Singapore  - The Asia-Pacific region is presenting dramatic opportunities for the investment management industry while global markets face further turbulence on fears of recession, a report said Wednesday.

KPMG estimated that 21.1 per cent of the world's high net worth individuals are in the Asia-Pacific region, with much of the wealth held in unstructured assets, particularly real estate and bank deposits.

The report forecasts this rising level of wealth among the middle classes will be a key driver for the funds management industry.

"Doing business in the region requires business strategies that are incisive in nature yet localized in approach to truly succeed in this fragmented environment," said Yap Chee Meng, KPMG's Asia-Pacific head of financial services.

He mentioned the diversity of regulations, cultures and languages.

Many markets are characterized by a general lack of understanding of product risk and the investing public's resistance to paying for advice, the report said.

A skills shortage is prevalent among mutual fund and life insuranct sales people in China; fixed income analysts and private bankers in Hong Kong and Singapore. (dpa)