Only 12% of Malaysians consider themselves wealthy, yet most do not have a documented financial plan, according to Hong Leong Bank Wealth Perception Survey.
In a statement, HLB said that the survey on 1000 Malaysian respondents aged between 18 and 77 years old found that 79% of Malaysians professed that they do not have an official/documented financial plan.
“This is largely due to the assumption that they do not have sufficient funds to start a formal wealth management plan,” it said today (Feb 16).
The bank said the survey also revealed that out of the 327 respondents who indicated that they invest 57% reported that they invest in stocks, closely followed by 56% who allocate funds to ASB/ASM schemes.
“Besides that, 54% of respondents engage in gold investments while 44% favored fixed deposits as their primary investment approach.”
The survey findings also underscore the significant trend of self-directed investing among Malaysians, with a striking 83% of those who invest opting to manage their investments autonomously, without seeking the input or guidance of a professional financial advisor.
Notably, when devising a financial plan, nearly half of Malaysians, at 49% seek financial advice from social media, while an equal percentage rely on input from family members, the survey found.
HLB regional wealth management managing director Hor Kwok Wai said the high percentage of self-directed investors suggests a growing public preference for hands-on involvement in financial planning and investment strategies.
“As such, there is a need for financial institutions like HLB to provide robust resources and support to empower and educate investors in making informed and effective investment choices.
“As a financial institution, we have a duty to assist all customers in achieving financial sustainability and prosperity by providing reliable and responsible financial products and services,” he said.
The survey also showed that for Malaysian investors, family and community play a pivotal role in their motivation for wealth accumulation.
Moreover, the survey revealed that 78% of Malaysians have insurance coverage, with over half of them considering insurance as highly important in ensuring continued support for their families in the face of unforeseen circumstances.
Hor also noted the importance of dispelling the myths surrounding wealth management through fostering financial literacy and awareness, ensuring that individuals are equipped with the knowledge and insights necessary to navigate the complexities of wealth management.
“Having a secured financial future through proper wealth management should be accessible to all individuals, with the opportunity to access the necessary tools, resources, and knowledge to manage wealth.
“As wealth managers, our role is to educate and guide our customers in making informed choices, with the help of insights and tools to curate a comprehensive, personalised wealth management approach,” he said.
Whether customers are looking for aggressive growth, steady income or a balance of both, HLB has investment offerings that cater to various risk appetites that can be access via HLB Connect Online or personal wealth managers, he added.
