and Scorpio Partnership, captured the sentiment of over 2,700 wealthy Asians.
Malaysians remain confident in growing their wealth after Indonesia (98%), India (88%), China (78%) and Thailand (also 78%).
Tiew Siew Chuen, Country Head of Consumer Banking at Standard Chartered Bank Malaysia Bhd, said affluent Malaysians needed an annual return of 15% to achieve their wealth target, compared to an average of 12% for Asia.
She said Asians were very confident of their wealth goal, based on the expected resilient economy going forward. She added that the region was seen as an excellent wealth creation opportunity platform.
“Affluent Malaysians’ top choices of investment are gold, high interest savings, unit trusts and real estate,” Tiew said at a media briefing here yesterday.
She said that in wealth creation, it was important to consider not just investments but also the use of credit.
The survey showed 42% of affluent Malaysians were smart wealth builders who make use of credit to enhance their investment returns.
Tiew added: “Borrowing is no longer seen as a liability to one’s wealth. Used carefully, it is a wealth management tool.”
She said, after the Thais, there was a strong desire among Malaysians to be financially independent when saving for retirement.
Tiew said affluent Malaysians agreed with those in South Korea and Indonesia that a house was a good long-term asset, compared to Thailand and India who consider it to be reflective of who they are. — Bernama