KUALA LUMPUR, Dec 24 — Malaysia’s upper-middle class are willing to spend more for "experiential luxury”, creating a booming business sector delivering a variety of money-can-buy tailor-made services..

According to a report by the Straits Times (ST) specialised drinking clubs, or speakeasies, are mushrooming in Kuala Lumpur, as local upper-middle class seek exclusiveness in living the high-life.

ST said that the top 20 per cent household with a monthly income of RM13,148 (S$4,300) , are also those who seek organic produce at high-end grocers, work-out in posh fitness clubs and attend indoor ski centres.

The report stated that it is this group which businesses are competing to deliver to, citing success stories of upmarket grocers; Jaya Grocer which has sprung up at many locations, and Mercato, located in one of the capital’s prime business centres, the Pavillion mall at Starhill.

The report noted that this trend however, also saw the downsizing of local hypermarket chains, such as Giant and Tesco, which predominantly caters for the less affluent, and poor.

"Jaya Grocer, which opened its first store in 2011 and now has 22 stores nationwide, is one such success story. It stocks premium-priced goods, with a focus on imported products.

"Meanwhile, Tesco Malaysia is downsizing floor space at six of its hypermarkets while Giant closed five supermarkets last month, " the report said.

ST also used sales of local carmakers as another indication, pointing out that the automobile manufacturer catering to lower and middle-income group mostly, saw sluggish sales, while luxury carmaker BMW saw a 20 per cent rise in sales between January and October this year, compared to last.

According to the latest Knight Frank’s 2017 Wealth Report, released in April, despite the weakening ringgit, the number of Ultra High Net Worth Individuals (UHNWI) Malaysians increased 3 per cent last year to 1,020 people.

Based on Knight Frank’s calculations, the number of ultra rich Malaysians who had at least US$30 million (approx RM122 million) in net assets numbered about 990 people in 2015.

The survey is based on the responds and views of bankers and wealth advisers who manage assets of these high net worth individuals in 89 countries.

The report also ranked Kuala Lumpur 31st in its list of "cities that matter” to the super rich, ahead of Amsterdam, New Delhi, Rome and Seattle.

The ranking is based on its four measures of current wealth, investment, connectivity and future wealth.