Who Would Have Expected Kuala Lumpur To Have Even More Billionaires Than Abu Dhabi?
The gap between the richest of Malaysia and the rest of the population continues to grow.
By Mei Mei Chu — 10 Dec 2014, 04:43 PM — Updated about 10 years ago
A report by WealthInsight Intelligence Centre has revealed some surprising insights: Kuala Lumpur has the highest number of millionaires compared to other cities around the world
Malaysia’s largest city Kuala Lumpur has the highest number of millionaires (denominated in US dollars) surpassing all other cities of the world, according to a report by international wealth research group WealthInsight.
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WealthInsight’s Intelligence Center includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
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In 2013, KL had 13,800 millionaires. That's more than Abu Dhabi (12,500), Cape Town (8,753) and Birmingham (8,736).
The city had 13,800 millionaires or high net worth individuals (HNWIs) in 2013, higher than Abu Dhabi’s 12,500, Cape Town’s 8,753 or Birmingham’s 8,736, WealthInsight said.
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The report projected that in four years, the number of high net worth individuals in Malaysia will increase from 26,000 in 2013 to 30,054
It said that in 2013, Malaysia had over 26,000 HNWIs with their wealth standing at US$151 billion (RM527 billion).
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WealthInsight predicted that Malaysia’s number of millionaires will jump from over 26,000 last year to 30,054 in just four years, with total Malaysian wealth also projected to increase from US$151 billion (RM527 billion) to US$206 billion (RM719 billion) in the same period.
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The total Malaysian wealth is also expected to grow from US$151 billion (RM527 billion) to US$206 billion (RM719 billion) by 2018. That's a 28% increase.
“Malaysian wealth grew at the remarkable rate of 59.6 per cent between 2009 and 2013 and is expected to increase by a further 28% to reach US$206 billion in 2018,” said the group which claims to have a detailed database on the rich and an international-based team of over 500 economists, analysts and researchers.
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The report titled "Millionaires in Malaysia: 26,000 and Counting" also predicted Malaysia to have more billionaires in 2018 compared to the United Arab Emirates
Malaysia is also predicted to have more billionaires (20) in 2018 compared against oil-rich United Arab Emirates (19), WealthInsight said in its report titled “Millionaires in Malaysia: 26,000 and Counting”.
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In fact, Malaysian billionaires currently have 209% more wealth to the entire millionaire population of Paraguay
“Malaysia’s billionaire growth has also been large; with US$46 billion in 2013 Malaysian billionaires have 209% more wealth than the entire millionaire population of Paraguay,” it said.
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Although Malaysia's population is only at 28.3 million, it has as many millionaires as Indonesia whose population is 237.6 million
He said Malaysia’s overall wealth was similar to countries such as Argentina (US$160 billion), Colombia (US$154 billion) and Indonesia (US$206 billion). “With a population of only 28.3 million, Malaysia has a similar number of millionaires than much more densely populated countries such as Indonesia, whose population stands at 237.6 million. “This demonstrates the big potential for billionaire growth in Malaysia,” said Carlisle.
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The substancial increase of wealth is contributed to the nation's good performance during the 2009 financial crisis and its rise as an Islamic banking hub
WealthInsight analyst Tom Carlisle cited the well-performing Malaysian economy during the financial crisis as the reason for the 45.5 per cent hike in new millionaires minted during the 2009 to 2013 period to the total pool of 26,105.
“Since becoming an Islamic banking hub, Malaysia has seen a large surge in investment to its shores, increasing by 52.6 per cent since 2008 to US$11.6 billion. Malaysia has also seen a large increase in HNWIs acquiring their wealth in finance as well as in real estate and construction, increasing by 64.8 per cent, 57.2 per cent and 55.1 per cent respectively”, says Carlisle.
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The number of millionaires concentrated in the capital city suggests an increasing gap between the richest and the rest of the general population
The number of millionaires concentrated in Kuala Lumpur gives an indicator of Malaysia’s fast-growing wealth at the top end but also suggests an increasing gap between the richest and the rest of the population. Average annual income in the country stands around RM20,000 and minimum wage weighs in at RM900 a month.
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WealthInsight analyst Tom Carlisle is certain that the high rising level of new wealth and investment here will lead to further growth
“Growth like this is very hard to maintain, but the high rising level of new wealth and investment in Malaysia and neighbouring countries means further growth will be seen. Malaysian HNWIs are currently investing 54% of their overseas portfolio in the Asia-Pacific.
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“Malaysian HNWI wealth has increased substantially, finding high levels of growth and investment in real estate which will be influenced further by the high levels of GDP estimated over the next five years,” said Carlisle.
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