Financial assets per capita reach EUR9,430
Malaysia’s economy demonstrated strong resilience in 2023, with gross financial assets growing by 5.8%, a notable recovery after the challenges of the previous two years. Allianz’s Global Wealth Report revealed that the insurance and pensions sector played a key role in this upturn, growing at an impressive rate of 9.8%, its fastest in five years. This sector now accounts for 42% of Malaysia’s total asset portfolio.
As a result, the net financial assets per capita in Malaysia stood at $10,521 (EUR9,430), positioning the nation at a mid-tier level both regionally and globally.
Bank deposits also contributed to this economic rebound, posting a solid 5.2% growth. However, the securities sector lagged behind, managing only a slight 0.3% increase. While this is modest, it marks a return to positive territory after two consecutive years of contraction.
When adjusted for inflation, the real growth in financial assets was more tempered. The inflation-adjusted increase in 2023 dropped to 3.2%, with real financial assets only marginally higher than in 2020, by 0.8%. However, financial assets are still 9.1% above pre-pandemic levels, indicating long-term stability.
On the liabilities front, debt growth remained stable at 5.7%, maintaining Malaysia’s debt-to-GDP ratio at 81% by the end of 2023. Despite being one of the highest debt ratios in Asia, it remains below pre-pandemic levels, where the ratio had peaked at around 85%.
The combination of strong insurance and pension growth, steady bank deposits, and manageable debt levels has put Malaysia on a solid financial footing as it navigates its post-pandemic recovery.
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