Local investors set new financial goals to fight inflation

Standard Chartered’s Wealth Expectancy Report 2022 finds that Malaysian investors cited inflation (40%), an uncertain global economy (28%) and the threat of a recession (23%) as their top concerns. — Reuters

KUALA LUMPUR: A survey has revealed that 80% of local investors have set new financial goals, namely, for retirement, keeping up with rising costs as well as holidays and major life experiences.

According to Standard Chartered’s Wealth Expectancy Report 2022, Malaysian investors cited inflation (40%), an uncertain global economy (28%) and the threat of a recession (23%) as their top concerns.

The report said rising inflation (34%), an uncertain global economy (27%) and recession (22%) are also key worries for investors internationally. To outpace inflation, 61% of global investors are looking to reduce their cash holdings, compared with 53% from Malaysia.“Standard Chartered predicts that global cash allocations will fall from 26% in 2022 to 15% in 2023, indicated by investor responses,” it said in a statement yesterday.

The report examined the shifts in investor decisions for more than 15,000 emerging affluent, affluent and high-net-worth investors in 14 markets – including Malaysia –along with the resulting movements in major asset classes.

Standard Chartered Malaysia head of consumer, private and business banking Sammeer Sharma said Malaysian investors are quite receptive to new types of investment assets, with a significant number of them holding digital assets.

While more investors are taking charge in managing their wealth, professional advice continues to be crucial in ensuring that their decisions align with their objectives, according to Sharma.

“We believe that diversified portfolios with multi-asset income generation strategies, combined with personalised advice, will provide some of the best opportunities today,” he added. — Bernama