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> Financial Engineering, Does it have future in Malaysia?

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TSPohziliang96
post Nov 13 2020, 12:06 AM, updated 7 months ago

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I'm still considering taking this course in MMU.
I knew that nothing is assured or guaranteed in future.
But how useful it can become in the future in Malaysia?

It is quite interesting since I will learn the C++ language as part of the course. But how significant is C++ language in Malaysia's financial industry?
I wish to do equity research or corporate finance.

(Compared with ACCA, which one is better for the job? And between Accounting and Financial Engineering(Financial modelling etc.), which one is more feasible to be learnt by oneself?)

This post has been edited by Pohziliang96: Nov 13 2020, 12:09 AM
littlegamer
post Nov 13 2020, 12:20 AM

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Had a friend took that same year as me, end up not engineer not business degree. Nor here nor there.

If you want be specialized do it now. At work field, u dive into even more specialization
TSPohziliang96
post Nov 13 2020, 12:29 AM

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QUOTE(littlegamer @ Nov 13 2020, 12:20 AM)
Had a friend took that same year as me, end up not engineer not business degree. Nor here nor there.

If you want be specialized do it now. At work field, u dive into even more specialization
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So you mean...... it’s all about the timing?
NorAzdanNordin
post Nov 13 2020, 12:38 AM

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Short answer, no, financial engineering is not in high demand in Malaysia.

My advice, stick with normal financial things, specialise when you start work.

It’s very risky to start specialising in your studies as then you narrow your career choice.
abc2005
post Nov 13 2020, 12:42 AM

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C++ is not widely used in finance or banking. In financial industry, they use mostly SAS and Excel for modeling.

If you are into finance, I'd recommend having a look at CFA curriculum before deciding on whether to take your mentioned financial engineering course.
TSPohziliang96
post Nov 13 2020, 12:51 AM

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QUOTE(abc2005 @ Nov 13 2020, 12:42 AM)
C++ is not widely used in finance or banking. In financial industry, they use mostly SAS and Excel for modeling.

If you are into finance, I'd recommend having a look at CFA curriculum before deciding on whether to take your mentioned financial engineering course.
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CFA is good. But I have not studied bachelor degree...... And Financial Engineering is the degree that’s interesting


This post has been edited by Pohziliang96: Nov 13 2020, 12:53 AM
abc2005
post Nov 13 2020, 01:00 AM

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QUOTE(Pohziliang96 @ Nov 13 2020, 12:51 AM)
But I have not studied bachelor degree...... And Financial Engineering is the degree that’s interesting
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It doesn't matter. Get hold of a degree first that contains numerical subjects, whatever it is as you will need to understand the fundamentals like probability and statistics, time value of money and amortisation, financial modeling etc...
In the meantime, learn up the CFA curriculum if you are interested in whatever you mentioned above to know more about equities and corporate finance.
Btw, you can only take CFA exams as a degree holder smile.gif
littlegamer
post Nov 13 2020, 01:16 AM

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QUOTE(Pohziliang96 @ Nov 13 2020, 12:29 AM)
So you mean...... it’s all about the timing?
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Specializing.
Justin Wong
post Nov 13 2020, 06:34 AM

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QUOTE(Pohziliang96 @ Nov 13 2020, 12:06 AM)
I'm still considering taking this course in MMU.
I knew that nothing is assured or guaranteed in future.
But how useful it can become in the future in Malaysia?

It is quite interesting since I will learn the C++ language as part of the course. But how significant is C++ language in Malaysia's financial industry?
I wish to do equity research or corporate finance.

(Compared with ACCA, which one is better for the job? And between Accounting and Financial Engineering(Financial modelling etc.), which one is more feasible to be learnt by oneself?)
*
The language is just a tool and the focus is about learning the concepts behind financial engineering using the tool - it could be other tools like excel VBA (VBA and R are very common for financial engineering as long as data points are not too large) and if you are into the latest trend, Python. For example, you can easily build a simple binomial model for option pricing with just an excel sheet or you can solve a debt optimization problem in a project finance scenario using VBA by way of a simple loop. The only reason C++ may be used is due to its processing speed in certain situations (i.e., trading strategy executions where timing is crucial) but i digress.

Financial engineering as a profession is still pretty niche in Malaysia as the most relevant role would be financial product design (think of the infamous CDO or CDO squared) or credit modelling, which doesn't seem to have a big market in Malaysia given that Malaysia is not a major financial hub like Singapore/HK/London. Besides, my experience tells me that employers tend to prefer candidates who are trained in actuarial sciences for financial product design or financial risk management roles because the curriculum is more mathematically rigorous and recognized.

If your interest is in equity research or corporate finance, then I would say ACCA or CFA will be more relevant because knowing financial statements and equity valuation concepts are more important. Financial engineering tends to lend itself better towards fixed income research since it is structured-product focus with more mathematical mechanics behind it. I would also say that ACCA / CFA is also more relevant if you want to do financial modelling (which i assume you are referring to 'business modelling' which includes constructing financial statement projections of a business/project, and that includes debt structuring).

If you merely want to get a degree for the sake of getting a degree however, then I guess there is no harm since you should spend your time and money studying something you are genuinely interested.

This post has been edited by Justin Wong: Nov 13 2020, 06:57 AM
TSPohziliang96
post Nov 13 2020, 08:48 AM

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QUOTE(Justin Wong @ Nov 13 2020, 06:34 AM)
The language is just a tool and the focus is about learning the concepts behind financial engineering using the tool - it could be other tools like excel VBA (VBA and R are very common for financial engineering as long as data points are not too large) and if you are into the latest trend, Python. For example, you can easily build a simple binomial model for option pricing with just an excel sheet or you can solve a debt optimization problem in a project finance scenario using VBA by way of a simple loop. The only reason C++ may be used is due to its processing speed in certain situations (i.e., trading strategy executions where timing is crucial) but i digress.

Financial engineering as a profession is still pretty niche in Malaysia as the most relevant role would be financial product design (think of the infamous CDO or CDO squared) or credit modelling, which doesn't seem to have a big market in Malaysia given that Malaysia is not a major financial hub like Singapore/HK/London. Besides, my experience tells me that employers tend to prefer candidates who are trained in actuarial sciences for financial product design or financial risk management roles because the curriculum is more mathematically rigorous and recognized.

If your interest is in equity research or corporate finance, then I would say ACCA or CFA will be more relevant because knowing financial statements and equity valuation concepts are more important. Financial engineering tends to lend itself better towards fixed income research since it is structured-product focus with more mathematical mechanics behind it. I would also say that ACCA / CFA is also more relevant if you want to do financial modelling (which i assume you are referring to 'business modelling' which includes constructing financial statement projections of a business/project, and that includes debt structuring).

If you merely want to get a degree for the sake of getting a degree however, then I guess there is no harm since you should spend your time and money studying something you are genuinely interested.
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Thanks for your advice!
otai_g
post Nov 13 2020, 11:33 AM

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what shit of this cost name?
can easily use engineering words?
this engineering disciplined are not recognized by board of engineering.
please use other name.
financial analysis as example.
Justin Wong
post Nov 13 2020, 11:59 AM

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QUOTE(otai_g @ Nov 13 2020, 11:33 AM)
what shit of this cost name?
can easily use engineering words?
this engineering disciplined are not recognized by board of engineering.
please use other name.
financial analysis as example.
*
It is not exactly financial analysis because pure financial engineering involves creating financial products using high-level mathematics which may include programming.

The studies of financial engineering already exist since the 90s and it is an established profession where there are professional associations for it. (Maybe not in Malaysia). Using examples in Singapore, both NUS and NTU offer master-level courses containing the term 'Financial Engineering' as well.

Some people recognize it better as 'Quantitative Finance'.
TSPohziliang96
post Nov 13 2020, 02:36 PM

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QUOTE(otai_g @ Nov 13 2020, 11:33 AM)
what shit of this cost name?
can easily use engineering words?
this engineering disciplined are not recognized by board of engineering.
please use other name.
financial analysis as example.
*
Yeah. Engineering= Designing and building.

In the financial industry, those financial institutions would also construct some products/derivatives to be sold.

One of the examples is CDS(Credit default swap) during the 08’ financial crisis.
TSPohziliang96
post Nov 13 2020, 07:02 PM

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ACCA or CFA?

If I had to choose one to step into investment banking?(ecm, equity research, cf)
dreamfasten
post Nov 13 2020, 08:26 PM

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funny.
financial oso got engineering
TSPohziliang96
post Nov 13 2020, 11:18 PM

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QUOTE(dreamfasten @ Nov 13 2020, 08:26 PM)
funny.
financial oso got engineering
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Yeah, it's engineering in finance. They construct something to be sold. Just like how engineer builds a house or a building.

This post has been edited by Pohziliang96: Nov 14 2020, 12:00 AM
TSPohziliang96
post Nov 14 2020, 09:19 AM

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.

This post has been edited by Pohziliang96: Nov 14 2020, 09:26 AM
coldbasecamp
post Nov 14 2020, 10:26 AM

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The course is more towards using data and process it with sophisticated approach to make an informed business decision.

Some of my friends who studied for this course ended up not applying much from the studies, however due to the "IT" background they can easily apply for BA (business analyst).
wct
post Nov 14 2020, 11:03 AM

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Graduated in this course 10 years ago. What I can say is this course is only touching the fundamentals of each subjects and cover too many aspects which makes it not specific enough for your future job scope. Would suggest to go into actuarial science if you ever thought of taking this course.
TSPohziliang96
post Nov 14 2020, 11:16 AM

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QUOTE(wct @ Nov 14 2020, 11:03 AM)
Graduated in this course 10 years ago. What I can say is this course is only touching the fundamentals of each subjects and cover too many aspects which makes it not specific enough for your future job scope. Would suggest to go into actuarial science if you ever thought of taking this course.
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Thanks for your insight on this course. I would make consideration before deciding......
I also found another comment in another forum. Yeah just like what you said, the graduates don't have a deep grasp of programming and other things.....

Looks like I would have to choose ACCA instead of this

This post has been edited by Pohziliang96: Nov 14 2020, 11:21 AM

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