KUALA LUMPUR, March 5 — The number of high-net-worth individuals (HNWIs) in Malaysia is on the rise, aligning with a global trend of increasing wealth accumulation, according to Knight Frank’s Wealth Report.
It it, the real-estate consultancy said Malaysia’s growing ultra-wealthy population is also driving demand for luxury real estate and prime commercial properties.
“The growing population of high-net-worth individuals in Malaysia is reshaping the local real estate market,” said Dominic Heaton-Watson, Associate Director – International Residential at Knight Frank Property Hub.
HNWIs worldwide grew by 4.4 per cent in 2024, with North America leading at 5.2 per cent, followed by Asia at 5 per cent, Africa at 4.7 per cent, and Australasia at 3.9 per cent.
The Middle East, Latin America, and Europe also saw smaller but positive increases, reinforcing the broader trend of wealth expansion.
From the report, Malaysia has been a key beneficiary of this rise, as wealthy individuals increasingly invest in Kuala Lumpur’s high-end residential and commercial markets, while Penang and Johor Bahru attract interest in the industrial and hospitality sectors.
Private capital has been a driving force behind Malaysia’s commercial real estate market, with institutional investors deploying significant funds into office and logistics assets.
The resurgence of private capital is expected to fuel strategic acquisitions in major urban centres as financing costs ease.
“Malaysia’s commercial real estate market continues to evolve, with investors showing strong interest in prime office and logistics assets.
“As economic conditions stabilise and financing costs ease, we expect a wave of strategic acquisitions, particularly in key urban centres such as Kuala Lumpur, Penang, and Johor Baru,” said Keith Ooi, Group Managing Director of Knight Frank Malaysia.
With HNWIs diversifying their portfolios, Malaysia is also expected to see greater capital inflows into office, logistics, and hospitality sectors, strengthening its position as an investment hub.
The government has sought to leverage this trend by fostering a favourable investment climate, solidifying Malaysia’s role in the regional and global real estate landscape.
Among this is the zero-tax incentive for single family offices operating out of the Special Financial Zone (SFZ) in Forest City, Johor.
