Q1: Private banks in Asia have faced a number of challenges in 2024, from uncertainty around interest rate cuts in the US to volatile markets and geopolitical tensions. Considering this background, how did you safeguard AUM and revenue streams in 2024, while also attracting net new assets? What will your strategy be in 2025?

In 2024, we were positioned for steady global growth that will lend support to corporate earnings and the performance of risk assets. Nevertheless, we were cognisant of the shifting expectations around growth, inflation and policy rates that will continue to drive market volatility. Geopolitical and election uncertainties also added to the downside risks. Hence, we advised our clients to stay nimble and maintain a diversified portfolio with a focus on quality and value.

To this front, our adoption of a broader Asia exposure (beyond China) delivered an optimal outcome. Our tactical overweight on US equities in early November also worked with the subsiding of US election uncertainty. We managed to generate alpha not only through selected MegaTech names but also with active rotation amongst sectors including financials, industrials and materials. As for fixed income, we managed to secure resilient returns through quality credits including Sukuk.

In addition, we launched our Maybank Alpha Capital & Income Opportunities (CIO) fund, a multi-asset solution in collaboration with Fidelity Investments, which has delivered strong risk-adjusted returns. The strategy has managed to limit drawdowns during the growth scare in early August this year. Beyond traditional assets, we provided bespoke solutions in the private equity and co-investment space, which target delivering returns over the mid to longer term with lower market correlation.

Looking ahead to 2025, global growth will likely moderate, although recession risks remain contained. Notably, US GDP is projected to grow at 2% with support from Fed easing albeit in a calibrated manner. Within Asia, domestic-oriented economies like India and Indonesia may be more resilient and better shielded from global trade uncertainty.

China remains a wildcard, though policymakers stand ready to backstop the economy if necessary. As for fixed income, quality credits are anticipated to provide stable carry returns amidst a benign default outlook. While the decline in interest rates may have become more gradual, the lower rates outlook will still remain supportive of bond returns.

Despite the pro-growth stance, inflation and rates volatility will likely persist alongside policy and geopolitical uncertainties. In view of the above, it is critical that we maintain a well-diversified portfolio including a strategic allocation to gold to mitigate the downside risks. Investors with the ability and risk appetite may also consider other alternatives including macro hedge funds and private assets. Overall, we will continue to adopt an agile investment strategy, allowing us to adapt swiftly to changing market conditions and capitalise on emerging opportunities to continue delivering sustainable returns for our investors.

Q2: China’s announcement in 2024 of a series of monetary and fiscal stimulus measures has helped re-energise the world’s second-largest economy, bringing optimism and momentum to the market. What opportunities has this created for your bank? How would you advise clients when it comes to investing in China?

Despite the economic challenges, China’s equities are not “un-investable” and still warrant some strategic exposure. The recent policy pivot demonstrated the Chinese leaders’ willingness to backstop the economy, thus providing a floor to the market valuation. With more fiscal support likely to boost confidence, we see opportunities in consumer/tech-related sectors. State-owned enterprises, particularly in sectors like telecommunications, continue to offer attractive dividend yields.

We note that the Chinese leaders are not interested in re-creating a stock market or a property bubble. The new Trump administration could also impose more protectionist measures on China that would weigh on Chinese stocks. Although China’s equities are inexpensively valued, they are unlikely to re-rate significantly above the historical average valuations given the policy and tariff uncertainties.

Q3: In 2024, the private banking industry witnessed organisational restructurings, leadership reshuffles, as well as heavyweight departures. Looking forward, what are the priorities for your private bank in terms of attracting and retaining talent across the front, middle, and back office? What measures do you have in place for managing personnel transitions?

Hiring the right talent is key for us. When assessing candidates, we prioritise the value they bring to our organisation, and their ability to integrate into the Maybank culture, which emphasises collaboration, integrity, and customer-centricity. In particular, for our Client Advisers (CAs), we seek individuals who are customer-focused and committed to understanding the unique needs of high-net-worth clients. Being solutions-driven is vital, as well as having the ability to provide tailored, needs-based advisory to clients.

To ensure long-term success, we give our CAs a longer gestation period to understand our business model and suite of offerings, and to build meaningful relationships with clients by focusing on personalised, needs-based advisory. This means ensuring our CAs are equipped with comprehensive training to enhance their ability to be resourceful, nimble, and agile, helping them adapt to evolving client needs. New hires undergo a structured programme designed to integrate them into the Maybank ecosystem, emphasising both technical and cultural alignment.

We actively promote internal career progression, enabling CAs to grow along our wealth continuum from managing Retail Wealth clients and eventually, Private Wealth clients. We also ensure they are provided the relevant training, skills and confidence to serve increasingly sophisticated client segments. This progression also benefits our clients, as they foster strong and trusting relationships between them.

Our commitment to fostering a supportive and empowering culture has resulted in many of our CAs establishing long-standing careers with us. This long-term commitment is a testament to the structure and environment we have in place, which emphasises continuous growth, collaboration, and a strong alignment with our core values.

This year, we have been able to attract many experienced CAs from other leading private banks. They are drawn to our robust capabilities, infrastructure, and inclusive culture, which empower them to deliver exceptional service to clients.

Q4: The Middle East, in particular the United Arab Emirates, has come onto the radar of many private banks as clients increasingly seek global diversification. What potential opportunities do you see in the region for private wealth clients, as well as in the Middle East-to-Asia wealth corridor in general? How else are you adapting to clients’ increasing requirements for global services and offerings?

We are actively exploring opportunities to serve clients from the Middle East region through our Singapore offshore wealth hub, to be enabled by partnerships for our Islamic Wealth Management proposition. We are also reviewing offerings from fund houses in the Middle East seeking to distribute to Asian clients, especially with a focus on our Shariah-compliant wealth proposition.

The UAE and Saudi Arabia are the largest wealth management markets in the Middle East region, with vibrant economies and high levels of foreign investment.

There is a high concentration of expatriates with offshore wealth management needs in the UAE, and we are observing a growing demand from clients in this region for offshore investments in Singapore, leveraging it as a regional hub to diversify geographically and gain exposure to Asia. This signals a shift beyond investing in traditional offshore centres like Switzerland and the UK.