6 Best Platforms For Your Investment In Malaysia
Other than your usual EPF savings, how many of us have other forms of savings for our retirement? Most Malaysians only rely on the Employees Provident Fund (EPF) as their pension fund, but actually there are various investment platforms in Malaysia that provide more benefit and return than regular savings.
But the question is, would our EPF savings be enough to cover the rising cost of living?
Retirement Saving Fund EPF
Based on the latest announcement from EPF, the new quantum of Basic Savings will be increased from RM228,000 to RM240,000 starting from January 1, 2019. This means that RM240,000 is the minimum target EPF basic savings members should have upon reaching the age of 55.
Table 1 shows the targeted amount for EPF members who do not withdraw any savings in their EPF account until the age of 55. However, ever since the Covid-19 pandemic, many individuals were affected and lost their main source of income. Therefore, the EPF introduced i-Sinar and i-Citra applications for members to withdraw their savings from EPF accounts as an alternative to obtain additional funds to cover living expenses.
| AGE | BASIC SAVINGS QUANTUM | AGE | BASIC SAVINGS QUANTUM |
| 18 | 2,000 | 37 | 68,000 |
| 19 | 4,000 | 38 | 74,000 |
| 20 | 6,000 | 39 | 80,000 |
| 21 | 8,000 | 40 | 86,000 |
| 22 | 10,000 | 41 | 93,000 |
| 23 | 13,000 | 42 | 101,000 |
| 24 | 15,000 | 43 | 108,000 |
| 25 | 18,000 | 44 | 116,000 |
| 26 | 21,000 | 45 | 125,000 |
| 27 | 24,000 | 46 | 134,000 |
| 28 | 27,000 | 47 | 144,000 |
| 29 | 31,000 | 48 | 154,000 |
| 30 | 35,000 | 49 | 164,000 |
| 31 | 39,000 | 50 | 175,000 |
| 32 | 43,000 | 51 | 187,000 |
| 33 | 47,000 | 52 | 199,000 |
| 34 | 52,000 | 53 | 212,000 |
| 35 | 57,000 | 54 | 226,000 |
| 36 | 62,000 | 55 | 240,000 |
Table 1: The Basic Savings Schedule Based On Age (Source: KWSP)
There is no doubt that the withdrawal of i-Sinar and i-Citra serves as a great assistance to the affected members. However, this solution is not ideal for the long term as it reduces the balance of savings in their account. Afterall, the fund in the account serves as your pension fund for your retired days.
Last September, the EPF released a concerning data stating that 46% of Malaysian EPF members aged 55 and below owns a savings balance of less than RM10,000.
If you don’t make any withdrawals, you may be able to reach the savings target as shown in Table 1. However, for those who have previously made withdrawals, it is important for you to know that apart from EPF savings, there are many other ‘places’ that you can build your retirement savings.
Don’t worry if you’ve withdrawn your EPF savings before because; sometimes it’s inevitable during this pandemic. In this article, we will share the 6 best investment platforms as your ‘backup plan’.
1. Tabung Haji
Don’t worry about saving or investing your money here because Perbadanan Insurans Deposit Malaysia (PIDM) guarantees protection in the event of institution failure.
In fact, this investment platform is also one of the most popular choices among Malaysians if they want to perform Hajj in Mecca.
Therefore, while you save for your retirement, you will also have enough money to fulfill the 5th pillar of Islam. It’s conveniently killing two birds with one stone.
2. Amanah Saham Bumiputera (ASB)
This is also one of the investment platforms to grow your money apart from your savings in the EPF. This is because it is consistent in giving a fruitful dividend every year which is a return of 5% and above.
So, you can consider how to save money in ASB as this is great for long term investment.
Moreover, recently ASB has just announced an online only account registration facility. If you still don’t have an ASB account, just download the app and follow the next steps to sign up easily.
In addition to retirement savings, ASB savings can also be used as a savings instrument for your child, especially for their education savings in the future.
3. Gold Investment
The price of one gram of gold in 2009 was RM133. But, did you know that the price of a gram of gold today (after 11 years) increased to RM245.
The difference is about RM112 if you invest 11 years ago. So, just imagine if you consistently save gram by gram and by the end of your retirement you can own about 100 grams of gold.
The price of gold at that time will probably shoot up to RM300 per gram and you may not even need to use your EPF funds to cover your daily living for the first 5 years.
4. Unit Trust (UT) or Unit Amanah
Not many individuals know about unit trust and invests in it compared to other investment platforms in Malaysia. Perhaps, unit trust could potentially be something beneficial to you if it is utilized correctly.
Usually, the goal set for this type of savings is more towards long term investment. Maybe for some of you who are familiar with ASB, it is also a unit trust but for a shorter term.
Ideally, there would be a consultant who would monitor your unit trust investment account. This consultant will be your advisor on when is the right time for you to invest more or when to sell off your funds.
5. Property Investment
This investment can be quite risky but if anyone that has solid knowledge and is willing to invest in this platform, believe me it will provide you a high return in the long run. So, before you venture into real estate investment, equip yourself with sufficient knowledge about it to avoid any unwanted losses later on.
In fact, there are many free financial advice that you can refer to whether it is so save money or to invest.
Join Facebook groups, watch YouTube videos or TikTok. There are so many free resources online for you to explore and make full use of it.
Set your intentions right. Always believe that learning is a lifelong process. Start saving and investing today to secure a better tomorrow.
Watch this video for some of the best investment platform alternatives that can help you achieve your retirement goals.
6. Robo-Advisor
What is a Robo-Advisor? Robo-Advisor is a program that automatically manage its users’ investment portfolio. Programs like these typically use algorithms and artificial intelligence (AI) to invest for the client based on that data.
It automatically creates a portfolio for you based on your investment goals and potential risks and balances them on a regular basis.
Usually, robo-advisors in Malaysia will use your money to invest in exchange traded funds (ETFs), which are groups of bonds or other forms of investments.
However, each robo-advisor uses a different investment methodology and way. For example, the basic investment and allocation of your portfolio is different based on which robo-advisor platform you invest in.
As of April 2024, there is only 2 robo-advisor with shariah-compliant status in Malaysia which are Wahed Invest and Best Invest.
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