Affluent Malaysians say family reason for building wealth

 

According to the new HSBC Affluent Asian Tracker survey conducted by Nielsen for HSBC Group, 70% of respondents in Malaysia agree that the desire to provide family with a comfortable life is the key driver to growing wealth.

 

The HSBC Affluent Asian Tracker was conducted across more than 1,500 affluent individuals aged 30-55 in the top 10% of the population in seven key markets - Australia, India, Japan, mainland China, Malaysia, Singapore and Taiwan. The online survey was conducted from April to May 2009 where 213 affluent Malaysians, with monthly income of RM5,000 and above and total liquid assets of about RM200,000 and more, took part. In all markets surveyed, the top motivator for wealth growth is to provide a comfortable life for the family – except in Australia, where supporting retirement is the top goal.

 

 

In addition to that, 75% have plans to send their children to study overseas and would require an average of US$100k (RM370,000) for each child in fulfilling this ambition. On how much retirement income they would need, about a third of the Malaysian respondents said that they need about US$200,000 to US$300,000 to retire comfortably.

 

 

Despite the financial turmoil, the survey reported that more than a third (36%) of the affluent segment in Malaysia are increasing their investments. However, when asked about any changes in investment risk appetite over the past six months, majority of the Malaysian respondents (63%) are moderate risk takers and 66% have not changed their risk appetite in the last six months. A significant portion of the affluent Malaysians (61%) are investing in local stocks, mutual funds / unit trusts / bonds to build wealth. The asset holdings of most respondents in Malaysia are skewed to savings (73%), unit trust (71%) and local stocks (55%).

 

 

“Despite the recent financial downturn which has greatly eroded the value of wealth held by many mass affluent individuals in Asia, it is interesting to note that Malaysians are not deterred by the slowdown of the economy as they are putting in more for investments. This survey aims to delve into how the increasingly important mass affluent segment in Asia, including Malaysia, is investing, managing and spending their wealth in a still volatile and uncertain economic climate,” says Lim Eng Seong, general manager personal financial services of HSBC Bank Malaysia Bhd.

 

In terms of spending habits, the survey further highlights that majority affluent Malaysians are changing their spending habits (69%) – they are becoming more cautious spenders. Of the respondents, 88% are delaying luxury purchases and 83% are eating out less.