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KUALA LUMPUR: Most Malaysians have set new financial goals to tackle inflation and economic difficulties, according to Standard Chartered's Wealth Expectancy Report 2022.
The survey showed that Malaysian investors cited inflation (40 per cent), an uncertain global economy (28 per cent) and the threat of recession (23 per cent) as their top concerns.
To outpace inflation, 53 per cent of Malaysian investors were looking to reduce their cash holdings, compared to 61 per cent of global investors in the survey.
Standard Chartered predicted that global cash allocations would fall from 26 per cent in 2022 to 15 per cent in 2023, indicated by investor responses.
Despite greenwashing concerns persist, sustainable investments will receive investor interest and capital.
"More than half of global investors (52 per cent) expect to increase their sustainable investments in 2023.
"Meanwhile, 49 per cent of investors in Malaysia have indicated they will also do so," state the report.
The report examined the shifts in investor decisions for more than 15,000 emerging affluent, affluent and high net-worth investors in 14 markets, including Malaysia, along with the resulting movements in major asset classes.
The survey results showed that 80 per cent of local investors had set new financial goals for retirement, keeping up with rising costs, holidays, and major life experiences.
The research revealed that 67 per cent of local investors still believe that digital assets are an essential part of any investment portfolio, compared to 62 per cent globally, despite multiple setbacks in the market last year.
Nearly half (48 per cent) of local investors expected to increase their investments, although 48 per cent of them revealed they need long-term confidence in digital assets.
"This suggests that Malaysians view them as a short-term means to increase funds rather than a long-term asset to retain.
"However, it is important to note this survey was conducted before the FTX crash, and the events in recent times may have dampened this sentiment," it said.
Standard Chartered Malaysia head of consumer, private and business banking Sammeer Sharma said Malaysian investors have shown to be quite receptive towards new types of investment assets, with many currently holding digital assets.
"While more of them are taking charge in managing their wealth, professional advice continues to be crucial in ensuring that their decisions align with their objectives.
"We believe diversified portfolios with multi-asset income generation strategies and personalised advice will provide some of the best opportunities today.
"This is where our open architecture approach has an edge in offering investors a suite of carefully curated solutions and strategies to meet their long-term goals," added Sammeer.
Source: https://www.nst.com.my/business/2023/02/882135/majority-malaysian-investors-have-set-financial-goals-tackle-inflation