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KUALA LUMPUR: Malaysian investors are more optimistic about their personal finances and investment scene, said the latest results from ING’s quarterly ING Investment Dashboard survey.
In comparison with 3Q last year, more Malaysian investors surveyed said that their personal and household financial situation improved in 4Q2009 and more than half (61%) felt optimistic that it will continue to improve in the first quarter of this year.
With favourable views of financial situations, investors in Malaysia are gravitating towards riskier instruments. The medium risk/medium return type investments are most popular among investors (60%) while 44% opted for high risk/high return investments.
“Investors are willing to take higher risk with the equity market, as seen from its growth in 4Q2009, due to the stabilisation of the global economy, the weakening of the US dollar and the increase in commodity prices. We expect to see the domestic equity market grow an average of 15% in 2010,” said Mark Wang, chief investment officer, ING Insurance Bhd.
Malaysian investors expect to see real estate prices go up in the next three months. Half of the investors surveyed expect property prices to go up in the first quarter of 2010, with 36% of them predicting the average prices to go up between 2.5% and 5%.
However, almost 40% of Malaysian investors claimed to invest less in property with only 10% likely to invest. Wang believes that this can partly be attributed to the Budget 2010 announcement of real property gains tax (RPGT) from the disposal of real property.
“The RPGT caused some initial concern for the property sector prior to further clarification. However, we expect property prices will appreciate because factors such as low mortgage rates and developers’ aggressive promotion will attract investors,” he added.
In the region, optimism continues to grow. The Pan-Asia (ex-Japan) ING Investor Sentiment Index recorded an increase to 147 for 4Q2009 from 142 for 3Q2009 and 124 for 2Q2009 as the Asian economies continue to improve. A whopping 79% of Malaysian investors believe that China can lead the world out of the current financial doldrums.
Asian investors (ex-Japan) remain bullish on stocks and property, with 50% invested in local stocks and 83% believe the stock market will remain at the current level or rise (by an average of 8.7%) in 1Q.
The ING Investment Dashboard survey measures and tracks investor sentiment and behaviour of mass affluent investors each quarter from 12 Asia-Pacific markets including China, Hong Kong, India, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Japan and Australia.
The respondents are aged 30 years and above, and have disposable assets or investments of US$100,000 (RM343,000) and above.
This article appeared in The Edge Financial Daily, Jan 28, 2010.
In comparison with 3Q last year, more Malaysian investors surveyed said that their personal and household financial situation improved in 4Q2009 and more than half (61%) felt optimistic that it will continue to improve in the first quarter of this year.
With favourable views of financial situations, investors in Malaysia are gravitating towards riskier instruments. The medium risk/medium return type investments are most popular among investors (60%) while 44% opted for high risk/high return investments.
“Investors are willing to take higher risk with the equity market, as seen from its growth in 4Q2009, due to the stabilisation of the global economy, the weakening of the US dollar and the increase in commodity prices. We expect to see the domestic equity market grow an average of 15% in 2010,” said Mark Wang, chief investment officer, ING Insurance Bhd.
Malaysian investors expect to see real estate prices go up in the next three months. Half of the investors surveyed expect property prices to go up in the first quarter of 2010, with 36% of them predicting the average prices to go up between 2.5% and 5%.
However, almost 40% of Malaysian investors claimed to invest less in property with only 10% likely to invest. Wang believes that this can partly be attributed to the Budget 2010 announcement of real property gains tax (RPGT) from the disposal of real property.
“The RPGT caused some initial concern for the property sector prior to further clarification. However, we expect property prices will appreciate because factors such as low mortgage rates and developers’ aggressive promotion will attract investors,” he added.
In the region, optimism continues to grow. The Pan-Asia (ex-Japan) ING Investor Sentiment Index recorded an increase to 147 for 4Q2009 from 142 for 3Q2009 and 124 for 2Q2009 as the Asian economies continue to improve. A whopping 79% of Malaysian investors believe that China can lead the world out of the current financial doldrums.
Asian investors (ex-Japan) remain bullish on stocks and property, with 50% invested in local stocks and 83% believe the stock market will remain at the current level or rise (by an average of 8.7%) in 1Q.
The ING Investment Dashboard survey measures and tracks investor sentiment and behaviour of mass affluent investors each quarter from 12 Asia-Pacific markets including China, Hong Kong, India, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Japan and Australia.
The respondents are aged 30 years and above, and have disposable assets or investments of US$100,000 (RM343,000) and above.
This article appeared in The Edge Financial Daily, Jan 28, 2010.
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