Asset Management In Malaysia Slowing Down

The asset management in any country should always focus on growing and showing better services. Long it has been performing very well in Malaysia which has a lot of asset management work to be conducted. However, recent reports show that the overall value of the field has been slowing down and not living up to the expectations. These changes has been plotted over the past 10 years where overall there has been a decrease in performance. When speaking about the past 20 years the industry has been showing growth strongly with almost 16% annual growth rate.

Yet, right now seeing a decrease in this value pushes for measures to be taken to help revamp the industry. Hence, decisions have been taken by the government to help create a partnership between the Institute for Capital Market Research (ICMR) and the Nomura Institute for Capital Markets Research (NICMR) to study reasons for this changes and the slowdown of the industry.

This was commented on by Datuk Syed Zaid Albar who is the Securities Commission Malaysia (SC) chairman by saying, “The focus on the asset management industry is timely as data from the last five years suggested that it might have reached an inflection point with signs pointing to slowing future growth. Concerns over the growth trajectory are also given impetus as industry shortcomings are increasingly raised by the investors and industry themselves. This could be achieved through further regulatory harmonization efforts, as well as private sector driven initiatives such as cross-border merger and acquisition or partnership structures.