INVESTORS Trust, a leading international cross border insurer with offers comprehensive investment solutions to a diverse and multinational clients, finds Malaysia’s supportive regulatory landscape and its pool of talented workforce as vital push factors for the global brand to have three operating units in the country.
Its head of distribution (Asia) David Knights has described Malaysia’s existing regulatory environment as “progressive” when referring to its business being regulated by the Labuan Financial Services Authority (LOFSA) which in turn is recognised by global bodies like the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) for maintaining a high standard of prudential regulation.
“Equally important is the regulator’s willingness to engage with market participants, consult with them, and evolve regulations in a way that is consumer-centric yet consistent,” he told FocusM after the inauguration of the Investors Trust Asia (ITA) sales hub at the Exchange 106 (centrepiece of the Tun Razak Exchange or TRX).
“In Malaysia, the various regulatory bodies cooperate quite effectively. Whether it is Bank Negara Malaysia (BNM) or any other financial regulator, they are often on the same page in terms of maintaining consistency. This consistency is highly desirable for any financial service provider.”
The new sales hub will act as a service point to expand the ITA Group’s operations in Asia following the closure of its Hong Kong office on June 30.
In fact, the re-location of its Asia hub is an extension of the ITA Group’s long-standing commitment to the Asia-Pacific region while simultaneously expanding its presence in Labuan since 2012 where ITA Asia Ltd is registered as a licensed insurer by LOFSA.
In addition to Labuan and TRX, Investors Trust also has a Kuala Lumpur sales office at the Menara 3 PETRONAS in the Kuala Lumpur City Centre (KLCC) vicinity.
Multi-cultural advantage
Meanwhile, Investors Trust’s chief marketing & distribution officer Ariel Amigo has no qualms to admit that Kuala Lumpur “is one of the best locations to leverage our presence in the region effectively”.
“It provides a diverse pool of talent, boasts excellent regulatory standards, is well-connected, and features multi-cultural, multi-lingual environment,” he shared.
“Additionally, it offers top-notch hotels and restaurants which is particularly beneficial when we invite distribution partners from various regions for training and gatherings in the city.
“For all that made us, KL (Kuala Lumpur) is an ideal venue for us to concentrate all of our efforts as a sales hub for the region. It brings together the resources we need to serve our clients and distribution partners effectively.”
Amigo went on to explain the importance of having a team that is not only multi-lingual but also multi-cultural for a cross-border business to thrive.
“Of course, English is the primary language for our day-to-day business operations which is recognised in Malaysia. However, we have been fortunate to find highly talented Mandarin and Bahasa Malaysia speakers, and interestingly, we have also discovered proficient Korean and Japanese speakers right here.,” he observed.
“This multi-lingual capability with native language speakers who can engage with our business partners across the region in their own language and culture has always given us a distinct advantage over our cross-border competitors.”
Eyeing wealthy Malaysian households
Eventually, Knights pointed out that the ultimate consumer of Investors Trust’s B2B (business-to-business)-modelled products “falls within the classification of mass affluent to high-net-worth individuals”.
“Our Labuan license in Malaysia allow us to do business with the high-net-worth market. However, when we speak of affluent household in Malaysia, there are more than one million of them,” revealed the American expatriate who is living in Malaysia for a second time.
“This is a significant number within just the Malaysia market. Obviously, when we expand this perspective to the broader region, it becomes evident that the high-net-worth individual segment is experiencing the fastest rate of growth worldwide.
“Additionally, many regions are witnessing the emergence of a growing middle class and an increasingly affluent population. This dynamic aligns perfectly with our chosen market segment.”
Essentially, Investors Trust is providing its clients with “vehicles to enable them to plan for a better retirement”.
“It is important to consider that some high-net-worth individuals may not necessarily retire in their home country. One of the major trends we observe is the increased mobility of people in the pursuit of their careers and settlement choices,” noted Knight.
“On a larger scale, consider the statistic that prior to the COVID-19 pandemic, around 1.7 million Malaysians lived and worked overseas. When it comes to savings and investment solutions, they require options that are portable to accommodate their global lifestyles.
“Another segment we focus on is families aspiring to send one or more of their children to complete their education overseas. Before the pandemic, there were over 70,0000 young Malaysian studying overseas whether in the UK, Australia or other locations. Providing an overseas education for a child is an expensive exercise for the fees and accommodation.”
So, will current political uncertainties in Malaysia impact Investors Trust’s business outlook in any way?
“I’m sure it does. Whether it is political or economic, our business has thrived in all sorts of challenging environments. Even during the recent pandemic, a period that proved to be exceptionally challenging for many businesses – including those in the financial sector – we managed to thrive,” opined Knights.
“In 2021 which was perhaps the height of the pandemic’s impact, we achieved record levels of business. This success can be attributed – in part – to our technology which empowers our distribution partners to engage with and transact with clients remotely.”
Added his Uruguayan colleague Amigo: “As we have done this for 20 years, we are not afraid of economic and political instability. We are familiar with it.” – Sept 9, 2023
