Malaysia To Attract More Foreign Inflows As Rich Baby Boomers Pass On Wealth Worth US$1.9 Tln

KUALA LUMPUR, May 8 (Bernama) -- Malaysia is set to draw more foreign inflows as Asia's largest intergenerational wealth transfer is on the cards, said Malaysia’s Securities Commission (SC) chairman Awang Adek Hussin.

He said that according to HSBC Bank, Asia's wealthy baby boomers are expected to pass on about US$1.9 trillion of wealth to future generations in the coming years. 

“The financial planning industry is well placed to capitalise on this opportunity due to long-term relationships built over the years," he said at the Financial Planning Symposium 2024 organised by the Financial Planning Association of Malaysia (FPAM). 

Moreover, this opportunity not only promises to elevate the quality of financial planners' services but also broadens their client base.

Furthermore, Awang Adek pointed out the growing interest in sustainability among millennial investors, something which financial planners could potentially tap into.

A survey by the Institute of Capital Market Research revealed that more than 70 per cent of millennials and Gen Z are likely to invest in options that also promote sustainability. 

“While many investors have good intentions, they may lack knowledge about sustainable investments like  environmental, social and corporate governance (ESG) or Sustainable and Responsible Investment (SRI) Funds, which we in the capital markets industry may be used to.

“As such, financial planners must increase their understanding and develop their capabilities in this area," he said. 

To facilitate this, the SC and the Federation of Investment Managers Malaysia will issue a comprehensive guide to assist planners and consultants in navigating the complexities of Socially Responsible Investment (SRI) Funds.

This guide aims to ensure that SRI considerations become a routine component of financial advice.

-- BERNAMA