business

Malaysia's younger investors prioritise principles, values when investing, says Schroders

KUALA LUMPUR: Younger investors in Malaysia aged 18-37 strongly (78 per cent) prioritise their principles and values when making investment decisions, Schroders Global Investor Study 2022.

According to Schroders' flagship study, this was against 71 per cent in Southeast Asia and 63 per cent globally.

Furthermore, 68 per cent of younger investors aged 18-37 in Malaysia (versus 70 per cent in Southeast Asia and 60 per cent globally) felt more empowered to influence corporate decision-making through their investments compared to Malaysia investors belonging to other age brackets. 

On the global level, investors aged 71 and above took the lead, with 76 per cent placing more priority on these aspects, compared to 66 per cent in Southeast Asia. 

Schroders investment propositions director Stuart Podmore said the study demonstrated that now more than ever before, investors of all levels of experience were increasingly wanting to express their views if companies were unable to justify their actions.

"If the pandemic has taught us nothing else, it is that companies, as well as governments, are under closer scrutiny than ever to mitigate environmental, societal and governance risks in a sustainable way. 

"What's so interesting about our survey this year is that societal and governance risks are starting to rise up the list of priorities for investors. 

"Increased investment knowledge appears to support people's confidence in supporting corporate decision-making. 

"As an active asset manager and guardian of our clients' assets, we are committed to engaging in year-round dialogue on their behalf, to support better investment outcomes," said Podmore.

Furthermore, the study revealed Malaysia now felt more confident in accessing investments that might previously have been seen as off-limits. 

"A particular example of this comes in private assets, with around half of the investors surveyed feel empowered to access both digital assets and private equity. 

"Meanwhile, 54 per cent of Southeast Asian investors (versus 50 per cent in Southeast Asia and 45 per cent globally) are confident in investing in real estate," it said.

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