A recent survey by Standard Chartered said that 80% of Malaysian investors have set up new financial goals and are actively engaging with their finances more frequently as a result of global uncertainties. Their new financial behaviours are influenced by factors such as the rising inflation and a threat of recession.

In its annual Wealth Expectancy Report 2022, Standard Chartered highlighted that the three main goals that most Malaysian investors are now saving and investing for include:

• A comfortable retirement (54%)
• Keeping up with rising costs (48%)
• Holiday and major life experiences (45%)

Meanwhile, 40% of Malaysian investors surveyed said that inflation is a major concern in managing their finances, followed by the uncertain global economy (28%) and the threat of recession (23%).

In a bid to combat inflation, specifically, 53% of Malaysian survey participants further said that they are ready to reduce cash holdings in their portfolios; this is in comparison to 61% global investors who said the same. This has also led to Standard Chartered’s prediction that global investors’ allocation of cash in their portfolios is likely to fall from 26% in 2022 to 15% in 2023.

Aside from discussing the new financial goals for investors, the report also revealed Malaysian investors’ opinion of digital assets; 67% of Malaysian participants continue to believe that such assets remain an important part of any investment portfolio. However, 48% also went on to say that they do not have long-term confidence in digital assets.

“This suggests that Malaysians view them (digital assets) 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,” the bank elaborated.

Meanwhile, for sustainable investing, Standard Chartered found that there is an even split in the percentage of investors who have and have not placed money in sustainable funds at present (48%, respectively). Moving forward, 49% of investors in Malaysia indicated that they expect to increase their sustainable investments this year, while 11% said they will invest less.

Ultimately, the head of consumer, private, and business banking of Standard Chartered Malaysia, Sammeer Sharma noted that Malaysian investors are typically quite receptive towards new types of investment, with many willing to diversify to try things out. To complement this bold spirit, however, professional advice from experts continues to remain important in ensuring that investors’ decisions align with their objectives, he said.

“We believe diversified portfolios with multi-asset income generation strategies and personalised advice will provide some of the best opportunities today,” Sammeer said.

(Sources: Standard Chartered, New Straits Times)

• TAGS:
• Digital Assets
• Economic Recession
• FTX
• Inflation
• Recession
• Sammeer Sharma
• Standard Chartered
• Standard Chartered Wealth Expectancy Report