Sixty-two per cent of them will invest sustainably because they believe that this is key to getting long-term returns, according to a recent survey of retail investors around the world.
This is marginally above the global average of 60%. In comparison, 66% of investors in Southeast Asia also tout sustainability in their investing strategy, according to the Schroders Global Investor Study 2022.
The study covered close to 24,000 retail investors across 33 locations around the world. Apart from Malaysia, the Southeast Asian countries included in the survey were Indonesia, Singapore, and Thailand.
The survey showed that 65% of Malaysian investors who see themselves as having “expert” or “advanced” knowledge of investing believe in sustainable investment; in Southeast Asia, 72%, and 68% globally.
On the other hand, among those who think their knowledge is at only a “rudimentary” or “beginner’s” level, 61% of Malaysians would still look for sustainability, compared with 62% in Southeast Asia and 43% globally.
Among those who consider themselves as having only an “intermediate” grasp of investing, 58% of Malaysians want sustainable investment compared with 60% in Southeast Asia and 52% globally.
The issue of climate change also ranks high in the list of priorities for investors.
A total of 67% of Malaysian investors who claim they have expert advice believe that investing sustainably can support positive change when it comes to challenges such as climate change. Regionally and globally, the score is 72%.
The study found that environmental impact was the main factor that attracted 56% of Malaysians to sustainable investments, compared with 58% for Southeast Asia and 52% globally.
Social principles matter less to Malaysian investors compared to their counterparts in Southeast Asia and globally. Malaysia scored only 41% compared with 44% for Southeast Asia and 43% globally.
On the other hand, Malaysians care more about financial gains, scoring 49% compared with 37% for Southeast Asia and 36% globally.
Not surprisingly, a combination of financial gains and environmental protection — basically the best of both worlds — make for a good investment for most.
An average of 65% of Malaysian investors belong in this category, compared with 63% among investors in Southeast Asia and 56% globally.
A total of 61% of Asian investors and 60% of their counterparts in the Americas seek funds that focus primarily on delivering financial returns while integrating sustainability factors, while 51% of European investors are more likely to choose funds that prioritise sustainability.
On the issue of sustainability, 20% of investors, not just in Malaysia but regionally and globally as well, believe quality education is key.
For Malaysians, good health and general well-being is equally important but less so for investors in Southeast Asia (17%) and globally (12%).
Of other issues that matter, poverty eradication features highly on the priority list for 15% of all investors, while zero hunger is important for 14% of investors in Malaysia, compared with 13% regionally and 14% globally.