KUALA LUMPUR (July 27): Malaysia’s affluent and high net worth investors prefer to invest in products such as insurance, stocks, and gold rather than holding cash, to curb inflation, preserve wealth, and retirement savings, according to an HSBC wealth survey.

A HSBC-commissioned survey of 9,993 wealthy investors across 10 countries found that Malaysian investors mainly hold insurance (48%), stocks (44%), and gold (43%) as their preferred investment products. The survey covered affluent investors with at least US$100,000 in investable assets and high-net-worth individuals with over US$2 million.

It also found that Malaysian investors plan to increase ownership of gold by +20pts, fixed or term deposits (+19pts) and alternatives (+17pts) over a 12-month period.

“Affluent and high net worth investors in Malaysia continue to seek long term growth, and product choice is becoming more intentional based on investment objectives,” HSBC Malaysia country head of international wealth and premier banking Linda Yip said in a statement Monday.

“While portfolios remain anchored in traditional products such as insurance and stocks, affluent and high net worth investors in Malaysia are also adding sophistication through alternatives, alongside mainstays like gold and term deposits,” she added.

HSBC’s survey also showed 16% of wealthy Malaysians intend to decrease their cash allocation compared to the lower global average of 12%, adopting a future-proofing mindset when it comes to their investment strategy.

This proportion is also higher than in other markets such as Taiwan (9%) and Singapore (13%).

The findings are based on an online research conducted by Ipsos Asia Ltd on investors aged 21 to 69 across 10 markets, including China, Hong Kong, India, Malaysia, Mexico, Singapore, Taiwan, the United Arab Emirates (UAE), the UK and the US.