Digital Investment - Malaysia

Malaysia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$2.18bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.26% resulting in a projected total amount of US$2.95bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$2.18bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Malaysia is experiencing significant growth and development in recent years.

Customer preferences: In Malaysia, customers are increasingly turning to digital investment platforms to manage their investments. These platforms offer convenience, accessibility, and transparency, allowing customers to easily monitor and manage their portfolios. Additionally, customers in Malaysia are becoming more tech-savvy and comfortable with digital platforms, making digital investment a preferred option.

Trends in the market: One of the key trends in the digital investment market in Malaysia is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on customers' risk profiles and investment goals. Robo-advisors offer lower fees compared to traditional investment advisors, making them an attractive option for cost-conscious customers. The ease of use and accessibility of robo-advisors have also contributed to their popularity in Malaysia. Another trend in the market is the increasing adoption of mobile investment apps. With the widespread use of smartphones in Malaysia, mobile apps have become a popular way for customers to invest and manage their portfolios on the go. These apps provide real-time updates, investment recommendations, and easy transaction capabilities, making them a convenient choice for customers.

Local special circumstances: One of the factors driving the growth of the digital investment market in Malaysia is the government's push for financial inclusion. The government has implemented various initiatives to promote digital financial services, including digital investment platforms. These initiatives aim to provide Malaysians with access to affordable and convenient financial services, including investment opportunities. The government's support and promotion of digital investment have created a favorable environment for the growth of the market.

Underlying macroeconomic factors: The growing middle class and increasing disposable income in Malaysia have also contributed to the development of the digital investment market. As Malaysians have more money to invest, they are seeking out investment options that offer higher returns and better control over their investments. Digital investment platforms provide an attractive alternative to traditional investment options, offering potential higher returns and greater transparency. Furthermore, the low-interest-rate environment in Malaysia has driven investors to explore alternative investment options. With traditional savings accounts offering minimal returns, customers are turning to digital investment platforms to seek higher returns on their investments. The potential for higher returns, combined with the convenience and accessibility of digital platforms, has made digital investment an appealing option for Malaysians. In conclusion, the Digital Investment market in Malaysia is experiencing significant growth and development due to customer preferences for convenience and accessibility, the rise of robo-advisors and mobile investment apps, the government's push for financial inclusion, and underlying macroeconomic factors such as the growing middle class and low-interest-rate environment. These factors have created a favorable environment for the growth of the digital investment market in Malaysia.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.