Guide: What To Do When You’re Tight With Money

While I have never been truly broke, I’ve had moments when money was tight. It became necessary to save money. It became necessary to allocate where each ringgit should go.

Therefore this guide. Here I’ve compiled all the strategies you can use to get through moments when you’re tight with money. To make things clear and actionable, I have divided the strategies into categories.

Remember that:

Cut down expenses = Awesome (this post focuses on this)

Earn money = Awesome

Investing money = Awesome

Cut down expenses + Earn money + Investing at the same time = HOLY GRAIL TO FINANCIAL INDEPENDENCE YEAH

Some notes before we begin:

 You might want to add on
extra categories
. For example: ‘Children’, ‘Pets’ and ‘Medical’. I don’t know much about saving money here, but please comment and share if you do so the rest of us can learn.

There are varying levels of brokeness
. Some people say ‘I’m broke’ when what they mean is ‘I have no disposable income to spend on this item/experience, but I won’t die if I don’t spend on it’. For others, it’s literally ‘I don’t have enough money for my next meal/ to pay next month’s rent’. I’m making this article as comprehensive as I can for both types.

To get started with
investing
, see
What can you invest with RM1000?; A quick guide

Alright, let’s start.

The ‘Necessary’

Aka things you absolutely have to pay for to live.

ElasticComputeFarm
 / Pixabay

#1 –
Expense Category:
Groceries

What is it:
 Things you buy from Tesco and Giant to cook at home

What to do when you’re tight with money:

See my
The Comprehensive Guide to Save Money on Groceries in Malaysia
 article

Pack
lunch to bring to work
, obviously. See:
Save Money on Food: Intro to Meal-Prepping

Personally, I’ve done mini-challenges like healthy cooking under RM3 per meal. If you stick to that, the monthly cost for your food is 4 meals per day (breakfast + lunch + dinner + 1 snack) x 30 days x RM3 per meal = RM360 per month per person for groceries. Related:
Hack: How I cook (for RM2.86 a meal)

ProTip:
Cooking for 2 or more people will bring the costs down
. I don’t know why or how, it’s like magic.

If you don’t have that amount to spend on groceries, you might have to sacrifice quality and/or quantity of food.
RM1 per meal is tough, but doable
. Don’t expect too much variety, but you’ll be fed.

If home cooking is not possible due to whatever reason, then a common way to save money is to buy nasi campur during lunch. Ask for extra rice, then divide that into two. Eat the other half for dinner. RM3 or less per meal is doable, depending on where you buy.

If you want to start cooking from home but have no equipment whatsoever, save up money to buy these kitchen appliances. In order: electric kettle, rice cooker (+steamer attachment), stove/induction cooker (+pans). You can make so much food with just these.

#2 –
Expense Category:
Mobile phone

What is it:
 Your mobile phone plan

What to do when you’re tight with money:

If your monthly plan is expensive, switch to a cheaper provider and/or get on the cheaper plan.

“BUT I NEED ALL THAT DATA”, you said. Okay, fair enough, I’m not going to tell you what social media or entertainment to cut down. You big already. Decide yourself.

If you use prepaid, get top-ups for cheaper with
Hack: Get cheaper prepaid in Malaysia

DanielReche
 / Pixabay

#3 –
Expense Category:
Car
 / Parking & Toll / Petrol

What is it:
 All your car-related expenses, if you have one

What to do when you’re tight with money:

I’d tell you to
use public transportation
 more if it makes sense, but you already know that.

Generate income with your car
 via the following ways: Uber/Grab, or get paid to use your car as advertisement (please comment if you’ve tried this)

Use
cashback credit cards
 to earn back some petrol money. For example, the Amex card from Maybank 2 Cards gives you 5% cashback for selected weekend spending, including petrol.

If you have an expensive car with ridiculous monthly payments, consider
downgrading it
 to a Myvi or something. That’s better than having your car repossessed.

If you don’t use your car that much, sell it.
Car ownership costs more than you think
.

#4 –
Expense Category: Public transportation

What is it:
 All your non-car transportation-related expenses

What to do when you’re tight with money:

If you can’t walk, cycle. If you can’t cycle, LRT. If you can’t LRT, Uber/Grab.

I’d say
carpool
 but Idk this is not our culture. Anyone successfully do this? How?

Uber vs Grab –
 compare both
 prices before you order one. If the price is equal/similar, use Grab. You can collect Grab reward points and claim free rides.

Worth noting: sometimes, it also makes sense to
move nearer to your workplace
 so you can walk to work and save money on transportation.

Or start transitioning to work-from-home. No more transportation cost to go to work. This is not a quick fix, but it’s worth planning for. See:
The Exact Steps I Use to Earn Online in Malaysia

Sephelonor
 / Pixabay

#5 –
Expense Category:
Utilities & Rent

What is it:
The costs to having a roof on your head. This expense category only applies for those not living rent-free

What to do when you’re tight with money:

Pick one:
M
ove to a cheaper place
 OR
get roommates/housemates
. Notice that I didn’t say move back to your parents (if that applies).

Don’t use aircon. In my experience, this is the biggest energy sucker.

Check if any other electrical equipment in your house are energy suckers. Make plans to replace/get rid of them.

Hack:
How I rent a master bedroom in Kuala Lumpur for RM150 a month (not including bills)

#6 –
Expense Category:
Bills & Loan Repayments

What is it:
Monthly recurring payments – think insurances, credit cards and mortgages

What to do when you’re tight with money:

Make a list of all your recurring payments. Then cut down where you can.

Related:
 What Subscriptions I Pay For And Why

If you have debt,
 this is the best method to pay it off

vainodesositis
 / Pixabay

#7 –
Expense Category:
Misc Need / Money Emergencies

What is it:
Random but important payments you have to make – medical, repairs etc

What to do when you’re tight with money:

Not much unfortunately. Here it’s all about
‘prevention is better than cure’
. Keep your health and stress level a priority, and take good care of your items so they last longer.

Pray that you don’t get into any accidents or be at the wrong place at the wrong time.

Whatever items you can request from friends/family, do it. Asking for help is something we need to do more anyway. It’s humbling. Note: strictly items, not money. I personally don’t believe in borrowing money from friends/family unless they were the ones who offered.

It’s worth asking from the
Buy Nothing Project
 people, too – who knows someone is trying to get rid of the exact same thing you needed.

The last time I calculated, I spend around RM1k per month on Misc Needs. I can definitely do better. Here’s the
breakdown of my money emergencies
.

For money-saving tips that I’ve personally implemented, see
50 Ways to Save Money in Malaysia, From Easy to Impossible

Now let’s go on to things that are…

‘Not Technically Necessary’

Say hello to your new mantra:

If you don’t buy these, you won’t technically die. Here you have to stop actively looking for new things ( damaging hobby tbh) and be content with what you have. Use up what you have, and if you don’t have it, oh well. Life goes on, it doesn’t matter.

#1 –
Expense Category: Social / Dates

What is it:
Costs related to meeting people, because humans are social animals

What to do when you’re tight with money:

If you’re an
introvert
, you can ruthlessly say no to social engagements you don’t really want to go in the first place anyway. Say you’re trying to save money, everyone understands that. If they’re judgmental, then definitely don’t go.

If you’re an
extrovert
, actively choose to hang out with friends who don’t use expensive items and experiences as a status symbol. You’ll die broke trying to keep up with them.

Make friends with people who are business-minded.
Make friends with people who prefer to make things instead of consuming things.
 It’ll rub off on you. That’s a good thing.

Reminder:
If you’re having sex, you can’t afford not to buy condoms.

Engin_Akyurt
 / Pixabay

 #2 – Expense Category: Food

What is it:
 Food, snacks and drinks consumed because you’re bored, stressed and/or lonely. Not to be confused with Groceries. Deserves a special category because we’re all foodies here in Malaysia.

What to do when you’re tight with money:

Recognise that food is a
‘mini luxury
‘. We buy Chatime, Starbucks etc to feel better about ourselves, to reward ourselves when we’ve been good with expense-cutting measures.

Knowing that, it’s a good idea to not be at places where food is easily available when you’re bored, stressed and/or lonely. That means:
no roaming around aimlessly in malls and no going out for the sake of going out.

What to do with all that time? Find ways to earn money. See:
Side Income Malaysia: 15 Business & Part-Time Ideas to Try Now

#3 – Expense Category: Donations & Gifts

What is it:
 Money given to others

What to do when you’re tight with money:

If you’re truly broke, halt all donations. If you’re ‘broke’ and something is important to you and you want to donate, go ahead, but limit yourself.

If you need to give gifts,
re-gift what you already own, make something or create an experience
.

Kasman
 / Pixabay

#4 – Expense Category: Random shit

What is it:
 Thing you KNOW you shouldn’t buy or get until your finances get in better shape. They tend to become junk soon enough.

What to do when you’re tight with money:

Identify your weaknesses
. For some people, clothes. For others, games. It can also be: collectables, gadgets, tobacco etc

Give yourself a small amount (RM10 per month to be a good start) to spend on these. That limitation will force you to be creative while not stopping your hobbies cold-turkey.

Related:
My 5 Rules to Make Beauty Products Affordable

Related:
 Save Money on Fashion: 5 Steps I Use to Optimise My Clothing Budget

I think we’re done with all the major categories!

Which ones from the above would you do when you’re tight with money?

And what else do you do? Comment below!


How to Do Vending Machine Business in Malaysia (My Experience)

This article records my own personal experience in doing vending machine business in Malaysia, as a way to
earn extra income.
 If all goes well, I will enjoy
~200% returns
 by the end of the fifth year.

But I’m getting ahead of myself. Let’s start from the beginning. This article covers the following sections:

Part 1
– Learning how the vending machine business works

Part 2
 – Learning how to start vending machine business in Malaysia

Part 3
 – Vending machine price in Malaysia

Part
4 – Is vending machine a profitable business?

Part 5
– My bad experience with the vending machine supplier company

Part 6
 – Guaranteed Rental Return vending machine package

Part 7
 – How much can you earn from vending machine business

Part 1 – Learning how the vending machine business works

In September 2020, I was happily browsing through the Home & Living Fair Expo at Mid Valley when I chanced upon the vending machine supplier’s booth. I have no idea what they were doing there, but I, too, have heard about the high income potential from doing the vending machine business in Malaysia.

So I inquired. A nice sales lady immediately assisted me.

She told me about the company, which specialises in manufacturing and supplying vending machines all over Malaysia, and the
various types of vending machines
 they offer, including:

Snacks vending machine (available in multiple configurations. The most high-tech one got touch screen and e-wallet payment option)

Hot food vending machine

Drinks vending machine

Mystery box vending machine

Custom vending machine

Cashless vending machine

Coffee vending machine

And more

The vending machine price ranges from around RM8000 to over RM20,000 each, excluding financing (if available).

Part 2 – Learning how to start vending machine business in Malaysia

My sales rep, who claimed she runs 2 vending machines herself, said they have been a profitable venture for her (to be fair, of course she would say that), and it is easy for individuals to start a vending machine business in Malaysia (that too).

If I want to start, all I have to do is:

Choose (and pay for) a vending machine package

Pick a location I want (locations are provided)

Collect the sales profit every month

She showed me a list of 100 or so ‘hot’ locations with ‘ready’ customers, all approved and waiting for vending machines to be installed. Locations vary; some are at public places, some at offices/factories, some at residential areas.

She explained the benefits of starting vending machine business through the company, as they provide many
types of assistance,
including:

Finding suitable locations and negotiating rental with the property management

Delivery of the machine

Providing a variety of vending machine-friendly items

Stocking the items

Refilling the items

Processing the payments

Handling repairs

And more

Note: some services are included in the price, some comes with extra charge

Part 3 – Vending machine price in Malaysia

As for the
vending machine

price
, the company designed 3 types of business packages:

Buy package
– Buy a smart vending machine for RM20,000 in upfront capital + monthly cost of approx RM200-400 for location rental, possible Internet cost and refilling service (optional)

Rent-to-own package
 – Put RM6000 downpayment for a smart vending machine + monthly cost of approx RM600-1000 for location rental, possible Internet cost and refilling service (optional)

Guaranteed Rental Scheme package
 – more details on this in Part 6

Her sales pitch was very good and it’s obvious she is an experienced salesperson. The projected returns sound great (“most people break even by the second year, after that what you earn is pure profit”).

Part 4 – Is vending machine a profitable business?

The salesperson made it sound like vending machine business is the easiest thing in the world to profit from. But of course I have to do my research.

What I found out:
It has potential, yes, but like all businesses, it’s not as ‘easy’ or ‘passive’ as the sales agent suggested.

Based on my research,
I would be lucky if I broke even within 1.5-2 years; it really depends on the location.
 If you happen to pick a bad location, then
you may not turn any profit at all!
 The risk of losing money is always there, because this is a business.

When I asked on social media, some people replied with their own experiences.

Some made great profit (they got great locations, sourced own machines, etc).

Some make a loss (horrible location, etc).

Some bought/sold their vending machines from other buyers/sellers, bypassing companies like these altogether. You can find vending machines listed on
Mudah.my
.

Some said they, too, have also heard and tempted by over-optimistic sales projection by agents.

I found out that there is also a type of vending machine scam in Singapore!

Just saw your experience with vending machine biz and I recall a recent saga in SG :
https://t.co/FPzE5cCxny
— Kevin | Turtle Investor (@turtle_investor)
April 1, 2021

Despite that, I still wanted in. I checked and am satisfied with the legitimacy of the vending machine company. But mainly I was curious about the vending machine business. I figured, at the very least, I can write about it (you’re reading this).

Part 5 – My bad experience with the vending machine supplier company

Initially, back in September 2020, I picked the Rent-to-Own package and paid RM6,000 to the vending machine supplier company (later, I switched to the Guaranteed Rental Return package – more info in Part 6).
However, my personal experience with this package was not great.

First, I was told that all the locations shown to me during the expo were no longer available, they ‘ran out’ despite me paying the downpayment to book them. In short: they have pulled the classic overpromise and underdeliver tactic.

I was told to wait for new locations. Because it was the peak pandemic period and stay-home orders were given and everything, I (stupidly) accommodated and waited.

Finally, around January 2021, (a good 3 months after), a new sales agent contacted me. He introduced himself and told me he would contact me after they found new locations.

Around the same period, I received a letter via email, informing me of the delay of the vending machine (as if I didn’t notice). They blamed Covid-19 and offered a free month of rental as an apology. So I waited some more.

In March 2021, after about 6 months since I signed the contract, my sales agent finally contacted me with a location.

A location.
One
. That was a far cry from the list of ~100 over locations shown to me during the first sales pitch. I knew that location matters, so I asked as much details about the location as possible. After some prodding, I was given one more (just one more) possible location, which isn’t as good.

Was I annoyed? Yes. I wanted choice, and now it seems like I have to take whatever location is available. I had wanted to visit some locations before making my decision, to see the foot traffic and type of possible customers and safety of the location.

There were other things displeased me. I was told to attend a
vending machine maintenance class,
 so I can learn basic troubleshooting of the machine in case it malfunctions. I was never told this, or if it was, only in passing.

I was also told to
create a new company
 for the purpose of registering for e-wallet functionality. Reader, I signed the paperwork 6 months ago and was told everything was okay. Suddenly I was told to do additional work. How’d you feel?

Part 6 – Guaranteed Rental Return vending machine business package

After complaining to my agent, he informed me of a NEW package that is better suited for me: the
Guaranteed Rental Return
 package. Essentially, this is a vending machine rental scheme – I basically rent vending machine
instead
of profit from item sales.

How it works is:

Pay RM22,000 in upfront capital
, get the machine within 31 days

Receive
monthly rental payment for 3 years
 – RM300 per month in Year 1; RM350 per month in Year 2; RM400 per month in Year 3 (Totaling RM12,600)

After the 3 years, I have 3 options:

(1) Take the vending machine for own business,

(2) Renew and continue earning rental payment of RM400 per month for 2 more years (RM400 x 24 = RM9,600), or

(3) Sell the vending machine back to the company for RM22,000 (my upfront capital)

It sounds good. The contract is better than the rent-to-own scheme, too (I read the cancellation penalty for that one – it is ridiculous). And he’s right, this is a better package for me compared to ownership. I wanted minimal work for the next five years.

Why I took the vending machine rental package

Under the vending machine rental model, I don’t have to worry about opening a new company, stocking the vending machine, maintaining the vending machine, and more.
I will simply receive income every month, no other action necessary
.

So while it will give me less profit potential, but it will also give me more peace of mind. Easy decision to make.

My contract came into effect in April 2021. As of writing time (July 2023), the plan is still going well – I received RM300 per month in Year 1 and RM350 per month in Year 2. Now in Year 3, I am receiving RM400 vending machine rental income per month.

If you’re interested in the same plan, leave your contact details in the comments section (or you can DM me on my social media) and I’ll pass your contact to my agent. You’ll also get RM1,000 discount (RM21,000 instead of RM22,000)

Note: Nothing is risk-free in business. I will be so happy if this business works out, but I will also not depend on it. You’ll be advised to use the same approach as well – don’t use life savings or emergency funds for this.

Note 2:
The plan is subject to change at any time.
 Refer to the agent and your contract

Part 7 – How much can you earn from vending machine business

So, if you ask me, how much can you earn from vending machine business, my answer is – it depends. You could earn RM300-400 per month like I do from the Guaranteed Rental Return plan, or you can earn RM0-four figures a month if you do vending machine business in Malaysia yourself.

From this whole experience and what I have learned, here’s what I would do if I were to do vending machine business myself:

How to do vending machine business yourself

To do vending machine business yourself, you need:

a location, AND

capital (ie upfront money), AND

time to refill the machines, AND

technical capability to fix the machines (or know who to call if/when it breaks)

Here is the oversimplified steps if you want to do vending machine business yourself:

Step 1:
 buy the vending machines directly from whichever vending machine supplier with the best price (you can even
buy vending machines on Shopee
) or better yet, from previous owners (look for vending machine for sale at Mudah.my, etc).

Step 2:
draft an agreement (or simply
buy the agreement template on Shopee
) between you and the owner of the location, stating their agreement to rent the space for you to place the vending machine

Step 3:
Place the vending machine, collect money and restock as necessary (buy drinks and snacks wholesale; buy
premix instant powder
 if you have vending machine selling hot drinks, etc)

However, if you’re unsure how to do this all yourself, then you can
go through a company
, like I did.

Going through company is probably the safest way to do it, they have the expertise. Be very sceptical of profit projection though – so far I am happy with the vending machine package I picked, but I need to remember that every business carries risk.

That is my experience in doing vending machine Malaysia business so far. If you are interested in it, what else do you want to know? If you have experience, how is your vending machine business doing and what did you wish you knew when you first started?

Let me know in the comments!


How My Work From Home Schedule *Actually* Looks Like

You fantasised about working from home. Now suddenly you have to. Yeah I know context is everything, but how is it?

Tu lah. Be careful what you wish for. Kan dah kena.

Anyway. Working from home. If you’re in this situation during this RMO period, you’ve probably:

Googled work from home tips (Set up a dedicated work space! Dress for it! Keep distractions minimal!)

Bought home office equipment from Shopee/Lazada

Scrambled to make room for the new office equipment – where to find the space at home hmm

Discussed with your partners on each other’s work schedule so that your video meeting call times don’t overlap. Plus who’s minding the kids ya? One ten jus

All of the above

Listen. I’ve worked from home for about 5 years now, and I still haven’t fully adjusted to it, so I just want to start this article by saying… be kind to yourself. Know that this transition will take a while to adjust to. Do your best, sure, but don’t expect a smooth transition. You’re still figuring out what works and what doesn’t.

Let me just take you through my day of working from home. I am
self-employed
, and I don’t have a boss (or you can argue I have many bosses), so I generally set my own time and pace. If your employer is the ‘don’t care what you do as long as the work is done’ type, this might be helpful. If not, hey at least you have one person’s perspective.

7-9am

I wake up naturally. This is one of my favourite things about working from home – no alarms, no need to rush in the morning to get in a long commute.

The first thing I do is check my phone – this takes from 5 seconds up to 30 mins sometimes. Yeah it makes me feel guilty but I’ve accepted it. Ok still trying to.

After that, I go to the kitchen to boil some water. They say it’s healthy to drink warm water with a splash of apple cider vinegar first thing in the morning so I do that, not sure if it works but I’ll take it, even if its placebo effect.

Then I put the coffee maker on. The smell of freshly-made coffee makes me happy every single day.

My mornings are not that rushed, generally speaking. Once in a while I have early meetings, but I like to schedule things between 11-4pm so I can savour that leisure time.

9-12pm

Depending on the day, I have different activities to do. But it usually consist of some sort of writing, digital marketing or communications work. Either for myself (Ringgit Oh Ringgit) or for clients.

I’m lucky enough to live alone, with two cats, so even though my place is small I have more than enough space to work at. Sometimes I work at the living room, on the couch. Sometimes I switch it up and sit at the kitchen.

Note: they are like three steps away

So I sip my delicious hot coffee, power up my laptop (Surface Pro 4!), and open up my notebook to check what tasks Yesterday’s Suraya assigned for Today’s Suraya. And I spend the next three hours working.

Hahahaha joking joking I probably waste at least one hour just scrolling my phone during this time. At least one hour. Usually more.

I used to be guilty (again, that word) about this until I realise… I’m not the only one doing this. The reason I’m online is because y’all post interesting stuff.

And if you’re posting those stuff… that means you’re not working on what you’re paid to do.

Unless if that *is* part of your work Idk. At least I can say I’m online because I’m ‘researching content ideas’ and ‘engaging with the audience’. You?

Anyway, its now lunchtime.

12-1pm

The time varies, but 12-1pm is usually when I eat my first meal of the day. More often than not I do skip breakfast. I’d call it laziness but the new name for it is Intermittent Fasting.

After I prepare my meal, I eat it while watching YouTube. Lately I’m very into grocery haul videos. It’s nice to have a bit of fantasy.

1-11pm

After lunch, I work until 11pm.

I try to have some sort of work-life balance but in all honesty, even after 5 years of working from home, I still don’t know when to switch off from work.

The quote ‘Work expands so as to fill the time available for its completion’ is SO TRUE. It doesn’t matter if I only have one article to do or do copywriting for a whole website. I will work until 11pm at night, possibly longer.

If you’re working from home for the first time, know that there’s a possibility that Parkinson’s Law will hit you HARD too. With an office setting, you ‘switch off’ when you leave the office, that physical space. At home? No such thing.

That’s why I’ve favoured the phrase ‘work-life integration’ instead of ‘work-life balance’. With that mindset, I allow myself the flexibility to do whatever I want during the day as long as I complete my To Do list. Even if ‘completion’ means dashing to write an article at 11pm to schedule for the next day at 7.30am.

That’s not a joke. This is literally what I’m doing right now. I have, yet again, allowed my work to expand so as to fill the time available for its completion.

You might ask – so what do I do with the time if I didn’t work?

Well, I use the ‘as long as the activity is good for my well-being’ excuse, as in:

I do more ‘research’ and ‘engaging with the audience’

I do home chores (cordless vacuum made this chore pretty fun tbh)

I go to the condo gym

I do meal-prepping

I look up recipes

I cook

I
read a book

I watch more YouTube videos

I take a nap

I prepare To Do list for Tomorrow’s Suraya

I look for other
things to do in RMO period

I do things in my financial to-do list (for example, I recently enrolled myself in the
 SOCSO / PERKESO Self-Employment Social Security Scheme
)

So yeah. Yes, RATIONALLY I know I should do the work first to get it out of the way, then do all these other activities. I KNOW.

Easier said than done. You try yourself la. You try and see.

But… at the end of the day (night), I usually get my work done. And that’s good enough for me.

It’s 11.34pm now. I should sleep, so I’ll end this article here. Hell yeah, made it through another day of working from home.


44 thoughts I’ve had grocery shopping in Malaysia

Have anyone else had these thoughts?

Okay, this should be a quick trip

Why are all the shopping carts so dirty one. Wait. Do they even get sanitised? Ewww….

I read somewhere that the bigger your shopping cart, the more you’re inclined to fill it up, therefore the more you spend…. holy crap this place even have shopping carts for kids! So sneaky…

Wait I vaguely remember that toddlers used to have their own seat in the shopping cart. Where did it go? When did the trend go away??

Uncle why you leave your shopping cart in the middle of the aisle. Eh don’t la give evil eye, I’m just pushing it aside to go through!

There must be a kakak with a sparkly /dangly under-chin tudung pin. Yep, there she is. Every time.

I wonder if its cheaper to buy toothpaste here or Guardian/Watson’s. How about shampoo?

Who actually buys clothes from grocery stores?

I would so play at the toy section if its more socially accepted. Those balls look so BOUNCY.

They say you have to avoid items placed on eye-level. But whose eye level exactly? If I’m taller than average, that means that I can ignore this rule, right?

Ooooh I want you, but you’re overpriced. I’m adding you to my mental note – ‘things to buy when it goes on sale’, and ‘things to check out at Mr DIY in case there’s a cheaper version’.

This item is RMxx for xxxml. That one is RMxx but with bigger volume. Can I math this in my head or should I take out the calculator.

You advertise yourself as ‘big value pack’ but you’re actually the same price, weight to weight, with the smaller packs. THIS PISSES ME OFF.

Oh come onnn why some of you use weight and some of you use volume! This makes comparison harder! (these are things like laundry detergent, kitty litter, etc)

Oh look at me, such a responsible adult, zooming past the processed food section. You no longer have power over meeeee

Organic section! Let’s look at organic section!

… And we’re out from the organic section. That was like a one-sided love story.

Chinese aunties swarming around a produce section! That must be a good bargain! I must go there!

The water drops on the parsley… must shake discreetly… save myself a few cents…

Am I in the mood for red or  yellow onions… Oh well red one is 50 cents cheaper, red onions it is.

The line for the produce weighing station is so long! Hmm, can I live without these onions…

What’s the difference between old ginger and new ginger again?

Here, watermelons, pineapples and papayas are cheap. In the west, those are super expensive ‘exotic’ fruits. I wonder if there’s any Mat Salleh fawning over the cheap prices right now.

I mean, I was practically buying all the apples, blueberries and strawberries when I was overseas because it was SO MUCH cheaper there. If the reverse is true, they must stockpile like me also right?

Like seriously do you not find it disgusting that a small pack of blueberries is like RM25 here??

Clearance stock gods, please be nice to me today.

Yaaaaasss 90% off cereals, tinned tomatoes, and fancy ass dips <3

Nooooooo gross wilted salads, off-color chicken, and opened food items.

Why do all grocery stores carry potato bread. It doesn’t even contain potatoes!

Don’t look too impressed, miss. I’m only pretending to know how to choose fresh fish. I’m only buying it from here so the workers can gut it for me.

That guy at the 10-and-below-items-only checkout lane clearly doesn’t know how to count.

Yaaaaasss the cashier just told him off!

Resist. Checkout. Lane. Impulse. Buys. RESIST.

Oooohh new Mentos flavor!

RESIST.

Thirsty… that 100 Plus looks super refreshing.

RESIST.

I’m going to pretend to be a detective and find about your life based on what’s in your shopping cart. You, miss, need to eat less junk food. You, sir, are probably a food seller, judging from the 5 full bags of onions.

Now where is my loyalty card. I wonder how many points I’ve accumulated.

Let’s play: spot if there’s a price discrepancy!

They have data of my spending pattern in this store right? Is it possible to ask them if I can take a peek? Super curious.

Arrrgggghh I forgot its the weekends! 20 cents per plastic bag? Okay what to do..

Oh look my total is rounded up again. Why is it always rounded up and not rounded down.

Wait hold on what’s the time again? I spent an hour an a half? Time flies when you’re having fun I guess 🙂 Can’t wait to go grocery shopping again!

… And that is my random list of 44 thoughts I’ve had while grocery shopping in Malaysia…


Amanah Saham: 4 Advanced Strategies You Should Know [SPONSORED]

Every Malaysian should know about
Amanah Saham Nasional Berhad
, usually referred to as Amanah Saham or ASNB, the unit trust management company and a wholly-owned subsidiary of
Permodalan Nasional Berhad (PNB)
. As of 31 December 2020, Amanah Saham controls RM167.12 BILLION worth of funds, much of which are local investments.

In this article I’d like to share with you 4
advanced
strategies that you should know as an ASNB unit holder. We’re not talking about
ASB financing
, we’re going deeper here, we’re talking power users.

Here we go.

1 – The myASNB App

Did you know ASNB created the myASNB app? Yup, they did. And you can do so many things with it. For example..

a) You can open a new account

Through the myASNB app, a new customer can open an account and make investments without going to the branch, as it has always been done before.

If you’re a new user, follow these steps to sign up:

Step 1: Download the myASNB app. It is available on
Android
,
iOS
, and
Huawei
.
Step 2: Click on Sign Up
Step 3: Enter in your personal details
Step 4: Upload your IC
Step 5: Finalise account information
Done! The whole process only takes minutes

You can read more about the eKYC process
here
.

b) You can verify your phone number

As an elderly Millennial, I’d just like to say this – y’all Gen Zs (and new ASNB investors I guess) have it easy. Back in my day I had to drag my bottom to ASNB or agent branches just to update/ verify my phone number. This mandatory process was required to access the myASNB portal, so while I complained, I still did it, because I had to.

Other than verifying/updating phone number, you can also perform these transactions on the myASNB app:

Balance enquiry for ASNB unit trust funds
Buy additional Subscription to ASNB unit trust funds
Access to recent transactions
Access to electronic statement
Register for any ASNB unit trust funds
Search for ASNB branches nationwide

c) You can make investments

After you create your account, you can straightaway make your investments, starting from as little as RM10 and subsequently in increments of RM100.

Speaking of investments..

2 – ASB is just ONE of Amanah Saham’s funds

ASB is arguably the most popular fund by ASNB, but did you know there are 16 funds in total, consisting of fixed price and variable price funds?

ASNB’s Fixed price funds

ASNB’s Variable price funds
– Amanah Saham Bumiputera (ASB)
– Amanah Saham Bumiputera 2 (ASB 2)
– Amanah Saham Bumiputera 3 – Didik (ASB 3 DIDIK)
– Amanah Saham Malaysia (ASM)
– Amanah Saham Malaysia 2 – Wawasan (ASM 2 WAWASAN)
– Amanah Saham Malaysia 3 (ASM 3)
 – Amanah Saham Nasional (ASN) – Growth fund
– ASN Equity 2 – Growth fund
– ASN Equity 3 – Growth fund
– ASN Equity 5 – Growth fund
– ASN Equity Global*
– ASN Imbang 1 – Mixed Asset funds
– ASN Imbang 2 – Mixed Asset funds
– ASN Imbang 3 Global* – Mixed Asset funds
– ASN Sara 1 – Conservative fund
– ASN Sara 2 – Conservative fund

*ASN Imbang 3 Global and ASN Equity Global are funds with global exposure, great for diversification if you are over-invested in the Malaysia market

Which ASNB fund to get

Each ASNB fund is a unit trust which you can get for investment purposes, suiting various financial goals. To help you pick a suitable fund, the myASNB app has a really cool feature – take the simple 6 question suitability assessment and it will direct you to a matching product under the following categories:

Conservative variable price
Moderate variable price
Aggressive variable price
Fixed price

Here’s how the fund-buying process looks like:

3 – How to get fixed price funds for non-Bumiputera

Ok I know what some of you are thinking – Suraya I want the fixed price fund, I want ASB and ASM, but I can’t get my hands on them.

Fixed price funds are more popular than variable price funds on two simple factors: (1) no sales charges, and (2) historically, they have performed well (remember 1990-2001, where the annual ROI was 10-14%? The ROI nowadays are not bad but nowhere near there. Miss the good old days).

Unfortunately, ASB is only available for Bumiputeras (or Muslim converts, according to
this Ringgitplus articl
e), and ASM funds are harder – but not impossible – to get for non-Bumiputeras.

Here are 5 methods to get ASM:

Method 1
 – Ask your bank if they have additional ASM units available for purchase. Very mafan and low likelihood, not recommended.

Method 2
– Log in to the myASNB portal and see if there are additional ASM units available for purchase. Also very mafan and low likelihood.

Method 3
 – Wait for additional subscription units to be available. As per the
FAQ section on ASNB page
, an additional 1.5 billion units of ASM are available for subscription for the Indian community.

Method 4
– Offered through your bank, especially if you’re a premier customer. DividendMagic shared his experience in getting ASM units through his banker in
this article
. However, he was charged 4% sales charge for the privilege of owning ASM, which is the variable price’s portion of the package.

If you think Methods 1-4 doesn’t sound too good… then Method 5 is for you.

Method 5
– Take the
Financial Planning Solution Package

Packages 2, 3, and 4 combine ASM with a variable price fund. It allows you to conveniently invest in two funds at once on a 50/50 basis, and only charges you between 1.75% to 2% sales charge. The minimum investment is RM10,000 and can be conducted via the myASNB app.

Note: This offer is valid until 31 December 2021.

4 – The estate planning service by Amanah Saham

The last power user tip is not investment related at all. It’s more on planning how the money will get to your loved ones when you pass on.

Did you know ASNB offers an estate planning service? Not only they offer it, but they also are running a promotion – you can do Hibah Amanah or Trust Declaration with just RM180 fee. Go to asnb.com.my > Services >
Estate Planning Instruments
.

As of time of writing, you still have to go to the branch to complete the whole process but you can still do online pre-registration and lock in the promo rates now.

Why do Hibah Amanah or Trust Declaration? Because of the speed in inheritance distribution. With Hibah Amanah, everything can be done in 21 days. Compare that to 3 YEARS of waiting, without estate planning.

Note: Aside from the RM180 charge, there are other related
ASNB Hibah Amanah fee
 you should know, like the claim fee and annual fee (RM10 per year). As an example, the claim fee for investment holding balance of RM200,000 will total just RM2,125 in fees – this amount will be deducted from the balance before distributed to beneficiaries.

Ultimately, you know your family best – if your heirs are responsible and will use your money to take care of the people you leave behind, good. But if you have any concerns, then definitely do the Hibah Amanah and decide who you want as your ASNB funds’ beneficiaries.

Download myASNB

Those are the advanced strategies for ASNB unit holders that I have for you today. What do you think? Do you have any other power tips? Which fund are you invested in or would like to get? Let me know in the comments section!

Download the myASNB app. It is available on
Android
,
iOS
, and
Huawei
.


5 Reasons You Should NOT Take ASB Loan

I took RM50k in
ASB loan
 back in 2011, when I was 22 years old. It was one of the best financial decisions I’ve ever made. I remember feeling excited over my first-ever ASB dividend payout – I received RM2.4k for the year by just paying RM289 every month!

What is ASB financing

If you want to know what is ASB financing, it’s basically when you take a loan from the bank specifically to invest in Amanah Saham Bumiputera, one of the fixed-priced funds offered by
Amanah Saham Nasional Berhad (ASBN
).

How ASB financing works

How ASB financing works is, once you take ASB loan, the funds are IMMEDIATELY placed in ASB. You CANNOT take the initical capital out or use it for other purposes.

Note: ASB loan is the same as ASB financing is the same as ASBF.

As mentioned above, taking ASB loan was a good decision for me, but as with everything else, there are some good reasons NOT to take advantage of ASB loan. Here they are:

Reason No #1 – You’re not categorised as Bumiputera

Unfortunately, ASB investment is only for the Bumiputera – that means the ethnic Malays, Orang Asli and the indigenous communities in East Malaysia. So that means if you’re not Bumi, there’s no point doing ASB financing – your application will be dismissed anyway.

Yes, it’s not fair. Yes, it should be needs-based rather than race-based. Personally, I’ll continue to speak out against it and I encourage other Malays to do the same.

Related:
[PERSONAL] Malay and Money: A Reflection

ASB for non-Bumi is not possible, but
you CAN get ASM –
Amanah Saham Malaysia fund. Similar to ASB, ASM is a fixed-price fund. ASM for non-bumi used to be notoriously hard to get, however nowadays you can get them easily through the
Financial Planning Solution Package
.

*There are no ASM financing or other loans for investment that is similar to ASB financing

Ok, assuming you are classified as Bumiputera. What are other bad reasons to take ASB loan?

Reason no #2 – If ASB returns are
consistently
lower than ASB financing rate

Remember this: Taking a loan to invest *only* makes sense if the returns are
consistently
 higher than the financing rate.

Between 2010-2020, the annual returns for ASB investment ranged from 4.25% to 8.9% (source: MyPF.my’s page on
ASB annual returns
). It is true that ASB returns have been shrinking in recent years and the lowest it’s ever been in 2020.

On the other hand, ASB financing rates are between mid-to-high 3.xx% to low 4.xx%* (see what affects the financing rate below).

Therefore: while ASB returns and ASB financing were dangerously close in 2020, the former was never lowER, and as of time of writing, has only been a one-off event and not a pattern (yet).

HOWEVER, if say ASB investment performs worse than 2020 in the next few years, then yes ASB financing wouldn’t make sense anymore. You’ll be losing money. Why take ASB loan to invest if you’re going to lose money.

Common question: What ASB financing rate can you get? How to get the lowest ASB interest rate?

As a general rule,
the lower the ASB financing rates you can get, the better
.
 Your ASB interest rate depends on:

how much you borrow (you get better rates for RM50k ASB financing and above),

the base rate (BR),

taken with takaful or without,

which bank (and bank agent) you got it from,

etc (tell me if there are other ways to get good ASB financing loan rates in the comments section!)

However, even the best ASB financing rate doesn’t matter if..

Reason #3 – Your income is unstable AND you have little-to-no savings

The thing about taking an ASB loan is you have to pay them back every month. It doesn’t care if you had reduced income a few months in a row, or if you lost your job, or if you have to pay for medical emergencies, or whatever. The instalments go on.

The actual numbers depend on your ASB financing rates, but this is how much will be deducted automatically from your bank account every month, assuming you took a 20-to-30-year ASB loan:

RM10k ASBF (min amount) – RM4x to RM5x per month

RM50k ASBF –  RM2xx to RM3xx per month

RM100k ASBF – RM4xx to RM5xx per month

RM150k ASBF – RM6xx to RM8xx per month

RM200k ASBF (max amount) – RM9xx to RM1,1xx per month

Source:
ASB Maybank financing monthly instalment repayment schedule
.

So yeah. How confident are you to pay up to RM1,1xx per month for the remainder of your term? Thankfully, it is possible to cancel the ASB loan and generally speaking, the penalty is minimal, if any. Check with your banks and the contract you signed.

(Alternatively, you can also pay instalments using past years’ ASB profits. Some people call this the ‘rolling’ strategy. I think it’s better to not touch profits and let it compound, unless absolutely necessary aka for health or safety reasons ONLY)

Reason #4 – Banks don’t let you borrow money from them

How to take ASB loan if banks don’t let you borrow from them? You may want but you may not be able to get.

There are a few situations where you can’t secure a loan from the bank, not just for ASB financing but also other types of loans like home loan, hire purchase (aka car loan) and more. You can read more in
this LoanStreet article
, but briefly, here are some causes:

Don’t have steady job

Don’t have/can’t show income source (if from business, you need documentation)

Already have too many loans/commitments

Blacklisted

You want ASB financing-i but only offered ASB financing

Personally, while my RM50k ASB loan in 2011 went through, my application for RM150k loan around 2018 failed. I think it’s because my income fluctuated too much since I became
self-employed
, but I don’t know for sure.

(A part of me slightly regretted not taking a higher ASB loan amount, but I also know early 20s-me would have struggled with the payments, so I made peace with it.)

Reason #5 – Taking on debt bothers you

Some people just don’t sit well with taking debt, any debt, and that’s fine. I kind of even get it.

If that’s the case, you can do normal ASB saving without the ASB financing – just put in RM100 or RM200 or however much you can afford into ASB every month. You can also do other investments.

Related:
What to Invest with RM1000: 15 Options You Should Know

Other reasons not to take ASB Financing? + FAQ on ASB Loan

These are 5 reasons NOT to take ASB financing that I can think of. If none of them are problems for you, then perhaps it’s not a bad idea to get it. Again, I’m personally happy with my decision to both take ASB financing AND add on more funds to my ASB by regular saving – my goal is to max out the RM200k cap ASAP.

Lastly, let’s quickly go over some frequently-asked questions:

Where to get ASB loan

You can get ASB financing from:

Direct from banks – you can get from
Maybank
;
Bank Islam
;
RHB Bank
;
Ambank
;
CIMB
;
Hong Leong Islamic Bank
;
Bank Muamalat
;
Affin Bank
; and possibly more

From agents – find them on social media. Get a few agents/quotations and compare ASB loan rates

From ASB loan comparison websites

Is ASB financing worth it?

Is ASB financing worth it? Scroll back to #2, the section on ASB return rate and ASB financing rate. Basically, if ASB returns are
consistently
lower than ASB financing rate, then ASB financing is NOT worth it.

The reverse is true. If ASB returns are
consistently
higher than ASB financing rate, then it is worth it.

Historically, ASB financing is worth it.

Should I take ASB loan Maybank? ASB loan CIMB? ASB loan from other banks? Which one?

Generally speaking, the lower the rate, the better.  So if ASB loan Maybank give you 3.5% (let’s say) and ASB loan CIMB give you 3% (example), then pick the lower one.

Go and ask around, but in my experience,
Maybank
 seems to have the lowest ASB financing rate.

Another consideration is the Takaful that comes with ASB financing – just check if included and how much is the additional cost, if not included. Yes, you need it.

How to get the lowest ASB interest rate?

You will notice that most people have different ASB interest rates, and some people are offered lower ASB interest rates than others. That’s because ASB interest rate depends on:

how much you borrow (you get better rates for RM50k ASB financing and above),

the base rate (BR),

taken with takaful or without,

which bank (and bank agent) you got it from,

etc (tell me if there are other ways to get good ASB financing loan rates in the comments section!)

How to terminate ASB loan

If, for whatever reason you want to terminate ASB loan, you can do so by contacting your bank and request for termination. The penalty is usually minimal, if any.

Tabung Haji vs ASB

Tabung Haji vs ASB – which is better? The answer is actually… both. Do both.

Both Tabung Haji and ASB are suitable for savings and low-risk investing purposes. Personally, I earmarked my Tabung Haji savings for Hajj purposes and earmarked ASB savings for emergency savings/ general savings.

Tabung Haji may have an edge over ASB if you don’t want to go through the
hassle
 obligation of paying Zakat ASB, which can get pretty complicated. The good folks at Tabung Haji will help you to zakat out your Tabung Haji savings, if eligible.

Learn more about paying Zakat in my
Complete Zakat Guide
 article.

ASB vs Unit Trust

ASB vs unit trust – which is better? Objectively speaking, ASB wins, hands down. My reasoning:

You can’t get loan to invest in unit trust (personal loan doesn’t count and doesn’t make sense)

Which unit trust are you comparing with ASB? There are
hundreds
of unit trusts. *Of course* some of them will outperform ASB dividends, but most will not, and do you really want to test your luck

ASB dividends are more stable compared to the vast majority of growth (read: high-risk) unit trust

You simply can’t beat ASB’s sales charges. It’s 0%. Unit trust’s sales charge can go up to 6%

To be fair, I’m not the biggest fan of unit trust. My only exception is unit trusts with no/low sales charge like
Private Retirement Scheme
 (not all platforms offer 0% sales charge for PRS), and the ones offered through
BEST Invest
.

Related:
3 Ways to Pick the Best Unit Trust in Malaysia (Advisory & DIY Method)

Conclusion

Any of you took ASB loan? Where did you get it from, how much, and what ASB loan rates did you get? And – most importantly – are you happy with your decision? Share your experiences in the comments section below!

Obligatory disclaimer: not financial advice, just lots of research and personal experience


[SPONSORED] The Beginners Guide to Warrants in Malaysia

On 27 April 2019, I attended my first warrants-specific talk.

The event was called Demystifying Structured Warrants, which is apt tbh. I’m a complete beginner in this financial instrument. I know almost nothing about it.

This was my second engagement with the Kenanga Investment Bank, after writing about the
Market Outlook Symposium 2019: Smart Investing or Dare Betting?

investment event

back in January 2019.

I’m happy to report I liked two out of two Kenanga-organised events so far. Good content. No fluff, just lots of good info. Then they gave free food some more.

Like the first article, this is a sponsored post, but all opinions are mine. It’s great that I can share what I learned about warrants from the event, as someone completely new to the world.

#1 – What
is
warrants?

This is the textbook definition:

Does that make sense to you? I kinda sorta understand… ish. It’s a very theoretical financial instrument. I feel like I’m learning quantum physics.

But for beginners, it’s enough to know that warrants:

Is a
short-term
 trading instrument

Uses
leverage
– it
magnifies
gains and yes, losses

Has limited losses,
unlimited upside

Is
a type of option
 issued by Financial Institutions

Are
based on individual shares & indices

Are traded on
Bursa Malaysia

But what’s more important to know is…

#2 – Warrants trading is a higher-risk type of investment

I can’t emphasise this part enough. During the event, the speakers repeated this many times, which I appreciate.
Don’t do warrants trading in Malaysia if you’re totally new to investing.

Warrants trading is considered higher-risk because you need to be familiar with both fundamental analysis
and
technical analysis of the stocks market, said Isabelle Zhen, the speaker at the event and a warrants issuer at Kenanga Group.

Here’s an example, taken from the speaker’s presentation slides. Notice (1) her notes, taken from news sources, financial statements etc (fundamental analysis) and (2) the charts and the colourful lines each represent market movement (technical analysis).

If you’re not familiar with the stocks market at all,
then avoid warrants trading for now
. It’s not for you, not yet.

But if you’re already a value investor making consistent positive ROI on your stock picks and now itching to learn trading skills to increase your portfolio’s profits, then maybe consider learning it.

Isabelle warns against putting all your investment money ONLY in warrants. Instead, she recommends the
60:40 Weighted Portfolio Strategy
.

(It can also be 70:30 or 80:20 or 90:10, depending on your risk appetite).

That means you allocate 60% of your money to buy the stocks you want to purchase and the other 40% to buy the warrants issued for it. Like so:

The above table basically says that if you only buy HIBISCS shares, and the price moved from RM1 to RM1.10, you’ll gain 10% while its warrants equivalent will gain 25% for the same trade. This strategy increases ROI potential while limiting losses.

#3 – There’s a healthy warrants community in Telegram

I was pleasantly surprised to learn from Kenanga’s talk that there’s a big warrants community in Malaysia. And that there’s a growing interest for it.

Isabelle encouraged people interested in warrants trading to join the
right
 warrants trading community. It’s useful because you can observe and learn from other people’s trading strategies and mindset. People share when they enter and exit trades.

You’ll get buy bid promos. You’ll get tips on how to use the live matrix tool better. You may even learn from other people’s mistakes – some people lose a lot of money when they forget to set up stop loss system, or bought put warrants when they should have bought call warrants*!

(*Put warrants and call warrants are opposites of each other)

Here are some Telegram communities you can join:

Kenanga’s Warrants Trading Ideas  –
https://t.me/KenangaWarrants

Kenanga’s Market-Making Hotline (Private Chat) –
https://t.me/PRIVATECHAT_KenangaWarrants

Malaysia Warrants –
https://t.me/Malaysiawarrants

Elliot Wave Technical Analysis –
https://t.me/KLSETA

Kim’s Stockwatch –
https://t.me/kimstock

TradeVSA –
https://t.me/tradevsatradingideas

#4 – Who are warrants issuer and what do they do?

There are 6 warrants issuers in Malaysia. Kenanga Investment is #1 local warrants issuer in Malaysia (Macquarie is from Australia).

Warrants issuers… issue warrants. Like, they’re the ones who choose which blue-chip stocks or indices will be the underlying instrument to the warrant, the ‘mother share’. They need to make use the 6 components to calculate the pricing, then publish the terms of the warrant.

The
naming for warrants
 in Malaysia is straightforward. If the stock is listed as INARI on Bursa Malaysia, the warrants issued will be called INARI-CA (first time listed), INARI-CB (second time), INARI-CZ (26th time), INARI-C1 (27th time listed) and so on.

Warrants issuer make money
 by (1) something called the time value decay (see image below), (2) hedging and (3) spread between buy/sell. Isabelle said warrants issuers CANNOT make money by manipulating the market, Bursa Malaysia has very clear guidelines on that.

If warrants issuers are caught manipulating the market, they’ll get the other warrant, the one from the police.

#5 – How to choose warrants

So as of 8th May 2019 (YTD), there are 650 active warrants in Malaysia – 553 equity and 977 index warrants. From 39 industries.

How do you pick which one to trade?

This is where it gets interesting. There are advanced tools to use for warrants trading, I had no idea. The one offered by Kenanga is called the Warrant Scanner Tool, following the E.S.T.I Strategy. It’s available at
NagaWarrants.com
.

The speaker emphasised how you really have to pick issuers that have a Live Matrix. In Malaysia, currently only two out of the six issuers offer has a live matrix tool. Kenanga is one of them.

Last words

Alright, those were some things Kenanga taught me about warrants in Malaysia. I’m not about to explain what is E.S.T.I. Strategy in full or how to use the Live Matrix. To be honest, I’m still wrapping my head around it myself.

The speaker knew that and assured us that warrants trading
is
an advanced topic. Isabelle actually said:

“I’m happy if you can understand 50% of this talk. And maybe 60% from the next talk, then 70%, and so on.”

Which is quite reassuring tbh. Usually speakers expect you to understand everything, and you feel stupid when you don’t.

If you’re truly new to warrants trading and interested, either buy a book about warrants or buy an online course and learn it yourself, or attend educational talks like this one. I really liked Isabelle’s style of presenting – she knew what terms are confusing for beginners, and included exercises to learn them in the presentation.

Worth repeating: please don’t do warrants trading without learning, because you *will* lose money if you do that
.

Isabelle Zhen and her team at
NagaWarrants
 take lunch appointments and hold monthly educational talks about warrants. You can connect with them at 03-2172 2615 during office hours. You can also private chat them via Telegram at
https://t.me/NagaWarrants_by_Kenanga
 (also during office hours).

Some images above came from
Kenanga’s free Trading Guide to Structured Warrants ebook. Message Kenanga
here
 to receive a copy.

Any of you do this type of investing? What else can you add about warrants in Malaysia?


I Tried BEST Invest by BIMB Investment, the ‘First Robo-Intelligence Shariah ESG Online Investment App’ [SPONSORED]

“What the heck is robo-intelligence,” I thought to myself when I first heard about Bank Islam Malaysia Berhad (BIMB)’s new fintech product, BEST Invest, “is it the same as robo-advisory?”

“Robo-intelligence is not robo-advisory,” said Amirul Safuan, Head of Marketing & Digital Business Unit at BIMB Investment Management Berhad, in a cheerful yet repetitious tone that implies he had to answer that question hundreds of times.

“It is the use of big data technology, analytics, algorithms to assist on systematic processes of a large quantity of information and data in the decision-making process. It is about the “process”, not “advisory”.

He answered this during an online press event in May 2020, shortly after the app’s official launch. I was pleasantly surprised to be invited, happy that he took (and answered) all my questions, and then went ahead to hire me to write a user review, even after knowing my (transparency-first) writing style.

To be honest, I am a fan of the keywords BEST Invest are using. Fintech. Big data. Artificial Intelligence. ESG (Environmental, Social and Governance) aka Sustainable Investing. Top it off with Shariah compliance. Awesome, awesome, awesome. The only keywords missing are blockchain and cryptocurrency (jk jk).

And so, it is my utmost pleasure to test out the BEST Invest app, and present to you a list of its pros and cons.

Pros of BEST Invest App

#1 – Delivers on initial promises

Everything in this image is true:

You can start with RM10 deposit.
Usually with unit trust products, the minimum initial deposit is RM100 or RM1000, depending on the fund you want to get. I know one fund which requires RM100,000 (!!!) minimum initial deposit.

There is zero sales charge.
 I can say that BEST Invest is probably one of the cheapest places to get unit trust products.

This is nuts considering FundSupermart (now rebranded to FSMOne) used to be *the* place to get cheap unit trust, as traditional unit trust providers typically impose something like 5% in sales charges PLUS other fees.

It is simple and easy.
Digital natives shouldn’t have any problem with the account opening and onboarding processes. Personally I am impressed with the UI/UX, I thought whoever designed it did a good job. I have no complaints, but the Youtuber
TheHaikal
 did point out that the font is a bit small but I’m guessing the target audience is also on the younger side.

Intelligent Robo and Sustainable Investing
. ‘Robo-intelligence’ isn’t a regularly-used term, but sustainable investing is. In case you didn’t know, you can’t simply use the term ‘ESG (Environmental, Social and Governance) investing’ for fun. You have to get certified and accredited for that. That costs money, but also draws ever-growing values-conscious investors. Like me. Hashtag virtue-signalling.

(And the fact that many studies say ESG funds correlate positively with higher return on investment makes me like these types of funds even more $_$)

Above: Screenshot taken from
From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance report

Backed by an Islamic Financial Institution
. BEST Invest is a product by BIMB Investment Management Berhad, which is a fully-owned subsidiary of Bank Islam Malaysia Berhad.

No lock-in period
. I am generally super supportive of financial products that are liquid and easy to access. (However, take note. The
FAQ
 said that withdrawal ie selling of funds can take up to 10 calendar days.)

Shariah-Compliant product
 (yay <3) as well as
 regulated by Securities Commission Malaysia
.

#2 – Good investing journey – clear process with areas for flexibility

A few things stood out as I started investing in BEST Invest. The step-by-step process is really clear. You can really feel like you’re going down a funnel, as the system figures out what’s best for you. Let me share how my journey was like.

First, you have to answer the Great Investment Risk Profile Quiz. Answer 10 or so questions, and the system will tell you your risk appetite. I got aggressive growth-oriented.

Then, you can pick between two options: Do It For Me (use robo-intelligence) or Do It Yourself. I wanted to try the robo-intelligence feature so I picked that.

After you pick your option, you can pick your goal (I chose Hajj/Umrah*), target amount (RM15,000 should be enough right) and target date (I’ll be 42).

*Other goals: Retirement, Travel, Car, Marriage, Children, etc. You can even decide and write your own goal. You can also set multiple goals.

With a target and goal in mind, it will then ask you if you’d like to invest monthly or one lump sum. I picked the former. Somehow, my monthly contribution amount is the nice round figure of RM100 per month (how’d that happen?)

Now, the fun part. At this stage, the robo-intelligence system recommended a mix of 3 funds. I didn’t expect that, I thought it was only going to give me one type of fund, so that was cool.

According to the recommendation, my RM100 contribution will be divided into the following funds every month:

RM30 or 30% going to BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund

RM60 or 60% going to BIMB-Arabesque Global Dividend Fund 1

RM10 or 10% going to BIMB ESG Sukuk Fund Class A

Interestingly, you
don’t
have to accept the recommendation. You can change the weight (percentage) or delete it altogether and select other funds.

… Which is exactly what I ended up doing. I looked through what’s in each fund, then changed to these funds and ratios instead:

RM40 or 40% going to BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund (increased 10%)

RM20 or 20% going to BIMB Dana Al-Fakhim – 20% (new fund NOT suggested by BEST Invest)

RM40 or 40% going to BIMB-Arabesque Asia Pacific Shariah-ESG Equity Fund (new fund NOT suggested by BEST Invest)

THIS IS NOT INVESTMENT ADVICE. PICKING WHAT THE APP SUGGESTED IS PERFECTLY FINE. I completely ignored the app’s warning sign.

 All I can say is, two of the funds (which was NOT recommended to me) looked real attractive. I like the idea of investing in money markets with the following holdings,

And I like the idea of investing in ESG companies from Asia Pacific specifically, since I have other investments that cover global markets. Diversifying and all, you know?

(Again, not a recommendation. Follow the system’s recommendations if you’re new in investing.)

So after I picked my funds and happy with everything, I set up the monthly automatic deductions.

Btw – I love this feature! Big fan of automating investment!

And with that, I am done. All I have to do is regularly review it, maybe once every quarter or 6 months or so, but otherwise the automatic deductions and time will do its work for me.

Those are parts which I liked. The cons? Nothing is perfect, and you’ll find out soon enough anyway so might as well I tell you.

Cons of BEST Invest App

#1 – Fees are low for unit trust standards, but not as low as ETF

Have to put it out there, since you’ll ask about fees anyway (and you should). Even though getting unit trust via BEST Invest can be considered revolutionary and cheaper than traditional unit trust, they still can’t beat rates by ETF.

HOWEVER, and as mentioned above, BEST Invest beats Fundsupermart/ FSMOne’s rates, hands down. 2% or so sales charge PLUS management fees PLUS other fees are still very common there.

Note: Even though unit trust and ETF are structurally different financial instruments, I’m comparing them both because they’re used for similar purposes: typically (but not always) included in a diversified, long-term investment portfolio

#2 – Only 5 funds to choose from

I understand the whole robo-intelligence system is to help investors to pick suitable funds.

But also, there are only… 5 funds… to choose from.

(Also it goes without saying that all funds are products from BIMB Investment only)

Yes, I understand that the mix-and-matching of funds and ratios is probably part of the robo-intelligence system at work. And I don’t know if BEST Invest plans to add on more funds to the mix.

But for now at least, it’s still just 5 funds. As opposed to tens (or hundreds) of funds.

Conclusion of My BEST Invest Review

Even I can see that my cons are nitpicky at best. Overall, the pros far outweigh the cons.

In terms of ‘legitimacy’ as a fintech product, no issues there. Bank Islam is a reputable bank. A few years back, Islamic fintech products like this were almost non-existent, and you had to be really intentional about choosing Shariah-compliant products.

Now the easy option is there. Not only I get Syariah-compliant funds, they’re ESG aka Sustainable Investing too. Almost too perfect. It justifies the fees.

In any case, I admit I’m a new user, so I’ll report back in a couple of months after using BEST Invest app for a bit more. Stay tuned. EDIT: so far, so good.

Existing users of BEST Invest app, seeking your comments and feedback. How are you finding it? Let me know in the comments section!

For everyone else who is curious, feel free to try it out. Scan the code below to download the app.

Read more:

10 Types of Islamic Investments in Malaysia (that Everyone Can Get)

What is the Best Robo Advisor in Malaysia?


3 Best Investments in Malaysia (The Best Way to Invest Your Money)

The best investments in Malaysia are
INVESTMENTS IN YOURSELF
.
Invest

in
 your EDUCATION! LEARN! BUY BOOKS AND COURSES.

Lol no jk jk I’m not that annoying (usually). I mean, that advice is true. But it *is* off-topic.

For real though – here’s the 3 best investments in Malaysia:
EPF/KWSP, PRS and SSPN/SSPN-i.

Why these 3? Because you can get
 income
tax relief
 of up to RM15,000 annually, combined
.

Regardless whether the investment performs well or not – and this is outside your control anyway, depends on the economy and all –
you will still ‘gain’ via reduced tax payment and other practical benefits uniquely offered from each of them
.

Wait, you say. I disagree! I think [insert investment here] is THE best investment in Malaysia!

Who told you there can only be ONE best investment? The best investment strategy is a combination of MULTIPLE investments, and it should include
at least
 one of those three.

The best way to invest in Malaysia*

*opinion not advice. All standard DYOR disclaimers apply

I’ll just get right to it.
MOST people will be okay financially if they use this exact investment strategy
,
or at least use it as a starting point until they tweak it to fit their personal situation
. The strategy is simple enough.

First, a
ccumulate a minimum of
3 months’ worth of expenses
in your bank account as emergency fund

If you spend RM1000 per month, you should have a minimum of RM3000 as emergency fund

If you spend RM2000 per month, you should have a minimum of RM6000 as emergency fund

If you spend RM3000 per month, you should have a minimum of RM9000 as emergency fund

And so on. Y
ou can increase it to 6 months’ worth if you want, especially if you don’t have
insurance
 or your income is unstable.

Then,
without touching or reducing your emergency fund
,
transfer the below amounts
every single month
:

RM333.33 per

month
*
to EPF

PLUS
RM250 per

month

to PRS

PLUS
RM666.66 per month
**
to SSPN

PLUS
RM250 per month*** to
ASB financing

for RM50k loan (Bumiputera only) OR
ASNB Funds
 OR
Roboadvisor
 OR
Tabung Haji

PLUS
RM500 per month
**** to any ‘Fun’ investment(s) of your choice. Go ahead and do
Stocks
,
REITs
, Property,
Gold
,
Crypto
,
Forex trading
, Art, NFTs, whatever you want

*Skip EPF contribution if you’re a salaried employee earning living wage. Allocate the money to #4

**Skip SSPN if you don’t have children. Allocate the money to #4

***You can mix-and-match #4. For example, you can allocate RM125 each per month to 2 roboadvisors

****You can mix-and-match #5. For example, you can put RM100 towards Gold, RM250 towards Crypto and RM150 towards trading. If you’re not interested in any of the ‘fun’ investments, or you want to learn first, then just put the money in #4, not in your bank account. Remember: Time in the market > timing the market

Do all these, exactly

in this order,
and you’re already investing RM2,000 per month and well on your way to building healthy savings/investment portfolio and a comfortable retirement fund.

Note: If you have more than RM2000 to invest every month, then you can afford to
hire a financial planner
. They will be able to give you personalised advice.

How this investment strategy looks like in practice

Here’s an example for someone who have RM400 to invest every month. This person is a salaried employee, single and no children, and already maxed out 3 months’ salary worth of emergency fund. Every month, they should put:

RM250 to PRS (skip EPF because already contributing through salary deduction via employer)

RM150 to
ASB financing
 for RM50k loan (Bumiputera only) OR
ASNB Funds
 OR
Roboadvisor
OR Tabung Haji

Total: RM400 per month

What if you have RM700 per month to invest, same situation?

RM250 to PRS (skip EPF because already contributing through salary deduction via employer)

RM250 to
ASB financing
 for RM50k loan (Bumiputera only) OR
ASNB Funds
 OR
Roboadvisor
OR Tabung Haji

RM200 to any other investment(s) of their choice (or just add on ASB financing/ASNB funds/ Roboadvisor/ Tabung Haji)

Total: RM700 per month

How about RM1200 per month to invest, same situation except you’re self-employed (aka no EPF contribution from employer)?

RM333.33 per month to EPF

RM250 to PRS

RM250 to
ASB financing
 for RM50k loan (Bumiputera only) OR
ASNB Funds
 OR
Roboadvisor
OR Tabung Haji

RM366.67 to any other investment(s) of their choice (or just add on ASB financing/ASNB funds/ Roboadvisor/ Tabung Haji)

Total: RM1200 per month

Let’s go into details for EPF, PRS and SSPN, and why they should be your priority.

#1 – EPF/KWSP (Employees Provident Fund/ Kumpulan Wang Simpanan Pekerja)

What is it:
 You know what this is. The de-facto retirement fund for Malaysians

Why it’s great:

You can get up to
RM4,000 in income tax relief

if you are salaried employee earning ~RM1600 and above per month, then your plus employer contribution already maxed it out

If you are self-employed, you can always do self-contribution (direct online banking)

It’s for your own retirement. Inability to withdraw is a feature, not a bug. It’s better to have more money than you need after you retire, than not enough

Aside from retirement, you can
make withdrawals for other reasons
, including for health and education purposes

You can also channel a portion of your EPF fund into unit trust. Read:
All You Need to Know About Buying Unit Trust Through EPF i-Invest

You can directly nominate your EPF money to anyone you want. More info
here

You can make use of
Retirement Advisory Service
, which is free of charge for EPF members!

Official website:
https://www.kwsp.gov.my/

#2 – PRS (Private Retirement Scheme)

What is it:
 Like EPF, but optional (but recommended)

Why it’s great:

You can self-contribute and get up to
RM3,000 in income tax relief

The money is meant for your retirement. Again, more money is better than less. Retirement is very expensive.

Protip: you can get
PRS with ZERO sales charge

You can directly nominate your PRS money to anyone you want. More info
here

Official website:

https://www.ppa.my/

#3 – SSPN/SSPN-i (Skim Simpanan Pendidikan Nasional)

What is it:
 A fund to prepare for your children’s education. Note that
only parents and legal guardians can open SSPN/SSPN-i accounts for their children

Why it’s great:

You can get up to
RM8,000 in income tax relief
(edit: increased from RM6,000. Thanks ck!)

For me this is a subtle way for PTPTN to let you know that PTPTN loan may not be as readily available for future generation. Whatever is the reason, don’t let your children be affected by the consequences

You can also double it as insurance/takaful for your child. More info
here

They have a lot of attractive promotions and competitions to attract depositors. Last I checked they have a lucky draw offering RM100,000 cash prize

Official website:

https://lovesspn.ptptn.gov.my/

Other Investments in Malaysia: Are they good?

IMO, calling something the ‘best investment in Malaysia’ requires some context. They can be the best investment in Malaysia for you, if you position them in specific light. For example:

Yes, investing in environmentally-conscious companies are wonderful for our future (you can do sustainable investing easily via
BEST Invest
)

Yes, investing in physical gold allows you to have the option to get secured personal financing (as shared by one reader in
4 Things You Can Do If You Need Money URGENTLY in Malaysia
 article)

Yes, investing in fixed deposits/bonds/money market funds is safe and therefore can be considered the best investment for those with low-risk appetite

Yes, investing in
gold
/
stocks
/
crypto
/property/whatever are all good if you have the knowledge

But EPF/KWSP, PRS and SSPN/SSPN-i are probably the best investments of them all, for reasons given above. This is a sample size of one, but I shared this opinion with the CEO of a large fund management company and she agreed with me, so :/

Do you agree or disagree? Feel free to share with me what other investments you think are great. I’d love to hear what you think – leave a comment below.


Ultimate Comparison Between 8 Robo Advisor in Malaysia

Which robo advisor in Malaysia is the best? I hate ‘it depends’, so let’s answer it this way: which of the criteria below are the most important to YOU?

By ROI (return on investment) – which robo advisor has the best returns?

Lowest Fees – which robo advisor has the lowest fees?

Global Exposure – which robo advisor offers geographically diverse portfolios?

Ethical Investing – which robo advisor offers ESG funds?

Shariah Compliant – which robo advisor can I use as a Muslim?

Best UI/UX- which robo advisor is easiest to use?

Home-grown- which robo advisor is made in Malaysia/support Malaysia?

Technology- which robo advisor offers incorporates the best tech/ offer tech funds?

Cash Management Accounts – which robo advisor can be used as Savings account/ Fixed deposit alternative?

Invest in REITs – which robo advisor offers REITs investment?

Pick a number, then go on the sections below to see which robo advisor(s) you should use
. Disclaimer: Do not take the info in this article as financial advice. Use this rob advisor comparison guide to learn, but cross-check with other platforms/parties.

But first, if you’re new to the whole concept – what *is* robo advisor? How many are there in Malaysia? How do they invest your money?

Let’s cover all that in..

What are robo advisors? What makes it robo investment?

Robo advisors, or its technical term, Digital Investment Managers (DIMs)
as per the Securities Commission
 fall under the umbrella of wealthtech services.

The ‘tech’ part is important. Unlike a traditional portfolio manager, robo advisors have streamlined/automated various labour-intensive/mafan parts of investing: the risk profiling, suitability assessment, asset allocation and rebalancing processes.

Is it good to invest via robo advisors?

I think robo advisors are EXCELLENT for investors, including and especially for newbie investors. The entry barrier is ridiculously low. All you need to do is:

open an account (or a few),

upload your identification documents,

add funds into the portfolio recommended for you (guided process), and

just continue to add funds until you reach your goal(s)

List of robo advisors in Malaysia

How many robo advisors are there in Malaysia? As of Mar 2022, there are 8 licensed Robo Advisors aka Digital Investment Managers in Malaysia listed in
Securities Commission page:

AkruNow
 by Akru Now Sdn. Bhd; The home-grown Malaysian one

Airo.my
 by BH Global Fintech Solutions Sdn. Bhd
;
 the latest roboadvisor. Seems to partner with Interactive Brokers and Pacific Trustees

Mytheo
 by GAX MD Sdn. Bhd.; Malaysian partner of Theo from Japan

Raiz Invest
 by Raiz Malaysia SdnBhd; invest-your-spare-change platform. JV between PNB (aka ASNB) and Raiz Invest Australia

Stashaway
 by StashAway Malaysia Sdn. Bhd
.
; expanded from Singapore

UOBAM Invest
 by UOB Asset Management (Malaysia) Berhad; ‘robo-advisory for business’. Skip this if you’re managing own funds

Wahed Invest
 by Wahed Technologies Sdn. Bhd.; expanded from New York

Kenanga Digital Investing
 (KDI) by Kenanga Investment Bank Berhad, the largest independent investment bank in Malaysia

In addition to the above, I will add 2 digital investment apps in this robo advisor comparison article.

Not technically robo advisor but might as well be: BEST Invest and Versa Asia

In addition to the 8 robo advisors, I will also include:

BEST Invest
 – they use ‘robo-intelligence’ to select suitable shariah-compliant and ESG unit trusts for you

Versa Asia
 – you can use Versa Invest to invest in unit trust, REITs and gold. They also offer Versa Save, a good place to park your savings

Again, both is NOT technically classified as Digital Investment Managers and therefore cannot becalled roboadvisors, but might as well be as the tech used is on par.

Another reason I add them here is because they have 0% sales charge for their unit trusts. Those who buy unit trust will know how rare 0% sales charge is. It can go up to 6%, not including the other fees that you have to pay.

How your money in Robo Advisor is invested, using the ‘Fruits Basket’ Analogy

Using a robo advisor for investing is similar to buying a fruits basket. You are buying a product which includes a variety of components.

The fruits basket from one robo advisor is
not the same
 as the fruit basket offered at another robo advisor. In fact, the fruits baskets that two people might buy from the same robo advisor
might be different too
, as we may have different preferences/risk appetites/ financial goals in mind.

 What exactly are you buying/investing in? Depends on the fruits basket. Imagine each fruit as a type of asset:

shares (in different markets/regions/ industries/themes),

bonds/ sukuk,

properties/ real estate/ REITs,

cash/currencies,

precious metals (gold etc)

And more

Let’s give a situation for 2 different investors:

A robo advisor might recommend you a fruits basket containing only bonds and cash, as you informed them (through questionnaires) that you are a super conservative investor.

The same one might recommend another investor with high risk appetite a fruits basket containing high-growth stocks/index fund in various emerging markets.

What people tend to forget is
you can buy a few fruits baskets, for different scenarios
. Maybe one is for retirement. Another one earmarked for property ownership. Another one for marriage fund.
You don’t have to pick just one.

Now let’s go on to dissecting which robo advisor is the best, based on different benchmarks.

#1 – Which robo advisor in Malaysia has the best returns?

Maybe you’re like, Suraya can tell me which robo advisor can give the most profit, the most return on investment? I don’t care about anything else, I just want to get rich fast.

Unfortunately you can’t and shouldn’t do that, because
all of the robo advisors can theoretically give you negative or positive double-digit annual return on investment, depending on
the state of the economy

and

the portfolio you pick
 (recommended to you based on YOUR answers in the risk appetite quiz).

In addition, your behaviour when investing makes a big impact to the returns. Choosing the portfolio which predicts high returns doesn’t matter if you are not suitable for it.
If you selected one that is not suitable for your temperament, all you’re going to do is panic sell during bad market conditions
.

(And don’t say ‘Oh I won’t one’ – you will. Chances are, you will.)

#2 – Best Roboadvisor in Malaysia: Lowest Fees

Okay, so with that out of the way, maybe you want to concentrate on low fees next.

The fees for all robo advisors in Malaysia are similar; all below 2% per annum. That figure is combined from each robo advisor’s:

Annual fees
* – ranges between 0.2-1% (this is the one listed on their main page), AND/OR

Annual fund expense
 – ranges between 0.04-1.8% (this one you have to dig a bit in their FAQs/T&Cs; varies depending on the fund you’re investing in)

Generally speaking, the more funds you deposit in a platform, the less you pay in fees, percentage-wise. (See additional notes on fees below)

However, my view is
unless you have six-figures or seven-figures, it doesn’t make sense for you to choose a robo advisor solely based on fees
. Other factors are more important.

You can see comparison of robo advisors fees
in this iMoney article
 and at each platforms’ website. But, again, fees aren’t the most important factor.

*Additional notes on fees:

It does not make sense to invest in Raiz Invest if you have small amounts of funds in there, as they charge a flat RM1.50 per month for accounts under RM6,000. Imagine if you have RM10 in there and they take out RM1.50 – that’s 15% in fees!

For
Versa Asia
‘s Versa REITs specifically, the Annual Management fee is 1.80% p.a

#3 – Best Roboadvisory in Malaysia: Global Exposure

Winner:
Mytheo
,
Wahed Invest
 (US, China, Emerging market),
AkruNow
(US, China, Developed markets, Emerging markets)

Also good:
BEST Invest
,
Stashaway
,
Versa Asia
 (US, China market)

If you are looking for global exposure (which you should if your current investments are all Malaysia-focused), then all the options above are good options.

On the other hand, Raiz Invest is mostly invested in Malaysian companies.

#4- Best Roboadvisor in Malaysia: Ethical Investing

Winner:
BEST Invest
 (all ESG funds)

Also good: Stashaway (
score: 3.21-3.57 out of 5
), Wahed Invest (no gambling/ alcohol/ firearms etc companies)

Personally, ethical/ESG investing is one of my top criteria in choosing a robo advisor. There are
research that links ethical investing to higher profits
, too = the perfect two birds one stone situation for me.

Here’s how a sample portfolio might look like:

Related:
[VIDEO] A Conversation on Socially Responsible Investing feat. Najmuddin Mohd Lutfi, CEO of BIMB Investment

#5 – Best Roboadvisor in Malaysia: Shariah Compliant

Winners:
Wahed Invest
,
BEST Invest
 (tie – both Shariah-compliant)

Also good: Raiz Invest (Is Raiz Shariah compliant? Kind of – they received
‘permissible’ aka harus status
) (note: use my
Raiz referral code
: you get RM10)

Yes, at writing time, those are the only options for Shariah compliant robo advisor/ investment platform.

Note: I have personally used Wahed Invest for over 3 years and happy with it. If you want to open an account and try Wahed Invest yourself,
download the Wahed Invest app from Appstore/iOS
 and
use my referral code ‘surbin1’ to get free RM10 bonus

#6 – Best Roboadvisor in Malaysia: UI/UX

Winner:
Stashaway
,
Wahed Invest

Also good: the rest

It is unfortunate that Stashaway is not Shariah-compliant or I would totally try this out. If Shariah-compliance is not your dealbreaker and you want to try, get reduced fee via my Stashaway referral code Malaysia in
this link
.

Stashaway’s UI/UX is one of the best (if not the best). Stashaway team is ahead of the rest in terms of community involvement and management, and high-quality content marketing. I frequently see them organise
educational talks
, and they publish
amazing articles
.

Articles by Freddy Lim, Co-founder and CIO (Chief Investment Officer) of Stashaway offers great insight into the fund management industry. In particular, I enjoyed this article explaining their
trademarked ERAA strategy
, which is they say is better than the Nobel Prize-winning Modern Portfolio Strategy (a strategy used by some robo advisors in this list).

As for Wahed Invest, you can read my whole review in my
The Ultimate Wahed Invest Review
article.

#7 – Best Robo advisor in Malaysia: Home-grown

Winners:
Akrunow
,
Raiz Invest
 and
Kenanga’s Digital Investing

Also good:
Wahed Invest

Because #sapotlokal. Akrunow is a home-grown startup, while
Raiz Invest
 invests in ASNB funds, which includes a lot of blue-chip companies listed in the Malaysian stock exchange.
Kenanga’s Digital Investing
 is from Kenanga Investment Bank, the largest independent bank in Malaysia.

Wahed Invest invests in Malaysia-made ETF in Moderately Conservative portfolio and above.

#8 – Best Robo advisor in Malaysia: Technology

Winners:
BEST Invest
 (for using ‘robo-intelligence’),
Kenanga’s Digital Investing
 (for using AI),
Stashaway
 (for their technology-focused thematic portfolios),
Airo.my
 (includes Tech ETFs in some portfolios)

Also good: The rest.

Tbh I’m not particularly convinced by AI or robo-intelligence, since it’s only as good as the data you feed them, and
human biases in data collection
 is a well-documented issue.

BUT who am I but a no0b when it comes to technology. Plus thousands of datapoints are factored in, so theoretically that easily beat humans’ capabilities, so take this as an opinion at best.

I do like Stashaway’s thematic portfolios though. It’s like investing in tech startups, and that’s always tempting.

#9 – Cash Management Accounts (Savings account/ Fixed deposit alternative)

Winners:
Kenanga’s Digital Investing
 (KDI Save),
Stashaway
 (Stashaway Simple),
Versa Asia
 (Versa Save)

Also good: Conservative portfolios from the other robo advisors, and Touch N Go’s Go+ (the only Shariah-compliant cash management account, if that matters)

Reminder that you may lose some money while investing in robo advisors, especially in the short term. If your goal is to NOT LOSE MONEY AT ALL, then look for these places to save your money:
6 Best Savings Accounts in Malaysia to Put Your Emergency Funds

#10 – Invest in REITs

Winners:
Wahed Invest
 (Thematic portfolio > REITs),
Versa Asia
 (Versa REITs)

Wahed Invest
offers Shariah-compliant Local REITs, while
Versa Asia
‘s Versa REITs gives you exposure to real estate assets in Singapore, Hong Kong, Malaysia and United States

Here’s how to buy REITs from both platforms.

How to buy Local REITs from Wahed Invest

Here’s the step-by-step process to buy Local REITs from Wahed Invest:

Open Wahed Invest account (Obligatory referral code:
Download app
 and use code ‘surbin1’ to get FREE RM10 bonus)

Select Thematic > Local REITs (If you already have existing investment, click Add account in Dashboard)

Cash in (fund your account) a minimum of RM100 and complete your purchase

Congrats, you have invested in the REIT 🙂 Repeat the purchase next month, or consistently

How to buy Versa REITs from Versa Asia

Here’s the step-by-step process to buy Versa REITs from Versa Asia:

Open Versa Asia account (Obligatory referral code: use code ‘SURAYA’ or click
here
 to get FREE RM10 when you deposit RM100 in your account)

Select Investments > Versa REITs

Cash in (fund your account) a minimum of RM100 and complete your purchase

Congrats, you have invested in the REIT 🙂 Repeat the purchase next month, or consistently

Versa REITs gives you exposure to real estate assets in Singapore, Hong Kong, Malaysia and United States.

Robo advisor comparison: Which will you choose?

We have come to the end of this robo advisor comparison article, based on different categories. By now, you should have an idea of which criteria that are most important to you.

If not, go back to the above categories and select a couple of robo advisors based on the criteria that are most important to you (as an example, for me Shariah-compliant robo advisor is non-negotiable). Check the websites, download the apps and start your investing journey: time in the market > timing the market and all that.

I still don’t know which robo advisor to choose!

If you have a few hundred ringgit or more,
it’s not a bad idea to try a few
, just to compare between platforms. For example:

RM100 in robo advisor A (winner of category of your choice)

RM100 in robo advisor B (winner of category of your choice)

RM100 in robo advisor C (winner of category of your choice)

If you end up liking one over the other, you can always withdraw and allocate everything in one place. None of them charge withdrawal fees.

With that, I’ll end this guide here. What questions do you have about robo advisors in Malaysia? Which one(s) are you using now, and how are you liking it? I invite you to share your experience investing through robo advisors in the comments section so the rest of us can learn 🙂