Introduction
BNP Paribas’ Securities Services business hosted its Investment Forum for Malaysian Official Institutions in Kuala Lumpur, bringing together leaders from sovereign funds, central banks, regulatory bodies, and asset management to share perspectives on resilience, adaptability, and innovation in the Asia-Pacific (APAC) region.
Global reach and local presence
The forum, led by moderator Elaine Tan, Head of Asset Owners and Asset Managers APAC at BNP Paribas’ Securities Services business, opened with a focus on the shifting realities of the investment landscape. Elaine underscored the speed at which the world is changing, noting: “How do we still navigate the unknown, protect our business and capture new opportunity when the world is moving?”
Her remarks set the tone for a broader conversation about how institutions in Malaysia increasingly operate across both global and local contexts. As geopolitical shifts reshape capital flows and investor expectations, institutions must draw on global insight while remaining anchored in local expertise. This balance of worldwide perspective and domestic understanding is emerging as an essential foundation for resilience — enabling Malaysian market participants to anticipate change, adapt with agility, and position themselves for long-term relevance in a volatile environment.
Navigating Malaysia’s economic landscape
During the forum Malaysia was described as “a very open economy,” but resilient in the face of global headwinds. Speakers pointed to robust GDP growth, strong domestic consumption, and high savings rates as pillars of stability.
However, it was raised that with uncertainties around the world, including the movement of tariffs, determining the optimal location for plants, services, and products is a decisive factor in maintaining a competitive advantage.
Fortunately, Malaysia’s competitiveness, cost structure, and regulatory environment continue to attract investment, while the government’s focus on initiatives like the JSSEZ (Johor-Singapore Special Economic Zone) positions the country as a regional support hub.
Investor sentiment and shifting strategies
Participants reflected on the evolving mindset of investors. Given the volatility in the market, investors are becoming cautious, favouring safer assets and remaining quite mindful of what’s happening globally. Speakers observed that retail investors are increasingly drawn to income-generating strategies, with expectations for returns rising in tandem with market uncertainty. Meanwhile institutional investors maintain a long-term focus and are gradually diversifying into private markets.
Significant investment is being seen flowing into both equities and fixed income but also greater allocations towards private markets, whether it’s private equity, infrastructure or real estate.
Additionally, it was noted that geopolitical tensions have become a defining feature of the investment landscape, which means that maintaining a long-term perspective is becoming increasingly important. Participants agreed that focusing on identifying opportunities and crediting global resources and sector expertise—particularly in technology—will enable timely, informed decisions that help to anticipate market shifts.
The evolving role of service providers
Speakers addressed the changing expectations of clients. Business continuity remains the baseline but what really sets providers apart is how quickly they can adapt to change. Observations were made that clients now expect service providers to be partners and collaborators, not just executors. The ability to reconfigure processes in response to regulatory changes and technological advances is essential.
Technology, data, and the future of asset servicing
Siraz Mouhamadmoussa, Global Head of Buyside Custody Product and Solutions, Securities Services at BNP Paribas, led a deep dive panel session into the transformative power of technology and data management. The panel agreed that data is now recognised as a strategic asset, and organisations are urged to move beyond legacy systems and silos toward integrated, real-time platforms.
As Siraz mentioned the shift is not just about IT upgrades; it’s about transforming the entire business model to unlock value from information that was previously underutilised.
“Past industry commentary often cited that less than one percent of available data was ever analysed – a view reflective of the early big data era. While the situation is improving, the utilisation challenge persists,” he said.
Siraz noted that the International Data Corporation’s more recent analysis shows that enterprises still leverage only about one-third of the data available to them. For financial institutions, the priority today is not generating more data but converting existing data into usable, high-quality insights through stronger governance, modern architectures, and AI-enabled automation.
“I believe this is prompting a strategic pivot – start with reporting requirements, focus on what truly matters, and resist the temptation to flood systems with unnecessary information. As financial institutions, we constantly manage and work with data, so the potential has yet to be untapped,” he said.
This is where advances in AI, machine learning, and natural-language processing are making a difference, enabling firms to build ecosystems capable of crunching non-standard, heterogeneous data.
Panelists also highlighted the rise of AI, blockchain, and tokenization as both opportunities and disruptors noting that while these technologies offer new efficiencies and capabilities, they also introduce new risks — especially around data governance and cybersecurity.
However, the future also lies in shared platforms. Both service providers and clients will have access to the same level of data at the same time, with full transparency, resulting in less data friction. The ability to harness unstructured data — such as images, geospatial data, and alternative data sources — was identified as a key differentiator for the future.
Siraz also highlighted the importance of data consumption patterns: “The real challenge organisations face today lies in how data is consumed rather than how much of it is generated. Unlocking value increasingly depends on building architectures and processes that allow data to be accessed, interpreted and acted on at scale.”
To address this challenge, BNP Paribas has launched Data Prism360 solution. This managed service, delivered in partnership with NeoXam and leveraging their end-to-end, modular data management solution, provides a secure, real-time, cross-asset foundation. It enables investors to harness both structured and unstructured data to meet their growing demands.
Private capital and the rise of evergreen structures
Christophe Picardel, Regional Head of Private Capital APAC, Securities Services, discussed the growing appetite for private capital and the emergence of evergreen fund structures.
“These innovations originated in the US and are now gaining momentum, mainly for private credit strategies, offering investors greater flexibility and liquidity compared to traditional closed-ended funds.”
Christophe noted that evergreen models are now gaining traction in Asia and allow for ongoing investment and withdrawal, aligning more closely with evolving investor needs. He also highlighted the increasing interest in private credit and the importance of balancing liquidity, returns, and administrative efficiency.
“With private credit, you can distinguish a long-term or short-term loan approach. Income comes back regularly in a systematic manner, so you can manage your income liquidity and address any withdrawal requests after a lock-up period.” said Christophe.
Building resilience: the road ahead for Malaysia
Looking to the future, three guiding principles were outlined by forum participants – resilience which is very important because of market uncertainties, diversification, and optimism. Speakers argued that Malaysia’s continued relevance in the global value chain depends on its ability to differentiate, adapt, and deliver value. The only constant right now is uncertainty. And indeed, in today’s environment, speakers agreed that we all must learn to embrace change rather than resist it, turning uncertainty into opportunity.
The forum illuminated the challenges and opportunities facing Malaysian official institutions. Success in this environment demands a proactive, forward-thinking approach – one that balances risk mitigation with agility, leverages technology and data, and fosters deep partnerships. As the speakers affirmed, the future belongs to those who can harness resilience, embrace innovation, and remain steadfast in their commitment to excellence.