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Retail Savings & Investments in Malaysia: Coronavirus (COVID-19) Sector Impact

April 2020 | 19 pages | ID: R2818111D6F4EN
GlobalData

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Retail Savings & Investments in Malaysia: Coronavirus (COVID-19) Sector Impact

SUMMARY

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.
Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year-to-date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020 and many experts predicting the potential onset of recessionary environments.
A similar trend is expected in Malaysia. Economic growth in the country is set to have dipped in the first quarter of 2020 and will decelerate further if the disease is not controlled at the earliest possible opportunity. This will have an adverse impact on all sectors, including retail investments.
This report focuses on the impact of the Coronavirus outbreak on the Malaysian economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.

SCOPE
  • Malaysian retail savings and investments are forecast to contract by 0.7% over the course of 2020 as the economy has come to a standstill thanks to the impact of COVID-19. Retail equity and mutual fund holdings are expected to take the brunt of the economy’s slowdown, with respective declines of 18.6% and 7.4% anticipated.
  • Retail deposits holdings, on the other hand, are set to fare better than initially expected courtesy of a flight to safety away from risk assets as well as a move away from cash holdings. However, more pronounced declines in risk asset holdings mean the total retail holdings forecast for 2020 is 3.1 percentage points lower than before the onset of COVID-19.
  • The effects on the different segments that make up the HNW market will be disproportionate. The basic materials sector, which is the largest contributor to HNW wealth, is expected to take a significant hit thanks to falling prices and lower demand globally as COVID-19 is taking a toll on global production levels.
  • On the flipside, the fast-moving consumer goods industry is set to benefit from COVID-19 as demand for staples, toiletries, and over-the-counter drugs remains high.
REASONS TO BUY
  • Make strategic decisions using top-level revised forecast data on the Malaysian retail savings and investments industry.
  • Understand the key market trends, challenges, and opportunities in the Malaysian retail savings and investments industry.
  • Receive a comprehensive insight into the retail liquid asset holdings in Malaysia, including deposits, mutual funds, equities, and bonds.
COVID-19 Update
Impact Assessment
Retail Savings and Investments
Retail Bond Holdings
Retail Deposit Holdings
Retail Equity Holdings
Retail Mutual Fund Holdings
Appendix
Supplementary Data
Definitions
Methodology
About GlobalData
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