Malaysia’s thriving economy and business-friendly environment make it an attractive destination for wealth-building opportunities. With a diverse range of investment options, from real estate and bonds to emerging digital assets, the country offers something for every type of investor. Aiming for both financial security and growth, Malaysians and international investors alike can explore various assets to stay ahead of rising living costs and inflation.
While traditional savings are essential, the need for higher returns has made investing a priority for many. Understanding the risks and returns of different options is critical to making informed choices, whether seeking lower-risk investments or high-reward opportunities. This guide outlines 10 top investment options in Malaysia to help secure and grow wealth in 2024 and beyond, providing valuable insights to achieve your financial goals.
1. Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM)
ASB and ASM offer low-risk investment opportunities in Malaysia with annual dividend payouts. Managed by Amanah Saham Nasional Berhad (ASNB), ASB is specifically for bumiputeras, while ASM is available to all Malaysians. Accessible via platforms like Maybank and CIMB, these funds are free from sales or redemption fees, adding to their convenience for investors. Although returns can vary based on the fund’s performance, these investments have remained reliable, consistently avoiding negative returns even with recent declines.
Risk: Low
Returns: 4.25% and above per annum
2. Tabung Haji
Tabung Haji, also called the Pilgrims’ Fund Board, is a specialised investment vehicle in Malaysia designed for Muslims planning to perform Hajj or Umrah. Functioning as a savings and investment fund, it supports Muslims in managing pilgrimage expenses while offering a Shariah-compliant platform that adheres to Islamic investment principles. Known for its low-risk profile, Tabung Haji provides government-backed returns, is exempt from taxes, and has no minimum deposit requirements, making it a flexible and secure choice for potential investors. This fund presents a unique opportunity to save and invest while supporting one’s religious aspirations.
Risk: Low
Returns: Currently around 3% – 4%
3. Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s government-backed retirement savings scheme that allows individuals to save for retirement with attractive dividends and steady, low-risk returns. Contributions to the EPF are made by both employees and employers, with a minimum employee contribution of 11% of monthly salary, although additional contributions can be made. While EPF funds are locked until retirement, withdrawals are allowed for significant expenses, such as housing or medical bills. This fund provides reliable, long-term security, though liquidity is limited until retirement, making it a sound choice for Malaysians planning their future financial stability.
Risk: Low
Returns: 2.5% (for non-conventional accounts) and above per annum
4. Private Retirement Schemes (PRS)
The Private Retirement Scheme (PRS) is designed to complement your EPF or savings account, offering more retirement planning flexibility with various investment options managed by private fund managers. Minimum investments start at RM100, and PRS funds span different strategies, such as equity and fixed income, catering to diverse risk profiles. Returns are not guaranteed, so evaluating each fund’s risk level is essential. While PRS withdrawals come with an 8% tax penalty for early access, they offer benefits such as tax relief of up to RM3,000 on income tax, making PRS a practical option for long-term retirement savings in Malaysia.
Risk: Low to Medium
Returns: As high as 4.3% per annum in the year 2023, though it depends on the PRS Fund
5. Unit Trust Funds
Unit Trust Funds pool resources from multiple investors to invest across diverse assets like stocks, bonds, and commodities. These funds are professionally managed, aiming to maximise returns while minimising risks. Accessible with investments starting from RM100, Unit Trust Funds offer entry into various markets and sectors. However, investors should review each fund’s past performance, fees, and risk factors before committing. Costs like management, trustee fees, and potential sales charges of up to 5% can impact returns, especially if investments are not carefully monitored. Online platforms often offer lower fees, making Unit Trust Funds a more accessible investment option in Malaysia.
Risk: Anywhere from low to high due to its diverse portfolio
Returns: Highly dependent on your portfolio and funds
6. Exchange Traded Funds (ETFs)
ETFs, or Exchange-Traded Funds, operate like unit trusts but are traded on the stock exchange and aim to mirror the performance of an index, sector, or commodity. Offering flexibility and diversification, ETFs allow investors to buy and sell them like stocks, with the minimum investment depending on the market price of the ETF. Dividends are distributed based on the ETF’s underlying assets, making them a cost-effective way to access multiple markets and sectors. Although ETFs don’t require fund managers, beginners should evaluate factors like liquidity, expense ratios, and tracking accuracy before investing to ensure they align with financial goals.
Risk: Anywhere from low to high due to its diverse portfolio
Returns: Highly dependent on your portfolio and funds
7. Real Estate Investment Trusts (REITs)
REITs, or Real Estate Investment Trusts, are an excellent investment option for those looking to invest in real estate without direct ownership. They typically involve income-generating properties like commercial buildings, shopping malls, and hotels. REIT units can be easily purchased on the stock exchange, making them accessible with a minimum investment based on the market price. These investments generate income through rental returns and capital appreciation, with dividends usually distributed quarterly or semi-annually. While REITs can offer steady income and diversification, it’s essential to assess the quality of the underlying properties and the expertise of the management to maximise long-term returns.
Risk: Medium
Returns: As high as 4% or more per share in annum for the high-performing REITs
8. Blue Chip Stocks
Blue chip stocks represent shares of large, established companies known for their stable performance and reliable dividend payments. Investing in these stocks is generally less volatile and provides the potential for capital appreciation and long-term returns. Investors can purchase blue chip stocks through brokerage accounts, with the minimum investment varying based on the stock price. Dividends are typically distributed regularly, aligned with the company’s dividend policy. However, it’s crucial to conduct thorough research on the company’s financial health, industry trends, and market conditions before investing. Transaction and brokerage fees can also impact returns, especially for small, short-term trades.
Risk: Medium to High
Returns: Dependent on the current market and the company
9. Cryptocurrency
Cryptocurrency, including popular options like Bitcoin and Ethereum, has become a digital investment asset. Investors purchase and hold these digital coins with the expectation of capital appreciation, with investments ranging from a few dollars to thousands. However, the cryptocurrency market is known for its high volatility and speculative nature, carrying significant risks. For instance, Bitcoin has achieved impressive returns, averaging a 73.32% compound annual return over the last decade. To navigate this market successfully, investors must understand the underlying technology, market trends, and regulatory environment associated with cryptocurrencies before diving in.
Risk: High
Returns: Depends on the cryptocurrency
10. Equity Crowdfunding
Equity crowdfunding allows investors to participate in early-stage startups or small businesses in exchange for equity ownership. Platforms like This, which is Shariah-compliant, and pitchIN facilitate investments with varying minimum requirements, enabling you to support promising ventures. Investing in these startups means your returns depend on their success, making this an appealing yet risky opportunity. While the potential for high returns exists, early-stage businesses also carry significant risks. Evaluating the startup’s business model, market potential, and management team before committing your investment is crucial to maximise your chances of success.
Risk: High
Returns: Dependent on the business and their success
Conclusion
In conclusion, investing in Malaysia presents many opportunities across various sectors, catering to different risk appetites and financial goals. From low-risk options like Tabung Haji and ASB to high-risk ventures such as equity crowdfunding and cryptocurrencies, there is a diverse range of choices for investors. Each investment type has unique benefits and potential returns, making it crucial for individuals to assess their financial objectives and risk tolerance. As the economic landscape evolves, staying informed about market trends and investment strategies is vital for making sound financial decisions.
Understanding the various investment avenues available can help you better navigate Malaysia’s investment landscape. Whether looking for steady returns through unit trusts or aiming for high growth with blue-chip stocks, thorough research and due diligence are essential. Moreover, leveraging the expertise of financial advisors or utilising online investment platforms can help you make informed choices. As you embark on your investment journey, remember that informed and strategic planning is key to securing your financial future in 2024 and beyond.
1. What Is The Minimum Amount Needed To Start Investing In Malaysia?
The minimum investment required in Malaysia varies depending on the investment option chosen. For example, unit trust funds can start from as low as RM100, while investing in stocks may depend on the price of the shares. Other options, like cryptocurrencies, can also allow for minimal investments, sometimes just a few dollars. It’s essential to research specific funds or platforms to understand their minimum investment requirements.
2. Can I Withdraw My Investments Anytime?
The liquidity of your investments in Malaysia depends on the type of investment. For example, stocks and exchange-traded funds (ETFs) can typically be sold anytime during market hours. However, for retirement-focused investments like the Employees Provident Fund (EPF) or Private Retirement Schemes (PRS), funds are generally locked until retirement age, with certain exceptions for significant expenses. It’s crucial to review the terms of each investment to understand withdrawal conditions.
3. How Do I Assess The Performance Of My Investments?
To evaluate the performance of your investments in Malaysia, you should regularly monitor critical indicators such as return on investment (ROI), dividend yields, and market trends. Many investment platforms offer tools and resources to track your portfolio’s performance. Reviewing the historical performance of mutual funds or ETFs and economic forecasts can help you make informed decisions about your investments.
4. What Are The Benefits Of Diversifying My Investment Portfolio?
Diversifying your investment portfolio can help mitigate risk and enhance returns. By spreading your investments across various asset classes, such as stocks, bonds, and real estate, you reduce the impact of poor performance in any single investment. In Malaysia, diversification can include mixing low-risk investments with higher-risk opportunities, providing a balanced approach to wealth growth. This strategy helps protect your investments from market volatility and economic downturns.
