TheStar
Local industry prospers despite slowdown in developed economies
KUALA LUMPUR: The prospects of the wealth management business in Malaysia remain positive although the industry has taken a big hit in developed economies, industry players said.
Citibank Bhd head of wealth management products Aisyah Lam said the bank currently had more than 30,000 Citigold customers in the country and expected a double-digit growth in the next 12 months in the affluent customer sector, beating the industry’s growth of 7%.
“Despite the global market volatility, our current Citigold client base has grown by double digits this year,” Lam said, referring to the bank’s wealth management service.
“As clients’ sophistication increases, so will the demand for more comprehensive and tailored services,’’ she told StarBiz in an e-mail.
The bank recently launched its Citigold Global Banking, catering for clients with cross-border financial and banking needs.
Citigold is offered to customers who have a minimum portfolio value of RM200,000.
Forbes Asia revealed this year that the top 40 in Malaysia’s Rich List had a collective wealth of US$46bil, up US$3bil from last year, with 10 billionaires listed on the Rich List.
Standard Chartered Bank Malaysia Bhd (StanChart) head of wealth management Choong Wai Hong said proper wealth management was needed more than ever to preserve existing assets and protect investors’ “nest eggs.”
StanChart’s growth in wealth management over the years had been “significant” in tandem with the overall growth of the industry, he added.
Last year, the bank’s wealth management business grew by 65%.
Choong said, however, the bank was expecting more moderate growth due to the more cautious sentiment after the financial crisis.
Nevertheless, the bank plans to launch more innovative wealth management products “very soon.”
Meanwhile, OCBC Bank (M) Bhd head of wealth management Lim Wyson has been advising clients on how to invest amid a global financial crisis.
He said a key concern among investors was in deciding how much of their wealth to put in the various forms of investments like unit trusts, structured products, stocks and bonds.
“The smaller the percentage of wealth placed into such investments, the less the customer will need to perform significant portfolio changes,” Lim said.
“For those who are already investing in the markets, we advise that they should not panic as this may lead to irrational actions to their portfolios.’’
He noted that assets like capital protected investments, capital guaranteed investments, selected categories of bonds and the more balanced funds held up much better than equities.
Lim said research results from past crises such as the Asian financial crisis had shown that investors stood to lose more if they switched to cash instead of holding on to their investments.
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