AMONG eight markets in the Asia Pacific, Malaysians have the lowest risk appetite during the global economic downturn, a survey sponsored by global reinsurance firm Swiss Re revealed.
The survey also uncovered a strong interest among Malaysians to use financial planners, unlike most other markets in the region.
Eric Gan, Swiss Re's director (Client Markets) said this appears to be a great business opportunity for the insurance industry.
The "Swiss Re Survey of Risk Appetite: Asia-Pacific 2009" was launched in the first quarter of 2009 to gather insights on the risk-taking attitudes of consumers and small-and medium-sized enterprise (SME) decision-makers between 20 and 40 years old across eight Asia-Pacific markets.
The survey covered four key consumer risk aspects - finance, career, health and lifestyle - as well as two key business risk aspects - growth and operation.
The results were consolidated into two indices - the Swiss Re Asia Pacific Consumer Appetite for Risk Index (CAFRI) and the Business Appetite for Risk Index (BAFRI) - to allow comparison between markets and for changes to be tracked over time.
Malaysia scored a CAFRI value of 41.5, the second lowest appetite for risk just ahead of India, while Singaporeans are higher risk takers and ranked fourth.
The ranking of Malaysians is attributable to their low appetite for taking finance, career and health risks.
Unlike most of their counterparts in the region, however, Malaysians are more willing to use professional advisers.
"It is encouraging that financial advisers are well accepted in Malaysia compared to other parts of Asia. This presents a clearopportunity for financial services providers to help bridge the significant gap between consumers who think about and consumers who actually have a plan to ensure financial security," he said.
Overall, effort is needed to raise public awareness of the importance of financial planning early on in life, and how qualified financial professionals might add value to this lifelong process.
Financial professionals also need to better understand how to reach young adults, Gan added. In terms of business risk, young SME leaders surveyed preferred organic growth and the stability and security of maintaining and growing their existing business.
An overwhelming 91 per cent claimed that they would make every effort to keep key staff in order to stay competitive.
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