The pool of Malaysian ultra high-net-worth individuals (UHNWI) is projected to grow by 42 per cent over the next 10 years.

At the launch of the ninth edition of The Wealth Report 2015, which included a survey of Knight Frank'€™s Capital Markets wealth spending, Asia-Pacific head of research Nicholas Holt told the press that the projection would be mainly driven by economic growth.

It has been reported that there are currently 572 UHNWI, followed by 14 billionaires and 211 centa-millionaires in Malaysia, which are projected to grow by 42 per cent and 43 per cent over the next 10 years.

The global independent property consultancy defined a UHNWI as one with a net worth of at least US$30 million, a HNWI as one with a net worth of at least $1 million, and centa-millionaires as those with a minimum net worth of $100 million, each excluding their principle residence.

According to the 2015 Attitudes Survey, which was based on the response of almost 500 private bankers and wealth advisors, 36 per cent of Malaysian UHNWI were planning to buy a residential property in 2015.

Despite the slow local market, property retained its appeal for the Malaysian UHNWI market, Holt said.

'€œThis growth in wealth is certainly impacting prime residential markets across Asia and Australasia, with the region'€™s key cities and second home destinations seeing strong price growth over the last five years. This is despite interventions by policy-makers in a number of markets designed to slow price growth and curb foreign ownership.'€

Holt pointed at education for children as being a major driver of UHNWI investing in overseas property, alongside other reasons such as quality of life, better health, security and political stability.

In the study, Malaysian respondents ranked highest as most likely to send their children overseas for university, followed by Hong Kong, China, India, Singapore, Indonesia and Australia.

Responding to interest in commercial property, the UHNWI said they were inclined to invest in retail property, followed by residential for investment and offices.

Meanwhile, luxury items are expected to perform, with classic cars as top annual performers in the index, projected to grow 16 per cent this year, followed by art, wine and coins, which are forecast to grow 15 per cent, 7 per cent and 13 per cent, respectively, over the year.

Speaking on the weakened ringgit, Knight Frank Malaysia managing director Sarkunan Subramaniam said more Malaysian HNWIs will hedge their wealth by investing overseas, and that the current economic climate will further see Malaysian capital moving towards safe havens such as London, New York and Melbourne. (***)

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