Your beginner-friendly guide to smart investing in Malaysia
You’ve got some savings. You want to grow your money.
But you’re not sure where to start…
“Should I invest in ASB?”
“Can I top up my EPF?”
“Are unit trusts even worth it?”
Let’s break down the pros, cons, and who each option is best for 👇
🏦 1. ASB (Amanah Saham Bumiputera)
Returns: ~4%–5.25% per year (recent years)
Risk: Low
Liquidity: High — withdraw anytime
Who Can Invest: Bumiputera only
✅ Pros:
- Capital guaranteed (no risk of losing your principal)
- Steady dividends annually
- Can invest via ASB loan (gearing strategy)
- Easy to top-up anytime
⚠️ Cons:
- Returns have decreased from past highs
- ASB loan = long-term commitment (be smart!)
- Only for Bumiputeras
🟢 Good for:
Beginners who want a safe, low-risk way to grow wealth with flexibility.
🪙 2. EPF (KWSP Voluntary Top-Up – Akaun 1 or 3)
Returns: ~5%–6% per year (historically)
Risk: Very low
Liquidity: Akaun 1 = locked until retirement | Akaun 3 = flexible
Who Can Invest: All EPF contributors
✅ Pros:
- Historically stable, strong returns
- Tax relief up to RM4,000 for voluntary contributions
- Now has Akaun 3 for flexible withdrawals
⚠️ Cons:
- Akaun 1 is locked until age 55 (unless special circumstances)
- Not meant for short-term use
🟢 Good for:
People focused on long-term wealth and retirement planning. Great for disciplined savers.
📈 3. Unit Trusts (Through Banks, Agents, or Robo-Advisors)
Returns: 3%–8% per year (varies by fund)
Risk: Medium
Liquidity: Medium — typically can withdraw within a few days
Who Can Invest: Everyone
✅ Pros:
- Wide variety (local, global, shariah-compliant, ESG etc.)
- Managed by professionals
- Can start small (as low as RM100)
⚠️ Cons:
- Fees can be high (especially from bank agents: up to 5%)
- Returns are not guaranteed
- Need to understand fund types and your own risk tolerance
🟢 Good for:
People looking to diversify and grow their wealth over time with a bit more risk.
📊 Quick Comparison:
| Feature | ASB | EPF | Unit Trusts |
|---|---|---|---|
| Return (avg.) | 4%–5.25% | 5%–6% | 3%–8% |
| Risk | Very Low | Very Low | Medium |
| Lock-In Period | No lock-in | Akaun 1 = Yes | No (but varies) |
| Liquidity | High | Low–Medium | Medium |
| Tax Benefit | ❌ | ✅ Up to RM4k | ❌ |
| Ideal For | Safe growth | Retirement | Wealth growth |
🧠 So… Where Should You Begin?
- 💰 If you’re a Bumiputera beginner → Start with ASB
- 👵 If you’re planning long-term (retirement) → Top up EPF, especially for tax benefits
- 🌍 If you want diversification → Look into unit trusts via robo-advisors (like BEST, FSMOne, or Versa)
Pro tip: You don’t need to pick just one.
Many Malaysians use all 3 — for different goals.
Final Thoughts
Starting is more important than being perfect.
Pick the one that fits your goal, your risk level, and your timeline.
The best time to invest was yesterday.
The second-best time is today.
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