This is not just a future scenario. Mr Lee pointed out that in 2021, Asia grew to become the top contributor to the global economy – 39 per cent compared to 28 per cent by North America and 25 per cent by Europe.

Beyond a macro trend, the shift also applies to individual wealth – Asia Pacific accounts for 30 per cent of the wealth of global high-net-worth individuals and continues to be a vital growth engine for the US$83 trillion held in high net worth globally.

Zooming in further, much of this growth is centred in South East Asia. There was a rise from US$6,352 billion in 2016 to US$8,509 billion in 2021, and this is set to reach US$11,443 billion in 2026. This is accompanied by a rise in middle-class wealth – ASEAN saw a growth rate of 39.2 per cent in this demographic from 2015 to 2021.

Such trends presented by Mr Lee are paving the way for Islamic wealth management to become more prominent on the financial landscape. This is especially as the ASEAN 5 - Indonesia, Malaysia, the Philippines, Singapore, and Thailand – which are seeing a growth in affluence, have a significant percentage of the population that are Muslim. The region is home to 250 million Muslims, a number that is set to grow.

Changing investment priorities

Another notable trend is how investors are adjusting their priorities amid global trends. Investors are becoming more international in profile, with the increased mobility of the workforce, cross-border business interests and as a result, globally oriented investment preferences.

This is alongside growing digital pervasiveness in an era of hyper-personalisation and digital tools, said Mr Lee.

Another observation is a shift towards alternative and purpose-driven investments such as Islamic wealth. Dr Muhd Ramadhan Fitri, Director, Islamic Finance Strategic Programme, Maybank Islamic, said that one clear emerging theme is a “convergence between shariah-compliant and ethical investing”.

A final point was on wealth transfer and legacy, with a focus on how the next generation is involved in philanthropy and wealth management decisions and how there needs to be an alignment of values in the inheritance process.

Such trends – especially in the area of seeking purpose-driven investments and values-centred wealth transfer – have led to growing interest in Islamic wealth management. Islamic financial assets grew at a compound annual growth rate of 9 per cent in the last 6 years, according to Dr Ramadhan. “Islamic wealth management is still at a very nascent stage (and) has a lot of promise,” he said.

“At Maybank, we believe that there is a lot of opportunity in Islamic wealth management,” added Mr Lee.

Banking – including liabilities and assets – remains the biggest component of overall Islamic financial assets at about 70 per cent.

Southeast Asia and Singapore as a key hub

In South East Asia, Islamic wealth has been growing at the same pace as conventional investments.

The region is a key hub in this area, with Indonesia holding about US$3 trillion out of the US$11.2 trillion across the top 10 Islamic banking asset jurisdictions. Dr Ramadhan pointed out three factors for Indonesia ascent as a “very promising market” – booming GDP growth, rapid urbanisation and a booming SME ecosystem.

A significant proportion of Islamic wealth is also held offshore – a third in South East Asia was offshore in 2021. This is expected to grow to 34 per cent in 2026.

Central to this is Singapore, a key hub in attracting this offshore wealth from the rest of the region, attracting 32 per cent from Indonesia and 28 per cent from Malaysia.

“Singapore is poised to be the primary hub for global offshore wealth within the next five years,” said Dr Ramadhan. “From the perspective of affluent Muslims in South East Asia, Singapore is the undisputed hub for offshore Islamic wealth solutions.”

Mr David Koay, Group CEO of trust company British & Malayan Holdings, added: “Singapore is a robust global economy with access to all other markets.”

How Islamic wealth impacts the next generation

There is also an eye on the future of Islamic wealth, with increasing interest among young affluent Muslims. They are exploring Islamic wealth solutions as they have better exposure to Islamic finance propositions. “This is the case for Indonesia in particular as well as GCC (Gulf countries) based on our research conducted with Bain and Co,” said Dr Ramadhan.

According to a study, six in 10 young Muslims believe it is very important whether a banking or investment product is Islamic.

And it is not just about investing, but also wealth transfer. This is part of the customer’s financial journey through life, from cradle to grave - from wealth creation, accumulation, preservation, purification and finally, distribution.

For instance, purification could come in the form of helping those in need through donations, endowment and zakat. In the case of wealth distribution or estate planning, there is also the consideration of channelling one’s legacy not just towards immediate family members but towards a large number of beneficiaries with a societal cause.

Demographic and economic trends will only propel the popularity of Islamic wealth management, especially in South East Asia, across the spectrum, from investment to wealth transfer.

Ms Fera Wirawan, Head, Investment Consultant, Maybank Wealth Management summarised the panel’s discussion. “The spectacular growth of many economies in Asia over the past three decades has led to a shift in wealth creation from West to East,” she said. “Ultra-high-net-worth individuals in ASEAN require more sophisticated wealth solutions, which begins in the area of Islamic wealth financing as well as proper planning for wealth transfers.”