Where To Invest Money In Malaysia: A Comprehensive Guide
Some of the best investment options in Malaysia are:
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Cryptocurrencies: high liquidity and easy accessibility
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Stocks: potential for substantial long-term growth
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Bonds: stable income stream with fixed coupon rates
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ETFs: cost-effective approach to diversify portfolios
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Real estate: steady property market appreciation and consistent cash flow
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Precious metals: expected steady growth and cultural/historical significance
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High-yield savings accounts: superior interest rates for better returns
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Copy trading: accessibility for beginners to leverage expertise
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Halal investments: adherence to Shariah principles in various investment types
In this article, experts delve into diverse investment opportunities in Malaysia, ranging from cryptocurrencies and securities to real estate and precious metals. The discussion covers pros and cons, popular options like ETFs and copy trading, and factors to consider when making investment decisions. Additionally, the article explores the Halal investment landscape in Malaysia and outlines ways to earn without direct investment. Whether you're a beginner or seeking strategic insights, this comprehensive guide navigates the multifaceted world of investing in Malaysia.
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Which investment is best in Malaysia?
The best investment in Malaysia depends on your financial goals and risk tolerance. Consider diverse options like stocks, bonds, real estate, or Halal investments based on your preferences.
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How do I invest my money in Malaysia?
To invest in Malaysia, you can open a brokerage account, consult financial experts, and explore options like stocks, bonds, ETFs, real estate, or Halal investments based on your financial goals.
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How to invest in Malaysia for foreigners?
Foreigners can invest in Malaysia by complying with regulations, exploring diverse investment options, and seeking guidance from local financial institutions or advisors.
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What to invest with 1k in Malaysia?
With 1k in Malaysia, consider starting with low-risk options like high-yield savings accounts, diversified ETFs, or exploring beginner-friendly investment platforms based on your financial goals.
Investments in cryptocurrency
Investing in cryptocurrencies in Malaysia is gaining traction as the market expands. This is fueled by technological advancements and increased financial inclusivity, making digital currencies more appealing as alternative investments and payment methods. The trend is particularly strong among tech-savvy millennials and businesses that are adopting cryptocurrencies.
The supportive regulatory environment and government policies contribute to the market's growth. The versatility of blockchain technology adds to the overall interest in digital assets. A survey reveals that over 36% of Malaysians own cryptocurrencies, emphasizing the market's popularity. With high liquidity and easy accessibility, Malaysia's cryptocurrency market, which traded around RM21 billion in 2021, offers opportunities for investors navigating dynamic and evolving investment landscapes.
Best crypto exchanges in Malaysia
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Bybit
With its corporate headquarters in Singapore, Bybit is a well-known cryptocurrency exchange that works on a global scale. Due to its many features and user-friendly layout, Bybit has established a reputation as one of the finest cryptocurrency exchanges in Malaysia. Ben Zhou, a well-known figure in the cryptocurrency community, is the founder of Bybit. Over 400 digital assets, such as Bitcoin, Ethereum, and altcoins, can be traded on Bybit's reliable trading platform. Due to its 100x maximum trading leverage, it is a preferred choice for skilled traders seeking to maximize possible profits.
Other important elements that contribute to the exchange's top ranking are its robust security measures, a vast selection of assets, round-the-clock customer service provided in Malaysia, and several MYR payment options. In addition to trading, Bybit provides a wide range of other features, such as crypto staking services, crypto loans, lending options, an NFT marketplace, a rewards center, and more. The platform places a high priority on security, transparency, and privacy, which makes it a solid option for investors from Malaysia. Due to its minimal trading fees, it is also considered to be among the cheapest cryptocurrency exchanges.
Features
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400+ supported assets
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Up to 100x leverage on crypto
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Advanced tools supported by great technology
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Risk-free testnet environment
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Very low trading fees
Investment options
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Copy trading
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Farming
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Demo trading
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Lending
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NFT trading
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Margin trading
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Spot trading
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Futures trading
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Binance
Due to its cutting-edge features, affordable fees, committed support team, security, and high liquidity, Binance is regarded as the finest cryptocurrency exchange for companies in Malaysia. Companies can trade with great volume and flexibility because of its trading characteristics. Its professional-grade trading platform is outfitted with cutting-edge technologies to meet the demands of both beginners and big investors. With its innovative methods, the exchange also places a high priority on security, winning over institutional clients' trust and confidence. More than 180 nations worldwide, including Malaysia, have laws and licenses governing it. Malaysian investors can use Malaysian Ringgits to trade over 350 cryptocurrencies, stake over 30 tokens, and transact in hundreds of NFTs on Binance.
Binance also offers a wide variety of cryptocurrency trading alternatives and claims one of the most affordable crypto exchange fees at just 0.1%. Additionally, the platform offers a wide range of features, including spot, futures, leverage, options trading, staking services, and a decentralized exchange (DEX). The platform assists users 24/7 in several languages, including Bahasa Malaysia. In addition to its sophisticated security measures, Binance is bound by legal standards, provides a wide range of features, and maintains a reputation as one of the top cryptocurrency exchanges in Malaysia.
Features
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Cold storage of digital assets
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NFT Marketplace
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Over 350+ supported digital assets
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Trading tools and derivative products
Investment options
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Staking
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Lending and
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NFT trading
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Option trading
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Spot trading
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Coinbase
Coinbase is a popular cryptocurrency exchange, especially sought-after among novice traders. It allows you to trade all cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, BitcoinCash, and others. You will find a web version and an application for a smartphone based on iOS or Android. The crypto exchange provides services to users from 100 countries with more than 43 million active traders registered on the exchange. The total assets on the platform are equivalent to over USD 90 billion. The exchange brings to the table one-of-a-kind training programs that allow you to earn money during the learning process by improving your expertise in the crypto market. Learn what Coinbase is and how the exchange works.
👍 Pros
• Convenient trading between cryptocurrencies and traditional currencies like MYR
• Despite transaction anonymity, data is recorded on a public blockchain, ensuring transparency
• Provides various payment options for ease of transactions
👎 Cons
• Lack of regulation and centralized control, making investments susceptible to market shifts and changes
• Due to market volatility, it may not be ideal for stable long-term returns
Investments in Securities
Investing in Malaysia's securities market offers diverse opportunities encompassing stocks, ETFs, and bonds. Fueled by a robust financial landscape, these options cater to investors seeking a varied and dynamic investment portfolio.
Stocks
Investing in stocks in Malaysia, particularly through Bursa Malaysia (formerly KLSE), offers a gateway to one of Southeast Asia's most dynamic and active stock markets. With a robust economy boasting a GDP growth rate of 5.5% in 2022 and 4.5% in 2023, Malaysia stands as an attractive investment destination. The well-established Bursa Malaysia facilitates the trading of equities, ETFs, offshore Islamic assets, and various securities, providing diverse investment opportunities.
The country's supportive government, educated workforce, and developed infrastructure further enhance its appeal to international investors. With a market capitalization surpassing $500 billion, Malaysia's stock market reflects both the nation's economic strength and its standing as a key player in the ASEAN region.
Bursa Malaysia KLCI Index Growth from Inception
👍 Pros
• Malaysian stocks offer the potential for substantial long-term growth rates
• Stocks provide instant diversification in your investment portfolio, allowing you to spread risk across different sectors and companies
👎 Cons
• Stocks can be volatile, and their values may fluctuate based on market conditions, economic factors, or company-specific events
• While stocks offer growth potential, some may be expensive from a valuation perspective in the short term, requiring careful consideration
Investing in Bonds
The Malaysian bond market, the largest in ASEAN at around US$433 billion, is a resilient and dynamic investment landscape. With a quarter-on-quarter growth of 1.5% in Q3 2023, reaching MYR1,982.6 billion, the market demonstrates resilience and expansion potential. It accommodates both conventional and Islamic bonds, reflecting diverse investor preferences and providing various issuance forms and formats for accessibility.
Malaysian bonds offer attractive real yields, presenting investors with a compelling opportunity for stable returns in a well-established and steadily growing bond market. Ranking third in Asia, following Japan and South Korea, Malaysia's robust bond market nearly matches its GDP and is the largest in Southeast Asia. As of December 2022, the domestic bond market stood at RM1.9 trillion, constituting 47.2% of the nation's RM3.6 trillion overall capital market. Known for stability, liquidity, and appealing real yields, Malaysian bonds are a preferred choice for investors seeking reliability. Various types of bonds, catering to distinct needs, are available in Malaysia and same are listed below
| Securities Types | Description |
|---|---|
Malaysian Government Securities (MGS) |
Long-term interest-bearing debt securities issued by the Government of Malaysia for development expenditure |
Malaysian Government Investment Issues (MGII) |
Long-term Islamic Government securities issued based on established Shariah principles |
Malaysian Treasury Bills (MTB) |
Short-term discount securities issued by the Government of Malaysia for working capital |
Malaysian Islamic Treasury Bills (MITB) |
Short-term Islamic Government securities issued based on established Shariah principles |
Corporate Bonds |
Securities issued by local corporations for financing, including bonds, medium-term notes, and commercial papers |
👍 Pros
• Bonds in Malaysia can offer a stable income stream with fixed coupon rates, making them suitable for those seeking a dependable source of income
• Bonds are often recommended for retirement portfolios as they provide regular interest payments, supporting a consistent income during retirement
• Including bonds in your investment portfolio in Malaysia can contribute to diversification, reducing overall risk
👎 Cons
• Bonds generally yield lower returns compared to other investments
• If interest rates rise, bond values may decrease, affecting capital
ETFs
Investing in Exchange-Traded Funds (ETFs) in Malaysia offers a cost-effective approach to diversify your portfolio. ETFs, listed on Bursa Malaysia, provide exposure to a wide range of geographical locations and asset classes, from the US to China, ASEAN, and various investment types like stocks, bonds, and gold.
Combining the features of a unit trust and a stock, ETFs trade on stock exchanges, offering the advantages of both investment vehicles. Passively managed to track indices, ETFs provide a simplified way to invest, particularly for those seeking diversified market representation. With 19 ETFs on Bursa Malaysia, totaling approximately RM2.15 billion, they present a popular and accessible investment option. Various types of ETFs offered by Malaysia are shown in the below table.
| Type of ETF | Description |
|---|---|
Equity ETFs |
Invest in stocks, potentially focused on specific regions (e.g., Malaysian stocks) or industries (e.g., tech stocks) |
Fixed Income ETFs |
Invest in low-risk fixed income securities such as bonds or sukuk |
Leveraged ETFs |
Utilize debt to amplify returns; for example, a 2x leveraged ETF magnifies gains (or losses) by two times for every index price movement |
Inverse ETFs |
Provide returns when the underlying index loses value; conversely, result in losses if the index gains value |
👍 Pros
• ETFs provide exposure to a variety of assets, reducing risk
• Trade on stock exchanges like individual stocks, offering liquidity
• Various ETF types cater to specific preferences
👎 Cons
• A relatively smaller selection of ETFs compared to more mature markets
• Some ETFs may be heavily weighted toward a few top holdings
Investments in real estate
Malaysia's growing economy, stable politics, and strategic location make it an ideal spot for property investors. Initiatives like the MM2H program and relaxed regulations for foreign property ownership create a welcoming environment. Affordable property prices cater to various budgets, from luxurious condos in Kuala Lumpur to beachfront villas in Penang. The real estate market benefits from robust rental yields, especially in key areas like Kuala Lumpur, Penang, and Johor Bahru, often exceeding 5% to 7%.
The Malaysia Real Estate Market is estimated at USD 34.47 billion in 2023, expected to reach USD 47.53 billion by 2028, with a CAGR of 6.64%. Analysts are optimistic about the Office REITs industry, expecting annual earnings growth of 11% over the next 5 years.
👍 Pros
• Steady property market appreciation, especially in high-growth areas
• Consistent cash flow through attractive rental yields, particularly in popular tourist destinations
• Effective strategy for diversifying investment portfolios, reducing overall risk
👎 Cons
• The lower expected annual earnings growth of 11% for Office REITs, compared to the prior year's growth of 34.5%, suggests a potential slowdown in this segment
• Economic fluctuations and changes in government policies can impact property prices and rental demand
Investments in precious metals
Investing in precious metals in Malaysia is promising, with the market expected to reach US$245.9 million by 2027, growing at a rate of 17.8%. Factors like rising incomes, industrial demand, and supportive government policies contribute to this growth.
6WResearch suggests a steady 5.7% growth in the Malaysia Precious Metal Market from 2020 to 2026, driven by increased demand for gold and silver jewelry and investments in safe-haven assets. Industrial sectors like electronics and automobiles play a role, supported by favorable government policies.
Gold Price In Malaysia Since Inception
Silver Price In Malaysia Since Inception
👍 Pros
• The Malaysia Precious Metal Market is expected to see steady growth
• Cultural and historical significance of gold and silver adds emotional value to investments
👎 Cons
• Dependence on imports exposes investments to external supply chain risks
• Shifting geopolitical conditions may impact market stability, posing uncertainties
• Precious metals don't generate regular income, which is a drawback for consistent returns
High-yield savings accounts
High-yield savings accounts in Malaysia are a good choice for investors seeking better returns on their money. These accounts offer interest rates that outshine traditional savings options, ensuring your money grows more effectively. Malaysia's robust financial sector guarantees security and stability, and these accounts provide easy access to your funds when needed.
With a variety of options tailored to different risk preferences and financial objectives, high-yield savings act as a reliable defense against inflation, safeguarding your purchasing power. The competitive landscape and seamless digital integration make these accounts a user-friendly and tax-efficient investment. Some of the best high yield savings accounts to invest in Malaysia are mentioned in below table:
| Bank & Account | Maximum Annual Interest Rate | Qualifying Conditions for Maximum Rate |
|---|---|---|
Standard Chartered Privilege $aver |
6.15% p.a. |
Various bonuses, such as deposit, credit/debit card, invest/insure, and loyalty |
UOB One Account |
6.15% p.a. |
Meeting specific requirements and maintaining a balance between RM50,000 and RM100,000 |
Rize Commodity Murabahah Savings Account |
5% p.a. (first RM5,000), 4.00% p.a. thereafter |
Participating in a special deposit rate campaign |
👍 Pros
• These accounts provide easy access to funds, offering liquidity when needed
• High-yield savings accounts in Malaysia offer superior interest rates, ensuring better returns on your savings
👎 Cons
• Economic factors can influence interest rates, requiring investors to stay informed for optimal decision-making
• It's essential to understand specific terms, fees, and conditions associated with these accounts
Copy Trading
Copy trading is gaining popularity in Malaysia, allowing individuals to mimic the trading activities of experienced investors. When you copy a trader, their past transactions are replicated in your account at the current exchange rate. For example, if the copied trader initiated a trade weeks ago at USD/MYR 1 = 4.2, but you start copying today at 1 = 4.4, the trade is executed at the latter rate.
Your account adopts the same stop loss and take profit as the copied trader, mirroring their actions. Furthermore, you get to decide how much you want to invest in a certain trader.
How does copy trading work:
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Select a well-regarded broker offering copy trading features
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Register on the broker's platform and fulfill identity verification requirements
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Add funds to your trading account (minimum deposit varies)
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Navigate to the copy trading segment on the broker's platform
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Evaluate profiles of skilled traders and opt for those that fit your objectives
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Determine the amount to invest in each chosen trader
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Your account replicates the actions of selected traders; keep an eye on it and make necessary changes
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In case of success, retrieve profits from your account
👍 Pros
• Copy trading minimizes the need for in-depth market knowledge, making it accessible for beginners to leverage the expertise of seasoned traders
• Copy trading allows users to treat successful traders as fund managers, enabling portfolio diversification across different traders to mitigate risks
👎 Cons
• While reducing the knowledge gap, copy trading limits individual decision-making, hindering personal development
• The choice of a well-performing trader involves risk, as past success doesn't guarantee future profits
Where to invest in Malaysia for a beginner?
| Investment Option | Description |
|---|---|
Fixed Deposit |
A secure savings option with a predetermined interest rate, offering stability |
ETFs |
Exchange-Traded Funds traded on stock exchanges, offering diversified investment options with lower fees |
Digital platforms providing automated financial planning and low-cost, diversified portfolios |
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Stocks and Shares |
Purchasing shares of listed companies, presenting the potential for dividends and capital gains |
Tabung Haji |
Islamic investment provides competitive returns with minimized risk and yearly dividends and bonuses |
Pooled funds managed by professionals, diversifying investments across various assets |
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Copy Trading |
A form of social trading where investors can replicate the trades of successful traders, combining social and investment aspects |
How to choose the best investments in Malaysia
As per the experts, Investors should consider the below criteria before investing in Malaysia:
| Aspect | Description |
|---|---|
Financial Goals |
Define your financial objectives, considering whether they are short-term or long-term |
Investment Horizon |
Determine the length of time you plan to hold your investments to align with your goals |
Diversification |
Reduce risk by investing in a mix of asset classes like stocks, bonds, and real estate |
Fees and Expenses |
Be mindful of associated fees and expenses to preserve more of your investment returns |
Liquidity |
Assess how easily you can convert your investments into cash before making any decisions |
Tax Implications |
Understand the tax implications of your investments, as different assets are taxed variably |
Return on Investment (ROI) |
Aim for returns exceeding the average inflation rate to ensure your money grows over time |
Where to invest in Forex: the best brokers in Malaysia
Pocket Option
Pocket Option was launched in 2017. The broker gives its clients access to trade currency pairs, commodities, stocks, cryptocurrencies, and indices. To operate in the financial markets, the company has developed its own unique trading platform. In addition, Pocket Option clients can trade in MT5. The broker’s service is available in more than 95 countries and regions globally. Pocket Option’s top priority is the high quality of customer service, constant improvement of trading technologies, and financial innovations.
The company's clients get access to many bonus offers and participate in a profitable affiliate program. Thanks to unique rewards, traders can increase their profile level and purchase resources in Pocket Option's Market store to increase their profitability while trading.
Leverage is a tool that is offered by numerous brokers to traders. With leverage, traders can open larger positions, allowing them more exposure to the market in which they are trading despite their small initial deposit, and Pocket Option offers a maximum leverage of 1:100 on its MT5 Forex account.
The company behind the Pocket Option website that provides brokerage services is PO Trade (SV) Ltd, which is registered in Saint Vincent and the Grenadines, considered to be a Caribbean offshore tax haven. The company says on its website that it is regulated by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority.
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Trading instruments
With Pocket Option you can trade Forex, Commodities, Stocks, Cryptocurrencies and Indices -
Tools
Pocket Option
MT5 -
Deposit and withdrawal
Debit/Credit card, Electronic wallets
Tickmill
Founded in 2014, Tickmill focuses on innovations, allowing customers to trade not only manually but also using the services for automatic copying of transactions by their more experienced colleagues.
Tickmill’s focus on innovation is what the company is proud of and why traders choose it. A selection of basic training materials makes the broker a suitable option for those who have just started to master Forex trading.
Tickmill is a brokerage company that attracts traders with low spreads and comfortable trading conditions. It offers users a spread from 0.1 pip for the currency pairs of EUR/USD. The broker is also suitable for experienced traders who prefer both manual and automated trading.
Tickmill is regulated by the Seychelles Financial Services Authority and the UK Financial Conduct Authority. The broker is also regulated by the Cyprus Securities and Exchange Commission. All this is a guarantee of the reliability and safety of funds for a trader.
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Trading instruments
Tickmill offers Forex and CFD Trading -
Tools
MetaTrader
VPS hosting -
Deposit and withdrawal
Bank transfer, Debit/Credit card, Electronic wallets (not for all markets)
Exness
Exness has been in operation since 2008. Exness is the best broker for both active and passive investment. It offers a wide variety of trading instruments along with reliability and innovation. The broker offers a range of accounts, depending on the needs of traders. For beginners, the broker offers cent and demo accounts, and for active traders, ECH accounts with low spreads from 0.1 pip.
Exness offers services via its registered offices in the British Virgin Islands, Seychelles, Curaçao, South Africa, and Cyprus. Retail customers cannot get services from offices in Cyprus or the United Kingdom.
Exness is governed by the strictest regulatory agencies, including the Cyprus Securities and Exchange Commission (CySEC) and the UK'SCAs Financial Conduct Authority (FCA). Exness is subject to financial services authority (FSA) and F regulation as a securities dealer (South Africa).
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Trading instruments
Currencies, assets of stock and commodity markets, cryptocurrencies -
Tools
MetaTrader -
Deposit and withdrawal
Bank transfer, Debit/Credit card, Electronic wallets (not for all markets)
How to make money in Malaysia without investment?
Experts have listed down ways through which money can be made without investing in Malaysia:
| Method | Description |
|---|---|
Freelancing |
Offer services in areas like writing, graphic design, and web development on platforms like Upwork, Freelancer, Fiverr |
Online Surveys |
Earn money by participating in online surveys on websites like Toluna, Swagbucks, and Survey Junkie |
Sell Items Online |
Use platforms such as eBay, Amazon, and Etsy to sell handmade crafts or second-hand items |
Content Creation |
Monetize your content creation skills through YouTube, Patreon, and Medium if you excel in videos, podcasts, or blogs |
Tutoring |
Provide tutoring services in a particular subject through online platforms like Chegg, TutorMe, and Skooli |
Partner with Forex brokers to earn commissions by referring new clients, with potential additional incentives |
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Utilize bonuses offered by Forex brokers to new clients, allowing trading without deposits, but with specified conditions |
Are Muslims allowed to invest?
Yes, Muslims are allowed to invest in Malaysia, and the country actively promotes itself as a hub for Halal-based businesses. Halal investing follows Shariah principles, ensuring alignment with Islamic tenets. It prohibits usury and avoids activities considered Haram, such as alcohol and pork-related products, gambling, and exploitative gains. Funding Societies addresses the demand for Islamic investment with its Guaranteed Islamic Investment Notes (GN-i), operating on Commodity Murabahah, offering guaranteed returns of up to 8% per annum with a tenor of up to 24 months starting from RM100.
In 2020, the Halal economy significantly contributed to Malaysia's GDP, leading globally in Islamic finance, halal food, Muslim-friendly travel, and media. Malaysia continues to enhance its halal industry to capture a more substantial share of the global market, recognizing its importance in economic growth. Various types of Halal investments are discussed by experts, emphasizing stability and low-risk returns.
| Type of Halal Investment | Description |
|---|---|
Funds and Unit Trusts |
Islamic funds like Amanah Saham Nasional Berhad (ASNB) or Tabung Haji fall under this category |
Sukuks |
Sukuk, akin to bonds in Islamic finance, differs by not being debt-based. Investors earn profit from investment income, ensuring it remains Halal |
Shariah-compliant Stocks |
Stocks are acceptable in Halal Investing if the companies are Shariah-compliant, avoiding prohibited industries or excessively risky ventures |
Gold or Precious Metals |
Gold and other precious metals are commonly considered Halal Investments |
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Team that worked on the article
Parshwa is a content expert and finance professional possessing deep knowledge of stock and options trading, technical and fundamental analysis, and equity research. As a Chartered Accountant Finalist, Parshwa also has expertise in Forex, crypto trading, and personal taxation. His experience is showcased by a prolific body of over 100 articles on Forex, crypto, equity, and personal finance, alongside personalized advisory roles in tax consultation.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).