RM50b went into dubious investment schemes: Whitman

KUALA LUMPUR: Whitman Independent Advisors managing director Yap Ming Hui estimates that some RM50 billion has been pumped into dubious investment schemes over the years.
He said that if the money gone into these schemes remain “in the pockets of the people” it would have benefited the economy by stimulating spending.
Yap explained that if the amount had instead been pumped into regulated investments, such as the stock market, it could have helped to boost the performance of the stock exchange.
He attributed this to a lack of awareness on wealth management among the public and the knowledge that an investment of as little as RM1,000 could still be channelled into a legitimate investment channel such as unit trust.
Yap added that the onus was on the wealth management industry to “step up” in order to become a viable option for investors. Investors are in need of a more engaging experience with regulated wealth managers, and options in terms of schemes.
“Wealth management providers have a lot of human resource, which they should mobilise to help clients compare regulated and unregulated investments,” he said at a media briefing for the launch of Whitman’s Holistic Wealth Management programme yesterday.
“It is okay for wealth management providers to sell funds but the question is how do you sell it. The wealth management industry should be doing the part of selling funds in the process but ideally they must help the client to invest in a very responsible and supportive manner,” he added.
Wealth managers, according to Yap, should not only help customers spot scams but also be able to provide their clients with a blueprint on their investment roadmap.
On an individual level, there should be certain level of accountability and responsibility for their financial well-being.