This paper was first published in the Nomura Journal of Asian Capital Markets, Spring 2020 Vo.4/No.2, available here. 

ICMR’s research project on the asset management industry relied on a multi-stakeholder collaborative model that harnessed the knowledge of its strategic research partner, NICMR and was further complemented by the practical insights received from regulators, policymakers, industry players as well as academia through dialogue sessions and interviews.

In order to have an objective and quantitative approach in undertaking this study, a proprietary online survey was distributed to all licensed asset managers in Malaysia. Surveyed respondents were segmented according to type, be they bank/insurance backed, Islamic, foreign and standalone asset managers

Based on survey findings, the report sets out nine interconnected recommendations that holistically address underlying structural issues, as well as specific industry challenges. The recommendations also leverages on NICMR’s in-depth knowledge of the Japanese asset management industry to identify possible solutions.

These recommendations have been formulated with the overarching aim of strengthening the asset management industry across the value chain, to achieve three strategic outcomes: –

1. Promoting inclusive capital markets
2. Strengthening intermediation role
3. Enhancing value creation

The nine recommendations are: –

1. Facilitating market diversity for revitalisation
2. Going beyond mere capital with differentiated strategies
3. Developing talent through internationalisation and reciprocal relationships
4. Embracing the digital disruption
5. Making PRS a more attractive option
6. Widening product range
7. Strengthening the value of distribution channels
8. Embedding financial literacy
9. Establishing a high-level task force to address regulatory and policy harmonisation

Click below to download the full report and related resources.