Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on March 16, 2016.

 

KUALA LUMPUR: About 26% of Malaysia’s ultra-high-net-worth individuals (UHNWIs) are considering changing domiciles — the second-highest rate in the world after China, which stood at slightly over 30% — said international property consultancy firm, Knight Frank.

UHNWI_chart_FD_160316

Knight Frank (M) Sdn Bhd managing director Sarkunan Subramaniam said the lack of opportunities in business and education could contribute to this figure, despite the government trying hard to improve in these areas. 

He was speaking at the launch of Knight Frank’s annual ‘The Wealth Report 2016’, which provides a global perspective on prime property and investment, yesterday.

“This trend will continue as Malaysians have become more and more international. Sometimes, it is possibly due to lack of opportunities here. Of course, our government is trying to improve [the situation] and this could be some of the push factor [to encourage Malaysians to remain in the country],” Sarkunan said.  

He said if Malaysia continues to be not as liberal — in terms of doing business — as it used to be, it could result in more Malaysians moving to other more liberal countries in the future.

He also noted that UNHWIs have a growing appetite for properties abroad, particularly in London in the United Kingdom and Melbourne in Australia.

“Malaysian developers are also developing property projects overseas, so this is one of the reasons why Malaysians are buying property overseas [from local developers with projects abroad and to move out from Malaysia],” he said.

“However, I don’t think 26% of them seeking to change domicile is very significant in the global market,” he noted.  

As at last year, there were 993 UHNWIs in Malaysia, down by 15% from a year ago.  The report defined UNHWIs as those with a personal net worth of over US$30 million.

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