2 weeks Ago
ASIA’S financial landscape is undergoing significant changes, highlighted by the growing wealth accumulation among women. According to a December 2022 article in the Financial Times, women in Asia (excluding Japan) are expected to hold approximately US$27 trillion in wealth by 2026. This surpasses the wealth held by women in Western Europe, indicating a major shift in global wealth distribution.
Since 2019, Asian women have been adding US$2 trillion annually to their collective wealth. This trend is projected to continue at a compound annual growth rate of 10.6% in the coming years.
This financial expansion extends beyond mere statistics; it represents the growing economic influence and decision-making power of women across the region. With increasing participation in entrepreneurship, investment and executive roles, women are playing a pivotal role in shaping market dynamics and contributing to sustainable economic growth. Power in corporate leadership The influence of women extends beyond personal wealth accumulation to corporate leadership.
According to studies, gender diversity at the board and senior management levels improves financial performance. For example, Malaysian companies with at least one-third female board representation had a 38% higher median return on equity (ROE) than those without female board members, states the Institute of Corporate Directors Malaysia. Similarly, a 2019 study by the International Finance Corp found that Asian companies with over 30% female board representation had an average ROE of 6.
2%, compared with 4.2% for all-male boards. The findings provide compelling evidence of the business case for gender diversity and Diversity, Equity and Inclusion (DEI) in corporate governance.
Women in leadership roles bring diverse perspectives, improve decision-making, and strengthen governance, leading to better financial results. DEI is not just about fairness or responsibility – it supports business sustainability, economic growth and innovation. Diverse leadership improves decision-making, boosts financial performance and enhances governance.
Companies valuing diversity are more innovative and adaptable, aiding success in competitive markets. Yet, resistance to DEI efforts persists in some regions, often seen as compliance rather than strategy or questioned during economic uncertainty. DEI is not a passing trend – it drives business success.
Abandoning it risks undoing progress and causing economic stagnation. Malaysia has made progress, with 33% of board positions in the Top 100 public-listed companies on Bursa Malaysia now held by women. But we are far from the finish line.
The 30% target was not a quota or an end goal – it was the minimum threshold for meaningful representation. As women make up half the global population and play a larger role in financial decisions and consumer spending, businesses must go beyond token representation and fully integrate DEI into their core strategies. DEI in Malaysian context Malaysia, with its rich multicultural heritage, is uniquely positioned to lead by example in DEI.
While women hold 33% of board positions in top PLCs, the question remains: Are we doing enough to create inclusive environments that allow women, particularly those from marginalised backgrounds, to thrive? Beyond gender, DEI encompasses diverse perspectives, abilities, experiences and socioeconomic backgrounds. True inclusivity means dismantling systemic barriers such as unconscious bias, outdated workplace policies and rigid societal expectations. For instance, why do most Malaysian corporations still offer only three to seven days of paternity leave? While women may receive 90 days of maternity leave, if their partners are unable to share caregiving responsibilities, the burden of child-rearing continues to fall disproportionately on women.
Structural changes like equitable parental leave policies are crucial in driving real progress. Embracing the future Women in Asia are expanding their financial influence and securing leadership roles, making the future more inclusive. However, challenges like systemic biases and under-representation in industries such as manufacturing as well as oil and gas remain.
Overcoming these barriers requires effort from individuals, corporations and policymakers to create opportunities for women’s financial and professional success. Supporting these advancements can help create a more balanced and prosperous global economy. When women succeed financially and professionally, the benefits reach across societies and industries, highlighting the need for progress towards gender equity in wealth and leadership.
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