Survey finds 79 pct of M’sian respondents do not have financial plan
KUCHING: Only 12 per cent of over 1,000 Malaysian respondents aged 18 to 77 consider themselves wealthy, according to a wealth perception survey conducted by Hong Leong Bank Bhd (HLB).
Moreover, 79 per cent of Malaysians say that they do not have any official or documented financial plan, largely due to the assumption that they do not have sufficient funds to start a formal wealth management plan.
“Out of the 327 respondents who have indicated that they invest, 57 per cent report that they invest in stocks, closely followed by 56 per cent who allocate funds to ASB/ASM (unit trust) schemes, and 54 per cent who engage in gold investments. Additionally, 44 per cent of respondents favour fixed deposits as their primary investment approach,” said HLB.
The survey findings also underscored the significant trend of self-directed investing among Malaysians, with a striking 83 per cent of those who invested had opted 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 – or 49 per cent – sought financial advice from social media, while an equal percentage would rely on input from family members.
The survey also uncovered the driving forces behind investors’ choice of investment strategies.
For Malaysian investors, family and community would play a pivotal role in their motivation for wealth accumulation.
Moreover, the survey revealed that 78 per cent of Malaysians had 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.
Comparatively, the survey also delved into the Singaporean perspective with over 500 Singaporean respondents.
“Notably, 87 per cent of Singaporean respondents who invest currently manage their investments autonomously, o en leveraging digital platforms, and emphasising factors such as favourable returns, low charges, and their familiarity with the investment product.
“Similar to the Malaysian respondents, their Singaporean counterparts exhibit a penchant for investing in stocks, highinterest savings accounts, fixed deposits, and Singapore Savings Bonds.
“Furthermore, insurance has a significant importance for Singaporeans as well, with 97 per cent of respondents indicating that they are insured.
“Similarly, family provision is a prevalent motivating factor, with over half (57 per cent) viewing insurance as a means of safeguarding their families in unforeseen circumstances,” said HLB.