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

Which is the best unit trust in Malaysia? As always, the answer is it depends. What is your definition of ‘best’?

If you think ‘best’ means ‘highest returns’, then let me just say: you’ll never know which one will generate the highest returns because no one can predict the future. See the end of the article for best/worst performing funds in 10 year period.

However, there are a few ways to pick a
good enough
 unit trust in Malaysia, something that has a good chance of generating returns AND suits your risk profile. You can find these unit trusts via:

Fund management companies, or

Recommendation from financial planner, or

Process of elimination

I’ll be covering all three methods in this article, read on below. Additionally, I’ll also cover:

Unit trusts with low sales fee (you can get these without agent)

ASB vs Unit Trust investment: Which is better

ETF vs Unit Trust investment: Which is better

Disclaimer: NOT FINANCIAL ADVICE. Just sharing the process that I used to select the best unit trust in Malaysia for myself. Get other people’s advice too.

Method #1: Fund management companies

Suitable for:
complete beginner investors. Need a person to talk you through the products and process. Maybe unit trust is your first investment.

Do you have a preference for any of the fund management companies? Some people base their decisions on that. They trust Company A so they pick what Company A offers. Some companies win investment awards, which is an indicative (not guarantee) of good performance.

If so, go find unit trust agents who sell those products. They’ll be happy to hear from you, they’re always looking for clients.

Note: Just make sure you pick fund management companies approved to operate in Malaysia. Find the official
List of Unit Trust Funds and Approved Management Companies in Securities Commission
.

Method #2: Recommendation from financial planners

Suitable for:
Intermediate and expert investors. Unit trust is not your first investment.

Some people get unit trust recommendations after their financial planner reviewed their investment portfolio. Perhaps their current investment portfolio has too much exposure in X, so they were recommended to find Y to balance/diversify a bit.

Tbh, this method is the most recommended way to find best unit trust in Malaysia for yourself. Unlike unit trust agents, who may be motivated by sales and commissions, financial planners are bound by Code of Ethics to give objective recommendations to their clients, aka you.

The catch is, of course, is there are fees involved. Read more in:
Places to Find A Financial Planner in Malaysia

Method #3: Via process of elimination

Suitable for:
 DIY investors, from beginner to expert

Last but not least, this method is for people who don’t want to meet anyone at all. You prefer to get your fund recommendations from financial websites, media or other sources.

After all, fund management companies and unit trust portals frequently publish articles and videos giving fund recommendations, so why not learn yourself?

The problem with this method is you will quickly run into a problem:
you still end up with too many fund recommendations, and get overwhelmed with the choices anyway.
 There are literally hundreds of unit trusts to choose from.

This is exactly what happened to me, so to reduce the available choices, I used the
process of elimination
 to choose the best unit trust in Malaysia.

Here’s how it works.

How I used the process of elimination when choosing the best unit trust in Malaysia

First I eliminated all unit trust funds with
high sales charges
. Anything over 2% is high for me (
see section below for unit trust platforms with low sales fee
)

Second, I
narrowed it down to PRS unit trust only
 (PRS unit trust is one subtype of unit trust) (
I want the tax relief
) (you can get
PRS funds with 0% sales charge
)

Third, because I am still young, I decided to focus on
Growth funds
. Therefore, I eliminated Conservative and Moderate funds

Fourth, I eliminated
non-Syariah funds
. The Muslim guilt is real

Fifth, I eliminated funds that invested heavily in Malaysian equity. Figured I have enough of those in my other investments and
prioritise other countries/regions/sectors

Sixth, I also took into account the possibility of investing part of my
EPF money into unit trust
. However, as I didn’t reach the minimum threshold, this option is eliminated for me

All these eliminations drastically reduced my unit trust options, from hundreds to literally a handful.

You might go through some more process of elimination. Some people might not want to invest in industries they think are dying/ don’t believe in, or don’t align with their values, or whatever. For example, I have a preference for
Sustainable and Responsible funds, or ESG funds
 as well.

What to do next?

Okay, so by this point, you should have only a few unit trusts to consider. All you have to do is read up the factsheets and longer reports, or cross-reference them with other recommendations to make your final pick. Make the best possible pick with the information you have.

Remember:
if you can’t pick just one unit trust, nothing’s stopping you from getting two or a few at the same time.
You can put a few hundred/thousand to each, no problem (depends on the funds’ minimum investment requirement).

As mentioned, part of my elimination process is eliminating all unit trusts with high sales charges, or above 2%. But where to find them? Unit trusts with low sales fee used to be hard to find, but not any more:

Where to get Unit trust with low sales fee in Malaysia

The way I see it, if none of the fund management companies can
guarantee
 returns on the unit trusts they sell, then might as well get the ones with the lowest fees. The less you pay in fees, the more your funds will grow in size.

All of these platforms allow you to invest in unit trust (and mutual funds) yourself, with less than 2% sales fee (some are even 0%).

Which of the above should you pick? Go back to Method #3 – process of elimination. Refer to the chart below:

MyASNB

FSMOne

Best Invest by BIMB
 (Bank Islam subsidiary)

EZInvest by HSBC

eunittrust by Philip Mutual

Raiz (partnership with PNB) (careful because there’s a RM1.50 monthly fee for balance under RM6k)

Versa (via Versa Invest)

GoInvest on TouchNGo app

Platform
Got Shariah funds?
Got PRS funds?
Got app?
Got bonus?
MyASNB
Yes – Harus
No
Yes
May have campaign
FSMOne
Yes
Yes
Yes
1% maximum sales charge
Best Invest
Yes
No
Yes
May have campaign
EZInvest
Unsure
No
Yes
May have campaign
eunittrust
Yes
Yes
No
May have campaign
Raiz
Yes – Harus
No
Yes
RM5 bonus
Versa
No
No
Yes
Use code SURAYA for RM10 (min RM100)
GoInvest
Yes
No
Yes
No

ASB vs Unit Trust investment: Which is better

You might be wondering, ASB vs unit trust, which is the better investment?

(ASB or Amanah Saham Bumiputera is one of the 16 funds offered by Amanah Saham Nasional Berhad)

Objectively speaking, ASB is better if (1) you are Bumi, and if (2) you are looking for
consistent
returns. It is extremely unlikely for ASB returns to go into negative returns, which
can
 happen to unit trust investment in some years.

More importantly, at 0%, ASB’s sales charges is hard to beat. Plus, you can consider leveraging
ASB loan
 as well.

On the other hand, unit trust may be better if you want exposure to different:

Countries (Malaysia, US, China, etc)

Markets (Developed Markets, Global Emerging Markets, etc)

Regions (Asia, Europe, Greater China, etc)

Sectors (Healthcare, Technology, etc)

And more.

ETF vs Unit Trust investment: Which is better

However, unit trust is not the only way to get exposure to some countries/markets/regions/ sectors etc. You can also get ETFs from:

Bursa Malaysia

MIDF Invest
, and

Robo advisor platforms

Again, you can get a few, not one or the other. I have ASB, unit trusts AND ETFs. The more important factor in successful investing is you consistently invest every month.

However, if you are considering between ETF vs unit trust investment, I can say that it is possible to get lower fees on ETF, especially via robo advisors.

Important: Profits are NOT guaranteed

Early in the article, I mentioned how you’ll never know which one will generate the highest returns because no one can predict the future.

Let me say that again.
No one, including the fund management company you got it from and the unit trust consultants, can guarantee profits.

The unit trust you pick could be the best performing unit trust in Malaysia 10-year period,

Image taken from FSOne on 15 May 2022

Or it could be the worst performing unit trust fund in Malaysia the same time period.

Image taken from FSOne on 15 May 2022

(Don’t be swayed by unit trust with high returns on short timeframe, because it’s almost never sustainable. The longer the timeframe, the better)

I know this can be hard to grasp for some people, especially if you’ve been told you should invest in unit trust to grow your money. Hopefully yes, maybe no.

So if you have a hard time with this, and need someone to help to guide you through the process emotionally, it might be worth doing Method #1 or #2 instead of #3. Just engage their services and pay the sales charges or consultancy fees.

This way, you get to ask their advice on what you should do if the unit trust you picked didn’t give the returns you wanted. (Plus, you get to blame someone else, not yourself lol)

Hope this article helps you in the process of picking the best unit trust in Malaysia for you to invest in. Now, I want to hear from you – if you invest in unit trust, how did you make the decision?


Binance Ban in Malaysia: 4 Options You Can Take

The announcement of Binance ban in Malaysia by the Securities Commission Malaysia on July 30 2021 took the whole crypto community by surprise.

I mean, it shouldn’t have, considering Securities Commission Malaysia did include Binance in the
Investor Alert List in July 2020
, but no one thought they would actually go through with banning them.

For ‘illegally operating in Malaysia’, Securities Commission Malaysia made three enforcement actions.
As per the press release
, all Binance entities are ordered to:

Disable the Binance website (www.binance.com) and mobile applications in Malaysia within 14 business days from 26 July 2021;
Immediately cease all media and marketing activities, including circulating, publishing or sending any advertisements and/or other marketing material, whether via emails or otherwise, to Malaysian investors; and
Immediately restrict Malaysian investors from accessing Binance’s Telegram group.

14 business days from 26 July 2021 means the final allowed date for Binance to adhere to all of the enforcement actions is 15 August 2021, thus
Binance users in Malaysia can expect to no longer be able to access binance.com by 16 August 2021
 (or even sooner).

EDIT after 16 Aug 2021: It seems that Binance.com is still accessible to existing Malaysian users. You can use it like normal. But new users can only sign up
with modified steps
.

The reaction from Binance Ban in Malaysia

Based on what I see in social media and group discussions, most people reacted negatively to the news.

It was clear that Binance has a significant and loyal user base in Malaysia, who have been using them to get access to more cryptocurrencies than what is allowed in Malaysia, trading platform (with more pairing and better liquidity), P2P trading, derivatives and more. People use them because the range of services is WAY beyond what is offered on licensed exchanges.

I’ll miss the options on Binance 🙁

However,
as pointed out in FintechNews Malaysia
, Malaysian regulators aren’t the only ones cracking down or issuing warnings to Binance. Other countries, including the UK, Canada, Japan, Thailand and more are also concerned over the same issues – customer protection, KYC/AML (Know-Your-Customers and Anti Money Laundering) and more.

The good news (? depends on who you ask) is Binance CEO Zhao Changpeng has committed to proactive compliance, so hopefully you’ll see Binance as a licensed entity in Malaysia eventually, which you can’t deny will give users better protection. RinggitPlus have also reported
Binance looking for Country Manager in Malaysia
.

.
@binance
 pivoting from reactive compliance to proactive compliance. Stay tuned.
— CZ 🔶 Binance (@cz_binance)
August 6, 2021

But until that happens,
16 August 2021 deadline is 16 August 2021 deadline
. Binance customers STILL have to do something about their funds in Binance.

Also, even if Binance is licensed in Malaysia, which is unlikely to happen anytime soon (the process to get licensed by Securities Commission Malaysia, I am told, is lengthy), you can probably forget about some services/cryptocurrencies deemed too ‘risky’ for the general public, like futures and memecoins.

So here are 4 options you can take. I will also include which option is most suitable for which crypto user – after all, there are more to us than investors and traders. Do note that you can pick more than 1 option.

#1 –
T
ake out all your funds from Binance, move to licensed exchanges

Suitable for:
 long-term investors (aka hodlers); some traders

(this is the option Securities Commission Malaysia wants you to take, probably)

As of time of writing, there are
4 licensed digital assets exchanges in Malaysia
: Luno, Tokenize, Sinegy and (the newest) MX Global.

If you don’t have an account yet, simply open one, register an account and make the transfers.

Withdrawing funds from Binance

I need to mention something because I see it happening. Please do not be too clever and change the network to ‘save money on fees’.

If you’re withdrawing BTC, then use Bitcoin network (Binance automatically selected it for you anyway). If you’re withdrawing ETH, please use the pre-selected Ethereum network, don’t switch to Binance Smart Chain.

This is important. If you switch chains and withdraw, your funds will NEVER arrive. It’s lost, FOREVER.

EDIT: See comment section on retrieving funds sent on the wrong chain, *if* you control private keys of receiving wallet

Withdrawing other cryptocurrencies

What if you have other cryptocurrencies other than the 5 allowed in Malaysia: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH)? How to withdraw to the licensed digital asset exchanges in Malaysia?

The answer is you can’t, so you have to (1) convert them all to any of the 5 cryptocurrencies above, or (2) Use options 2-4 below.

IMPORTANT: Options 2-4 should be taken with extreme caution. I am not responsible for any mistakes or funds lost. Please do additional research and exercise due diligence before conducting them.

How to Withdraw Money from Binance to Bank Account Malaysia

Now that P2P function is disabled for Malaysian users and can no longer sell cryptocurrencies directly on Binance platform, how to cash out?

You can withdraw money from Binance to your bank account in Malaysia by doing these steps:

Exchange your cryptocurrencies in Binance to Bitcoin (BTC), Ripple (XRP), Litecoin (LTC) or Bitcoin Cash (BCH)*
Transfer it to any of the 4 licensed digital asset exchanges in Malaysia
Sell it from the platform

*ETH is not recommended as the fees are very high

Obligatory referral code
s:

LUNO: Buy RM500, get RM50 in BTC (instant 10% ROI) with my code ‘
LNSURAYA50′
(valid for new users only).

Steps: Open a new account at
Luno.com
 > Go to REWARDS > Choose ENTER CODE > Enter the given promo code > Click Apply Code > Deposit the minimum amount required > Buy the minimum transaction amount > Get rewarded with the additional Bitcoin.]

TOKENIZE: Click
here
 to get 15 Tokenize Points when you sign up with my link. The points are exchangeable for digital assets offered in Tokenize.

#
2
–
T
ake out all your funds from Binance, move to other international exchanges

Suitable for:
Other traders

Binance may be banned… but
other international exchanges like

Kucoin
and
Huobi

are not banned.
Yet
.

Personally, I have not used them, so I can’t say if they are good or not. I just know they have a reputation as fairly reputable trading platforms, so traders looking to trade other pairs aside from the 5 allowed cryptocurrencies in Malaysia can go there.

Of course, by choosing this option, you also understand the risks of using unregulated platforms, including lack of protection.

#3 – Leave your crypto in Binance

Suitable for:
Technologically advanced internet users

From online discussions, it was clear that some users are not phased by the Binance ban in Malaysia. They have ways to circumvent it and still access Binance.com after 16 August 2021.

Don’t ask me how. I know the methods in theory, but not in practice. (Use VPN; Change DNS)

(This is assuming Binance doesn’t block everyone who registered with Malaysian ID, which you did during the KYC stage. If they fully cooperate with Securities Commission, they technically can stop you from using the platform, VPN and DNS be damned)

Worth mentioning here: even if you leave your crypto in Binance and can’t access it, the funds will still be in there. You can’t access it but it should be safe there, until you learn how to access it or *if* Binance gets licensed in Malaysia, whichever comes first.

EDIT: Existing Malaysian users can still use most features, including P2P. But new users can only sign up to Binance
with modified steps
.

#4 – Use non-custodial crypto wallets

Suitable for:
 DeFi users, GameFi players, blockchain developers, builders, NFT collectors, hodlers of cryptocurrencies other than the 5 allowed and more. Reminder that
not everyone in the crypto world is a mere investor or a trader.

And last but not least, non-custodial wallets. This option is ONLY suitable for people who
practice good digital security habits
. This is similar to keeping gold in your own safe – the responsibility to safeguard it becomes 100% your own responsibility.

In case that is not clear, I’ll say it again –
the responsibility to keep your funds safe is 100% yours
. If your funds are stolen/ if you get scammed/ if you make mistakes, there is no way to recover the funds.

So why keep it yourself? The answer is you don’t have to, you can just stick with keeping your funds in regulated exchanges, but this option gives you the most direct ownership over your own assets, and allows you to continue interacting with blockchain platforms and networks. With non-custodial crypto wallets, you can continue gaming (and earning from it), farming, building, collecting, and everything else without limitation.

There are many types of non-custodial wallets, but in here I’ll share three main ones:

(IMPORTANT: For all of them, PLEASE store your passphrase safely and NEVER share it with anyone, not even people who claim to represent ‘support team’ (one type of scam).
Use a password manager
 if you haven’t)

1)  Hardware wallets

Get yourself a Ledger Nano (pictured below) or Trezor
from authorised resellers like Cryptobilis
 or directly from their main Ledger and Trezor website. According to community members, shipping only takes days.

Note: It is IMPORTANT to buy your hardware wallets from the right source as
tampered hardware wallet is a type of scam as well
.

Hardware wallet is best for hodling and passive safekeeping, rather than active use. If you’re planning to use the wallet often, then…

2) Use Metamask wallet (browser + mobile)

Metamask
 is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralised applications. (Source- Wikipedia)

After you create your account, the default Metamask setting is:

Ethereum Mainnet (store your ETH here)
And a bunch of test networks (for testing purposes)
Localhost
Custom RPC (for you to add new configurations)

 You can, like me, add on:

Smart Chain
 aka Binance Smart Chain. Here’s how to
install Smart Chain in Metamask
. This allows me to store BNB
Matic Mainnet
. Here’s how to
install Matic Mainnet in Metamask
. This allows me to explore
Polygon
, ‘Ethereum’s Internet of Blockchains’. After all, as a Malaysian I am supportive of the National IR4 Policy, one of which is embracing blockchain technology <3

To learn more about Binance Smart Chain and Matic Mainnet and what you can do with them, please go down the
DeFi
rabbithole.
CoinGecko’s How to DeFi: Beginner and Advanced books
 is a fantastic place to start and cost only $30. It’s not a bad thing to learn – the career and income opportunities in this space is MASSIVE.

3) Use Trust Wallet (mobile only)

Another wallet you may want to use is
Trust Wallet
,

Another wallet compatible with the Ethereum blockchain is Trust Wallet, which has some fundamental differences with MetaMask. For instance, while MetaMask is both a browser and mobile-based wallet, Trust Wallet is only available on mobile.
 Additionally, Trust Wallet supports more than just Ethereum and its assets. Users can store a wider range of digital currencies, including ETH, Bitcoin (BTC), Litecoin (LTC), and Ripple (XRP).
Source –
Coinmarketcap

Again, there are other types of wallets, and feel free to explore them in your own time,  but the ones I shared here are considered must-know.

Which option to take

Go back to #1 and look at ‘Suitable for’ in each section. That should give you an idea of which option(s) to take.

The only other thing to add here is: please be honest with your own knowledge and capability. I have been in the crypto space since Dec 2015 and at one point, was a Certified Bitcoin Professional and still consider myself a 5 out of 10 in the whole scheme of things. I’m still experimenting and
learning DeFi
, and don’t what I’m doing half the time, so knowing this I only put minimal amounts. I avoid trading altogether.

Lastly, it’s good to try out different things aside from hodling, and yes no risk no reward, but take some time to learn risk minimisation and defensive strategies. Curate the thought leader(s) you’re following, make sure they’re not too binary in their arguments.

Avoid being overconfident and definitely avoid TO THE MOON bros (and sis) shilling memecoins. It’s ok to have them for fun but to be part of the cult? Nah.

What do you think of the Binance ban in Malaysia? What do you plan to do?

Personally, I belong in the camp of ‘Whyyyy Securities Commission Malaysia do that’, but I also get why they had do it: considering relatively low levels of financial literacy in Malaysia, and their role in safeguarding users, it is only fair that they take the steps to protect vulnerable folks and reduce their potential losses.

However, I am concerned about the implications. As mentioned above, not everyone in the crypto community are investors and traders. Niche crypto communities exist, and I fear they may reduce sharing their work or stop altogether – how is that good for the development of the blockchain industry in Malaysia?

In any case, I am aware that good folks are working together and aiming for the sweet compromise between protection and innovation. Here’s hoping Binance (and other crypto entities) will be welcomed with open arms in Malaysia, supplying not only jobs but opportunities.

I’ll end here, these are my thoughts. What are yours? If you’re a Binance user, what action did you take following the ban? Let us know in the comments!

EDIT: How to download Binance in Malaysia for new users

New users can download Binance in Malaysia using these
modified steps
.


The Beginner’s Guide to Buying Gold in Malaysia

Buying gold in Malaysia is not hard, but can be confusing for a beginner. So here’s a no-BS article outlying what you need to know about buying gold in Malaysia as an investor.

In this article, I will answer:

Why buy gold as an investment (hint: you don’t have to)

Why you don’t need to buy a lot of gold for investment

How much gold to buy

Where to buy investment-grade gold in Malaysia

What happens after I buy gold in Malaysia as an investment? When do I sell?

Let’s go!

#1 – Why buy gold as an investment?

Actually, you don’t have to buy gold for your investment. In fact you can skip it. It’s not technically necessary. You can just focus on other savings/investment vehicles. Here are some options:

6 Best Savings Accounts in Malaysia to Put Your Emergency Funds

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

18 Shariah-Compliant Investments in Malaysia for Halal Investing

You should also probably skip gold investment if you are still paying off high-interest debt (credit card, personal loan etc) and/or still building your 3-6 months emergency savings.

But if you’ve done that and pretty sure you want to venture into gold investment, then just remember…

#2 – You don’t need to buy a lot of gold for investment

Like other types of assets, gold investment is best used to diversify your investment portfolio. That just means, just a little bit is fine, not ALL of your savings should be allocated to it.

To make this clear:

100% of your money in cash = not good

100% of your money in stocks = not good

100% of your money in cryptocurrencies = not good

100% of your money in properties = not good

100% of your money in gold = also not good

Get the picture? Basically, putting 100% of your money in any ONE type of asset is not a good strategy.

But what’s a good %? That depends. Generally speaking, 5-10% of your overall portfolio is a safe amount. Depending on the situation, the % could go higher – talk to your
financial planner.

#3 – How much gold to buy for investment

So, I mentioned 5-10% of your overall portfolio is a safe amount in the previous section. That means:

If you have RM1000, then not more than RM50-100

If you have RM5000, then not more than RM250-500

If you have RM10,000, then not more than RM500-1000

Most (but not all) options to buy gold in Malaysia requires you to buy a minimum of 1 gram of gold, which as of writing time, costs around RM250 per gram. That means
you may want to only consider getting gold when you have saved up RM5000 and above, so you have more options to choose from.

#4 – Where to buy gold in Malaysia for investment

There are quite a few options to buy gold in Malaysia. I’ll list them briefly, then expand further below:

Buy gold from banks

Buy gold from jewelry stores

Buy gold ETFs

Buy gold from agents of gold investment companies (I don’t really recommend this)

Let’s expand on each option:

#1 – Buy gold from banks

Many banks offer gold savings/investment accounts. Some options include:

Maybank Islamic Gold Account
 (MIGA-i) – from RM10

CIMB e-Gold Investment Account (e-GIA)
 – from 1 gram

Public Bank Gold/eGold Investment Account
 – from 5 gram/ 1 gram

UOB Gold Savings Accounts
 – from 5 gram

Kuwait Finance House Gold Account-i
 – from 10 gram

Pictured: Maybank’s MIGA-i account

There may be more, I’ll update this section as I find them 🙂

To open a gold savings/investment account from banks, simply:

check the bank of your choice if they have one,

open an account, and

make the initial deposit to purchase your gold

done!

These are probably the safest way to buy gold in Malaysia for investment purposes. The buy and sell price (also called margin) also tends to be better than other options in this list, plus you don’t have to keep the gold yourself (and worry about it being stolen).

But if digital gold if not your thing, and you prefer to HOLD the gold in your own hands, then…

#2 – Buy gold from jewelry stores

You can buy
physical gold coins
 and
gold jewelry
(rings, bracelets, necklaces etc) from REPUTABLE jewelry stores. Some popular options include:

Habib Official Store (
Shopee
 |
Lazada
)

Wah Chan Official Store (
Shopee
 |
Lazada
)

Poh Kong Official Store (
Shopee
 |
Lazada
)

Tomei Official Store (
Shopee
 |
Lazada
)

The con of this option is you’ll
probably
 most definitely pay a higher price per gram of gold, because there is design and craftmanship costs included. Someone had to make the pretty gold coins and jewelry.

Despite the con, this is definitely one of my favourite way to own gold investment. It’s literally investment that I can wear. In theory, I can wear my jewelry until I’m bored of it, then exchange it for another gold jewelry of similar price/weight – ta-da, a new pretty thing to wear at no/little additional cost to me 🙂

The most important thing to remember here is to get
916/22k or 999/24k gold ONLY
. The rest – precious stones included – do not retain value as much as these, and NOT suitable as gold investment.

(Note: You can get gold-plated jewelry, precious stones like diamonds etc for daily/special wear of course. Just don’t expect them to retain or increase in value. In fact, they may be sold for only a fraction of their original price the moment you walk out the store.)

Note: You can also buy gold coins from other places than jewelry stores. But I’m prioritising brand reputation here.

The next option to buy gold in Malaysia for investment purposes is…

#3 – Buy gold ETFs

You can buy gold – and even silver ETFs – from various digital investment platforms.

Gold ETF is NOT a beginner-friendly option. I’d say this is for more experienced investors, because you do need to know:

What the heck are ETFs (exchange-traded funds), and

Why get gold ETFs instead of physical or digital gold (you can automate your purchase and DCA; you want gold mining ETFs, you have a CDS account, etc)

you can set up weekly/monthly gold purchase from Wahed Invest

The easiest way to buy gold ETF is through:

Wahed Invest – use code ‘surbin1’ during registration to get FREE RM10

Versa Gold

I will keep to my promise and keep this article beginner-friendly, but if you are keen to learn more, you can read my
How to Buy ETFs in Malaysia Easily and SAFELY
 article – see the can I invest in gold ETFs in Malaysia section.

#4 – Buy gold from agents of gold investment companies

Here are some options: Public Gold, Quantum Metal (you can also buy yourself through their digital platforms)

This is just my opinion, but don’t recommend this option. I just don’t see the point of buying gold from an agent. My reasons:

Agents are commission-driven.
They probably won’t tell you to limit your gold purchase to 5-10% of your overall portfolio. Why would they? The more gold they sell to you, the more they make.

They might over-promise ROI.
I saw one of the marketing materials and they assume gold returns at 8% per year?? That’s too optimistic..

It’s already so easy to purchase gold yourself
?? I don’t get it, I really don’t.

But Suraya, some you may say, there are unique benefits. This one allows leverage*, and that one lets me pay for my gold in instalments**.

*I saw the presentation and not convinced by the leverage thing they offer. Sounds too good to be true.

**So does some gold jewelry shops – I don’t recommend it, but you
can
 buy gold there for up to 24 months 0% instalment

So yeah, no for me. I’ll make a special exception *if* you meet a spectacular agent who provide you more value-added services, but otherwise still a hard no. Go ahead and use your play money if you still want.

#5 – What happens after I buy gold in Malaysia as an investment? When do I sell?

After you buy gold as an investment, ideally you do… nothing. That’s it.

If you buy physical gold (coin or jewelry), you can admire it or wear it, but otherwise you do nothing for at least 3-5 years or so. Hopefully by then the price have increased and you have the
option
 to sell it for profit.

But… If you’re anything like me when I first started buying gold as investment, you’ll gain a sudden interest in any news related to gold, and especially news about the price. You keep thinking about when to sell and get profit. After all, that’s what investment means, right? To make profit?

Watching gold prices

If you are a beginner investor, the moment you hold gold, news about
 price increase
 will make you happy. Sometimes you’ll find yourself calculating your profits and grinning alone. You’ll be like, I bought 10 grams at RM250 per gram (example), now it’s RM300 per gram, I’ve made RM500 woo!

On the other hand, news about
price tumbles
 will make you worry. I’ve had almost-sleepless nights, when I contemplate whether I should sell my gold or not.

Being tempted to buy and sell (aka trade) is normal

Little did I know this feeling is common not just for gold investment, but also stocks, cryptocurrencies, and so many other types of investment. It’s just something you have to go through when you first start out as an investor.

I regret to say I did sell some of my gold, after only a few months of purchasing. I wish I hadn’t – should have reminded myself that gold is good for long-term investing. But at that time, what do I know right?

Since then, gold price has increased way more. Ah well, you learn from your mistakes. I’m not selling my remaining gold stash now yet.

Opinion: Gold investment is great for beginner investors

I do think that gold is a worthwhile investment for beginner investors, because the things you learn in the process can help you
learn

about the global commodities market, international supply and demand, trading price charts and investing strategies
.

Over time, I’ve learned to be at peace with price movements, and to have more long-term view. I truly believe gold investing made me a more experienced investor.

So even if your gold stash doesn’t increase in value in 3-5 years (this may happen), I’d say the experience of owning it and learning is worth it. But of course, this was just my experience. You might have a different experience altogether, but either way you’ll learn 🙂

Do let me know if you have questions or other tips you may have about gold investment in Malaysia – just leave them in the comments section. Share this article around if it helped. All the best in your gold investment journey!


It Wasn’t Skill, It Was Luck: Confessions of a Lucky Investor

‘This is how much you would have made if you invested $1000 in [X] 10 years ago.’

If you’ve spent enough time browsing through financial media, you’ve probably seen variations of this headline. It goes on to compare the performance of some high-growth stock (usually) or other asset classes against other investments, like the S&P 500 or gold.

The comparison is usually comical, like 500% return on investment versus… 6% or something.

These kinds of articles offer no value. At best, it’s filler content for slow news days. At worst, it activates your FOMO, making you think you ‘missed out’ on an opportunity of a lifetime and causes you to act irrationally at the next hyped-up investment making its rounds in social media.

Which is strange and hypocritical of me to say, because… I’m one of those lucky people who caught one of those opportunities of a lifetime and acted against my rational thought process and yes, profited a lot from it. As mentioned in my
Breakdown of My (SUPER HIGH RISK) Investment Portfolio
 article, I am overallocated in a single asset class – over 50% of my net worth was in cryptocurrencies.

It’s a risky strategy and
 I don’t recommend it
… but it paid off. When I wrote that article on 22 July 2020, 1 bitcoin was $9,384. As I write this, 1 bitcoin just broke $49,000. (Before you ask – I have enough to choose my clients, but not enough to retire)

In short, I got lucky. Crazy lucky. So here’s me trying to wrap my head around this.

Obligatory disclaimer: nothing in here is financial advice, I’m just a poyo personal finance blogger.

#1 – I maintain I am lucky more than I am skilled

Let’s get one thing out of the way. I *am* knowledgable on personal finance – it’s been my obsession for the past decade, even before I became Suraya the personal finance blogger.
 The reason for that is I view money as the ultimate security against a world that is so obsessed with controlling women’s behavio- Suraya this is not the time nor place for this argument later later

Yet luck played a bigger role here. More than my skills and knowledge.

As Morgan Housel wrote in The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness,

Luck and risk are siblings. They are both the reality that every outcome in life is guided by, other than individual effort.

I knew I was taking a big (and calculated) risk. I could have lost it all if it ended the other way, but it didn’t. While I can contribute part of the outcome to my ability to research and hodl, it wouldn’t feel right to give myself the full credit when ultimately I simply got lucky.

#2 – Dissecting my luck

Luck comes in many forms.

First, there’s all the privilege-type stuff: I came from an upper-middle-class family, had my tertiary education covered by FAMA and PTPTN, fluent in English, am Bumi. Without all of these, I doubt I could save up enough money to invest in the first place.

(Side note: fluency in English is probably the reason why I was making RM3k per month when I was 18. That soul-crushing but
temporary gig as a telemarketer
 allowed me to save up a lot of money when I was young and forever changed my life)

Second type of luck is the timing of it all. The situation was just right. It just so happen I stumbled on bitcoin in a Reddit forum. It just so happen I had a lot of time to make the research. It just so happen I got jobs which paid me in bitcoin.

While all of this was happening, I was also lucky to have savings, which means I didn’t have to convert bitcoin to fiat (often) to pay for my bills and daily necessities. So mostly, I just held on to my crypto stash and pretended it wasn’t there. Again, because this part is important: I used excess savings, not emergency savings.

Of course, I had bad luck here and there too. I tried to time the market and got burned. I tried a
copy-trade platform and lost all my money
 there. I also forgot at least one of my crypto account’s seed passwords (trying not to remember how much I had in there..)

#3 – Don’t mistake luck for skill

Now that we’ve established that luck played a bigger role than skill in high-risk-high-reward investments, can we talk about the people who brag about their crazy gains as if they had this magic ability to see the future?

You can see this play out when they say stuff like:

Price sure go up one!

It will go to [10x the amount] by the end of the year!

Just buy when it’s low and sell when it’s high and repeat! (my personal pet peeve)

I made [amount] so easily. You should have listened to me

This doesn’t just happen in crypto space, but also in other fields, such as
the stocks and property space
 as well. There are people who are rich now because they followed the great glove rally of 2020 (still
ongoing
). There are people who made a fortune buying and selling houses during Malaysia’s property boom between 2005-2015 (admittedly property people are much quieter nowadays since
the boom is over
).

All I’m saying is, before you follow any advice they might give, ask yourself if luck has anything to do with their brilliant investment decisions. Some people reached out to me asking if they should buy Gamestop stocks and Dogecoin because their friends recommended to them and I’m just… woah.

Making your own luck by diversification

As much as I love crypto, it is not my only investment. I’m not and will never be ‘all-in’. The only thing I understand about the economy is it has too many moving parts and no one can predict what will happen, just what *may* happen. Therefore,
diversification plus risk reduction
 is my strategy of choice.

My primary investments: asb, gold, roboadvisory platforms, crypto
My partner's primary investments: property (for own stay first until further plans), stocks, reits
Between us we cover almost everything and diversified as heck
— Suraya: bestselling Bergaji & Pokai book (@surayaror)
December 21, 2020

I’m not the only one who uses this strategy. VC funds (the people who invest in startups hoping they will become big, profitable companies) invest in tens of startups. Professional art collectors buy tens and hundreds of art pieces.

Most of the investments will have modest or even negative return on investment, but a couple of those will outperform the rest and provide most of the profits.

So by now it might cross your mind: oh hey, I need to diversify too.

What’s cool is if you’re doing
these 3 practical investments
, you’ve already started the diversification process. If you’re a step ahead and
automating your investments
, even better.

Anyway, here’s where I’ll end this. Idk la. I see so many FOMO in the investment space right now, I had to write this article. I’m not saying don’t try risky investments, I’m saying… at the very least, don’t use survival money for it and certainly don’t get financial advice from overconfident lucky people, because
luck is not an investment strategy
.


I Created My Own Cryptocurrency For Fun (And How You Can, Too)

Before I begin this,

HI BNM! YOU’RE DOING AN AWESOME JOB! BTW THIS ‘CRYPTOCURRENCY’ I DID HAVE NO VALUE AT ALL! ABSOLUTELY NONE! THIS ‘CRYPTOCURRENCY’ IS MORE LIKE A FUN BUCKETLIST PROJECT AND A CREATIVE EXPRESSION RATHER THAN A CURRENCY PER SAY. IN FACT THINK OF IT LIKE TOKENS OR POINTS. I AM A TAX-PAYING CITIZEN!

Okay now that’s done…

Guys, I made SurayaCoin! 1000 of them! And it’s super simple via the Waves Platform – literally just 4 steps! [EDIT 2021: Waves Platform is no longer operational – such is the lifespan of crypto projects 🙂 Anyway the point is, making cryptocurrencies is not a hard process so think twice before being sucked into a token just because its ‘crypto’]

Here’s how to do it, assuming you have bitcoins but have never tried the
Waves platform
 before (ie you don’t have Waves – the utility token for it – yet). If you don’t have bitcoins, yea you kinda need that first. Read my
bitcoin guide
.

Also, Waves is not the only platform that allow token creation. You can do via any/most blockchain platform that allow dApps (decentralised apps) creation, including  but not limited to Ethereum, NEM, Lisk, Neo etc

Step 1: Create a wallet at
WavesWallet.io

Super simple. Go to the address above, type in your email, write down your seed and keep it somewhere safe. The bunch of words like pumpkin lemon ceiling horse – those words collectively is called a seed. You need the seed to recover your account, in case you lose your password.

After you have an account, your main wallet looks like this.

Step 2: Convert bitcoin into Waves

You need 1 Waves to create your own cryptocurrency via the Waves Platform. At writing time, 1 Waves is $6ish. I decided to convert the nice round number of 0.001 bitcoin into the not-so-round number 1.18588263 Waves. So essentially, this project costs me less than RM40, including the bitcoin network fee. That’s really cheap.

There are a few platforms where you can exchange bitcoin into Waves. Personally, I used
Changelly
 (note: referral link) – it took around 20 minutes to arrive. For more places to get Waves, check the Exchanges section at
r/WavesPlatform
.

Step 3: Make your token

After you have at least 1 Waves in your wallet, you can now make your own cryptocurrency slash token. Select the Token Creation Lab button.

Give your token a name, add a description, decide on total tokens issued and its decimal points. Make one token, make a billion tokens, whatever. It’s the same price – 1 Waves.

You can make your tokens re-issuable or non re-issuable. If not re-issuable, then your cryptocurrency will permanently have that same amount in circulation.

If you’re happy with everything, click Confirm.

Step 4: Token successfully created!

That’s it! You’ll get a notification that your tokens were created. Your wallet will have one less Waves in it.

View your freshly-made cryptocurrency in the Portfolio section.

EDIT: The next day after I made SurayaCoin, I found that people have been sending Waves-based tokens to my address. I didn’t request, they just arrived. Cool. I didn’t know you can earn passive airdrops this way. One of them is a payments token and another one is an ICO.

Final notes

What I said in the above shoutout to BNM is worth repeating here.
SurayaCoin has absolutely no value whatsoever
. I did it for the kicks, that’s it. Now that I’m done creating it, they’ll probably lay forgotten in my wallet (I’m too lazy to even make a coin design for it).

This point is important to stress, because the idea of having a value-less cryptocurrency is something that many people find hard to grasp, especially crypto-people. Isn’t the point of having cryptocurrency is to let the price appreciate in value, so you can re-sell it for higher amounts?

Naaaaah. For me, this experience is more educational. I wanted to try out a platform that promises token issuance. That’s what it promised, that’s what it delivered. I can technically say ‘I created my own cryptocurrency’ now. Which is pretty cool considering I have almost no technical or coding knowledge whatsoever.

Now that you know how easy it is to create your own cryptocurrency, I hope it’ll make you more sceptical of them as an ‘investment’. Literally anyone can create one and slap some fancy words on it (blockchain! decentralised!) and tell you its valuable, so gimme your money.

So if not for ‘investment’, what are blockchain-based token creation good for? Let’s see..

For pure fun and experimentation, like an art project (SurayaCoin is for this)

Use it as a novelty way to raise money for charity

Turn it into some sort of loyalty points thing for your business

Make this into a school project where kids can learn about blockchain and cryptocurrencies the fun way (I would personally LOVE to see their coin designs!)

Probably need a legal hand here, but how about using these tokens as a way to prove ownership over property or other indivisible items? I believe the term is fractional investment, where tokens are representative of a portion of that property (or art, or vehicle, whatever)

And more

Would you consider creating your own cryptocurrency? What would you name it? What would you use it for? Let me know in the comments section!

P/s – if you’d like a couple of those value-less SurayaCoin, put your Waves wallet address in the comments section. If you have Waves-based tokens to give away (not sell!), let the rest of us know by commenting as well. We can start a crypto-coin collecting group. Like collect Pokemon like that.

My Waves address is 3PLBLwz5X7L5HLgdNVToBQyTHo1hmYLwnuL


The ULTIMATE Cryptocurrency in Malaysia Guide [2023 Update]

So you want to learn about crypto in Malaysia. Maybe you want to learn how to buy bitcoin in Malaysia, as an investment. Maybe you want to learn how to keep it safe.

You’ll find all those must-know information here. However, first I have to say..

GO BACK if you are not willing to learn about
digital security
. I’m dead serious, GO BACK. Cryptocurrencies as an investment are NOT suitable for you right now. You’re entering the high risk, high rewards zone. The risk mostly comes from (1) greed and (2) lack of digital security knowledge.

Additionally, if you don’t have
3

6
 12 months’ worth of savings, then go to the
6 Ways to Get Bitcoin for Free (for People Bullish on Bitcoin Price)
 article. Unless you have ‘play money’ aka amount you can afford to lose, prioritise accumulating bitcoin with your time and skills rather than buying them.

Disclosure

Alright, full disclosure time – I am a crypto investor, since the end of 2015. I can talk your ears off about its utility value but let’s face it,
most people get into it for the profit potential, including myself
.

Profit potential, with emphasis on
potential
, is not guarantee. Most of the time, cryptocurrencies’ value is driven by supply and demand. While it has fundamentals rooted in decentralisation, many have dismissed the asset as purely speculative.

In case that isn’t clear, I’ll repeat: (1) I’m biased because I’m a crypto investor, and (2) cryptocurrencies can be seen as speculative or even gambling for people who don’t value decentralisation as a feature.

Still here? Good, alright let’s move on from the disclaimers and get into the actual how-to. Please be aware that the information here is not meant as financial advice, do your own research. In fact I insist on it – if you’re someone who’s lazy to do research, sooner or later you’ll be eaten alive.

Introduction

The first thing you should know, IMO, is despite having ‘currencies’ in its name,
cryptocurrencies are mostly not used as money
, in the strictest sense of the word. For example:

Bitcoin
 – Except in specific situations (El Savador, donating, surviving in a dictatorship regime, country has very high inflation, etc), most people don’t use it as currency or for making payments. Rather, it’s treated as digital asset, a store of value

Other cryptocurrencies
– there are thousands of them. They could be smart contract platforms, payment network, gaming, ‘bitcoin 2.0’,
scams
, jokes, basically it can be 1001 things because the underlying technology (blockchain) can be applied in so many ways

With that out of the way, let’s go to the first section,

#1 – Are cryptocurrencies legal in Malaysia?

Yes, selected cryptocurrencies are legal in Malaysia. Securities Commission Malaysia regulates them under the
Digital Assets Guideline
, issued on 28 October 2020.

As of time of writing, four exchanges are approved to sell cryptocurrencies in Malaysia: Luno, SINEGY, Tokenize and MX Global.

I can’t stress how much regulation of crypto exchangers in Malaysia was a big deal to the community – I heard over a dozen exchangers applied for the licence to operate but couldn’t meet SC’s stringent requirements, and the negotiation process itself took years so only the most
stubborn
 persistent survived.

Before you ask, no,
Binance
 is not licensed to operate in Malaysia. Why? I don’t know why, they just didn’t bother to go through the application processes.

But that doesn’t stop some people from using Binance, as well as other unregulated platforms. So I would say to everyone – you want to use the unregulated exchanges, sure. Just be aware of the risks.

*In boomer voice* I GET IT, YOU DON'T WANT TO USE REGULATED EXHANGES, YOU WANT TO USE BINANCE AND OTHERS. KIDS THESE DAYS DON'T KNOW HOW IT'S LIKE TO BE CONSTANTLY AFRAID OF YOUR EXCHANGE BEING HACKED AND ALL YOUR FUNDS LOST, BACK WHEN IT WAS UNREGULATED
— Suraya: bestselling Bergaji & Pokai book (@surayaror)
April 27, 2021

#2 – 10 Cryptocurrencies You Can Get in Malaysia

As of time of writing, Securities Commissions have approved the buying and selling of these 10 cryptocurrencies in Malaysia:

Bitcoin (BTC)
 – The OG crypto. The one you heard about the most, and the one that started it all

Ethereum (ETH)
 – Blockchain platform with smart contract functionality.  Founded by Vitalik Buterin

Litecoin (LTC)
 – kinda like budget version of bitcoin (oop I said it). They say that if bitcoin is digital gold, then litecoin is digital silver

Ripple (XRP)
– Ripple is actually a private and CENTRALISED company, which means crypto purists hate it. Holding XRP is kinda sorta like holding stocks in a remittance service provider

Bitcoin Cash (BCH)
– A fork of Bitcoin. See Section #9 – Why are there two bitcoins

Uniswap (UNI)
 – Decentralised crypto exchange

Chainlink (LINK)
 – ‘Blockchain oracles for hybrid smart contract’

Cardano (ADA)
– Blockchain platform.  Founded by Ethereum co-founder Charles Hoskinson

Solana (SOL)
 – Blockchain platform with smart contract functionality.

Avalance (AVAX)
 – Blockchain platform with smart contract functionality.

Which of the above should you buy? Personally, I think Bitcoin and Ethereum are excellent as a starting point – they have the longest history and good reputation.

Can you get other cryptocurrencies? Can. See #5. But let’s see how to buy crypto in Malaysia through regulated exchanges first.

#3 – How to buy crypto in Malaysia – List of Licenced Exchanges

So, how to buy bitcoin in Malaysia? How to buy crypto in Malaysia? The easiest and recommended way is through the licensed exchanges. As of time of writing, Securities Commissions have approved 4 digital asset exchanges in Malaysia:
Luno, SINEGY, Tokenize and MX Global.

Account opening is easy:

Go to the websites,

register and complete KYC (know-your-customer process),

transfer money, and

buy any of the cryptocurrencies offered

Here are all four platforms, the cryptocurrencies offered in each platform, and how the interface looks like.

1) Luno

Get: BTC, ETH, LTC, XRP, BCH, UNI, LINK, ADA, SOL, AVAX (basically all 10 options)

Of all the options, I’ve used Luno the longest, and had good experience. It’s not a bad idea to buy crypto in Malaysia from Luno as (1) they offer the widest digital asset selection, and (2) they have generous new user sign up bonus you can take advantage of.

[Obligatory referral code: Buy RM250, get RM75 in BTC (
instant 30% ROI
) with my code
‘
7FA6G’
(valid for new users only).

Steps: Open a new account at
Luno.com
 > Go to REWARDS > Choose ENTER CODE > Enter the given promo code > Click Apply Code > Deposit the minimum amount required > Buy at least RM250 from Instant Buy or Sell > Get rewarded with the additional Bitcoin.]

2) SINEGY

Get: BTC, ETH

SINEGY
 is Malaysia’s homegrown exchange!

3) Tokenize

Get: BTC, ETH, LTC, XRP, BCH, SOL, UNI

First launched in Singapore,
Tokenize
 made news when
Kenanga Investment Bank acquired 19% stake
 in its Malaysian operation.

Obligatory referral code: Click
here
 to get 15 Tokenize Points when you sign up with my link. The points are exchangeable for digital assets offered in Tokenize.

4) MX Global

Get: BTC, ETH, XRP

MX Global
 is the newest licensed exchange in Malaysia, and also a home-grown platform ‘built in Malaysia for Malaysians ‘.

Now that you’ve learned how to buy bitcoin in Malaysia, let’s learn…

#4 – How to sell bitcoin in Malaysia (or sell other cryptocurrencies)

Yes, you can sell bitcoin in Malaysia, as well any of the 10 approved cryptocurrencies. The easiest way is to sell directly on the 4 licenced exchanges. Upon a successful Sale, you’ll receive MYR, which you can withdraw directly into your bank accounts.

How to sell bitcoin in Malaysia for cheaper fee

My recommendation for new users: make use of any new user promo when you start (*cough
Luno
 gives you RM75 if you buy RM250 from Instant Buy or Sell, or instant 30% ROI if you use my code ‘
7FA6G
‘
cough*), then
learn how to use the exchange feature
 (rather than the instant buy/sell feature) so you can save money on fees.

Kenapa kena belajar pakai exchange, walaupun bukan trader
Kiri: instant buy/sell. Jual 0.1btc. Fee 2% = RM422.17
Kanan: jual @ exchange. Jual 0.1btc. Fee 0.5% = ~RM105.54
Masa, amount jual = sama. Beza fee ~RM316
pic.twitter.com/i1bCLfrAs7
— Suraya: bestselling Bergaji & Pokai book (@surayaror)
April 26, 2021

Here Suyin explains how to use the interface to get the cheaper fees:

#5 – What other cryptocurrencies should I get (and how)?

As mentioned, you can buy and sell 10 cryptocurrencies in Malaysia directly from the licensed exchanges. If you’re new to the world of cryptocurrencies, I suggest you start your crypto journey with any of the 10 approved cryptocurrencies in Malaysia first.

As you learn more and gain more experience, then
maybe
you can branch out to other cryptocurrencies. You can see explore other cryptocurrencies on websites like
CoinGecko
 and
CoinMarketCap
.

Getting other cryptocurrency in Malaysia is pretty easy:

Get BTC/ETH from any of the 4 licensed exchange above

Transfer to another exchange that offers the cryptocurrency you want. Make sure it’s reputable (*cough
Binance
 is not bad cough*)

Make the exchange. Whenever you’re stuck, remember to check the FAQ and Academy sections, everything is there

I’m not able to suggest or recommend any particular cryptocurrencies to get. Personally, I use these
three strategies to decide which cryptocurrencies to get
.

Is investing in cryptocurrencies based on fundamentals and technology enough?

People like to say, look at fundamentals and technology before deciding to ‘invest’ in a particular cryptocurrency. They’re not wrong, but that is no guarantee that the investment with generate positive returns.
Sometimes
 often, even the most promising projects fail – I’ve had tokens that lost 99% of their value and never recovered.

In crypto, you just don’t know what’s going to happen
– I mean, no one predicted the Dogecoin phenomenon, the founder created it as a joke. But as I’m writing this, the market cap for Dogecoin is 41 BILLION dollars.

(As of Sept 2022, Dogecoin’s marketcap is down to 8 billion dollars)

So, here’s the approach I suggest: Rather than using the gambling approach, go
check out different cryptocurrencies and what they are used for
 because not all of them are for ‘store of value’.

Some platforms use cryptocurrencies/tokens to interact in the platform. So if you’re interested in the project, then it is not a bad idea to get the cryptocurrencies
for learning purposes
.

For example:

Programmers interested to learn how to build DApps (Decentralised Apps) and code smart contracts can check out the Ethereum platform and
ETH KL team
, or Solana, or Cardano

Gamers interested in play-to-earn opportunities can check out
Aavegotchi Malaysia
 and
Axie Infinity Malaysia
 groups

I’m barely scratching the surface here – there are loads of crypto communities out there and so many things to do. It’s honestly a fun rabbit hole to go down into, and if you happen to make a bit of money in the process, consider it a bonus 🙂

#5 – 5 Rules to not get scammed when you invest in crypto in Malaysia

Remember all these as you explore the crypto world:

Rule #1 – ALWAYS check if you’re buying from the right platform

Check for https, check spelling of URL and social media profiles, check everything.

as taken from SINEGY’s FB page

Rule #2 – Buy from licenced exchanges

I
understand
 you might want to look around other ways to try and buy crypto in Malaysia for cheaper, and yes it’s possible, but you’re taking an unnecessary risk, especially if you’re new in all this.

One – P2P platforms like Remitano and Localbitcoin is rife with scammers.

Two – direct dealing is hella dangerous. If anyone ever contact you to buy or sell, just ignore and block them.

I’m just flattered this scammer thought I have 2689 bitcoins lol

What’s the modus operandi, I wonder? Hold a gun to my head during the f2f to force me do the transaction?
pic.twitter.com/7VYNQdDeYg

— Suraya ringgitohringgit.com (@surayaror)
August 25, 2020

I’m not even joking about the ‘holding a gun to my head’ part. Crypto robberies happen.
This fella
 was tortured with a drill in front of his 4-year old daughter.

Just pay the exchangers’ fees. You’ll be safer.

Rule #3 – Keep your crypto in multiple places

If you have ‘a lot’ (define yourself what constitutes ‘a lot’), then I highly recommend you to distribute your stash around and not keep your cryptocurrencies in one location/wallet. Why?

You might get hacked.
 Remember, transactions are not reversible and aside from a police report, there’s nothing much you can do. Reminder to set up your 2FA if you haven’t.

The
exchange
 might get hacked OR suffer insider theft
. It’s happened to many reputable exchangers before (not in Malaysia AFAIK tho)

Even if you keep all your stash yourself via cold storage methods like paper wallets or hardware wallets (I use Ledger Nano S; RM300ish per device),
*you* might forget your passcode or seed address
.

Only get your hardware wallet from
authorised resellers like CryptoBilis
!
Tampered hardware wallet
 is also another type of scam

Spreading your crypto around is not a bad thing actually. The ‘bonus’ is getting
hands-on learning
 – the more wallets and platforms you try, the better.

Rule #4 – Join a community – having an interest in crypto in Malaysia leads you to vibrant communities!

The longest-running bitcoin community in Malaysia,
Bitcoin Malaysia #1 Group
 encourages discussions and sharing, and organises free (and some paid) webinars and events. Feel free to ask questions, usually people are kind enough to answer. Check the latest happenings
here
.

You can also type ‘scam’, ‘scammer’ etc in the search box and see other types of seasonal and creative scam methods. Important: Holding cryptocurrencies is a commitment – you have to keep updated with the latest scam methods.

Rule #5 – Be a hodler not a trader

Hodlers (the misspelling is intentional) are people who buy – either little by little or big upfront amount – then don’t sell, despite the market condition, unless necessary (financial emergencies etc).

Hodlers make peace with volatility. The price goes up, the price goes down, but life goes on.

For the most part, I am a hodler.

Traders, on the other hand… do the whole chart thing, the technical analysis. It’s like forex trading but on crack. Unlike currencies pairing or the stock market,
the crypto market opens 24/7
.

I don’t really have much to say to traders, except:

(1) reminding you trading with leverage is haram,

(2) good luck, don’t trade money you can’t afford to lose, and

(3) don’t believe that copy-trading is ‘easy money’ – I lost everything there when I tried it out lol.

#6 – [Muslim corner] Is cryptocurrency halal? How to calculate zakat on cryptocurrency?

Is cryptocurrency halal?

The short answer is
yes
 , if you don’t take excessive risks and acquire them through legal and ethical means. The long answer can be found at Securities Commission’s
Digital Assets from Shariah Perspective
 page.

However, there are differing views. For example, the
Indonesian Ulema Council deemed it haram
.

It’s ok if crypto is not for you. Just do other investments, focusing on
halal investing
.

How to calculate zakat on cryptocurrency?

In Malaysia, both
Perlis
 and
Johor
 Fatwa Council has decreed that
bitcoin
 (and by extension, other cryptocurrencies treated as digital gold) are zakat-able. The calculation is (taken from news article):

“Adapun pengiraan zakat untuk Bitcoin ialah nilai terendah unit Bitcoin dalam satu tahun didarabkan dengan bilangan unit Bitcoin, kemudian ditambahkan dengan keuntungan hasil dagangan sepanjang tahun sebelum jumlahnya didarabkan 2.5 peratus”.

Additional info:
Global Sadaqah
 allows
zakat and waqaf payments using bitcoin
.

#8 – Are gains from cryptocurrency taxable in Malaysia?

According to this RinggitPlus article,

The Inland Revenue Board (LHDN) has clarified that cryptocurrency investors who actively trade their assets at the digital asset exchange (DAX) are required to declare their gains for their annual income tax.

So the answer is, no, capital gains from cryptocurrency is not taxable, but profit from
trading
cryptocurrencies is taxable.

To clarify: If you
regularly
and
consistently
and
with strategy
buy and sell cryptocurrencies, that’s trading = taxable. But if you just buy to keep for long term, then your gains are not taxable.

#9 – Why are there two Bitcoins?

So why is there Bitcoin and Bitcoin Cash? Why two?

The short answer is a long time ago, the Bitcoin community disagreed on the best way to scale bitcoin to allow more transactions without congesting the network (and resulting in high fees). They had different solutions to solve the same problem.

So Bitcoin split into two: Bitcoin (BTC) and Bitcoin Cash (BCH) – two sets of data ledgers that implement different solutions but came from the same ancestry. The event was quite notable and covered in Bitcoin 101 videos, like the one below.

Actually, there were more bitcoin splits – also called forks – and also bitcoin copycats. So just be careful when you’re buying bitcoin or doing swaps, just make sure you’re getting the right one. Here are some of the other bitcoins:

From an investor POV, both Bitcoin and Bitcoin Cash has potential. They’re both digital assets and tradable. The rest, I would avoid tbh. More often than not they’re just capitalising on the ‘Bitcoin’ name.

Conclusion

Long-term hodlers, what else should people know about buying cryptocurrencies?  What do you wish you know when you first started? How is your experience like as a member of the crypto community?

Leave your advice and experience in the comments section for all of us to learn 🙂


Roasting Different Types of Investments in Malaysia (Everything That Sucks About Them)

For non-Millennials out there, I don’t mean ‘roasting’ like cook chicken like that. I mean ‘roasting’ as in giving snarky comments.

Hold my earrings, my inner bitch persona is coming out. Enjoy this post roasting the different types of investments you can get in Malaysia.

Investment: Mutual funds / Unit trust

1) ASB and other mutual funds by
Amanah Saham Berhad
 that’s only available for Bumi folks promote the continuation of racism in Malaysia. I said what I said.

Related:
[PERSONAL] Malay and Money: A Reflection

2) There are too goddamn many
unit trusts products
 out there and who the hell has the time to check each prospectus to decide which one ‘is suitable for them’?

I got so frustrated that I pretty much eenie-meenie-minie-mo’d the unit trust I picked for my PRS account. Damn you for making this a borderline gambling activity.

3)
Fund management companies
 slapping you with up to 6% sales fee for every transaction PLUS high management fees – you’re committing daylight robbery and you know it.

4)
Funds worth billions of ringgit from
EPF
 were channelled to 1MDB
. They say that things should be fine, but nervous siot that’s a lot of our retirement money on the line!

5)
Tabung Haji
, primarily used by Muslims to save up for their hajj, contributes to the development and wealth of Saudi Arabia, essentially a glorified family business. They ain’t so good with protecting human rights, too.

Note: I invest in ASB and PRS

Investment: Fixed Deposits

1) Last time (before May 2018), banks will at least give you 1/2 of the interest rates if you withdraw prematurely, provided you’ve let the money sit there for at least 3 months.

Now they changed the policies –
no interest will be paid at all if you withdraw prematurely
.

Suck. Not enough profit is it? Must give penalty to those who have no choice but to withdraw early because they need the money is it? (Thanks to reader Mr Lim Chin Kah for telling me about this!)

Investment: Gold

1) Gold-holders kinda get happy when there is
economic uncertainty
 and the stocks market not doing well, because then the gold price tends to go up. What a sucky thing to be happy about.

Note: I invest in gold

Investment: Property

(Strictly referring to property as investment. Not buying property for own stay)

1) So many people buy it to rent it out as homestay or AirBnB for the higher ROI (as opposed to renting it to long-term renters). There are even groups who pool their money together to buy properties in ‘wholesale’ from developers, thus getting it cheaper.

You know that
pushes property prices higher
 and affecting everyone else who simply want to buy property for their own stay right? Ugh, no wonder we’re in a property bubble.

Investment: Cryptocurrencies

1)
Cryptocurrency mining
 uses at least
twice the energy of mining gold and copper.
 What a waste of energy. Can’t imagine it being good for the environment! (Edit: A reader sent evidence to contradict this – see comments section)

2) Crypto bros showing off their wealth from
crypto gainz –
 Lambo here Lambo there ugh feel like vomiting.

Note: I invest in cryptocurrencies

Investment: Stocks

1) ‘Good’ stocks from
blue-chip companies
 tend to be companies that promote consumerism as a lifestyle. Keep telling you to buy shit you don’t need.

Investment: Equity Crowdfunding (ECF)

Don’t know enough about this. Those who do it, what do you not like about it? Give me your roasts in the comments section.

Investment: P2P Lending

1) Investors are pretty much
glorified loan sharks
. We take advantage and profit a high 12-18+% from companies that are not able to borrow money from banks.

Note: I invest in P2P lending

Investment: ETF (exchange-traded funds)

1) ETFs are generally good but apparently the ones available in Malaysia right now not so liquid. Meaning if you buy it, very hard to sell in case you need the money.

Give me YOUR roasts for different types of investments in Malaysia!

Well that’s a lot of things off my chest! Kinda nice to rant about these different types of investments, usually you only hear good things about them. Yes yes I know no system is perfect. There are so many things still that
we can improve about our financial ecosystem
.

This is not an article to deter you from investing btw. You should totally do it, right after you clear off your high-interest debts and save up emergency money (3-6 months of living expenses).

We just have to make sure we’re okay with the cons of the investment type and that it doesn’t clash too much with our personal values, because if it does, that’s on our conscience.

How about you? Which investments do you have and what don’t you particularly like about it?


6 Savings and Investments You can Automate, Aside from EPF Contribution

Easy investment tip: ‘get the set-and-forget’ ones. Unless you have a natural passion (or desire to learn about) stocks and properties and other research-heavy investments,
go for the investments you can automate
.

Why? Because the challenge with investing is not about picking which investment(s) to do. There are a lot of
good investment options in Malaysia
. The challenge is
adding more money to it on a regular basis, usually monthly, over the long term
.

They may use different names for it: dollar-cost averaging, recurring deductions, monthly deductions, monthly debits, auto-invest, recurring deposits, auto-deductions, etcetera – but it means more or less the same thing.

Starting an investment is easy. Adding more to it is hard.

Most investors will start, then ‘forget’ to contribute to their investment portfolio on a regular basis. And by not adding,
the money will never grow as fast as you want.

I know because I’m talking about myself. Despite being an investor for over 10 years now, transferring money out of my banking account to my investment account still hurts each and every time.

Therefore, it’s a good idea to
feel the pain once (as you set up the recurring deductions), rather than feeling the pain many times over many years
.

In this article, I’ve listed out all the investments that you can automate in Malaysia,
that I know of
. If there are more, let me know in the comments section.

Category: Mutual Funds/Unit Trust/ETFs

Those three things are not the same, but close enough – they all belong in the ‘diversified funds’ category. Depending on which one you get, you might a combination of Malaysian stocks, US stocks (and other regions), precious metals, real estate, and/or other commodities, etc.

Some Mutual Funds/Unit Trust/ETFs you can automate include:

#0- EPF Contribution

You (probably already) know this option. Salaried people already have a portion of their salaries automatically deducted to EPF account – this goes straight to your retirement fund.

By law, EPF employer contribution is set at 13% (for monthly salaries of RM5000 and below) OR 12% (for monthly salaries of more than RM5000).

If you include your (employee) contribution rate of 11%, therefore your EPF contribution rate is equivalent to 23% OR 24% of your salary each month.

You can self-contribute for EPF, and automate it as well. For self-employed, or people who want to make additional EPF contributions, you can set up Set Recurring in your respective banks.

If you’re using Maybank, the process is:

Log in your online banking account

Go to Pay & Transfer tab > Pay

Under ‘Pay to’, Set to Payee > type and select ‘EPF’

Enter your EPF Member No, Account type, and other details

Toggle ‘Set Recurring’ and follow the next steps as instructed

*People using other banks may have slightly different processes. Check with your banks.

Bonus section #1 – Get up to RM250 for FREE under i-Saraan Scheme

Who doesn’t want free money? Self-employed people can get up to RM250 from the government for FREE when you self-contribute under i-Saraan scheme.

To get the maximum RM250, you have to
self-contribute a minimum of RM1667 per year (or RM139 per month)
. When you do Set Recurring, put your Account type to ‘i-Saraan/i-Suri Contribution’.

ATTENTION all Self-Employed! Dah register i-Saraan
@KWSPMalaysia
? Dulu kena print isi hantar borang bagai now boleh buat online je! Get up to RM250 per year from gomen when you self-contribute to EPF
Steps:
– Go to
https://t.co/OV26vQqdvA
– Enter IC & Profession
– Done!
pic.twitter.com/64zpZGRljY
— Suraya | suraya.eth (@surayaror)
May 19, 2022

Bonus section #2 – How much should I self-contribute to EPF? Here’s your EPF contribution calculation

One common question people have (especially self-employed people) is how much they should self-contribute to EPF so they can have a comfortable retirement nest egg.

You can calculate this. Go do your EPF contribution calculation in your
EPF i-Akaun
.

Login > Main page > find Retirement Savings (under Account Summary)

Enter your Age, Retirement Age, Salary, Salary Increment Rate (put 0 if no increment), and Bonus, if any

Enter Contribution Rate. If your salary is RM5000 and you plan to put RM1000 monthly, then your contribution rate is 20%

Enter Annual Dividend Rate (EPF’s annual dividend rate varies annually but can just put 5%)

Click Calculate

You will see how much your potential Retirement Savings in EPF. In this example, I’ll have almost RM900k by age 60 if I contribute RM1k per month to EPF from now until age 60

EPF is good, but not the only place to put your retirement funds. You can also use…

#1 – PRS (Private Retirement Scheme)

PRS or Private Retirement Scheme is like secondary, optional EPF. Many funds allow automating monthly contributions.

To learn more about this option, check out my
3 Places to Get PRS in Malaysia with ZERO Sales Charge
 article

#2 – ASNB funds

You can use the Target Labur and Auto Labur features in MyASNB app to automatically calculate and set up monthly deductions for any financial goal you have.

For example, let’s say you want to save up RM10,000 in 2 years 2 months. Therefore, you can set up a monthly deduction of RM376 to reach your goal.

Read more about this feature and how to set it up in
3 Features in myASNB App You Should Know
article.

#3 – Robo advisors

There are a bunch of roboadvisors in Malaysia, including Stashaway, Wahed Invest, Mytheo, AkruNow, and more.

I use
Wahed Invest
 but only because it’s the only Shariah-compliant one. As you can see, it has a weekly and monthly recurring deduction feature.

Learn more in the
Which is the Best Robo Advisor in Malaysia? Ultimate Comparison Guide
 article

#4 – Unit trust

There are also so many platforms to buy and automate your unit trust investment in Malaysia. Personally, I only get unit trust for PRS (#2 in this list), but you can get others and a few at once.

Learn more in my
3 Ways to Pick the Best Unit Trust in Malaysia (Advisory & DIY Method)

#5 – P2P lending platforms

You can also automate investment via P2P lending platforms. Simplistically, how P2P lending works is you agree to lend money to businesses in return for profits.

There are a few P2P lending platforms out there. I use
Funding Societies
 because (1) they have auto-invest bots, and (2) they have Shariah-compliant option.

Read more:
[SPONSORED] I Asked Hard Questions to the CEO of Funding Societies Malaysia

Add-on: According to
Blackbelt Millionaire
, Fundztastic also has a SmartInvest programme which you can enrol. It invests up to 5 investments at a time. I have not tried this.

#6 – Cryptocurrencies

Not for everyone, but it *IS* an option as some of the platforms allow automatic and regular deductions. I know it’s possible in Luno – you can set up repeat buy.

Obligatory:
Bonus for new users
 – New users can get RM50 in BTC on minimum RM500 deposit (instant 10% ROI) with my code ‘LNSURAYA50
′
.

Simply open a new account at
Luno.com
 > Go to REWARDS > Choose ENTER CODE > Enter the given promo code > Click Apply Code > Deposit the minimum amount required > Buy the minimum transaction amount > Get rewarded with the additional Bitcoin.

For more info, read:
I’m a Luno User since 2015. Here’s My Luno Malaysia Review

What do you think of automation as an investment tip?

Do you do automating in your personal life? If yes, which ones?

For me, I automate some of my investments, and manually do the rest. Personally, this is what I do in my own financial life:

Add on to
EPF
 and
PRS
 once a year, to take advantage of the tax reliefs (I do this after a big payment comes in)

Pay back my
ASB

loan
 – I took RM50k loan for 25 or so years, so I’m paying ~RM289 per month (technically this is more like
paying debt
 but meh, I’ll take it)

Automate
Funding Societies
 and reinvest my profits

I’d also like to set up the weekly deposits to my
Wahed Invest
 account. Still scrounging up the courage

How about you? Which of the above do you personally do for yourself? Do you know of any other options/platforms that allow you to automate your monthly contributions?


[SPONSORED] This is Why You Need to Use EPF i-Akaun

This is a continuation of a series of sponsored posts about EPF and retirement. See the previous two articles here:
Will You Fight or Flight?
 and
What Actual Retirees Say
.

Here I’ll share an EPF tool, called i-Akaun and why you need to use it. For the purpose of this article, I created my own EPF i-Akaun.

Click
here
 for the original i-Akaun article on CompareHero.

How to Create EPF i-Akaun

For first-time login, get the activation code first. You can do this by:

Go to EPF counter or EPF Kiosk
, or;
Call KWSP at 03-89226000
. Press ‘0’ to talk to the nice operator, then answer some personal questions for identification purposes. They’ll send the code via SMS.
THEN go to the first-time login page
here
. (this page took me a while to find)
For subsequent logins after activation, click
here
.
Optional but handy – download the EPF i-Akaun app.

Reasons to Use EPF i-Akaun

1. View and check EPF statements

This is how much you should have, based on your age.

2. Check how much you can withdraw

You can withdraw for education and housing purposes. View status of withdrawal application here too. Note: You can only withdraw from Account 2.

3. Check who’s your beneficiaries

I.e. who is going to get your EPF money. If you haven’t added beneficiaries, I suggest you do that asap. It’ll make it much easier for them to withdraw later on. Note: You can only submit the names at EPF counter. For security and anti-fraud reasons.

4. Check  when is the last time your employer submitted your EPF

Sometimes, irresponsible employers conveniently ‘forget’ about this. If you work, your employers should contribute 13% (or 12%, depending on how much you earn) of your salary towards your EPF. If they did not contribute this, they are in the wrong.

5. Latest info on EPF and office locations

Quite handy I think.

Conclusion

Having tried it out, I’ll have to say the experience was good. It’s convenient – I managed to change my address with no problem. I also checked my beneficiaries and felt secure seeing their names listed there – it’s reassuring to know that if anything happens to me, they will be able to access my EPF money. If you haven’t, I highly recommend you to open your EPF i-Akaun now!

This article was written in collaboration with
CompareHero
. To stay up to date with the latest news on personal finance in Malaysia, please follow
CompareHero Facebook Page
.


Explaining Every ETF You Can Invest and Trade on Bursa Malaysia [SPONSORED]

Let’s start this article with this fact: I *love* ETFs. Short for exchange-traded funds, I think it is one of the better ways to invest than stock-picking (for most people) and have been promoting it for a while.

I dunno who needs to hear this but if you don't have time to read financial statements n no industry knowledge, tak payah buat stock picking, tak payah pilih2 saham
Get mutual fund, unit trust, ETF (my fav cos low fee) w/ exposure in multiple markets – MY, US, China etc. Cukup
— Suraya: bestselling Bergaji & Pokai book (@surayaror)
August 20, 2021

The low fee and exposure parts are true. As per Bursa Malaysia’s
ETF explainer video
, ETFs tend to be more cost effective (cheaper fees) yet allow the investor to get a diversified portfolio of stocks and bonds.

The easiest way to understand ETFs is that they are funds (like unit trusts)… that are traded (bought and sold) on exchanges. Imagine buying ASB, ASM, EPF etc on the stock market. That’s kind of how ETF works.

In Malaysia, you can
invest in ETFs through various platforms
. All-in-all, there are thousands of ETFs you can choose from around the world!

In this article, I want to give you some exposure to the world of ETFs – by explaining all 16 (just 16!)
ETFs listed on Bursa Malaysia
. I’ll explain: types of ETFs, what you can tell by their names, which investors they are suited for, and more. This way, you can easily read/dissect other ETFs as well.

Let’s start!

ETFs listed on Bursa Malaysia

ETFs are still considered a new type of investment in Malaysia. In fact, the first ever ETF listed on Bursa Malaysia was back in 2005.

At writing time, there are 16 ETFs listed on Bursa Malaysia across 5 Categories:

Commodity ETF

Equity ETF

Equity ETF (Shariah-Compliant)

Fixed Income ETF

Leveraged & Inverse ETF

Note: Which ETFs to invest in depends on your financial goals – go to the Best Way to Invest in ETFs section below for more information. Periodically, new ETFs may be added so be sure to bookmark the
Exchange-Traded Funds page in Bursa Malaysia
 website!

What’s in the (ETF) name?

The name of each ETF offers a lot of clues to what they are and what assets make up each ETF. Let’s use
TradePlus Shariah Gold Tracker (0828EA)
as an example:

TradePlus means the ETF is under AHAM Asset Management Berhad,

Shariah means its Shariah-compliant,

Gold Tracker means this ETF closely tracks the performance of the price of gold, and

(0828EA) is the stock code

The name of the ETF might also include the country or region (Malaysia, ASEAN etc), the underlying index (FTSE, KLSI, etc), the quantity of tracked companies (50 biggest in China, etc) and more.

You’ll see what I mean, continue reading below 🙂 Next, let’s understand each of the ETF categories:

#1 – Commodity ETF

Commodity ETFs are ETFs that track the price of a given commodity. Commodities are physical products that are meant to be consumed or used in the production process – things like oil, gold, wheat, etc.

There is one Commodity ETF listed on Bursa Malaysia:

TradePlus Shariah Gold Tracker

(0828EA)
– You already know you can do gold investment through digital platforms or in physical gold (coins, jewellery etc). But you can also do gold investment through this ETF!

#2 – Equity ETF

Simplistically, equities are shares issued by companies. This category of ETF is the most similar to mutual funds/unit trusts and most popular among investors seeking long-term and/or strategic investment opportunities.

Generally speaking, Equity ETFs are GREAT for investors seeking exposure into different markets (ASEAN, China, Asia, U.S. etc) and have medium-to-high risk appetites.

There are six Equity ETFs listed on Bursa Malaysia:

FTSE Bursa Malaysia KLCI ETF (0820EA)
– exposure to the 30 biggest listed companies that collectively represent the Malaysian stock market

Principal FTSE ASEAN 40 Malaysia ETF (0822EA)
 – tracks the performance of 5 ASEAN markets and consists of 40 constituent stocks from Singapore, Malaysia, Thailand, Indonesia and the Philippines

Principal FTSE China 50 ETF (0823EA)
 – tracks the FTSE China 50 index that gives exposure to 50 largest and most liquid Chinese stocks listed and traded on the Hong Kong Stock Exchange

TradePlus S&P New China Tracker (MYR Class: 0829EA; USD Class: 0829EB)
– tracks the performance of the S&P New China Sectors Ex A-Shares Index, which are Chinese listed companies in the consumption and service-oriented industries

TradePlus DWA Malaysia Momentum Tracker (0836E)
 – invest in Malaysian stocks with high momentum movement in terms of pricing

TradePlus MSCI Asia Ex Japan Reits Tracker (0837EA)
 – invest in high dividend paying real estate investment trusts in Asia (excluding Japan)

#3 – Equity ETF (Shariah-Compliant)

Equity ETFs (Shariah-Compliant) are the same as Equity ETFs, except they also adhere to additional Islamic guidelines.

There are five Equity ETFs (Shariah-Compliant) listed on Bursa Malaysia:

MyETF Dow Jones U.S. Titans 50 (0827EA)
– tracks the performance of the Dow Jones Islamic Market U.S. Titans 50 Index which comprises of the 50 largest companies listed on NYSE and Nasdaq

MyETF Dow Jones Islamic Market Malaysia Titan 25 (0821EA)
 – tracks the performance of 25 largest Shariah-compliant companies listed on Bursa Malaysia

MyETF MSCI Malaysia Islamic Dividend (0824EA)
– tracks the performance of the Benchmark Index, which is a price return index comprising 16 to 30 Shariah-compliant securities listed on Bursa Securities with higher than average dividend yield

MYETF MSCI South East Asia Islamic Dividend (0825EA)
– tracks the performance of the MSCI South East Asia IMI Islamic High Dividend Yield 10/40 Index which objectively and passively represent the dividend yield opportunity within South East Asia’s Shariah equity markets

VP-DJ Shariah China A-Shares 100 ETF (0838EA)
 – tracks the performance of the largest 100 Shariah-compliant A-share stocks screened from the Dow Jones Islamic Market China A universe which are eligible for Stock Connects

#4 – Fixed Income ETF

Fixed Income financial products typically promise investors payout on a regular basis or upon maturity. This type of ETF suits investors with a more conservative risk profile (like retirees) and those looking at diversifying their portfolio with fixed income.

There is one Fixed Income ETF listed on Bursa Malaysia:

ABF Malaysia Bond Index Fund (0800EA)
– exposure to Ringgit denominated government and quasi government debt securities

#5 – Leveraged and Inverse ETFs

Unlike other ETFs in this list,
Leveraged and Inverse ETFs are for short-term trading
, not medium-to-long-term investing. One can profit from both bullish (Leveraged) OR bearish market (Inverse) using Leveraged and Inverse ETFs.

There is one Leveraged ETF and one Inverse ETF listed on Bursa Malaysia:

Kenanga KLCI Daily 2x Leveraged ETF (0834EA)

Kenanga KLCI Daily (-1x) Inverse ETF (0835EA)

I’ll be upfront: Leveraged and Inverse ETFs are not recommended for beginners – they are only suited for sophisticated investors, who are knowledgeable traders with high risk tolerance.

Leveraged and Inverse ETFs have gained popularity among sophisticated investors as they aim to deliver magnified returns. For example, a 2x leveraged ETF seeks to deliver double the daily performance of the index it trades. Inverse ETFs seek to deliver the opposite of the daily performance of the index it tracks.

That said, don’t let me stop you from learning. You can start your journey to become a sophisticated investor by enlisting in Bursa Academy’s
Empower Your Leveraged & Inverse (L&I) ETF Investment Journey
 course. It’s FREE to enroll.

Beyond Bursa Malaysia: Global ETFs

I hope the explanation of 16 ETFs above will give you some idea of (1) the different types of ETFs, and (2) who they are suitable/not suitable for.

Among all the global ETFs, it might be useful for you to be aware of one particular ETF, called the S&P 500 ETF. Different asset management companies may offer it, but basically it is a highly popular ETF that tracks the performance of top 500 companies in the US.

Why is the S&P 500 ETF popular? Well, because:

Financial media tend to be dominated by US market updates

The US market recorded positive growth for most years

 S&P 500 ETF are frequently recommended by popular finance personalities

The fees are very, very low (for Americans)

However, as a Malaysian, you need to think twice about investing in S&P 500 ETF
. It’s not that you can’t, because exposure beyond Malaysia markets can be a good idea, but definitely seek advice from professionals so it fits into (rather than harm) your investment portfolio.

Where and How to Buy/Invest in ETF in Malaysia

Malaysian investors can invest in ETFs through 3 main ways:

Regulated brokers

Regulated robo advisors

Regulated online investment platforms

Note: The regulated part is non-negotiable – imagine depositing funds then they don’t let you withdraw! Best to be safe and avoid this situation.

Which option to pick, out of the 3? Well, you can read the pros and cons of each option in the
How to Buy ETFs in Malaysia Easily and SAFELY
 article.

ETF Rewards 2023 Campaign – Win a trip for 2 to Langkawi, Bali or Tokyo

However you *might* want to take advantage of the
ETF Rewards 2023 Campaign
, and win yourself a trip for 2 to Langkawi, Bali or Tokyo! Here’s how to join:

Step 1: (skip this if you already have a CDS account) Open a CDS account from any of the
regulated brokers
 (select Equity)

Step 2: Buy RM1,500 worth of ETFs between 1 May – 30 June 2023, and/or RM2,000 worth of ETFs between 1 July – 31 August 2023, and/or RM2,500 worth of ETFs between 1 September -31 October 2023.

Step 3: That’s it! Just wait until the Lucky Draw announcement and see if you win. For a higher chance of winning, simply invest more. New investors get DOUBLE entries too 🙂

Do check the
ETF Rewards 2023 Campaign
 for more info on campaign mechanism and T&C. All the best!

Best Way to Invest in ETF

The best way to invest in ETFs depends on the type of ETF. Briefly, from the Categories we’ve learned so far:

Commodity ETF
 – If Gold, then limit to 5-10% of your portfolio. If other types of commodities, seek professional advice (or less than 5% of your portfolio to be safe)

Equity ETF
– use DCA strategy (see below)

Equity ETF (Shariah-Compliant)
 – use DCA strategy (see below)

Fixed Income ETF
 – for people seeking regular income and lower risk investment

Leveraged & Inverse ETF
 – for advanced investors with trading skills. Note that L&I ETFs are not Shariah-compliant

Use Dollar-Cost Averaging strategy

The best way to invest in (Equity) ETFs is to use the DCA or Dollar-Cost Averaging strategy. How this strategy works is:

Put in RMxxx in Week 1, Week 2, Week 3… until Week 52 and repeat, or

Put in RMxxx in January, February, March… until December and repeat, or

Put in RMxxx in Q1, Q2… until Q4 and repeat

Just repeat this strategy for years, and save for extremely bad market conditions, you should find yourself with a significant amount

Why should you do this strategy?
Because consistency > timing the market
. By allocating a set amount, you do not need to worry if the price will go up or down next week, month or quarter. You may get more ETF units when the price is lower, and vice-versa.

Over time you would average out your cost, hence the strategy name ‘Dollar-Cost Averaging’.

When to ‘cash out’ on your ETF investment?

Some of you may ask – Suraya, when do I withdraw the money, when do I cash out?

The answer is to seek professional advice from
licensed financial planners
.

As a general rule though, you should almost never ‘cash out’, unless you need to use the money. The key with any long-term investment is to stay invested.

Further learning

I hope the explanation on the 16 ETFs listed on Bursa Malaysia above helps you understand ETFs. By now, you should know some of the categories and can tell more or less what the ETF tracks based on its name. Use this information to make an informed decision in your investment journey.

Again, ETFs are one of my favourite investment vehicles as they (tend) to be lower in fees. Less fees mean more profit kept by you (or less loss)!

Beyond this article, you can find resources to
learn more about ETFs in Bursa Academy
 and information-sharing sessions organised by regulated platforms offering ETFs.

Do you invest in ETFs? If yes, which ones? If no, I hope this article will kickstart your ETF journey 🙂