How to Start Invest in Malaysia (2023) (2024)

How To Invest in Malaysia For Beginners: What, Where How To Start investing in Malaysia 2023

What To Invest in Malaysia?Where to invest in malaysia? Investment is one of the most effective financial mechanisms whereby people put their money in certain financial institutions to increase their wealth and allow the money to increase in value. Investment and saving are two different methods of financial management. Nowadays, awareness of investment is likely to be well known to many people. This is because money will work for the investor to gain a great return and be able to achieve a better future through investment.

There are various reasons why people these days start to invest their money in certain financial institutions. One of the main reasons for investing is to grow an individual’s money. The money that has been invested will be compounded through re-investing when dividends and returns of investment are received by the investors.

In addition, this allows the investors to gain more money and grow their wealth over the long term. Hence, that extra money received from investments can be used for savings, emergencies, and old age savings.

Other than that, investors mainly invested their money to protect their financial management during inflation. When inflation occurs, the value of money will decrease, and at the same time, purchasing power will also be affected. During the period of inflation, the cost of living and prices of goods will increase, making it difficult for society to gain income and make money. Therefore, investment will manage the financial management of individuals during the inflation phase.

What To Invest in Malaysia 2023

Where to invest in malaysia? There are various investment in malaysia for beginners offered by financial institutions in Malaysia:

• READ MORE >> high dividend stocks malaysia 2023
• READ MORE >> Best investment in Malaysia 2023
• READ MORE >> best home loan interest rate 2023 malaysia

1. Amanah Saham Bumiputera (ASB) & Amanah Saham Malaysia (ASM)

ASB is an investment scheme dedicated to Bumiputeras only. It has a fixed price, which is 1 unit equal to RM1.

Interestingly, this investment promises a consistent rate of return every year in the form of a dividend because it is a low-risk investment.

This investment is guaranteed by the Malaysian government. The investment limit for this ASB is limited to 200,000 units per investor. There are three types of ASB offered: ASB, ASB 2, and ASB 3.

Meanwhile, ASM is an ideal investment scheme. The concept used by this scheme is the same as a fixed deposit.

Investors who understand investment risks and benefits and expect long-term profits can invest in this scheme. The value of one unit of ASM is RM1.00, which is a fixed price.

There are 3 types of accounts under ASM investment, namely ASM, ASM Wawasan 2, and ASM 3. The interest rate earned by investors through this investment is over 6%.

This ASM investment is open to all Malaysian citizens, Bumiputera or non-Bumiputera. However, it is limited to a few investment units.

2. Invest in Malaysia for Beginners: Tabung Haji

The Hajj Fund Board (Lembaga Tabung Haji) is a statutory body that facilitates savings for the pilgrimage to Mecca through Shariah-compliant investments.

Not only that, but the Hajj Fund Board also plays a role in providing and managing excellent Hajj services for pilgrims.

Many industries are engaged with this institution, such as finance, plantations, hospitality, property, and technology.

For the year 2023, the dividend distribution rate for Tabung Haji is 3.10%. guarantee good returns through this low-risk investment.

3. How to Start Investing in Malaysia from EPF Fund

EPF is a retirement fund scheme that has been introduced by the government to encourage Malaysian citizens to save for the future, especially for individuals who are not liable for the government’s pension.

EPF members, either employers or employees, need to make a monthly contribution based on the EPF rate implemented by the EPF.

This contribution will be used for investment. Every EPF member will also be entitled to receive a dividend every year, consistently based on the amount of contributions made by the EPF members.

4. How Invest Malaysia in Private Retirement Schemes (PRS)

Private Retirement Schemes (PRS) are a voluntary investment scheme in malaysia designated for beginners all Malaysians, whether employed or self-employed, as part of their retirement savings.

PRS offers various retirement funds that investors may choose to invest in for their long-term investments based on their needs and goals.

Therefore, PRS has been established purposefully to improve individuals’ standards of living and ensure retirement savings for a better future.

5. Exchange Traded Funds (ETFS)

Exchange-Traded Funds (ETFS) are investment securities that can be traded on a trade exchange.

It is much more like mutual funds. ETFs can be purchased and sold on the stock exchange just like stocks.

Generally, ETFs consist of bonds, stocks, and commodities. The share price of ETFs fluctuates accordingly based on their current market value.

Therefore, ETFs are a quite risky investment as the price is changing over time.

6. Unit Trust Funds

A unit trust fund is a collective of funds that consists of bonds, stocks, and a combination of mutual funds that are regulated under the trust deed. It is regulated and managed by the Securities Commission of Malaysia and professional fund managers to ensure the funds grow quickly.

Apart from that, the unit trust will be monitored by the trustee to ensure that the investment decision is aligned with the long-term goals of the investors.

Hence, investors can create more diverse investment portfolios through unit trust funds. In addition, investors, also known as unit trust holders, will be entitled to dividends from time to time, which can encourage the holders to grow their wealth.

7. How To Invest in Malaysia: Real Estate Investment Trusts (REITS)

Real Estate Investment Trusts (REITS) are a group of companies that have been established to operate and finance income generated from real estate investments.

Individual investors can earn dividends and returns from this real estate investment without needing to buy, acquire, manage, or finance the properties.

The properties might be buildings, health facilities, offices, retail centers, houses, warehouses, real estate, and many more.

It can create a steady stream of income for the investors by allowing them to buy or sell real estate stocks during the trading session.

8. Blue Chip Stocks Malaysia

Blue-chip stock is a stock that is issued by giant, well-established companies with a good financial reputation to investors.

These blue-chip stocks are the most popular investment activities that promise good returns to investors in Malaysia.

Many investors believe that investing in blue-chip stocks is reliable for a long period of time, regardless of the market challenges faced by the country.

There are various large companies that issue blue chip stocks in Malaysia, such as Maybank, Top Glove, Tenaga Nasional, Public Bank Berhad, Petronas GAS Berhad, and many more.

All these companies pay a stable and growing dividend every year to their investors in order for them to grow their wealth and capital through investing in these blue chip stocks malaysia.

9. How to Invest in Malaysia from CryptoCurrency

Cryptocurrency is a low-risk investment in the form of digital currency that is secured by cryptography.

It is a digital asset that exists on decentralized networks using blockchain technology without any government controls. It is a fast and easy investment that can be made by investors.

However, cryptocurrencies might violate the stock market price, which is much cheaper than other investment stocks available on the stock exchange.

There are various cryptocurrencies available in the financial market, such as Bitcoin, Ripples, Ethereum, and many more.

Usually, it is traded on its own cryptocurrency platform designated for the investors, who monitor their crypto investments from time to time digitally

10. How To Start Investing in Malaysia: Equity Crowdfunding

Equity crowdfunding is a form of investment funding that allows small businesses to gain capital for their businesses from the public.

Investors who are interested in investing their money in small businesses can invest in this equity crowdfunding.

On the other hand, the company does not need to take on new debt to raise business capital to operate its business activities.

The investors can contribute a small amount of money to the company to fund the business.

This approach is usually used by new start-up companies to grow their businesses without getting into any financial debt.

In exchange, an investor will acquire the equity of the company or business and, in return, receive the returns from the profit gained by the business.

11. P2P Lending / Debt Based Crowdfunding

Peer-to-peer (P2P) lending, also known as debt crowdfunding, is a form of funding in which an individual or business borrows money from a large number of investors to raise capital.

This method of funding is done through an online platform. The investors will invest their money in certain projects established by the company by pooling their assets, and in return, they become the owners of the projects.

Any profit earned from the project will be given to the investors based on their proportion of their investments.

There are various types of debt crowdfunding, which include donation, reward, equity, and debt crowdfunding options.

Thus, it is a win-win situation for the business starter and investors in growing the business.

12. How To Invest in Malaysia: Robo Advisor

Robo advisors can be a good investment for investors.

It provides financial planning services to investors on an online platform without any human intervention through automated algorithms.

The client needs to go through an online survey and automatically invest based on that data. It is also part of the passive investment made by the investors.

13. Where To Invest in Malaysia: Bonds

Bonds are known as debt securities. The financial institution will issue the bond as a borrowing mechanism and act as a borrower, then raise capital through investors who buy the bonds from the bond issuer.

Investors that invest in bonds will be entitled to receive a reliable stream of income through interest payments.

Any bond held by the investors until the maturity date will give them back their entire principal. Hence, bond investments are associated with low-risk investments.

Is It Better To Invest More Or Less Money

Investing has a great potential to generate much more returns than savings. However, investment is highly dependent on financial risk.

This means every investment that offers a high return has a high risk associated with it, especially over a short period of time, and vice versa.

There is no better or worse way to invest. It fully depends on how individuals manage their investment activities. Investing more or less money is not an issue; however, financial management matters.

Theoretically, investing more money will create more return, especially over short-term investments, while investing less money will create less return.

However, growing money aggressively can create losses for the investor, and this can also lead to ETF activities and investing according to their capabilities in order to gain money in the long term.

Should I Save Or Invest All My Money in Malaysia

Both financial management activities—saving and investing create great financial potential for an individual in the short and long term.

Both activities need to be practiced by society for a better future. Some money needs to be saved in savings accounts as an emergency so that an individual can get the money at that difficult moment.

However, the savings can’t grow or generate money in the long term.

Meanwhile, individuals also need to invest their money to generate extra money and gain income. Investments are good for long-term financial management.

This is to make sure that every dollar invested by an individual can work for them during the trickle-down and high inflation phases. Hence, investment is for the future.

In a nutshell, individuals can manage their money by saving some and investing some of it accordingly.

This is to make sure that the individual’s financial management is balanced for now and the future.

Is 22, 23, 25, 27 Too Late To Invest in Malaysia

The early 20s are a great and suitable age to grow money by investing in any financial institution.

There is no age limit when it comes to investing. At the age of 20, individuals are in the phase of starting their careers; hence, it is the right time to use their excess income in investment activities instead of using it for unnecessary expenses.

Since investment creates a great return in the long term, at the age of financial instability, which is in the middle of 40–50 years, individuals will gain the investment return so they can use it in financial instability phases.

Is 30 Too Late To Invest Malaysia

There is no specific age at which an individual should invest in order to build wealth.

Every person can invest their money at any age as long as they can manage their finances very well. However, starting investments at an early age can provide more time for investments to grow.

Furthermore, investments are suitable to be made using extra money from their income. Therefore, investing at age 30 is not too late to build wealth.

Types Of Investing In Malaysia

How to start investing malaysia by stocks, bonds or cash equivalent?

There are various types of investments in malaysia that investors can make, including;

Investing in Malaysia Stocks

How to invest in stocks malaysia?

Stocks are securities owned by individuals or companies to represent a share capital contributed to the business.

These individuals or corporate bodies are known as “shareholders”. The return on investment in these stocks comes in the form of paying dividends semi-annually or annually. It also depends on the performance of the business.

The dividend rate given to a stock investor varies depending on the profitability of the business activity carried out.

There are a variety of shares available in Malaysia, including ordinary shares, preference shares, and bonuses.

Invest Bonds in Malaysia

A bond is an investment in the form of debt that an investor lends to a company or government in return for interest on the loan.

Companies or government agencies that offer bonds aim to raise funds to finance projects they want to run to expand their businesses.

It’s an alternative method of earning money other than borrowing from a bank or offering shares to investors.

After all, it’s one of the less risky investments for investors.

Cash Equivalent

A cash equivalent is an investment in a company’s assets in the form of cash invested in money markets such as the Malaysian Stock Exchange.

It’s an asset that can be liquidated quickly to generate cash.

These investments will be invested and stored in one place, where they can be disbursed if the company requires the funds back in the form of cash. It’s also a short-term investment.

How To Invest As a Student in Malaysia

All individuals can invest on any platform as long as they have capital to invest. Even students can participate investment in malaysia.

1. Best Invest Malaysia in Gold

Students can choose to invest in the gold market. This gold can also be used as an investment asset.

Everyone can have gold. Therefore, gold is the most popular investment method and guarantees a smooth return over a long period of time.

2. Try To Broaden Your Network and Friend

Students can choose friends or networks that are active in the investment world.

Ask for guidance from friends who have expertise in investment.

Students can start investing in low-risk investments like ASBs. Through this investment, students will learn to manage their finances well.

3. Try To Learn New Knowledge

Students can also learn the methods of successful investment and profit from the return on investment by studying the investment methods with an investment expert.

Investment knowledge will be taught by an investment expert to encourage students to engage in the world of investment.

Learning the profitability of a business activity is crucial in helping students decide whether to invest or not.

Therefore, it is important for students to have knowledge in advance before making an investment. It’s meant to prevent students from suffering huge losses when investing.

For us, best investment in malaysia for students is try to learn new knowledge from now.

Low Risk Investment in Malaysia

When making an investment, there is risk involved in the activity.

It can be high-risk or low-risk, depending on the type of investment being made.

Low risk investment in Malaysia usually produce low returns, and vice versa. Here’s one of the low-risk investments;

a) How To Start Investing Malaysia With EPF Investment

The Employment Provident Fund (EPF) offers a service known as i-Invest EPF.

• This product allows EPF members to make online investments through their EPF account, and the investment fund is used to run business activities.
• This return on investment will be given to investors in the form of dividend payments.
• This investment can be made using funds from EPF savings equal to 30% of the base savings amount. This EPF investment is only open to all EPF members who are 18 years of age or older.
• The amount of funds eligible to be invested depends on the approval of the EPF under the PPF charitable funds opened by EPF members.

b) Investing in Fixed Deposit Malaysia

Fixed deposits are defined as low-risk investments. This investment is in the form of savings.

• The interest rate will be charged as the return on the investment.
• This investment has a maturity period that is allowed to be issued by the investor.
• An investor who wants to make a fixed-deposit investment needs a lot of funds to generate a good return.

c) Investing in ASM & ASB Malaysia

Amanah Saham Malaysia (ASM) dan Amanah Saham Bumiputra (ASB) are a low-risk investment instrument specialized by individuals with Bumiputera status.

• These investments are of fixed value and the return on such investments is given in the form of annual dividend payments.
• Annual dividends will be announced by Malaysia Berhad Permodalan (PMB) according to the current state of the country’s economy.

d) Malaysia Investing in Fund Management

Money Investment Malaysia Fund with RHB Cash Management, Nomura i-Cash Fund, Eastspring Investments, and Maybank Money Market are all investment instruments offered by institutional banking to their clients.

• It’s a low-risk investment because it’s secured by a registered institution. It’s also a long-term investment with low returns.
• This investment is protected under the bank’s policy.
• That way, it is safe, and its return is guaranteed.

e) Investing in Unit Trust Malaysia

A trust unit is a collective investment scheme in which funds are collected and funded by a professional fund manager.

• The fund will be invested in a portfolio of securities according to the fund’s investment strategy.
• It’s different from stocks; these investments are indirect investments where this investment is represented by a third party to sell to a company that has a good track record.
• The company’s profits will be given to the trust unit holders as a return.

Conclusion

In conclusion, investing can help an individual achieve their financial goals in the long run.

This will help the individual safeguard their financial future from any unexpected downturn in the economy.

Through investing money, it offers the individual the opportunity to receive a greater percentage of profit return from investment activities by the financial institution.

Apart from that, investment is part of the passive income of investors, helping them earn extra money now and in the future.