High-net-worth (HNW) individuals in Malaysia are emerging as regional leaders in legacy planning, with a growing number starting early and adopting more structured wealth transfer strategies, according to a new survey by HSBC Life.
The inaugural report, titled “Bridging the intentions-action gap”, found that 52% of Malaysia’s HNW individuals have a formal legacy plan in place — significantly above the survey average of 41% across nine markets in Asia and the Middle East.
Malaysia also outperformed wealthier regional peers such as HSBC Singapore’s home market Singapore, where only 45% of respondents reported having formal plans, as well as Hong Kong (26%) and Taiwan (24%).
Younger Malaysians taking the lead
A standout finding from the survey is the strong tendency among Malaysians to begin legacy planning at a younger age. Some 82% of respondents said they started planning before turning 50 — the highest among surveyed markets.
This contrasts sharply with Taiwan, where 40% of HNW individuals only began legacy planning after the age of 50.
The trend reflects a broader shift in Malaysia’s wealth landscape, driven by rising incomes and a growing base of younger affluent individuals.
Linda Yip, Country Head of International Wealth and Premier Banking at HSBC Malaysia, said the findings highlight Malaysia’s role in a significant regional wealth transition.
“Asia is in the midst of one of the largest transfers of wealth to the next generation in its history, and Malaysia is very much part of that shift,” she said, noting that the country’s economy expanded by 5.2% in 2025.
Life insurance gains traction as key planning tool
The survey also found that life insurance is increasingly being used as a primary legacy planning tool, overtaking traditional instruments such as wills in some markets.
Across the nine markets surveyed, 25% of HNW individuals rely on life insurance as their main planning tool. However, Malaysia lags slightly at 17%, indicating room for further adoption.
“Life insurance can complement other arrangements by helping families protect beneficiaries and transfer wealth in a more structured and predictable way,” Yip said.
Family considerations drive planning decisions
Family-related concerns remain a key motivator for legacy planning among Malaysian HNW individuals. The survey found that 43% cited the risk of family disputes as their primary concern, underscoring the importance of early and clear planning.
Despite Malaysia’s strong showing, the report highlighted a broader gap between intention and execution across the region, particularly in Greater China and parts of Southeast Asia.
HSBC said it is working with clients through its relationship managers and insurance specialists to develop tailored legacy plans aimed at reducing disputes and ensuring smoother wealth transfers.
Growing importance of structured wealth transfer
The findings come amid a broader shift in Asia’s wealth dynamics, as intergenerational wealth transfer accelerates and more individuals seek structured solutions to preserve and pass on assets.
With Malaysia leading in early adoption and planning rates, the report suggests the country is well positioned to navigate the region’s evolving wealth management landscape, even as opportunities remain to deepen the use of more sophisticated tools.
