SC expects a slowdown in asset management industry

: The asset management industry is reaching an inflection point signaling a slowdown in future growth, according to Securities Commission (SC) chairman Datuk Syed Zaid Albar.

“Concerns over the growth trajectory were also given impetus as industry shortcomings were increasingly raised by investors and industry players themselves,“ he said at the launch of the first joint research report by the Institute for Capital Market Research Malaysia (ICMR) and Japan’s Nomura Institute of Capital Market Research (NICMR).

Over the last 20 years, the asset management industry has recorded strong growth with a compound annual growth rate of 16%.

The joint report highlighted there are signs of a slowdown amidst fundamental shifts which are expected to alter the industry, which include changing demographic trends and investor preferences, the advent of digitalisation, availability of talent, as well as changes in market regulations and structure.

ICMR’s director Datin Azleen Osman Rani highlighted that the asset management needs a revitalisation and innovation, given the fast changing financial and economic landscape.

“The report helps us assess the long term potential for asset management in Malaysia, and what needs to be done to ensure its sustainability towards the future,” she said.

Source: The Sun Daily

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