Knight Frank’s 12th edition Wealth Report said Malaysia was falling behind other counterparts in client wealth within the Asia Pacific region.

Knight Frank Malaysia managing director Sarkunan Subramaniam said wealthy investors in Malaysia increased their exposure to bonds and gold last year as these were seen as the safest asset classes, especially with the general election approaching.

“Post-election, we expect investors to accept more risks as the political landscape brings a new policy and economic cycle,” The Malaysian Reserve quoted him as saying at the report’s launch ceremony in Kuala Lumpur today.

Sarkunan was also quoted as saying that investors may also look at various real estate opportunities across residential and commercial properties both at home and abroad

The survey also indicated a significant move into precious metal in Malaysia and China with 33% and 46% of respondents respectively saying that their clients increased their allocations last year. The figure is above the global average of 25%, the report said.

The Malaysian Reserve also cited Knight Frank Asia Pacific head of research Nicholas Holt as saying that 2017 was a relatively strong year in Asia Pacific as evident in the growth of wealthy individuals across the region.

“Despite global headwinds, including a rising interest rate environment, the continued rebalancing of China’s economy and tensions around trade, the region is set for further growth in 2018 with wealth increasingly being accumulated through new sources of growth including technology-related industries,” Holt said.

This year’s findings are based on respondents from 541 of the world’s leading private bankers and wealth advisors, representing about 50,000 clients with a combined wealth of about US$3 trillion (RM11.61 trillion).

The study incorporated the results of the Attitudes Survey, which offers an annual snapshot of issues that influence wealthy individuals’ investment decisions.