Is there such a thing as the best investment in Malaysia? Is there an investment vehicle that is suitable for everyone?
But before we begin, let’s first understand what investment is all about.
“Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.”
-Wikipedia
We invest in order to grow our money. Because our time is limited where we can only earn an active income in a limited way, investment can unlock this limitation. The earlier we start investing, the bigger the returns in the long run. There are also investment that can give us income in the form of dividend or interest.
I’m sure you have heard of the saying, “High risk, high return”. It means that in order to get a higher return, we need to take higher risk.
So again this begs the question, what is the best investment in Malaysia?
I’m afraid to disappoint you, but the answer is there is none. There’s no such as thing as the best investment in Malaysia.
This is because we are all different. Our age is different, our time horizon is different, our risk tolerance is different and how much capital we have is different from one another.
The same goes with, what’s the best food in Malaysia? Is it nasi lemak? Roti canai? Char kway teow? Everyone will have their own preference.
Even if everyone voted nasi lemak as our best food in Malaysia. But then which nasi lemak? The one in KL? Or in Penang? Or the one in Johor?
What is more important here is that, the so-called best investment in Malaysia is the one that fits our needs. Let’s say we have another 20 years of working life, the investment is more of a long-term game rather than for a quick gain.
For a fresh graduate, he may want an investment that can start with as little as RM100. Which can then slowly increase the amount once he got a better pay.
But for a high net worth investor, he might decide to invest in painting, with the cheapest painting costing upwards of a few thousand Ringgit.
Best Investment In Malaysia
For some, the answer might be in unit trust. Or ETF (exchange-traded fund) or even ASB (Amanah Saham Bumiputera), since the individual might not have the necessary knowledge and skills to select a stock on his own. He does not have the Technical Analysis know-how on when is the best time to buy a stock. Or his risk tolerance is low, can’t even sleep well when his portfolio is in the red.
Whereas an active stock trader will have no problem cutting his losses when things don’t go his way. He accepts that there are risks involved, and follow strictly the trading plan. But for even the best stock trader, surely he would have some investment in property for example, where he can earn a rental income consistently. This would come in handy when he decides to call it a day and live a rather boring life.
Portfolio diversification is crucial, as the popular saying that goes “Don’t put all your eggs in one basket.”
Essentially, we need to be investing in a basket of portfolio, ranging from the lowest risk all the way to the highest risk.
Low risk investments, such as fixed deposit, Amanah Saham Bumiputera (ASB), Amanah Saham Wawasan 2020 (ASW) and Tabung Haji
Medium risk investments, such as unit trust, mutual funds, robo-advisors, ETF and property
High risk investments, such as stocks, futures and crypto
So the answer to the best investment in Malaysia will be different for you and me.
Have you ever wondered about the health status of your vehicle? Sure, we put a lot of thought and emphasis when it comes to our health but what about our four wheels that strive to keep us safe on the road? Just like us, our vehicles also need to undergo regular health checks to ensure it is operating at optimum safety levels at all times.
With the upcoming school holidays and patriotic holidays in August and September – Merdeka Day and Malaysia Day, vehicle health checks are even more crucial before driving off on a road trip with the family or for ‘balik kampung’ journeys. This could potentially save you from being stranded on the highway due to a breakdown or accident, especially when the roads are going to be jam packed with thousands of holiday-goers.
To avoid such inconveniences, here are five basic vehicle health checks that should be done on a regular basis;
1. Always remember your tyres!
Checking the condition of your tyres should be made a habit, no matter a long or short drive, as a tyre in dire condition is a hazard to everyone on the road. Without healthy tyres, drivers may find themselves skidding on a slippery road or even find that the brakes do not grip as well. Aside from ensuring there’s a spare tyre in the boot and checking the tyre’s air pressure, drivers should also check the tyre alignment, thickness of the brake pads as well as the tyre tread.
2. Swish, swish goes the wiper blades
Most drivers would not even think twice about the condition of their wipers, as long as it is still swishing and wiping rain water away. However, the health of wiper blades deteriorates too, especially when parked daily under the humid and hot sun. Look out for these signs and know when to get them changed; the rubber blades are cracked or peeling off, the blades leave streaks on the windshield, there is squeaking and the wiper frame is bent or looks damaged.
3. Signal left or right, are your lights alright?
Every single light on the exterior of the car is equally important and it should be in good working condition at all times. However, it can get a bit tedious when it comes to maintaining the lights because chances are drivers would not even know if one is faulty. Whenever possible, perform a simple check at home to ensure all lights are in good condition. Aside from the headlights, rear lights, and fog lights, other more important lights to note are the indicator lights for switching lanes and brake lights to alert other drivers to slow down.
4. Battery problems?
One of the first signs that the car battery is about to die is when you have trouble getting the car to start. The moment when the car starts chugging or huffing as you turn the ignition on, drive to your mechanic to get those batteries checked and changed if necessary. It is also good to note the lifespan of your battery and make a note of it somewhere in the car or on your phones so that you can remember.
5. Ensure a cooler vehicle for a cooler drive
While checking engine oils, also check the coolant levels in the vehicle as it might trigger a fire when heat cannot escape from the engine bay due to overheating. In simpler words, the engine radiator and cooling systems are what prevents a vehicle from overheating. The most common causes are faulty radiator fan, cooling system leak and low coolant levels. Never remove a radiator cap when the engine is hot as hot liquid could squirt out and injure you. If unsure, it is best to seek professional help at the mechanic.
In addition to performing these routine checks to ensure your vehicle is operating at tip top shape, one other important measure to consider is getting a motor insurance. Similar to how health insurance may potentially save your life and looming medical costs, motor insurance can do the same. It is like a safety net to ensure your motor vehicle, along with the driver and passengers are well covered and insured.
At Liberty Insurance, Private Car EZY Plus – Comprehensive insurance is a holistic coverage plan to get as it doesn’t provide coverage only against own damage and third-party losses but also covers medical expenses, permanent disability or death in the event of an accident on the road and also covers child seat replacement if the seat is damaged due to accident, theft or flood.
In addition to this, you can also buy one of our Bundle add-ons that include coverage on PA for Passengers, Flood Allowance, 24-hours unlimited mileage towing, side mirror damage and others.
Liberty Insurance also offers an efficient claim process with its Liberty Own Damage (OD) Express Claim that is only applicable with its Private Car EZY Plus – Comprehensive plan. Claims can be made via any smart phone and the accident must be reported within 48 hours for express claims disbursement.
To find out more about Liberty Insurance’s Motor Insurance and its claims process, visit www.libertyinsurance.com.my.
A very simple definition of Financial Planning is the process of managing our resources to help us achieve our life goals. Now that we are in the cryptocurrency age, how do embrace crypto in our financial planning?
It is a process which we proactively look at our financial situation and determine the better routes which can allow us to use these resources to help us accomplish what we hope to have to call it a good life.
Many people seem to think that when we have got a financial plan done, we have done financial planning, and hence we can then on our way to become richer, and retire early, or sending our children to study abroad.
The truth is that financial planning is a process but not a touch-and-go activity that produces a document called financial plan. Life is full of changes, so any plan we make today will always be challenged or need to change in response to the actual situation in life.
Financial Wreck Caused By The Pandemic
For instance, no financial plan will have predicted COVID-19 and prepare everyone for the Movement Control Order (MCO) and all the consequences from having these shutdowns in the past two years.
Our money is one of the resources we have that can be used to help us accomplish our goals, and money itself is not the goal.
If our reason to invest in good deals or engage in financial planning conversation is to have more money, this reason itself invites more questions than being an answer.
“More money for what?”
“More money to do what?”
“Why do you need to have more?”
To have more, there’s a trade-off that we must accept.
More Work = More Money = Less Rest
For example, to earn more, one must work more, to work more, it could mean one has to let go of time for rest, or to not spend more time with loved ones, or not able to enjoy activities that they like.
It could also means taking more risk so that we have a potential higher return from our investing activity.
So, in our pursuit for more money, we may fare better if we adopt a big-picture view but not only focus on having more money.
Sometimes, we decide to delay, or postpone doing things we really want or hope to because we are afraid to do it. And often, it is due to our feeling of afraid we don’ that enough to ‘just do it’, or the fear of “cannot afford to”.
This is not abnormal, and I can totally understand this emotion. When we do not know how much we need for the rest of our life, how are we able to feel we have got enough, right?
A good financial planning process is one where we spend more time to understand the person, identify the values (what’s important for this person), then take a look at their money management habit and their net worth (what they have left after minus what they owe), then we can have an idea if this person will have enough money for the rest of their life.
What Are Your Life’s Goals?
This process helps us understand a few important answers, such as:
Do I have to reduce my spending today?
Should I get a side hustle to boost up my income today?
Do I have to take more risk on my investment?
Can I change my car or house without affecting my future?
Can I quit the job I hate and accept a new job with lower pay?
At what age may have a huge cashflow deficit?
At what point (or age) will I run out of money in the future?
If I lose all my investment money today, how bad will my future looks like?
Establishing a good financial planning process can help us to bring our future to the present, and by looking at this future we can assess what are the thing we do not like so that we can make the change to it today.
Imagine having to wait for 20 years only to find out that we will still run out of money at a certain age, versus knowing this scenario is likely to happen 20 years earlier and we have 20 years of time to change something, which route would you prefer to take?
Through proper financial planning, we get a ‘preview’ of our future today, but at the same time, we make some assumptions of what might happen, such as inflation, potential investment return, our spending and potential future income, taxes, etc.
Hence, one of the things we will be thinking about is where or how should we allocate our money, to what kind of asset classes. And nowadays, it is likely most people have heard of and are quite keen to understand where cryptocurrency or crypto assets can fit into their plan.
Dawn Of The Crypto Age
Before the emergence of crypto assets, people have allocated their savings to various types of asset classes like stocks, debts, some keep most of their savings in cash or cash equivalent, businesses, real estates, arts, collectibles, gold or silver, to name a few.
Some of the assets have a low risk and value tend to not fluctuate too much and are ‘predictable’, while some the value may deviate quite a lot, and are considered ‘risky’.
One of the key considerations in determining our asset allocation, is to understand if we need the investment to generate additional income, or to have the value increase in future for us to have ‘gain’.
Essentially, crypto assets are assets that are non-income generating but more for the investment objective for capital gain.
While it is undeniable that crypto currency has helped make many new millionaires, for this wealth to be sustained into the future, one may want to explore how this new wealth can be protected or kept, so that even if the value of the asset class reverses its course, this person will not be knocked back to the ‘pre-crypto’ life.
Of course, it is perfectly fine if we remain having our 100% of our wealth be invested in crypto assets. However, that will also mean we tie our future financial health and possibility in life to a single asset class.
Imagine a person putting all their savings for old age to the stock of the single company they work at, and over the course of years for whatever reason, this company went out of business, or the company’s business dropped a lot due to new competition, or innovation.
The above example is not just pure imagination, we have seen a few big company’s gone through such trajectory before. Will this person be better off ‘putting all the eggs in different basket’ instead of ‘in the only basket’?
It does not matter what asset classes we are thinking about, it seems that it is not a bad idea to limit our downside risk and avoid over-concentration.
What about people who have not experienced the explosive growth or have not invested in crypto assets before?
Diversification Is Key
Generally, crypto assets or digital assets are one new asset class for us to incorporate to our personal investment portfolio to achieve diversification beyond the common asset classes mentioned above.
Depending on your tolerance for risk, and your investment objective, you will then understand how expose you can be, just like on every other asset classes. A person who is conservative or cannot sleep well even with a small up and down may want to limit exposure to volatile asset class, regarding the potential upside, and vice versa.
For asset class that can have a large swing in value, non-income-generating, it is advisable that we limit our exposure and do not over commit our wealth to it.
However, if one decides to do so, it will be prudent to ensure that we have prepare sufficient savings that can offer us liquidity and peace of mind during challenging time in life, or when the asset value is not at a good level for us to make withdrawal.
It is also very important that people only invest into cryptocurrency via digital assets exchanges that are operated by operators approved by Securities Commission Malaysia [1]. This ensures your investment will not fall into schemes that are unregulated or hands of scammer.
Regardless of what we do with our money, it is important that we understand why we want to do certain thing, and how this fit into the overall big picture of our life. By having a proper asset allocation that can support our future and lifestyle, we can avoid overexpose to certain asset classes, or certain asset.
A good financial planning process is about setting a good foundation, and manage our risk, so that we can increase our chance of living a life we consider well lived.
I have over the last couple of years worked with entrepreneurs in start-up businesses. The one thing that continually stands out is that most of my clients do not consider the “legal aspects” as an important facet to their business. If they do seek advice, it may sometimes appear as if the advice expected is a quick solution to a long-term problem, which is never good for any type of business. That’s why it is important to know some of the legal tips, especially for start-ups.
Most start-up entrepreneurs use the reason that legal advice is costly and as such, it is an expenditure they do not want to invest in. I can assure you that once legal proceedings are initiated against you either personally or against your company, the cost you would incur in getting good legal counsel would be a lot more than what you may be incurring now.
In the long run, the fees will be higher, and the process a lot more time-consuming and protracted. It will be a detrimental lesson to learn. My advice is to always be aware of your legal rights and duties under the Companies Act 2016 if you wish to be in business.
I have always said that laying the foundation right from the beginning is key to any successful business. Here are legal tips, where you have to yourself these questions if you are in the start-up business or wish to start one:
1. Do I Have Partnership And/Or Founder Agreement In Place?
Oftentimes, people get so excited about a business plan that they forget to discuss the nitty-gritty. It is important to have regular meetings with your co-founders or investors about the terms of your partnership.
Some questions you may wish to ask and set out clearly in your partnership and/or founder agreement are:
What are your specific roles and responsibilities as founders?
What if one founder wishes to exit? What happens to his shares?
What is the agreed percentage that each founder will get?
What are the overall goals and expectations for the business?
What are the consequences if the founders do not hit their specific KPIs?
What are the pay-outs for allowances, dividends or salaries for co-founders?
2. Will The Start-up Be Registered As A Private Limited Company, Enterprise Or A Limited Liability Partnership?
This question is pivotal as there are tax implications as well as other accounting and auditing requirements that the start-up will need to comply with. Over and above that, personal liabilities of the partners and founders will also need to be considered.
For example, if an enterprise is set up, then there will be personal liability involved as opposed to a private limited company, where the company will take on that liability as a legal entity.
Do speak to your lawyer and accountant on a structure that would best suit you and your business.
3. Employment Issues
Image of business documents, pen and glasses on workplace during meeting of partners
Having employment contracts in place for the people you hire whether they are freelancers or full-time employees is vital. This will reduce the risk of having a labour court dispute arise in the event you wish to terminate a particular employee who is not performing as expected.
Do ensure that your employment contracts have a confidentiality clause that binds your employees so as to ensure that your client and your confidential information are not divulged or disseminated to any third party.
4. Data Protection Matters
When your start-up business involves managing someone else’s personal data, there are legal standards that you must comply with in managing and handling such personal data. For example, obtaining the consent of the Data Subjects before you obtain their personal data, storing of the said personal data, giving access of the personal data you have in your possession to the Data Subjects when they ask for it.
Recently, the Personal Data Protection Commissioner has indicated her intention to carry out inspection on data users that are not registered or not required to be registered under the Personal Data Protection Act in order to ensure compliance with the general provisions of the Act as well as the minimum security, retention and data integrity standards set out under the Personal Data Protection Standards 2015.
5. Intellectual Property Matters
It is important to check with the Intellectual Property Corporation of Malaysia (“MyIPO”) whether some other company or person has already trademarked your startup business name. Please do the necessary searches to ensure that you are not using someone else’s business name or logo. This will ultimately relieve you of any hassle of being sued for trademark infringement.
And what a pity that would be if you have already gained traction in your startup business and people are starting to recognise your brand name not to mention the unnecessary legal cost of having to defend a suit for trademark infringement.
What I have set out here are just a few of the areas you may wish to consider in your own startup business. However, each and every business will have different needs or requirements so it would be best to speak to a legal advisor on setting your foundation right.
Even if you are already a successful start-up, I believe it is never too late to do a legal audit to check if everything has been set right, to avoid any unnecessary legal repercussions.
About the author
SHARMILA RAVENDRAN is the founder of the law firm, Messrs Ravindran located in Mont Kiara, Kuala Lumpur. She has more than 14 years of experience in the legal industry servicing clients that include local and foreign companies. She is now actively involved in corporate advisory work and commercial litigation and is a Panel Adjudicator with the Kuala Lumpur Regional Centre for Arbitration. She also sits on the Bar Council Child Rights Committee and is the Legal Director for Lean in Malaysia. She can be contacted at sharm@ravindran.com.my.
Debt, in essence, is all about borrowing money from a third party, and having the means to pay it back. Debt is not always bad news; it really depends on the kind of debt you currently have and your ability to pay it back. Let’s take a closer look at ‘good debt vs bad debt’.
Therefore, let’s start off with a self-assessment on debt. Referring to Table 1, kindly answer the statements with a “yes” or “no”. The more “no” in your replies, the higher your stress level in debt management.
1
My monthly loan servicing ratio over my monthly income is about 38% or below.
2
I am only investing my free money and never borrow to invest.
3
I have consistently (monthly) and/or fully paid my credit card debts.
4
I keep a track of my total debts annually and it is decreasing over the years.
5
I know the difference between good and bad debt, and only utilise the good debt to acquire appreciating assets like property.
6
I pay all my household bills on time.
7
I am current on all my debt payments.
8
I know who to look for help if any of my family members r I are in deep debt.
9
I know the risks of becoming a guarantor, co-loan owner and supplementary credit card owner.
10
I know the interest rate of each loan that I borrowed, and how the interest is charged on the loan amount.
11
I know how to restructure my debt wisely if needed, and clear the loan with the highest interest rate first.
Table 1: Self-Assessment
Good Devt VS Bad Debt?
Did you know that debts can be categorised as “good” or “bad”? Good debts refer to the ones with low-interest rates (below 8%), and your borrowing is used to purchase appreciating assets such as residential or commercial properties, or investing in a business.
A study on Malaysian property valuation between 1991 and 2014 showed that the compound annual growth rate (CAGR) for overall property in Malaysia is around 5.97%。No doubt that property is an appreciating asset, still location is key for greater return.
Bad debt, on the other hand, is akin to borrowing money to buy a car, which is a depreciating asset, although the loan interest rate is considerably not high (around 4-6%). Every year, the car value will drop at an average of 10%.
From Table 2, it is crystal clear that we shouldn’t borrow if the interest rate is more than 8%.
Debt Type
Average Interest Rate (Annual)
Illegal Shark Loan
60%
Credit Card
15-18%
Personal Loan
10-12% (Promotional 8.88%-9.99%)
Education Loan
8-10%
House Loan
4.5-6.5%
Car Loan
4-6%
PTPTN
1% (3% is the old rate)
Table 2: Types of Debt and Average Interest Rate (Annually)
Words Of Advice
Healthy Debt Ratio – A key indicator on whether you have a healthy debt ratio is the Monthly Debt Servicing Over Monthly Income Ratio. It simply totals up your monthly debt repayment amount over your monthly income.
This ratio should always be kept below 40% at all times, though a temporary spike is still acceptable. For those far below 40%, you have more room to gear on appreciating assets resulting in easier loan approvals.
Never Borrow to Invest – The first rule of financial planning is not borrowing to invest, even in share margin investment, where the interest rate is low at about 4%.
We should only invest free money. Don’t borrow money even from family members, relatives or friends to invest. Otherwise, it could cost you both money and relationship.
Get the Longest Loan Period (if possible) – Forget affordability, will you apply for a 25-year loan (instalment: RM2,400) or 35-year loan (instalment: RM1,200) for a property purchase?
Choosing 35 is a wiser strategy to deal with loan and cash flow. Even if you opt to pay RM2,400 (instead of RM1,200) monthly and consistently, the loan will end in 25 years.
However, if you select the 25-year package, there is no way you can reduce your monthly repayment if you have cash flow problems in certain months.
In the event you don’t pay consistently, banks will increase the interest rate causing the repayment amount to rise, lesser free cash in hand, and a whole lot more stress!
If non-repayment continues for two months or more, you will be seen as failing to service your home loan, and worse, the bank might even auction your house. Therefore, why risk your financial position with a shorter period of loan which offers lesser flexibility?
The longer the tenure of your home loan, you would have more cash in hand to actively invest into an investment instrument that can give you an annual return of more than 6%. This is smart financial planning.
About the Author
This article is written by Yong Chu Eu. He is the Founder, Principal, MFPC Shariah RFP, CPD/CPE, HRDF Certified Corporate Trainer of Money & Life, Financial Book Author, Licensed Financial Planner, E2E Financial Literacy Principal Coach & Local Media Guest.
The following story is based on an actual series of events with some names and circumstances fictionalised and any similarity to the name, character or history of any person is entirely coincidental and unintentional. Hopefully we can understand the importance of succession planning and make the necessary preparation.
Elder Tan put down his chopsticks, looked up and smiled.
His three sons and their spouses are seated together once again for a reunion dinner which the COVID-19 pandemic denied the family for two consecutive years. In the next table, the children are noisily tucking in their food and chattering away as well as occasionally peering into each other’s phones.
Tan was a picture of contentment. He has raised his children well to be successful in their own right. He is proud of his eldest son Seong who is doing a good job taking charge of the hardware business that Tan had built from scratch. Danny, the No 2, is head of the engineering department in a construction firm while Chye, his street smart youngest son, is doing well in sales in his father-in-law’s spare parts company.
“I want to tell all of you something…” Elder Tan interrupted the conversations at the reunion gathering.”
Succession Planning Is About Being Prepared
I want to retire and leave the family business to Seong,” he added. Seong looked at his father, beaming that he is getting just rewards for the hardwork that he had put in to run the business.
“I’ll transfer the shares of the company to all three of you equally,” Tan said looking at his three sons. The expression in Seong changed on hearing that. He looked startled as he had expected the lion share for all his sweat, literally!
“Equally with Danny and Chye! They didn’t lift a finger to help out in the business! And they now get equal share of the fruits of my toil? No way!!!” Seong now getting red faced with anger.
He rose from his seat and smart-mouth Chye stopped him in his tracks with his remark: “What, you’re not happy?”
The whole atmosphere changed as Seong lunged towards Chye. Danny stepped in between and after that, chaos broke out. A breakdown in family harmony over too-soon, unforeseen, unexpected equitable or inequitable distribution of family assets?
Tan’s desire to be fair and thus, the equitable distribution of equity in the family business probably blindsided him from the possibility of a family feud erupting from it. Estate planning and succession planning needs to be skillfully handled and prudently managed to avert any unwarranted situation such as a family feud.
Succession planning inevitably is critical for business, especially family-owned business. Business owners tend to underestimate and downplay its importance, ignoring possible downsides when they are no longer in charge. It holds true that failing to plan is planning to fail.
A pre-planned succession such as through a Family Business Trust or a Family Foundation would be a prudent way to lay down instructions on conditions for ownership succession, management succession and rewards and conveyed impartially and professionally by an independent third-party such as a trustee would avert family feuds over inheritance.
Three key areas need to be considered in setting up a business succession plan namely:
Ownership Succession. This will ensure that the shares of the family business will be protected and not likely to be fragmented over generations. The rightful heirs are clearly defined, thus enabling ring fencing against outsiders to own the family business
Management Succession. Successor is crucial for continuity of the family business. By having a capable candidate to be successor of the family business, it retains the goodwill of the family business and it improves the confidence of the investors, customers, and employees
Family Wealth Management. Proper planning and allocation of family resources effectively will maximise the benefit for each of the family members, such as in areas of financing family education, family medical and family reserves needs
Business succession planning is an essential part of the risk planning for the business.
About Rockwills International Group
Rockwills International Group, now in its 27th year, pioneered professional will writing in 1995 and has since evolved into the leading estate planning specialist in the country. It is today the largest provider of solutions and support services in the areas of trusts, succession, management and distribution of wealth. It has shareholders’ funds exceeding RM50 million. It has done over 280,000 wills and 15,000 trusts and hold more than RM25 billion in assets under trust.
Many people are always wondering what or who a “Licensed Financial Adviser”(LFA)” or a Financial Adviser’s Representative (FAR) is. Also, many do not understand what is a “Financial Plan”.
Did you know that there’s only about 1,300 financial adviser in Malaysia, versus our population of 32 million?
When their numbers are small and very little is known about them, surely a lot of myth and misconception that happens.
How Can A Financial Adviser Help?
Why do anybody need a financial adviser while we already have banks, insurance agents, unit trust consultants, estate planners, lawyers and accountants? What resources or values that an LFA/FAR could assist or deliver impact into their life?
Most Malaysians have the impression that an LFA/FAR is “not focused” or “unprofessional” because he or she is able to provide financial services from multiple providers. For us Financial Advisers, financial providers are our resources and financial tools which are suggested to solve different individual or corporate needs.
To clarify this misunderstanding, a Licensed Financial Adviser DOES NOT represent any company or financial providers. They represent you.
All advice and solutions are solely based on your needs, and they will look into the financial market for the best financial tool to suit your life goals.
Usually we are too busy earning money with our job or business, or too busy with family, that we barely have time to deal with their financial planning. People who are too busy making money for them to make a living, paying off debts and liabilities, is hardly able to get the latest investment updates, market outlook, insurance plans and taxes.
Due to the lack of financial literacy and knowledge, many have become the victim of ponzi schemes or get-rich-quick schemes. This resulted in many Malaysians losing their wealth.
Some went into huge debts, by applying personal loans, credit card cash outs, or even loan sharks and ended up a bankrupt. This is one of the reasons why bankruptcy statistics increase gradually every year. It is human nature to take risk and gamble, but why gamble when a Licensed Financial Adviser can help you better manage your finances and investments?
Most of us gets mixed up with “investment” and “gambling”. Many Malaysians thought that investing in high-risk instruments like stocks, forex, crypto or private equities are similar to gambling. Whereas gambling is purely based on luck or a probability of winning chance.
A good investment is when you have the knowledge and understand clearly about the instrument along with the risks and rewards. You can predict the results, whether it is an instrument that comes with low risk with low return, or high risk with high potential return. Also the time frame and financial goal or purpose of a particular investment.
What’s even more important is to make sure that it is being regulated by by Bank Negara Malaysia, Securities Commissions Malaysia or Bursa Malaysia.
A wise man once said, “Fast is actually slow. Slow is actually fast.” Deep thoughts, deep wisdom.
A Licensed Financial Adviser is specialising in the Finance industry. They are well-trained professionals that are focused on Financial Planning. To deliver value to your family and businesses, solely based on your needs in order to achieve your life goals.
Don’t wait no more, get in touch with a licensed financial adviser today.
About the Author:
Cheong Kwang Siang, CFP Cert TM FAR, CMSRL Genexus Advisory Sdn Bhd He can be contacted at cheongks@genexus.com.my
An e-wallet or also known as digital wallet, is an electronic device, online service, or software program that allows one party to make electronic transactions with another party for buying goods and services. With the rise of smartphone usage, so does the popularity of e-wallet in Malaysia.
Let’s check out the 3 most popular 3 e-wallet in Malaysia.
Taps into the large existing user base of Touch ‘n Go cards
PayDirect: link your Touch ‘n Go Card and pay toll fare directly with your e-wallet balance at participating highways
Money-back guarantee: full refund within five working days if your e-wallet is charged erroneously
Each e-wallet in Malaysia comes with its own uniqueness. You should look at which is more convenient and brings the most benefits to you as a user.
In terms of benefits, here’s what you can expect from the 3 e-wallet in Malaysia as per below:
1. Convenience And Safety
What is the first thing you take when you head out? Your wallet or phone? Frankly speaking, I will often forget my wallet, but never my phone. We heavily rely on smartphones today and with the high adoption of e-wallets among merchants, we can easily make payments without cash on hand. Besides, I think everyone has faced the awkward situation of having to squeeze the notes and “syiling” back into your wallet after receiving your change. With an e-wallet, problem solved!
The safety of digital payments is also a concern for some, but data in the e-wallets are encrypted and some providers even provide money back guarantee features to ensure the safety of using their services. It can be also argued that e-wallets have helped to reduce theft cases, which usually occurs with physical cash!
2. Spending Tracker
Do you always get shocked when checking your bank balance? Clueless on where the money has gone? You can easily check your e-wallet where all transactions made are recorded. Gone are the days of forgetting where you spent your money. Keeping track of your daily spending is crucial to cultivating good financial habits. This provides an overview of your spending patterns and insight as to where you could improve.
3. Promotions And Rewards
While having many e-wallets has been confusing for some, the war to acquire users has been beneficial for us consumers. All e-wallets offer their own rewards, and it’s up to you to make the most of it:
Boost allows you to earn BoostUp coins with every transaction and exchange for gifts
GrabRewards Points comes with an extendable validity feature which technically makes it technically a “never expiring” points system (every point-earning transaction will extend the expiry date of your GrabRewards points till the last day of the 3rd month)
Touch n’ Go e-wallet rewards frequent user with cashback vouchers for selected merchants
All the e-wallet players partner with various merchants to provide attractive promotions to users in a bid to increase their market share. So look out for where you can save and earn through regular activities like refueling your car, buying groceries or even reloading your mobile credit. But please don’t use these promotions as an excuse to spend more than you need to!
4. Private Assistant
Paying your utility bills? Use e-wallet!
Topping up your mobile credit? Use e-wallet!
Sending money to your spouse? Use e-wallet!
The utility of e-wallets is increasing by the day, and are no longer just avenues for sending or receiving money. Many can be used to pay for your parking, buy insurance, settling utility bills and more! There will be definitely more that an e-wallet can do in the near future.
About the Author
Ocean Pon is a Licensed Financial Planner and likes to help millennials make wiser financial decisions to achieve financial independence. He can be contacted at oceanpon@finwealth.com.my
A robo advisor is a low-cost, online investing platform that uses algorithms to create and manage investment portfolios. Robo advisor in Malaysia aims to make investing simple by removing the guess-work in stock and fund picking. Normally you would answer a few questions to determine your risk profile, then you start putting in your money. The robo advisor then does the investing for you, does the rebalancing for you, does the buying and selling for you, and many more.
A robo advisor employs technology to monitor global markets and to react to new investing opportunities. The technology analyses thousands of data points each day, incorporating information from across continents and asset classes, to develop investment portfolios, without the influence of human emotions. These portfolios aim to generate sustainable returns while managing risk.
Benefits Of Robo Advisor
They also do away with the traditional need to lock in funds for a set amount of time. Its user-friendliness is a positive for beginner investors, and would be a good place to learn how investing works and to understand your personal risk profile and appetite, before moving onto more hands-on and advanced investing.
The fees charged are minimal when compared to traditional investment products, and its accessibility and low barrier to entry suggests that it is a viable alternative for individuals that are not financially savvy or have the time to pore over countless annual reports.
Some only requires you to make an initial deposit of RM100, which makes it very accessible by most Malaysians. Then there’s also the convenience of the account opening can be done online, all by just using a smartphone.
Getting Started With Rob0 Advisor In Malaysia
Robot hand Artificial intelligence trading stock or forex graph global network business data concept banner background 3d illustration
Robo advisors are automated financial advisors. They are an online tool that assists investors in picking an optimal investment portfolio according to their risk tolerance profile. Typically, robo advisors start by asking investors questions to understand their risk appetite and allocate investments based on certain algorithms.
Once investors agree to the investment allocation, they can start funding their account and the robo advisors will purchase the underlying securities and manage their portfolio by rebalancing it periodically. Robo advisors have emerged as favorites to younger demographics due to their low account minimums, low fees, digital-only service and overall, a more efficient and timesaving offering.
8 Licensed Robo Advisor In Malaysia
There are now 8 licensed robo advisor in Malaysia or also known as digital investment managers (DIM) that are recognised by the Securities Commission Malaysia (SC):
Each comes with their own product and uniqueness. Robo advisor platforms typically invest in exchange-traded funds (ETFs) which are a compilation of stocks, bonds and other investments. Most robo advisor in Malaysia tend to focus on foreign ETFs.
You can actually start investing in robo advisor with just RM100. It is also a good habit to perform regular savings every month, so you can see your investment in robo advisor growing.
With robo advisor, you can easily diversify your portfolio since it is investing in multiple instruments. Just like the popular saying that goes, “Don’t put all your eggs in one basket”.
Kuala Lumpur-based Fuller Academy is poised to enrol to 30,000 learners across ASEAN through its 12 sustainability short courses, designed and curated by the industry, for the industry, to enhance talents’ knowledge and skills in sustainability.
Chief Executive Officer Wan Imran said all programmes certified by Human Resource Development Corporation (HRDCorp) are part of micro-credential short courses, which aim to provide knowledge solutions for talents, in line with the global demand for talent upskilling in sustainability.
“Based on a recent analysis by Bloomberg, global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of the $140.5 trillion in projected total assets under management. This is a strong driving force encouraging the industry to shift towards a more sustainable approach. Hence, now is a critical time for organisations to start enabling their talents with knowledge and purpose in the areas of sustainability. This is also aligned with our national agenda of creating 200,000 green jobs by 2030.” he said during the launch of Fuller Academy.
Wan Imran, Co Founder and CEO of Fuller Academy & Michelle, Co Founder and COO of Fuller Academy
To date, more than 1,600 participants from various industries have signed up across various of our programs from within the country and abroad.
“Our learners come from different industries and backgrounds, as we offer a range of courses targeting different skill sets from sustainability communications to the introduction of carbon emissions. We have been getting a lot of learners from ASEAN and other regions, with many learners hailing from Europe. The courses which were curated with our global instructors have set a new standard in sustainability learning, which is effective, practical and engaging.” he added.
Breaking it down further, Imran said the courses are all designed and created by industry experts and practitioners thus providing insights into the practical industry knowledge.
“We have made it accessible geographically and financially. Being an online platform, anyone from across the region and beyond can sign up as a learner. For Malaysia-based companies, they can benefit from the financial support HRDCorp can provide, and for outside of Malaysia, they can also take advantage of our entry-level pricing.”
“The courses are designed to be short and bite-sized, with the flexibility for the learners to complete the course in their own time within the monthly cohorts. This on-demand format is
ideal for busy professionals, allowing them to learn around their working schedule through a structured yet flexible course.”
In conjunction with the launch, Fuller Academy also hosted a series of dialogue sessions on sustainability, attended by experts in the field such as Elina Jani from Malaysian Green Technology And Climate Change Corporation (MGTC), Wan Dazriq from Ethis Malaysia, Karina Cady from Nandina Partners, Yasmin Rasyid from EcoKnights, and Yasir Qureshi from Kantar Malaysia.
About Fuller Academy:
Fuller Academy is the trusted strategic partner in the business sustainability journey, providing industry-driven sustainability education through online courses. Current open enrollment includes Fundamentals of Business Sustainability, Introduction to Carbon Emissions, Internal Communications for Sustainability, and Shaping Consumer-Centric Sustainable Strategy.
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