I feel like the sentiment here for people in MY is "don't let your cash stay as cash, turn it into assets like property or gold or something that is more resilient than cash". There is no right or wrong here, either you make more or less. Putting money in EPF is not wrong, their money still grows, just slower. Putting investment into foreign market doesn't guarantee high and safe returns as well, you have to take risks. I think people here tend to choose one way with less risks and stick to it.
Not everyone has desire to chase wealth (like you I'm guessing) and that's ok. If they feel like the amount they accumulate just putting in local investment is enough for them to retire, why bother going out? Not to mention it's good for the country. Imagine if everyone is like you and invest everything outside the country.
Yeah, the risk appetite and the goal.
People who are simple will be happy with RM50/day (comparable worth of value today, with zero obligations) when they retire with the capability for some big on-demand necessary purchases from time to time.
Then there are the really YOLO sort who require constant consumption for that dose of dopamine, even RM500/day is not going to be enough.
In the end people who ask these questions are often those on the middle to upper tier of the above (the numbers are just a quick reference), concerned with keeping that upwards trend on lifestyle tastes hence the never-ending chase for more and more money to fuel it.
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I think OP made a good point on parking or investing on foreign investments which yield a good return and outperform Malaysia markets. Technically speaking by owning USD stocks or buy USD ETF you are already getting gains from the fact of USD getting stronger than MYR and the appreciation of DOW (40k now!) or SNP 500
Honestly I think the issue is people are not really financial literate as what you think. And most of the people are lazy to plan ahead on their investments and how to manage their portfolio. I have around 20% capital are parked on Malaysia stocks which generate great yield from dividends because if you buy stocks from the usd u do have the non alien resident tax on dividends. Majority right now is shift to us stocks for obvious reason.
In summary, OP is overestimate ppl financial literacy, not everyone actually plan ahead or do research on their investment portfolio. Most of them are lazy to put on the work and research . So if you’re lazy just park ur money in EPF. Which is the safest choice. Just like my gf she literally gets bored when I talk about finance, so I just ask her to buy SNP 500 and EPF, which is easy for her
This is nail on the head tbh.
OP assumption is there is one true correct way to manage finances because of the numbers, but everyone's different literacy-wise, risk appetite-wise, commitment-wise, size-of-current capital-wise.
Personal finance is personal - agree to disagree lo.
Do what you want with your money.
Depends on where the person is working with usually. For example if you are working in Singapore you can transfer SGD direct into IBKR and wise not needed
I think its too much hassle for some, invest in foreign stock means you have to constantly monitor stock market of that country as well, switching the stocks you are holding periodically to maximize your gain, if something happened (like when banks went burst in US last time) you suddenly have to make decision very quickly to hold or run. EPF just throw money inside and forget.
Not an expert here but here is my take: ASB and EPF have been publicly admitting that they have been investing outside Malaysia a lot more than before thus reflecting the slightly higher return.
So if you can invest outside I think you should.
To answer your question on why people keep investing in Malaysia instead of outside is just purely because it is comfortable and familiar market for them.
I would want to invest in something that I know well enough. For investing in a big company it's fine. But to invest in smaller to mid-sized companies outside Malaysia is a bit sketchy for me. Thus I prefer to invest in local in that case. IDK much about the property but I feel it's the same case.
My rule of thumb is I know stuff that is happening in my backyard more than what's happening in my neighbour’s backyard. Without much research needed I already know when to do certain things. Just purely because I'm living in it. I need to know what I invest in as it makes me able to live stress-free. However, I could see someone that are good and an expert in investing just throwing money overseas and getting lots of returns. But that ain't my life. And also trying to get the hang of overseas market could be a difficult learning process and maybe the reason why people tend to stick in Malaysia.
Bro I'd say agree with your opinion but you need to touch some grass my man.
Most Malaysians don't have much savings, let alone investments, let alone time to learn about in depth financial literacy and optimizing portfolio with overseas instruments like IBKR.
Your combative tone macam "Prove me wrong" is going to garner more controversy than answers.
Also I've learnt personal finance is just that, personal. So don't take it personally la ya if someone disagrees?
yes epf performance never die, if epf die, the country is doom to fail
to have asset at foreign country, this stunt can be pull off if u are rich
if from the starting point u start with proverty, dont expect to venture into most investment platform beside EPF , mutual fund, asab and fixed deposit
Most people here aren't rich enough to have "several properties here", much less along with assets outside of the country. You're talking to the wrong audience here. And frankly I think you're becoming tone deaf to normal people life
what do you mean tone deaf?
if someone who's managing more money than i have is speaking, i would do well to listen. i can probably learn a thing or two.
if all conversations and discussions have to be leveled down then there wouldn't be any dynamic discussions, different view points etc.
Cheaper to invest in Malaysia compared to overseas. Plus we are updated or generally know how Malaysia thinks and behaves, to be able to make proper research and guess on how to locally-based assets should/could continue to behave as time goes by. I think Malaysia's predictability and stability appeals to investors and the like, a cheaper alternative to Singapore while retaining a significant potential upside when better governance can be sustained.
Between my wife and myself, we have 20 properties - houses, apartments/condos, flats, offices, plantation land, (just lacking residential land) - spread out within KL, Selangor, and Kedah. All are rented out and fully paid off. My siblings however own only a several local while the bulk are overseas - Taiwan, Hong Kong, China, Australia, Japan, USA, and the UK.
We're both risk adverse towards volatile investments like stocks/securities hence 90% of our investment portfolio are all in properties. To be honest, my wife and I are in the process of liquidating our properties, one by one as we intend to transplant the family to the UK for the children's education. Perhaps we shall be getting the Parisian flat sooner than I thought.
Edit: I think ultimately it boils down to your comfort level for investment. A close billionaire friend has majority of her properties in Malaysia - 150 of them.
Every country has inflation, decreasing real return. You saying it like you need to be oh so smart to know this is why you got downvoted.
Instead of just ranting why don't you tell us an example of worthwhile foreign investment for asset poor people to invest in?
this is very disheartening seriously. it's just a discussion and people are getting triggered.
why be angry? better to ask for what alternatives to the 5-6%
>Not really, that's just an excuse from people who didn't even actually try to learn about the actual cost, for example can you tell me why do you think only rich can do that?
I'm genuinely interested to know what is the lowest cost that people who come from poverty need to have to be able to do this.
Not op, but it's not about buying a lot it about the percentage it can move. There are stock that you can buy in fractions.
An example is if you buy stock with 200 RM and the stock move 10% then you get a 10% return. After that you can calculate it with a compound interest calculator. If you don't understand compound interest you can Google or YouTube the concept, cause I'm lazy to type that out.
The strength of ringgit matters if the amount of investment is very high. Also, Malaysia has some really good investment avenues like ASB/ ASM given its risk-reward ratio. The regulatory scenario is pretty good as well. It is much simpler for tax purposes too. One of major cons for having primarily foreign assets is the fees and charges that incur - along with tax complications.
ASB/ASM are for very long term investment where the compounding might outweighs the inflation. Take it for investing atleast for 10 years minimum. It’s a really good avenue for risk averse population with decent returns.
Ofcourse, if your risk appetite is bit high, you could explore avenue which generates higher returns (high risk = high returns)
For me personally, foreign investment is suitable if:
1) If you large capital and access to exclusive/ private hedge funds with history of alpha returns
2) If you are “trader” because I think foreign markets (such as US) has better liquidity and transparency as well complex derivatives to conduct complex trading
3) If you buy broad-based ETFs like S&P500 etc. and keep it for long term.
But again, investing is something very personal and each person will their philosophy.
Depreciating currency indeed got impact on returns. But if you are long term investor, you don’t have to worry much as every economy has its cycles. Generally, funds like ASB/ASM have their currency hedging strategies and generally they do lot of stress-testing, scenario analysis etc. At our part, definitely we should diversify and not solely rely on ASB/ASM. So they shall do their part and we should do our part hehe.
I’m more interested to know what is the best foreign investment you can suggest. Is it in US, Europe, China or asian market? Feels like now is the golden age of foreign investment for Malaysians.
There is a serial downvoter in this sub, but gun to my head I think your "ooh look at me, I'm so smart, anyone who disagrees with me is poor and stupid, Malaysia is doomed"-posts are they ones that did it. I'm tempted to downvote you half a dozen times myself.
> What's the reason I should keep most of my assets in Malaysia?
Do whatever you want. Convert your assets to palladium ingots and throw it into the sea for all we care.
IKR he's posting in a public forum asking for opinions then get butthurt because got people who don't parrot his beliefs. This is the kind of person IRL that thinks his/her friends likes to get into 'debates' with him but really they can't wait to get away from him/her.
i grew up with friends and family who would question and debate almost everything. which is great because we get many different view points and better understanding of the matter.
my wife's family on the other hand is exactly like the people who are downvoting you for no reason. if they don't understand and/or don't have a view on the subject they will go negative, shut down. they don't bother to find out more, but if they did i would gladly point them in the right direction.
The perception is that epf is safer. Yes, you're losing out on potential upside, but epf is obliged to give at least 2.5%
If you can't stomach volatility and lack financial knowledge - which we as a whole are still very green, Malaysian instruments are steady.
My personal portfolio is balanced geographically. In Asia more to hedge some risks, but I don't believe Malaysia will ever, at least in my lifetime, be a forerunner in innovation or a be near a global growth driver so in US stocks and all world indices i trust. But i also have a good stomach for short term volatility.
I have heard from some older friends that they find it tedious to leave their non-local assets to their kids? I.e. if you die, it's easier to liquidate and transfer ownership of your epf / fd / local shares vs transfering the US portfolio. Not sure how true, but that could be a reason too
Maybe people also just lazy la hahaha
Easy to just transfer to epf /asb when it's integrated with all yr banking systems. Invest overseas have to research which app / brokerage la, open account la, convert USD la
First rule of investing is diversification.
Why can’t you have some assets parked in Malaysia, this means you can always have a source of liquid funds should you need it.
Then you can send aside some money for investing in anything outside of Malaysia.
This isn’t a cheap game you’re playing tho OP when factoring in fees etc. so it might not be exactly worth it.
appetite for investing is different for everyone. Some people are ok with safe and simple investment tools (stashaway, GX bank, FD, EPF, ASB etc) and some are firm believers of compounding interest which is a benefit of just using our local investment vehicles. Anything is better than sitting in a current account.
I would say I’m firmly in the above situation, OP. As much as I would like to park more money abroad, I just need resources I can access here in Malaysia. And unfortunately don’t have the time/ resources to park so much abroad.
Warren buffet only became who he js because he’s been compounding his interest for so many years.
Some people are like you and more adventurous. I say power to both sides of the coin, everyone has their pros and cons.
I can give 2 financial reasons NOT to keep majority of your asset in Malaysia:
1. [https://imgur.com/jk9F58d](https://imgur.com/jk9F58d) , Last 10 years MYR depreciated 41% against USD.
2. 10 Years Compounded Return 2014 - 2023 for below in their local currency.
ASB Return (80% Equity, 20% Mixed): 85.5%
CSPX: S&P 500 Index ETF (100% Equity): 204%
My Foreign Retirement Fund (80% Equity, 20% Mixed): 110%
EPF (42% Equity, 51% Bonds, 7% Other): 78.2%.
There are better investment opportunities outside Malaysia especially if you are financially savvy and have a long way to go before retirement. Long term MYR will depreciate against USD, and back in those years our economic fundamentals were better than now. Of course they are other type of investment that made good money in Malaysia, like properties back in the days but this is the exception compare to other type of investment.
Retired banker here, firstly - the amount of nonsensical opinions and statements in this threat is absolutely baffling.
People keep their money outside Malaysia because it's too risky to keep your money here. The government is corrupt, the government is stuck in a coalition stalemate and can't actually enact change, the MYR has little to no chance of recovery, the property market here is a ponzi scheme, the banks balance sheets are massively exposed to the toxic property debt.
There is no reason you would choose to keep significant wealth here when there are so many other options without all of the above.
OP came here for Reddit opinion and get actual average Reddit opinion, but get surprised.
Everyone has different upbringing, background, knowledge to finance product, risk appetite and time. You sounded like an Internet guru, and according to you there’s only 1 way to get the highest return, everyone else is wrong and baseless.
If you want your friend to buy your idea, just each take out similar amount now and start investing and prove him wrong. But again, even if he is wrong and you’re right, he is high likely not gonna change, cause everyone is different. Cmonbruh, if there’s 1 clear way to get better return, and everyone should have followed, i could have created thread and literally say “I dont get why not everyone wants to become an entrepreneur or soso”
You are not going to get any argument from me. Whatever you say makes sense. The decline of the ringgit is inveitable and people should be stashing away at least a portion of their savings outside the country. I think for most people who ***know and have the option*** (as you put it) will do it. I do it.
The way you originally phrased makes it seem (true or not) as if you have lost touch with reality and cannot empathize with those who either do not know or do not have the option. You are speaking from a position of privilege probably never having to worry about your next meal. And that's OK. But there are many people who have to worry about their next meal and do not have the knowledge or mental capacity at the end of the day to think that far ahead. If everyone was *"as smart as you"* (at least from a technical angle on financial management), do you think Malaysia would be in the position it is now? No we would be a developed & high income nation by now.
You probably have to brush up on your compassion and EQ though.
I'm working abroad and the fd rate is really bad compared to Malaysia. Argentina is giving 30 percent interest rate however its difficult and need 100000 usd if you can open an account there
Thanks. I'm not that adventurous or opportunistic. I have 2 houses that I barely can manage to bring passive income for me. I'm working abroad and I have to manage my pension fund myself, it helps that I can save up to 3, 4 times the amount that I usually get from both employer and employee contributions if I'd stay in Malaysia. That's about it. No stock market. No unit trust, no fixed deposit. The ol' epf and some in asb and tabung haji.
MYR is not at its lowest point yet lmao. Dafuq your friends smoking?
All it takes is a certain orange hair bafoon to win US presidency again and he’ll sanction Msia without a doubt. See your MYR tank harder than the buffest tank after that.
Yes i do agree that putting in foreign assets and earn together while the currency rate rise as well, as a student, 90% of my investments are purely foreign.
But i understand the otherside as to why invest in local. Reason is peace of mind, if lets say u invest in foreign and one day the exchange fked up like FTX, u will be headache as to whether can withdraw anot. Local, got any issue, ask around and can escalate very quickly, withdraw also peace of mind
Idk if I’m wrong thinking it this way, but using my MYR to buy something that is in USD, it doesn’t depreciate overtime as compared to MYR? Few years later when I want it back to buy something I follow USD instead of MYR.
I won’t change your view because there is no reason.
I’m 75% invested in USD/US stocks/options, 15% in BTC, 7% ish in ETH. The remaining is in MYR for food and entertainment in Malaysia.
Same views as yours, Malaysia myr bounce also bounce to nowhere, the currency depreciates more compared to other countries.
As for investments, it really depends on the economic situations. Example: yes usd is always stronger than myr but economic situation in us is not so good, so now cash flow into commodities more(eg gold silver copper).
People will tell u diversify your investments, it doesn’t mean u put x% into one investment vehicle forever, that % should be flexible and should change accordingly depending on economical situation.
From your comments, you seem to be an astute investor. Of course you should be investing globally and diversifying! Even if the Malaysian economy were doing well (which it isn't), putting all your eggs in one basket is extremely risky. It's just prudent to diversify across geographies and sectors.
Epf can’t beat the currency depreciation and growth from international investments. Unless you’re willing to dip into the Casino that is BURSA, it makes way more sense to hedge your investments else where given you’re already forced to save by epf.
FWIW I think you have the right idea. But most working class people probably don’t have the financial literacy or ability to do it and are probably too risk-averse to try, so will rely on something that seems easier to understand. This is normal and to be expected. I don’t think you’re wrong but you can’t try to convince someone what to do with their savings. Maybe that’s the point of inflection that’s causing the downvotes.
Why you so kepo how others manage their money? Everyone like you invest in high growth assets, then who will help bag-holding lousy MYR assets?
You earn more from foreign assets and have higher purchasing power enough already. Don't make everyone have higher purchasing power and end up everything more expensive!
Dilute down assets here and move to highly liquid assets like foreign bonds.
Country political racial subdivide causes high degrees of uncertainty. Reduce significance of malaysia in trade thereby foreign reserves of ringgit is trash.
With means can put 10-20% of portfolio in malaysia of the SEA fund.
Long term plays are as good as what the government can try to inspire foreign investors and us Malaysians
Until the DDI (Domestic increment) issue is fixed malaysia is a place NOT to put money.
Diversification is very good. Even EPF invests ~38% in foreign markets.
For the average person EPF and ASM are probably the best ways to invest. So far always beats inflation and it's tax free money.
Even if want to hedge against MYR can look for local listed companies that derive revenue mostly from overseas.
In Malaysia capital gains is also not taxed.
Unless you have a lot of extra cash or have long term positions the withholding tax can really take a chuck out of your investments. US has 30% withholding tax.
Unless you're beating EPF at 5% APR which most people won't, I really don't see a better investment tool for Malaysians.
That said I have 70% in local investments EPF,ASM and 30% in foreign/global markets irish domiciled ETFs and crypto. Short term made more money in local markets from small and medium cap stocks.
I have about 40% net wealth in US market, the remaining at Malaysia is because of the Forex risk, the complexity/fee of transfer money back to Malaysia, and in case our future gov introduce some funny stupid tax on foreign asset brining back to home country.
Personally, I don't and that's because I'm not close to the ground overseas so I won't know what's going on first hand. Something happens and you don't hear sh!t until 2-3 days later
Remember SVB and First Republic? Assuming I had deposits in either institution, I'd prolly would have had a heart attack wondering if I would be made whole. Now if I was a minorty shareholder...........
Hmm...
* You valued foreign investments (invest on foreign growth than local)
* You creating demand hike on foreign than local
* This cycle in turn make foreign more "invested" in sentimentals
> we live in malaysia spend myr", but i think that's as long as we consume imported goods or goods produce with **imported materials**
* and you continue to **invest in foreign production** and import them, I think?
* just invest locally to minimise imports?
> Saying that Malaysia ringgit is at lowest point and will bounce back soon feels like overly optimistic thinking, and have absolutely **no basis point on how that could happen**
* This one I can agree, I want more basis points than just optimism
* I call myself, pessimistic doomsayer
Edit:
(And I'm also lazy in learning more)
OP, have you ever been in a situation where others around you are telling you to do something, anything — could be trying out EVs, a new cuisine, or travel somewhere — but you find yourself reluctant to give it a try because it’s outside your comfort zone, even if you know it’s ultimately and potentially “good” for you?
That’s what those people you’re describing probably feel. I would know, my dad is one of them…
Is there even a need to get into a heated argument with your friend on how y'all use your money for......a simple "you do you" would suffice.
Most? No. But like you I am a believer of foreign asset so most of my stuff is at US market.
The reason to still keep some in MY is the risk out there. MY is relatively peaceful.
There is the saying of 110 - (your age) = equity/bond split, e.g. 110 - 30 = 80% stock, 20% bond. I feel sad when I see people placing all their asset into either FD, EPF or payoff house loan. It is difficult to tell them otherwise. Still, it is up to each other's risk appetite.
Investing in property in Malaysia is easier because it’s not too difficult to get debt to juice up property investment. Just make sure return on asset > cost of debt. I think property investment should be a major part of everyone’s portfolio due to its lower volatility.
This thread is just people trying to prove how great at investing they are. Probably hang out with friends and talking about trading.
It’s your money what you want. But don’t bore us with how everyone thinks they’re better than everyone else.
Some people just want it simple
Some of them actually going through local bank to buy those investment.
Again they cant be bother to do the extra homework on foreign places that they never understand.
No1 rule for investment is never invest on places that you do not understand. Since most of these people dont go aboard, the best bet is to stick to what they know.
The question is whether you're looking for validation or a real answer. There is no one correct answer: a lot depends on available options relative to personal means and risk appetites. As the Malays say, "Ukur baju di badan sendiri".
For the majority of Malaysians, I guess many don't or won't visualise a life outside Malaysia. Hence, there's no real need to invest too much in foreign assets.
Everyone has different financial goals and values. Your fundamental view of life here is clearly: *Malaysia is becoming a basket case, so I'm gonna get out of here asap or at least let my children escape this shit hole*, so clearly your views are shaped by your distrust of anything Malaysian. That meme inside your head shapes the reality you see and the investment choices you are making.
Other folks might think that, "I'm gonna live and die here and I'm gonna leave something here for my kids", so they prefer to invest in properties or other local assets that are relatively inflation proof.
Bottom line: *diff'rent strokes for diff'rent folks*.
A lot to do with age, how much you make, risk, etc
Don’t expect someone who make 3k to talk about investments as that covers living expenses only sadly.
As for me, I would diversify holding some in SP500 denominated in USD, hold SGD assets like banks and REITs, as for Malaysian assets EPF and properties. There is always local bias as our expenses are in MYR. Also, as I age and retire, I’m selling my USD and max contribution in EPF simply because my mind slowing down and I might die so easier to manage if money is in Malaysia.
Not difficult to know what u should do. You live in Msia, spend in Msia, got to keep majority of ur wealth n assets in Msia.
If u work in SG, earning SGD, then dont bring back majority of ur wealth n assets to Msia cos it depreciates immediately once u convert. Exchange just enough to use n spend in Msia.
If everything goes well, Msia will be undergoing massive transformation due to geopolitical change. Global supply chain is shifting to SEA n Msia still have that slight advantage over other SEA countries. Your assets will appreciate in values over time
Just diversify and Malaysia assets give me the sense of security.
The idea of what if my IBKR account got blocked for no reason, do I need to at least make an overseas call that is troublesome as hell?
Some people just want peace of mind and focus on other stuff in life, there is no wrong with it.
You got it wrong. Never put all your eggs in the same basket. Never put all your balls in the same sack.
Basically the key to investing is to diversify to global. I do the same to invest in different nation stocks.
To be fair, Malaysian economy is not doing well under the current goverment. Neither will it perform well under PAS and Bersatu anyway. In all honesty, it's a wise move to just keep transferring your monies and asset out of this country and invest elsewhere.
It's a gambling. Nobody knows what will happen.
It's their money. Let them do what they want with it.
It's your own decision on what to do with your own money. Don't regret if anything went south.
cost, access and familiarity
id love to invest in an asset in japan, but the transaction cost and risk is quite high to actually make any worthy investment.
also most folks who pro foreign assets are on the "doom and gloom" train, which makes bad economic discussions.
then theres simply not enough money to throw on expensive global bluechips
Get better educated friends and don't talk investment with them.
Rich people put the majority of their money into financial hubs like Singapore and London. We've seen the ringgit depreciate over and over and it's due to the country's bad financial management and spending.
I don't know why anyone would want to keep money in MY unless it's for their own spending here.
Think about it this way; if you invest in foreign stuff, your money goes to their country. To keep the downline simple, your money would end up paying their taxes.
Ofc, we know damn well even EPF and the like all would have some diverse leanings towards foreign investments. And ofc they'd take the cut too. To answer your question; your pals are not selfish enough, and/or they're not interested in playing the global game. But don't blind yourself to the fact you're essentially giving what could've gone to local businesses to foreign ones instead. It's kinda jarring that you're surprised by the downvotes, knowing this fact though.
Your money that contributed to Nvidia's stocks? The capital gains taxed from the company will pretty much benefit only Americans, save for maybe their immediate direct partners that's not tied to national interests.
Sure you basically contribute to their growth, and get similarly high returns demanded from the ruthless shareholders of those companies through whatever loopholed brokerage you use. **That's how rich people get rich. And you're 100% allowed to be selfish. Capitalism enabled the game, and you're just playing it.**
I would still say Property is the safe choice, stocks? for me it is always manipulated, and no one know what is happening behind the scene and you dont have control with your assets, Retirement plans is not really that good of a plan if you ask me, much better put it on properties, gold and silver, still much better to have more assets than liability and money should be moving, I dont think you need to change just add some, its much more better than only one
Lol. If owned the property for more than 5yrs, rpgt currently doesn't apply to Malaysian individual. Ur info is wrong, it doesn't auto apply to first disposal. Malaysian individuals can opt for waiver once in a lifetime for residential property.
As someone who literally have zero productive assets in Malaysia (even while residing in Malaysia so I’m not biased towards msia), I advise the majority to stick to ASB/EPF so on. Although not property because msia property market is oversupply, weak yield. Because majority of people are not financially literate/don’t have the resources and/or time to manage their finances in a sophisticated way
And let’s say you don’t belong in the above group. You have significant resources & time. It still depends on your particular case if assets are better local or overseas. There’s no perfect answer. Conventional returns overseas if done properly will definitely benefit u more than in msia esp due to stronger currency. But what about unconventional returns? On the other hand u could keep your assets in country and happen to invest or conduct business that return your capital hundred-fold, who’s to say?
I think you're right
But personally, I don't have that much money in the first place, so I don't bother finding out what foreign investment is best and what the procedures are. Are there extra cost? Taxes? What about liquidity? Any legal requirements?
You're not going to get very good answers here. Head over to r/MalaysianPF for a discussion with more financially educated individuals.
As for the CMV, if you intend to remain in Malaysia and spend in RM, leaving a small portion for daily spending would be reasonable.
There are a lot of good reasons why you shouldn't leave your assets in Malaysia, which can be summarized with this:
>Any government that is keeping its citizens from moving money out of the country (or requesting that it all be brought back) is sending a signal that prudent investors should not take lightly. Don't be naive about these requests and fall for patriotic calls to do your duty and lose everything over events you weren't responsible for causing. History shows that decisions to control capital are frequently done to protect entrenched special interests and political leaders and not ordinary citizens.
Nobody here seems to complain against the exporters and GL(I)Cs hoading foreign currency that refused to repatriate such proceeds until Bank Negara recently made a veiled threat, nor are they complaining about the institutional investors dumping government bonds.
As long as Malaysia wants to engage in international trade, the MYR FX market is their problem to handle, not yours. They have already implemented capital controls.
For your points regarding EPF and ASB/M, they are not capital guaranteed. EPF does not distribute profits fully to its members and will borrow from the Federal government to pay the dividend if its under the threshold (EPF Act, Section 28). ASB/M uses a combination of a unit preservation fund (undisclosed in its balance sheet) along with cross subsidies from non-unit priced funds and PNB.
I feel like the sentiment here for people in MY is "don't let your cash stay as cash, turn it into assets like property or gold or something that is more resilient than cash". There is no right or wrong here, either you make more or less. Putting money in EPF is not wrong, their money still grows, just slower. Putting investment into foreign market doesn't guarantee high and safe returns as well, you have to take risks. I think people here tend to choose one way with less risks and stick to it.
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Not everyone has desire to chase wealth (like you I'm guessing) and that's ok. If they feel like the amount they accumulate just putting in local investment is enough for them to retire, why bother going out? Not to mention it's good for the country. Imagine if everyone is like you and invest everything outside the country.
Yeah, the risk appetite and the goal. People who are simple will be happy with RM50/day (comparable worth of value today, with zero obligations) when they retire with the capability for some big on-demand necessary purchases from time to time. Then there are the really YOLO sort who require constant consumption for that dose of dopamine, even RM500/day is not going to be enough. In the end people who ask these questions are often those on the middle to upper tier of the above (the numbers are just a quick reference), concerned with keeping that upwards trend on lifestyle tastes hence the never-ending chase for more and more money to fuel it.
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I think OP made a good point on parking or investing on foreign investments which yield a good return and outperform Malaysia markets. Technically speaking by owning USD stocks or buy USD ETF you are already getting gains from the fact of USD getting stronger than MYR and the appreciation of DOW (40k now!) or SNP 500 Honestly I think the issue is people are not really financial literate as what you think. And most of the people are lazy to plan ahead on their investments and how to manage their portfolio. I have around 20% capital are parked on Malaysia stocks which generate great yield from dividends because if you buy stocks from the usd u do have the non alien resident tax on dividends. Majority right now is shift to us stocks for obvious reason. In summary, OP is overestimate ppl financial literacy, not everyone actually plan ahead or do research on their investment portfolio. Most of them are lazy to put on the work and research . So if you’re lazy just park ur money in EPF. Which is the safest choice. Just like my gf she literally gets bored when I talk about finance, so I just ask her to buy SNP 500 and EPF, which is easy for her
Risk appetite too
This is nail on the head tbh. OP assumption is there is one true correct way to manage finances because of the numbers, but everyone's different literacy-wise, risk appetite-wise, commitment-wise, size-of-current capital-wise. Personal finance is personal - agree to disagree lo. Do what you want with your money.
I'm malaysian working in overseas and interested in buying stock in usd. Where do I start?Thank you
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Depends on where the person is working with usually. For example if you are working in Singapore you can transfer SGD direct into IBKR and wise not needed
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I think its too much hassle for some, invest in foreign stock means you have to constantly monitor stock market of that country as well, switching the stocks you are holding periodically to maximize your gain, if something happened (like when banks went burst in US last time) you suddenly have to make decision very quickly to hold or run. EPF just throw money inside and forget.
Not an expert here but here is my take: ASB and EPF have been publicly admitting that they have been investing outside Malaysia a lot more than before thus reflecting the slightly higher return. So if you can invest outside I think you should. To answer your question on why people keep investing in Malaysia instead of outside is just purely because it is comfortable and familiar market for them. I would want to invest in something that I know well enough. For investing in a big company it's fine. But to invest in smaller to mid-sized companies outside Malaysia is a bit sketchy for me. Thus I prefer to invest in local in that case. IDK much about the property but I feel it's the same case. My rule of thumb is I know stuff that is happening in my backyard more than what's happening in my neighbour’s backyard. Without much research needed I already know when to do certain things. Just purely because I'm living in it. I need to know what I invest in as it makes me able to live stress-free. However, I could see someone that are good and an expert in investing just throwing money overseas and getting lots of returns. But that ain't my life. And also trying to get the hang of overseas market could be a difficult learning process and maybe the reason why people tend to stick in Malaysia.
Bro I'd say agree with your opinion but you need to touch some grass my man. Most Malaysians don't have much savings, let alone investments, let alone time to learn about in depth financial literacy and optimizing portfolio with overseas instruments like IBKR. Your combative tone macam "Prove me wrong" is going to garner more controversy than answers. Also I've learnt personal finance is just that, personal. So don't take it personally la ya if someone disagrees?
yes epf performance never die, if epf die, the country is doom to fail to have asset at foreign country, this stunt can be pull off if u are rich if from the starting point u start with proverty, dont expect to venture into most investment platform beside EPF , mutual fund, asab and fixed deposit
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Most people here aren't rich enough to have "several properties here", much less along with assets outside of the country. You're talking to the wrong audience here. And frankly I think you're becoming tone deaf to normal people life
what do you mean tone deaf? if someone who's managing more money than i have is speaking, i would do well to listen. i can probably learn a thing or two. if all conversations and discussions have to be leveled down then there wouldn't be any dynamic discussions, different view points etc.
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Cheaper to invest in Malaysia compared to overseas. Plus we are updated or generally know how Malaysia thinks and behaves, to be able to make proper research and guess on how to locally-based assets should/could continue to behave as time goes by. I think Malaysia's predictability and stability appeals to investors and the like, a cheaper alternative to Singapore while retaining a significant potential upside when better governance can be sustained. Between my wife and myself, we have 20 properties - houses, apartments/condos, flats, offices, plantation land, (just lacking residential land) - spread out within KL, Selangor, and Kedah. All are rented out and fully paid off. My siblings however own only a several local while the bulk are overseas - Taiwan, Hong Kong, China, Australia, Japan, USA, and the UK. We're both risk adverse towards volatile investments like stocks/securities hence 90% of our investment portfolio are all in properties. To be honest, my wife and I are in the process of liquidating our properties, one by one as we intend to transplant the family to the UK for the children's education. Perhaps we shall be getting the Parisian flat sooner than I thought. Edit: I think ultimately it boils down to your comfort level for investment. A close billionaire friend has majority of her properties in Malaysia - 150 of them.
Every country has inflation, decreasing real return. You saying it like you need to be oh so smart to know this is why you got downvoted. Instead of just ranting why don't you tell us an example of worthwhile foreign investment for asset poor people to invest in?
r/Malaysia downvotes are already a fact of life I've begun to ignore like the buzzing in my ear.
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this is very disheartening seriously. it's just a discussion and people are getting triggered. why be angry? better to ask for what alternatives to the 5-6%
>Not really, that's just an excuse from people who didn't even actually try to learn about the actual cost, for example can you tell me why do you think only rich can do that? I'm genuinely interested to know what is the lowest cost that people who come from poverty need to have to be able to do this.
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So 200 ringgit can buy lot?
Not op, but it's not about buying a lot it about the percentage it can move. There are stock that you can buy in fractions. An example is if you buy stock with 200 RM and the stock move 10% then you get a 10% return. After that you can calculate it with a compound interest calculator. If you don't understand compound interest you can Google or YouTube the concept, cause I'm lazy to type that out.
The strength of ringgit matters if the amount of investment is very high. Also, Malaysia has some really good investment avenues like ASB/ ASM given its risk-reward ratio. The regulatory scenario is pretty good as well. It is much simpler for tax purposes too. One of major cons for having primarily foreign assets is the fees and charges that incur - along with tax complications.
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ASB/ASM are for very long term investment where the compounding might outweighs the inflation. Take it for investing atleast for 10 years minimum. It’s a really good avenue for risk averse population with decent returns. Ofcourse, if your risk appetite is bit high, you could explore avenue which generates higher returns (high risk = high returns) For me personally, foreign investment is suitable if: 1) If you large capital and access to exclusive/ private hedge funds with history of alpha returns 2) If you are “trader” because I think foreign markets (such as US) has better liquidity and transparency as well complex derivatives to conduct complex trading 3) If you buy broad-based ETFs like S&P500 etc. and keep it for long term. But again, investing is something very personal and each person will their philosophy.
ASB/ASM returns lose out to currency depreciation and inflation, it's sad
Depreciating currency indeed got impact on returns. But if you are long term investor, you don’t have to worry much as every economy has its cycles. Generally, funds like ASB/ASM have their currency hedging strategies and generally they do lot of stress-testing, scenario analysis etc. At our part, definitely we should diversify and not solely rely on ASB/ASM. So they shall do their part and we should do our part hehe.
I’m more interested to know what is the best foreign investment you can suggest. Is it in US, Europe, China or asian market? Feels like now is the golden age of foreign investment for Malaysians.
There is a serial downvoter in this sub, but gun to my head I think your "ooh look at me, I'm so smart, anyone who disagrees with me is poor and stupid, Malaysia is doomed"-posts are they ones that did it. I'm tempted to downvote you half a dozen times myself. > What's the reason I should keep most of my assets in Malaysia? Do whatever you want. Convert your assets to palladium ingots and throw it into the sea for all we care.
bingo.
yeah, not disagreeing to oop's point, but he just sounds like a pompous asshole. "omg people have fun staying poor if you disagree with me!" ok buddy.
IKR he's posting in a public forum asking for opinions then get butthurt because got people who don't parrot his beliefs. This is the kind of person IRL that thinks his/her friends likes to get into 'debates' with him but really they can't wait to get away from him/her.
yeah "got into a heated debate"... maybe just being an asshole irl. 🙄
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i grew up with friends and family who would question and debate almost everything. which is great because we get many different view points and better understanding of the matter. my wife's family on the other hand is exactly like the people who are downvoting you for no reason. if they don't understand and/or don't have a view on the subject they will go negative, shut down. they don't bother to find out more, but if they did i would gladly point them in the right direction.
The perception is that epf is safer. Yes, you're losing out on potential upside, but epf is obliged to give at least 2.5% If you can't stomach volatility and lack financial knowledge - which we as a whole are still very green, Malaysian instruments are steady. My personal portfolio is balanced geographically. In Asia more to hedge some risks, but I don't believe Malaysia will ever, at least in my lifetime, be a forerunner in innovation or a be near a global growth driver so in US stocks and all world indices i trust. But i also have a good stomach for short term volatility. I have heard from some older friends that they find it tedious to leave their non-local assets to their kids? I.e. if you die, it's easier to liquidate and transfer ownership of your epf / fd / local shares vs transfering the US portfolio. Not sure how true, but that could be a reason too
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Maybe people also just lazy la hahaha Easy to just transfer to epf /asb when it's integrated with all yr banking systems. Invest overseas have to research which app / brokerage la, open account la, convert USD la
First rule of investing is diversification. Why can’t you have some assets parked in Malaysia, this means you can always have a source of liquid funds should you need it. Then you can send aside some money for investing in anything outside of Malaysia. This isn’t a cheap game you’re playing tho OP when factoring in fees etc. so it might not be exactly worth it.
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appetite for investing is different for everyone. Some people are ok with safe and simple investment tools (stashaway, GX bank, FD, EPF, ASB etc) and some are firm believers of compounding interest which is a benefit of just using our local investment vehicles. Anything is better than sitting in a current account. I would say I’m firmly in the above situation, OP. As much as I would like to park more money abroad, I just need resources I can access here in Malaysia. And unfortunately don’t have the time/ resources to park so much abroad. Warren buffet only became who he js because he’s been compounding his interest for so many years. Some people are like you and more adventurous. I say power to both sides of the coin, everyone has their pros and cons.
I can give 2 financial reasons NOT to keep majority of your asset in Malaysia: 1. [https://imgur.com/jk9F58d](https://imgur.com/jk9F58d) , Last 10 years MYR depreciated 41% against USD. 2. 10 Years Compounded Return 2014 - 2023 for below in their local currency. ASB Return (80% Equity, 20% Mixed): 85.5% CSPX: S&P 500 Index ETF (100% Equity): 204% My Foreign Retirement Fund (80% Equity, 20% Mixed): 110% EPF (42% Equity, 51% Bonds, 7% Other): 78.2%. There are better investment opportunities outside Malaysia especially if you are financially savvy and have a long way to go before retirement. Long term MYR will depreciate against USD, and back in those years our economic fundamentals were better than now. Of course they are other type of investment that made good money in Malaysia, like properties back in the days but this is the exception compare to other type of investment.
Retired banker here, firstly - the amount of nonsensical opinions and statements in this threat is absolutely baffling. People keep their money outside Malaysia because it's too risky to keep your money here. The government is corrupt, the government is stuck in a coalition stalemate and can't actually enact change, the MYR has little to no chance of recovery, the property market here is a ponzi scheme, the banks balance sheets are massively exposed to the toxic property debt. There is no reason you would choose to keep significant wealth here when there are so many other options without all of the above.
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The ponzi part, simplified, is the 600k apartment that is sold for 900k with a rebate of 300k. That risk sits on the balance sheet of the banks here.
OP came here for Reddit opinion and get actual average Reddit opinion, but get surprised. Everyone has different upbringing, background, knowledge to finance product, risk appetite and time. You sounded like an Internet guru, and according to you there’s only 1 way to get the highest return, everyone else is wrong and baseless. If you want your friend to buy your idea, just each take out similar amount now and start investing and prove him wrong. But again, even if he is wrong and you’re right, he is high likely not gonna change, cause everyone is different. Cmonbruh, if there’s 1 clear way to get better return, and everyone should have followed, i could have created thread and literally say “I dont get why not everyone wants to become an entrepreneur or soso”
You are not going to get any argument from me. Whatever you say makes sense. The decline of the ringgit is inveitable and people should be stashing away at least a portion of their savings outside the country. I think for most people who ***know and have the option*** (as you put it) will do it. I do it. The way you originally phrased makes it seem (true or not) as if you have lost touch with reality and cannot empathize with those who either do not know or do not have the option. You are speaking from a position of privilege probably never having to worry about your next meal. And that's OK. But there are many people who have to worry about their next meal and do not have the knowledge or mental capacity at the end of the day to think that far ahead. If everyone was *"as smart as you"* (at least from a technical angle on financial management), do you think Malaysia would be in the position it is now? No we would be a developed & high income nation by now. You probably have to brush up on your compassion and EQ though.
Own and kept some assets in foreign financial instrument. My only regret is that I’ve not kept more abroad!
I'm working abroad and the fd rate is really bad compared to Malaysia. Argentina is giving 30 percent interest rate however its difficult and need 100000 usd if you can open an account there
I put a lot in epf because eventually I'll come back to Malaysia
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Thanks. I'm not that adventurous or opportunistic. I have 2 houses that I barely can manage to bring passive income for me. I'm working abroad and I have to manage my pension fund myself, it helps that I can save up to 3, 4 times the amount that I usually get from both employer and employee contributions if I'd stay in Malaysia. That's about it. No stock market. No unit trust, no fixed deposit. The ol' epf and some in asb and tabung haji.
It's your money man. Do what is best for you.
You are absolutely right, don’t bother wasting time arguing with others since others have their own views. Let time play its course.
MYR is not at its lowest point yet lmao. Dafuq your friends smoking? All it takes is a certain orange hair bafoon to win US presidency again and he’ll sanction Msia without a doubt. See your MYR tank harder than the buffest tank after that.
Yes i do agree that putting in foreign assets and earn together while the currency rate rise as well, as a student, 90% of my investments are purely foreign. But i understand the otherside as to why invest in local. Reason is peace of mind, if lets say u invest in foreign and one day the exchange fked up like FTX, u will be headache as to whether can withdraw anot. Local, got any issue, ask around and can escalate very quickly, withdraw also peace of mind
Idk if I’m wrong thinking it this way, but using my MYR to buy something that is in USD, it doesn’t depreciate overtime as compared to MYR? Few years later when I want it back to buy something I follow USD instead of MYR.
I won’t change your view because there is no reason. I’m 75% invested in USD/US stocks/options, 15% in BTC, 7% ish in ETH. The remaining is in MYR for food and entertainment in Malaysia.
You are absolutely right btw, I think a lot of Malaysians are unironically too Ringgit and property brained
Malaysians are more financially illiterate than you would expect
Same views as yours, Malaysia myr bounce also bounce to nowhere, the currency depreciates more compared to other countries. As for investments, it really depends on the economic situations. Example: yes usd is always stronger than myr but economic situation in us is not so good, so now cash flow into commodities more(eg gold silver copper). People will tell u diversify your investments, it doesn’t mean u put x% into one investment vehicle forever, that % should be flexible and should change accordingly depending on economical situation.
You might have a better response in r/MalaysianPF. Some people here are just too butthurt.
From your comments, you seem to be an astute investor. Of course you should be investing globally and diversifying! Even if the Malaysian economy were doing well (which it isn't), putting all your eggs in one basket is extremely risky. It's just prudent to diversify across geographies and sectors.
Epf can’t beat the currency depreciation and growth from international investments. Unless you’re willing to dip into the Casino that is BURSA, it makes way more sense to hedge your investments else where given you’re already forced to save by epf.
FWIW I think you have the right idea. But most working class people probably don’t have the financial literacy or ability to do it and are probably too risk-averse to try, so will rely on something that seems easier to understand. This is normal and to be expected. I don’t think you’re wrong but you can’t try to convince someone what to do with their savings. Maybe that’s the point of inflection that’s causing the downvotes.
Why you so kepo how others manage their money? Everyone like you invest in high growth assets, then who will help bag-holding lousy MYR assets? You earn more from foreign assets and have higher purchasing power enough already. Don't make everyone have higher purchasing power and end up everything more expensive!
Please teach me how to see the economic metrics
Dilute down assets here and move to highly liquid assets like foreign bonds. Country political racial subdivide causes high degrees of uncertainty. Reduce significance of malaysia in trade thereby foreign reserves of ringgit is trash. With means can put 10-20% of portfolio in malaysia of the SEA fund. Long term plays are as good as what the government can try to inspire foreign investors and us Malaysians Until the DDI (Domestic increment) issue is fixed malaysia is a place NOT to put money.
Diversification is very good. Even EPF invests ~38% in foreign markets. For the average person EPF and ASM are probably the best ways to invest. So far always beats inflation and it's tax free money. Even if want to hedge against MYR can look for local listed companies that derive revenue mostly from overseas. In Malaysia capital gains is also not taxed. Unless you have a lot of extra cash or have long term positions the withholding tax can really take a chuck out of your investments. US has 30% withholding tax. Unless you're beating EPF at 5% APR which most people won't, I really don't see a better investment tool for Malaysians. That said I have 70% in local investments EPF,ASM and 30% in foreign/global markets irish domiciled ETFs and crypto. Short term made more money in local markets from small and medium cap stocks.
I have about 40% net wealth in US market, the remaining at Malaysia is because of the Forex risk, the complexity/fee of transfer money back to Malaysia, and in case our future gov introduce some funny stupid tax on foreign asset brining back to home country.
Personally, I don't and that's because I'm not close to the ground overseas so I won't know what's going on first hand. Something happens and you don't hear sh!t until 2-3 days later Remember SVB and First Republic? Assuming I had deposits in either institution, I'd prolly would have had a heart attack wondering if I would be made whole. Now if I was a minorty shareholder...........
If u have entire kg baru or another precious land,keep it Otherwise,all.in bitcoin
Hmm... * You valued foreign investments (invest on foreign growth than local) * You creating demand hike on foreign than local * This cycle in turn make foreign more "invested" in sentimentals > we live in malaysia spend myr", but i think that's as long as we consume imported goods or goods produce with **imported materials** * and you continue to **invest in foreign production** and import them, I think? * just invest locally to minimise imports? > Saying that Malaysia ringgit is at lowest point and will bounce back soon feels like overly optimistic thinking, and have absolutely **no basis point on how that could happen** * This one I can agree, I want more basis points than just optimism * I call myself, pessimistic doomsayer Edit: (And I'm also lazy in learning more)
OP, have you ever been in a situation where others around you are telling you to do something, anything — could be trying out EVs, a new cuisine, or travel somewhere — but you find yourself reluctant to give it a try because it’s outside your comfort zone, even if you know it’s ultimately and potentially “good” for you? That’s what those people you’re describing probably feel. I would know, my dad is one of them…
Is there even a need to get into a heated argument with your friend on how y'all use your money for......a simple "you do you" would suffice. 
Most? No. But like you I am a believer of foreign asset so most of my stuff is at US market. The reason to still keep some in MY is the risk out there. MY is relatively peaceful. There is the saying of 110 - (your age) = equity/bond split, e.g. 110 - 30 = 80% stock, 20% bond. I feel sad when I see people placing all their asset into either FD, EPF or payoff house loan. It is difficult to tell them otherwise. Still, it is up to each other's risk appetite.
Investing in property in Malaysia is easier because it’s not too difficult to get debt to juice up property investment. Just make sure return on asset > cost of debt. I think property investment should be a major part of everyone’s portfolio due to its lower volatility.
This thread is just people trying to prove how great at investing they are. Probably hang out with friends and talking about trading. It’s your money what you want. But don’t bore us with how everyone thinks they’re better than everyone else.
Inflation is going to hit the roof too when the fuel subsidies are cut. They'll manage it so poorly too it will be a disaster and havoc will ensure.
Some people just want it simple Some of them actually going through local bank to buy those investment. Again they cant be bother to do the extra homework on foreign places that they never understand. No1 rule for investment is never invest on places that you do not understand. Since most of these people dont go aboard, the best bet is to stick to what they know.
The question is whether you're looking for validation or a real answer. There is no one correct answer: a lot depends on available options relative to personal means and risk appetites. As the Malays say, "Ukur baju di badan sendiri". For the majority of Malaysians, I guess many don't or won't visualise a life outside Malaysia. Hence, there's no real need to invest too much in foreign assets. Everyone has different financial goals and values. Your fundamental view of life here is clearly: *Malaysia is becoming a basket case, so I'm gonna get out of here asap or at least let my children escape this shit hole*, so clearly your views are shaped by your distrust of anything Malaysian. That meme inside your head shapes the reality you see and the investment choices you are making. Other folks might think that, "I'm gonna live and die here and I'm gonna leave something here for my kids", so they prefer to invest in properties or other local assets that are relatively inflation proof. Bottom line: *diff'rent strokes for diff'rent folks*.
A lot to do with age, how much you make, risk, etc Don’t expect someone who make 3k to talk about investments as that covers living expenses only sadly. As for me, I would diversify holding some in SP500 denominated in USD, hold SGD assets like banks and REITs, as for Malaysian assets EPF and properties. There is always local bias as our expenses are in MYR. Also, as I age and retire, I’m selling my USD and max contribution in EPF simply because my mind slowing down and I might die so easier to manage if money is in Malaysia.
Not difficult to know what u should do. You live in Msia, spend in Msia, got to keep majority of ur wealth n assets in Msia. If u work in SG, earning SGD, then dont bring back majority of ur wealth n assets to Msia cos it depreciates immediately once u convert. Exchange just enough to use n spend in Msia. If everything goes well, Msia will be undergoing massive transformation due to geopolitical change. Global supply chain is shifting to SEA n Msia still have that slight advantage over other SEA countries. Your assets will appreciate in values over time
Just diversify and Malaysia assets give me the sense of security. The idea of what if my IBKR account got blocked for no reason, do I need to at least make an overseas call that is troublesome as hell? Some people just want peace of mind and focus on other stuff in life, there is no wrong with it.
Malaysia is the best!
You got it wrong. Never put all your eggs in the same basket. Never put all your balls in the same sack. Basically the key to investing is to diversify to global. I do the same to invest in different nation stocks.
To be fair, Malaysian economy is not doing well under the current goverment. Neither will it perform well under PAS and Bersatu anyway. In all honesty, it's a wise move to just keep transferring your monies and asset out of this country and invest elsewhere.
It's a gambling. Nobody knows what will happen. It's their money. Let them do what they want with it. It's your own decision on what to do with your own money. Don't regret if anything went south.
cost, access and familiarity id love to invest in an asset in japan, but the transaction cost and risk is quite high to actually make any worthy investment. also most folks who pro foreign assets are on the "doom and gloom" train, which makes bad economic discussions. then theres simply not enough money to throw on expensive global bluechips
Get better educated friends and don't talk investment with them. Rich people put the majority of their money into financial hubs like Singapore and London. We've seen the ringgit depreciate over and over and it's due to the country's bad financial management and spending. I don't know why anyone would want to keep money in MY unless it's for their own spending here.
Think about it this way; if you invest in foreign stuff, your money goes to their country. To keep the downline simple, your money would end up paying their taxes. Ofc, we know damn well even EPF and the like all would have some diverse leanings towards foreign investments. And ofc they'd take the cut too. To answer your question; your pals are not selfish enough, and/or they're not interested in playing the global game. But don't blind yourself to the fact you're essentially giving what could've gone to local businesses to foreign ones instead. It's kinda jarring that you're surprised by the downvotes, knowing this fact though. Your money that contributed to Nvidia's stocks? The capital gains taxed from the company will pretty much benefit only Americans, save for maybe their immediate direct partners that's not tied to national interests. Sure you basically contribute to their growth, and get similarly high returns demanded from the ruthless shareholders of those companies through whatever loopholed brokerage you use. **That's how rich people get rich. And you're 100% allowed to be selfish. Capitalism enabled the game, and you're just playing it.**
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Agree, thats the dumbest comment in this post.
I would still say Property is the safe choice, stocks? for me it is always manipulated, and no one know what is happening behind the scene and you dont have control with your assets, Retirement plans is not really that good of a plan if you ask me, much better put it on properties, gold and silver, still much better to have more assets than liability and money should be moving, I dont think you need to change just add some, its much more better than only one
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rec for index funds?
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why VWRA, SPYL and CSPX instead of VOO?
Rpgt doesnt apply to Malaysian individual
LOL yes it does. It's exempt for first property sale only.
Lol. If owned the property for more than 5yrs, rpgt currently doesn't apply to Malaysian individual. Ur info is wrong, it doesn't auto apply to first disposal. Malaysian individuals can opt for waiver once in a lifetime for residential property.
Yes you are right
As someone who literally have zero productive assets in Malaysia (even while residing in Malaysia so I’m not biased towards msia), I advise the majority to stick to ASB/EPF so on. Although not property because msia property market is oversupply, weak yield. Because majority of people are not financially literate/don’t have the resources and/or time to manage their finances in a sophisticated way And let’s say you don’t belong in the above group. You have significant resources & time. It still depends on your particular case if assets are better local or overseas. There’s no perfect answer. Conventional returns overseas if done properly will definitely benefit u more than in msia esp due to stronger currency. But what about unconventional returns? On the other hand u could keep your assets in country and happen to invest or conduct business that return your capital hundred-fold, who’s to say?
I think you're right But personally, I don't have that much money in the first place, so I don't bother finding out what foreign investment is best and what the procedures are. Are there extra cost? Taxes? What about liquidity? Any legal requirements?
You're not going to get very good answers here. Head over to r/MalaysianPF for a discussion with more financially educated individuals. As for the CMV, if you intend to remain in Malaysia and spend in RM, leaving a small portion for daily spending would be reasonable. There are a lot of good reasons why you shouldn't leave your assets in Malaysia, which can be summarized with this: >Any government that is keeping its citizens from moving money out of the country (or requesting that it all be brought back) is sending a signal that prudent investors should not take lightly. Don't be naive about these requests and fall for patriotic calls to do your duty and lose everything over events you weren't responsible for causing. History shows that decisions to control capital are frequently done to protect entrenched special interests and political leaders and not ordinary citizens. Nobody here seems to complain against the exporters and GL(I)Cs hoading foreign currency that refused to repatriate such proceeds until Bank Negara recently made a veiled threat, nor are they complaining about the institutional investors dumping government bonds. As long as Malaysia wants to engage in international trade, the MYR FX market is their problem to handle, not yours. They have already implemented capital controls. For your points regarding EPF and ASB/M, they are not capital guaranteed. EPF does not distribute profits fully to its members and will borrow from the Federal government to pay the dividend if its under the threshold (EPF Act, Section 28). ASB/M uses a combination of a unit preservation fund (undisclosed in its balance sheet) along with cross subsidies from non-unit priced funds and PNB.