Southeast Asia is one of the fastest-growing regions in the world, thanks to its strategic trade location, a population twice the size of Europe, and a skilled workforce empowered by digital technologies. According to Knight Frank’s Wealth Report, countries in Southeast Asia, including Malaysia and Indonesia, are projected to see significant growth in the number of wealthy individuals from 2023 to 2028.
Notably, Malaysia has experienced a 75% increase in the number of millionaires aged 30 and under, as highlighted in a recent news report. With the rise in wealthy individuals in Malaysia, one might wonder: how much wealth or income is required to be among the wealthiest 1% in the country?
Read Also: 10 Richest Billionaires In Malaysia And The Businesses Behind Their Wealth
Net Worth Of The Top 1%
A person’s net worth is the value of their assets minus all liabilities. These assets can include physical properties and investments such as stocks, bonds, private equity, real estate, and even alternative assets like gold and rare art.
Knight Frank, a property consultancy firm, analyzed global wealth distribution and published the findings in its Wealth Report. According to the 2023 Wealth Report by Knight Frank, the entry amount to be among the top 1% in Malaysia was US$485,000. Malaysia saw a 4.3% increase in the number of ultra-high-net-worth individuals (those with assets exceeding US$30 million), rising from 723 in 2022 to 754 in 2023.
Compared to other Asian countries, Malaysia has a relatively lower threshold to enter the top 1%. In Singapore, the highest threshold in Asia, one needs US$3.5 million in assets to be in the top 1%. In Hong Kong and Japan, the requirements are US$3.4 million and US$1.7 million, respectively. These countries are home to many ultra-high-net-worth and high-net-worth individuals, which naturally raises the threshold for being part of the top 1%.
Household Income Of The Top 10%
Household income is the combined earnings of individuals living together under one roof, sharing resources for food and other living expenses. According to the Household Income Survey Report in 2022 by the Department of Statistics Malaysia (DOSM), the wealthiest 10% of households in Malaysia earned at least RM15,870 per month. This marks a slight increase from the 2019 Household Income and Basic Amenities Survey Report, which found that the top 10% of households earned a minimum of RM15,039 per month.
Read Also: Median Household Income By State: How Much Do Malaysian Households Earn
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