KUALA LUMPUR: Malaysian high-net-worth individuals are increasingly open to investing in digital investment platforms and are recognising the potential returns these platforms offer.
StashAway Malaysia, a Securities Commission-licensed investment platform, has observed that many high-net-worth clients previously tended to approach digital platforms with some scepticism.
Country manager Wong Wai Ken said that over the course of six years in operation, the company has observed that once clients understand that the platform is a regulated entity and that trustees are in place to ensure security, these investors become more confident about significant portions of their investments.
“On average, our high-net-worth clients invested RM150,000 with us, with some investments reaching into the millions. This challenges the perception that older clients are not tech-savvy or distrust digital platforms. Our success demonstrates that affluent individuals are indeed willing to embrace and utilise our platform,” he told SunBiz.
StashAway is a digital wealth manager that offers investment portfolios and wealth management solutions for retail and accredited investors and operates in Singapore, Malaysia, the United Arab Emirates, Hong Kong, and Thailand.
In Malaysia, StashAway is regulated by the Securities Commission of Malaysia. It is the first robo-advisor in Malaysia to be awarded a Capital Markets Services License by the Securities Commission under the Digital Investment Management framework.
When asked what makes StashAway the ideal choice for attracting domestic high-net-worth individuals, Wong said these investor groups come from diverse backgrounds – some are business owners, others focus on property or stocks.
“Our role is to help them invest globally and diversify their portfolios. For clients who are experts in a particular area, we manage the portions of their wealth they lack the time or expertise to oversee.
“By offering diversified portfolios across asset classes with global exposure, we complement their expertise and allow them to focus on what they do best,“ he said.
Elaborating, Wong said StashAway has saved Malaysians over RM130 million in fees since its 2018 launch, as it surpassed RM1 billion in assets under management in 2023.
The platform has reshaped the country’s investment landscape, disrupting a financial services sector long dominated by high fees. This achievement underscores a growing shift towards digital-first, cost-efficient investment solutions, with StashAway serving over 50,000 clients in Malaysia.
“When we launched in 2018, our mission was to make sophisticated investing accessible and affordable for everyone. Achieving RM130 million in fee savings is a testament to that mission.
“We have since seen meaningful ripple effects from challenging industry norms, including the gradual phasing out of outdated practices like exit fees,“ he said.
To a question on Malaysia’s growth outlook and investments, Wong said the country has reached a turning point in its growth trajectory.
He said the projections by the Ministry of Finance and Bank Negara appear reasonable, and the declining interest rate environment in the US, likely to follow suit here, is supportive of growth.
“Key sectors like data centres have emerged as significant sources of investment and employment, while the IPO market has been strong, and the stock market has performed well. This demonstrates that Malaysia offers ample opportunities for wealth creation. At StashAway, our role is to complement this by helping clients invest globally,“ Wong said.
