How to Invest in Malaysia: A Guide for Beginners

To start investing in Malaysia, you need a simple plan, set financial goals, open a CDS and brokerage account, understand local fees, and begin small with diversified products such as ETFs or PRS while keeping emergency savings intact.

For Malaysians, the money just sitting in your savings account is quietly losing value to teh tarik inflation. 

It used to be RM 1.20, and now is RM 2.80, more than double the price!

So, whether you’re earning your first paycheck or eyeing your financial management plan, learning how to invest locally can put that cash to work.

This guide breaks down everything, from opening accounts, understanding fees to choosing beginner-friendly products. 

What Should You Get Ready Before Investing In Malaysia

Get your financial basics sorted before diving into the market.

Before you even think about stocks or funds, make sure your finances can handle a little turbulence.

• Keep a safety net: Save at least three to six months of living expenses in a high-interest or flexible savings account. This is your buffer when bills or emergencies pop up.
• Set a simple goal: Write down what you’re investing for, say, “build RM 300 monthly savings for five years” or “save for a home deposit by 2030.”
• Know your comfort zone: Are you okay seeing your portfolio swing up and down? If not, start with safer options like unit trusts or PRS before exploring stocks.
• Automate your habit: Schedule a fixed monthly transfer (RM 200–RM 500 works fine) into your investment account. Automation helps you stay consistent without second-guessing the market.

“Treat investing like paying a bill to your future self, small, regular, and non-negotiable.”

How do you open a CDS account and a brokerage account

You need two accounts before you can start investing in Malaysia, one to hold your shares and one to trade them.

If you’re new to investing, this part can sound technical, but it’s actually quite simple once you know what each account does:

• CDS account (Central Depository System): Think of this as your digital cabinet where all your shares are safely kept. Every Malaysian investor needs one to hold ownership of shares and ETFs listed on Bursa Malaysia.
• Brokerage account: This is your trading platform, the app or website you’ll use to buy or sell shares, ETFs, or other instruments. Your broker links directly to your CDS account so that every trade you make is recorded officially.

Step-by-Step: How to Open Both

Choose a licensed broker

Visit Bursa Malaysia’s website to see the full list of Participating Organisations. You can choose between traditional banks or digital brokers that let you trade from your phone.

Look for one that suits your style, some are cheaper per trade, others have better mobile apps.

Complete e-KYC (electronic Know Your Customer)

Upload your MyKad (or passport for foreigners), take a quick selfie, and fill in personal details. This is required to verify your identity and prevent fraud.

Open your CDS account

Your broker will handle this for you automatically once your e-KYC is verified. The CDS account links directly to your trading account, so you don’t need to apply separately.

Fees: Bursa Malaysia charges small administrative fees for statements, withdrawals, or transfers. 

Fund your brokerage account

Transfer a starting amount (many brokers allow from RM100–RM500). You can use online banking or FPX to deposit funds.

Start exploring your platform

Once your account is approved, log in and familiarise yourself with the dashboard, watchlists, charts, and order types. 

Don’t rush to buy, just learn how it all works first.

Account approval can take 1–3 working days, depending on the broker and document checks. Some brokers waive the minimum deposit for first-time investors, worth checking before signing up.

“Your CDS number is like your investor ID. Keep it safe.”

Read more: Financial Accounting for SMEs in Malaysia (What to Do About It)

Which Investment Products Can You Access In Malaysia

Start broad, reduce single-stock risk and diversify across asset types.

Here are common product categories:

• Equities / Stocks on Bursa: Buying shares of individual companies.
• ETFs (Exchange-Traded Funds): A basket of stocks or bonds, traded like shares.
• Unit trusts / Mutual funds: Professionally managed funds you buy into; may carry higher fees.
• ASNB funds: Among the simpler government-linked funds for beginners in Malaysia.
• PRS (Private Retirement Schemes): Long-term savings/investment product with tax-advantage potential.
• REITs (Real Estate Investment Trusts) and sukuk / bonds: Lower growth, steadier income, good diversification.

Choosing a mix across these helps you avoid putting all your capital into one stock or one product.

What Fees And Taxes Should Beginners Expect

Understand the fee stack before your first trade so costs don’t eat your returns.

Here’s a simplified table for a typical equity trade in Malaysia:

Scenario Example

If you invest RM 5,000 in stocks, you might pay around RM 6.50 in clearing + stamp duty (plus whatever your broker charges). 

These small costs add up if you trade frequently.

Always check your broker’s fee schedule and whether SST or other service tax applies.

How Can You Build A Simple Starter Portfolio

Use a core allocation + automate contributions to keep things simple and effective.

Example beginner allocation for someone comfortable with moderate risk:

• 70% in a broad Malaysia-listed ETF
• 30% in a fixed income fund or cash-equivalent

Set up a monthly automatic transfer of RM 300-RM 500 into your brokerage account. 

Rebalance once a year: Move gains back to your target split.

This approach emphasises regular habit over market timing.

What Kind Of Investments Should A Beginner Start With In Malaysia?

Start simple and diversify your risk.

When you’re just beginning, investing is like building a plate of mixed dishes at an all-you-can-eat buffet. 

You don’t fill it with just one thing, you balance between safer and growth-oriented options if that makes sense.

Here’s a quick guide:

Tips for First-Timers

• Start with balance: A mix of FDs, ETFs, and ASNB gives stability and growth.
• Avoid get-rich-quick products: If it promises fast returns, it’s probably not real investing.
• Keep it liquid: Make sure at least some of your investments can be withdrawn easily.
• Automate your savings: Treat investing like a monthly commitment, not a one-off event.

Our recommendation: For most beginners, an ETF or ASNB fund is a practical first step, it’s affordable, diversified, and easy to monitor.

What Mistakes Should First-Time Investors Avoid

The internet is full of “Make millions fast!” promises, but real investing in Malaysia is about consistency and discipline. 

Here’s what to avoid if you want to stay in the game long enough to actually profit:

1. Trying to time the market

Everyone wishes they could “buy low, sell high,” but even pros get it wrong. 

Focus on regular investing (DCA) instead of waiting for “the perfect moment.”

2. Ignoring small fees and taxes

That RM 5 stamp duty or 0.03% clearing fee might look tiny, but over dozens of trades they eat into returns. 

Always check your broker’s fee list before you click “Buy.”

3. Investing without a plan

If you’re just buying what’s trending, you’re not investing, you’re guessing. 

Define your goals (for example: save for a home, retire early, fund studies) and match products to each goal.

4. Skipping Diversification

Putting all your money into one stock, crypto, or “hot tip” is risky. 

Spread it out, a bit in ETFs, some in unit trusts or PRS, and a small portion in cash or FDs for emergencies.

5. Forgetting to review your portfolio

Life changes, your salary, expenses, or goals won’t stay the same. 

Review your investments at least once a year and rebalance if needed.

“If someone guarantees you high returns with zero risk, walk away. In Malaysia, legitimate investments are regulated by Bank Negara Malaysia or the Securities Commission, always check first before parting with your money.”

What Documents And Records Should You Keep

Documentation helps you stay organised and tax-ready.

Keep:

• Monthly brokerage statements and trade confirmations.
• Annual portfolio summary (what you bought, price, date).
• A simple excel spreadsheet to track contributions, current value and target allocation.

Good record-keeping means you’re ready for tax season and changes in your financial situation. Keep them for at least 7 years.

Invest in Malaysia The Right and Correct Way

Investing doesn’t have to be complicated, it just needs a lot of patience.

By now, you know the essentials:

• Build your emergency fund
• Open your CDS and brokerage accounts
• Understand Malaysia’s fees and taxes
• Start small with diversified products like ETFs, ASNB, or PRS.

You don’t need a finance degree or a six-figure salary to begin. What matters is consistency, that quiet monthly habit that slowly builds wealth while you focus on life.

This guide was brought to you by PRESS, Malaysia’s leading PR agency. We’re always eager to enrich the lives of readers through credible, well-researched, and empowering content.

Disclaimer: This article is for educational and informational purposes only. It does not constitute financial advice or investment recommendations. Always verify details such as fees, taxes, and regulations with official sources before making any financial decisions.

Source:

• Transaction Costs (Equities) — Clearing fee 0.03% cap RM1,000 
• Stamp duty on contract notes: 0.1% via remission, cap RM1,000 (13 Jul 2023–12 Jul 2028
• Stamp Duty (Remission) (No. 3) Order 2023 window (13 Jul 2023–12 Jul 2028) 
• ETF contract notes: stamp duty exemption until 31 Dec 2025 
• Brokerage/SST: Brokerage fees on trades of Bursa-listed shares are SST-exempt; SST scope expansion 2025 
• PRS tax relief up to RM3,000 (extended to YA 2030)
• Dividend tax: 2% on annual dividend income exceeding RM100,000 (effective YA 2025)
• CDS account opening (via ADA or Bursa Anywhere)