Audible gasps were heard in golf and country clubs around the country after news broke that the number of ultra-wealthy Malaysian individuals had dropped 6% between 2012 and the present day, from 330 to 310 in figures revealed last week.
Global high-end real estate consultancy Knight Frank’s 12th edition of the Wealth Report defines ultra-wealthy as anyone who has more than US$50 million in net assets.
The report also concluded that the drop left Malaysia falling behind their SE Asian counterparts in terms of client wealth.
Frank Knight’s Malaysia managing director Sarkunan Subramaniam has said that the country’s investors have been diversifying into bonds and gold over the last year, as they are seen as the safest assets in lieu of the upcoming 14th General Election.
The survey indicated a move into precious metals in Malaysia, with 33% respondents saying that their clients had increased allocations for the commodity over last year. The figure is above the global average of 25%.
No worries, we’ve been diversifying too, by alternating skipping meals and our packing lunch!
Post-election, Sarkunan expects that these fiscally blessed individuals will begin taking more risks after the political landscape becomes clearer. This included looking into real estate opportunities, commercial and residential, both at home and abroad.
Despite the fall in Malaysia’s most wealthy, as well as a climate of rising interest rates, Asia Pacific has experienced an overall growth. For 2018, Knight Frank predicts growing wealth from new sources such as technology-related industries.
The survey is a result of figures provided by 541 of the world’s leading private bankers and wealth advisors, who represent over 50,000 clients with a combined wealth of US$3 trillion.
