Malaysia is gradually embracing digital investment methods like tokenisation, following the example of Singapore. With 70% of Malaysia’s RM225 billion approved investments focused on the digital economy, there’s a clear effort to integrate digital technologies to create a dynamic and resilient investment ecosystem, aligning with top financial hubs.
Despite challenges such as improving financial literacy and ensuring cybersecurity, Malaysia is set to catch up with its peers, opening up new opportunities and driving economic growth.
Historically dominated by conventional investments like stocks and bonds, Malaysia’s investment market now requires more diversity and complexity to attract a broader range of investors, especially with Gen-Z’s growing influence and their potential USD450 billion (~RM2.11 trillion) spending power in 2023.
The rise of sustainability and rapid technological advancements are reshaping the investment landscape.
Tokenisation exemplifies this shift, converting assets into digital tokens on a blockchain. This innovation democratises access to various assets, allowing a wider range of investors, from retail to institutional, to participate and benefit. It fosters inclusivity, enhances capital flows, and promotes economic growth.
However, significant barriers remain, particularly around financial literacy and access to information. Many Malaysians lack the knowledge and resources to navigate these new investment opportunities, limiting their market participation and wealth creation potential.
Addressing this requires enhancing financial literacy through education initiatives and demystifying concepts like AI-driven investments and tokenisation.
Regulatory bodies must also evolve, establishing robust frameworks for processes like tokenisation to protect investors and ensure market integrity. This includes setting standards for tokenised assets to provide security against fraud and market manipulation.
A nuanced approach to regulations, rather than a “one-size-fits-all” model, will foster a stable and resilient investment ecosystem.
The future of investments in Malaysia hinges on technological innovation and inclusivity. By addressing financial literacy and establishing strong regulatory frameworks, Malaysia can unlock the full potential of these advancements, creating a thriving, diverse, and accessible investment market.
Investors and industry stakeholders should stay informed and embrace opportunities that prioritise inclusivity and education, which are essential for a successful investment future in Malaysia.
By: Raymond Tan, Founder of Airo, Chief Executive Officer and Chief Investment Officer of CP Global Asset Management
About Airo
Airo is a digital investment management platform designed to help investors navigate the volatile and uncertain investment landscape.
Leveraging an active investment strategy and proprietary technology, Airo delivers personalised investment portfolios, robust risk management, and globally diversified strategies tailored to individual financial goals.
The platform offers four core portfolios targeting different risk levels and goals, and as of Q1 2024, it has expanded to include Shariah-compliant portfolios.
Developed and launched by CP Global Fintech Solutions Sdn Bhd, Airo operates as a Licensed Digital Investment Manager under the Securities Commission of Malaysia.
