The Malaysian asset management industry’s future will be underpinned by technological changes that will impact all aspects of the business, according to panellists at Asia Asset Management’s (AAM) 13th annual Malaysia roundtable this week.
They highlighted artificial intelligence as a major trend that will disrupt the industry over the next decade.
Panellists at the session on “30 years of asset management in Malaysia: Past, Present and AI Future” were Alex Ng, independent non-executive director and member of the investment committee of BNP Paribas Asset Management Malaysia; Kaleon Leong Rahan, chief executive officer of the Federation of Investment Managers Malaysia; Ismitz Matthew De Alwis, executive director and CEO of Kenanga Investors; and Tan Haw Sin, managing director and founder of Riskk.com.
The session on June 17 was moderated by Tan Lee Hock, founder and publisher of AAM.
Riskk.com’s Tan listed five major trends that has shaped the Malaysian asset management industry over the past five decades, starting with personal computers, then the internet the iPhone, the Covid-19 pandemic, and now AI.
AI “will be a tool widely used in communication, knowledge gathering, research work, and it is going to change the way we work”, he said.
Ng predicted that AI adoption will grow at a fast pace, mainly because of the human fear of missing out.
“In fact, technology has exacerbated the fear of missing out because now, we can see much more quickly how our neighbours are getting rich by their investments in technology,” he said.
De Alwis noted that the customer base for asset management in Malaysia is becoming more segmented and that this has also impacted the distribution side of the business, with the retail segment now including sub-segments like mass-retail, sophisticated investors, and high- and ultra-high-net-worth investors.
“As customer segments evolved, distribution also evolved. So some customers would prefer technologies for easier and quick access, while some would prefer advisory, while there are also some that prefer sophisticated investment strategies such as private markets. So, as asset managers, we need to be able to adapt to the evolving customer needs,” he said.
The panellists believe technology cannot fully replace the human role, and that investors will continue to see value in personal interactions with fund management companies.
“Yes, online platforms have made it easier for many of us, but try complaining to a chatbot if you don’t get what you want,” Leong Rahan said.
