How much of Malaysia’s financial assets come from insurance and pensions?

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Insurance and Pensions Constitute Nearly 40 Per Cent of Malaysian Households' Financial Assets

Malaysian households' financial assets saw a notable increase of five per cent in the previous year, a performance that contrasted with the global trend of a 0.1 per cent decline. This growth in Malaysia was primarily influenced by the significant contribution of insurance and pensions, which collectively represent almost 40 per cent of all financial assets held by households in the country. The substantial performance of these specific asset classes played a crucial role in offsetting declines in other areas.
Insurance and Pensions Drive Household Asset Performance

The asset allocation strategy of Malaysian savers, with a substantial weighting towards insurance and pensions, has been a key factor in the overall performance of their financial assets. This unique portfolio structure, where insurance and pensions constitute nearly 40 per cent of total financial assets, means that the fluctuations in these sectors have a pronounced effect on the aggregate figures. This was particularly evident in 2018, when the strong performance of insurance and pensions significantly boosted household financial assets.
Significant Growth in Insurance and Pensions in 2018

In 2018, the insurance and pensions sector experienced a robust year-on-year increase of 18.3 per cent. This substantial growth was sufficient to counterbalance a 9.8 per cent year-on-year decrease observed in securities. Concurrently, bank deposits saw a more modest increase of 4.5 per cent during the same period, highlighting the dominant impact of insurance and pensions on the overall financial asset landscape for Malaysian households.
Malaysia's Financial Standing Relative to Region

The aforementioned growth in financial assets contributed to Malaysia maintaining its 35th position globally in terms of net financial assets per capita, which stood at 9,090 euros (RM42,162). This figure remained significantly above the regional average of 6,910 euros (RM32,051) for Asia. Despite a slower increase in liabilities compared to previous years, Malaysia's household debt ratio remained one of the highest in the region.

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How much of Malaysia’s financial assets come from insurance and pensions?

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