Financial Advisory - Malaysia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$19.33bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.02%, resulting in a market volume of US$19.36bn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Malaysia is experiencing significant growth and development, driven by various factors such as changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market in Malaysia are shifting towards seeking professional advice and guidance in managing their finances.

With an increasing number of individuals becoming more financially literate and aware of the importance of financial planning, there is a growing demand for expert advice to help them make informed investment decisions. Customers are also looking for personalized and tailored financial solutions that cater to their specific needs and goals. Trends in the market indicate a rising popularity of robo-advisory services in Malaysia.

Robo-advisors, which are automated investment platforms that use algorithms to provide financial advice, have gained traction among tech-savvy customers who prefer convenience and low-cost solutions. This trend is driven by advancements in technology, increased internet penetration, and the growing acceptance of digital financial services in the country. Another trend in the Financial Advisory market in Malaysia is the increasing focus on sustainable and socially responsible investing.

Customers are becoming more conscious of the environmental and social impact of their investments and are seeking financial advisors who can guide them in making ethical investment choices. This trend is in line with the global shift towards sustainable investing and reflects the growing awareness of environmental and social issues among Malaysians. Local special circumstances also play a role in shaping the Financial Advisory market in Malaysia.

The country's diverse population, which consists of various ethnic groups and religions, requires financial advisors to have a deep understanding of cultural nuances and preferences. This necessitates the availability of advisors who can cater to the specific needs of different communities and provide customized financial solutions. Underlying macroeconomic factors such as Malaysia's strong economic growth, stable political environment, and favorable regulatory framework contribute to the development of the Financial Advisory market.

The country's robust economy provides a conducive environment for investment and wealth creation, attracting both local and international investors. Additionally, the government's initiatives to promote financial literacy and inclusion further support the growth of the Financial Advisory market in Malaysia. In conclusion, the Financial Advisory market in Malaysia is witnessing significant growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

As customers increasingly seek professional advice and guidance in managing their finances, the market is evolving to cater to their needs through the adoption of robo-advisory services and the focus on sustainable investing. The country's diverse population and favorable macroeconomic conditions further contribute to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management 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 activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). 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 data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.