How to Invest in Stocks Malaysia [works GREAT from 2020] : beginner-friendly

How to really Invest in Stocks in Malaysia?

For your information, this is the most practical and highly actionable guide on the planet investing in Malaysia stocks.

The best part?

I am going to show you tips and techniques that work in your favor so you never again lose money in the share market due to own stupidity.

In short, if you want the to get consistent and predictable return from the Malaysia stocks market , you will love this guide.

Let’s get started.

how to invest in stocks

This is truly your fast-track guide to profitable stocks investing. Packed with actionable tips to invest in stocks, including opening brokerage account & buying the best dividend stocks.

In addition to investing directly by buying shares in the stock market, there are also other ways to invest into stocks indirectly in any stock market.

You see, there are a lot of misconceptions around because many newbies are taking stocks investing advice from all the unproven stocks investment gurus or trainers out there, telling you the only way to make big + fast money…

…is to invest directly into stock markets.

But NOT in this guide. Read more below to understand why.

Truth be told…

Some of these trainers probably made more money from promoting their stocks investment course/stock market course/stock trading course, rather than actually hands-on investing or managing million of clients money in the stock market.

Worse, some of them are only bloggers who only know how to write fantastic articles,  feeding you with theories and their own narrow one-man experience,  rather than practical,  diverse experience from a broad perspective.

My credibility in stock market investing comes from the fact that in addition to managing multi-millions equity investment portfolio for clients as an independent financial adviser (not a stock advisor or a value investing guru), I’m also sought after by corporate financial organizations (like fund houses, financial associations and reputable banks) for  my investment expertise,  to conduct workshops & seminars for their internal staff

One amateurish yet major blunder is when people classify unit trusts (mutual funds) and stocks as two different asset classes, comparing why stocks can give you higher investment returns than funds. Or even comparing robo advisor like Stashaway with stocks.

How misleading is that!

This lesson below will clear your misconception once and for all, before diving deep into the core contents below on how to invest in stocks in Malaysia.

How to Select Stocks to Invest into

Start within your circle of competency – what you are good at and have interest in. That could be your job or business. For example, if you work in the retail industry, start with F&B or consumer goods shares like Nestle, Padini, Berjaya Food, Starbucks etc

How can I Easily Start Investing in Stocks?

Start by opening a stocks brokerage online like Rakuten Trade, Once your account is verified and then funded, you can buy stock right away using the broker website or app in a matter of minutes.

How to Invest into the Most Profitable Stocks?

The most profitable stocks are companies that consistently distribute growing dividend year over year, such as REIT counters. Over long term holding period, getting extra capital gains will further boost your total profits.

i) What does it mean to invest money in stocks

Imagine you run a nasi lemak stall. Business is doing well, but you desire to expand.

The only problem?

You lack sufficient money to expand. (thank you Captain Obvious!)

The solution?

Raise money la by prospecting to qualified investors who are willing to give you money, in exchange for parts of your nasi lemak stall ownership.

Let’s say you retain enough stake so that you still have the final say on how to run your business, if no single investor or group of investors buy and hold sufficient ownership in your nasi lemak stall to boss you around.

After all, your investors aren’t looking to run your business, they just want to share the proportionate profits you generate from your nasi lemak stall, in return for the capital invested.

Now, you reverse the role, imagine you ARE the investor of the nasi lemak stall.

That is the position you are in when you are a stocks investors.

The fact is…

For many people, buying shares is the #1 thing they think of when it comes to investing and making fast cum easy money in Malaysia.

But they lack the how-to’s, assuming it’s rocket science or treat it as gambling.

Not to mention, getting into stocks investing with the wrong mindset.

The other thing I perhaps can relate to what you are thinking is that when you first started…

I can bet you 100 ringgit that you feel stuck now is NOT due to….

…lack of information, but rather, you are overloaded by a barrage of messy web of information or misinformation…

…some of which are free, some paid,

…that you don’t know how to or where to start.

stocks investing readiness flow

Here’s the truth:

What’s really lacking is good, concise and actionable information you can use in the next 24 hours.


But not lose money (not that much, if ever).

Who has time to save up a few thousands ringgit to register for that 3 days stock investing seminar which is going to be conducted 3 weeks from now?


Don’t get me wrong, I am a huge proponent of learning the proper stocks investing how-to’s and methodology…

But I  believe more in ongoing hands-on learning, by starting small today and get better along the way.

If you agree, read on.

Question: How much do you need to start investing in stocks? What is the minimum amount to invest in stocks?

*1 Lot of Shares is equal to 100 units of Shares or Stocks in Malaysian stock market. So you need an equivalent of stocks price per share multiplied 100 shares. In other share market, you can buy only 1 single share instead of  a cluster of 100 or 1000 shares

ii) Understand the category of stocks you can invest into

  • By geographical region: Local (Malaysia), US, Singapore, Asia Pacific, Japan, Euro, Emerging Market
  • By size (market capitalization of the stocks): Large Cap, Mid Cap, Small Cap
  • By sector: Consumer, Industrial, Finance, Plantation, Property, Services, Technology

Here’s a review of the stocks sectors you can invest in Bursa Malaysia

Due to the liquid nature of stocks investing, you can

  1. Day trade (buy & sell within the same day)…
  2. Be a short term trader (buy & sell within a week, for example)
  3. Buying and holding for a couple of years with or without reaping the dividend profits throughout your holding period

Here’s a frank comment:

It is stupid to be a day trader or a short term ‘investor’ (aka speculate on the stocks price) because if your intention is to invest and make money fast,

…then stocks market investing is a terrible, terrible way to do so it.

…because currency trading (be if FOREX or crypto-currency) is faster, without the home work needed.

iii) How to open trading account in Malaysia

How can I start buying stocks in Malaysia?

Where do I buy stocks?

How do you buy your first stock?

How do beginners invest in stocks?

How to open stock trading account?

How to open share trading account in Malaysia?

Steps to open a stock trading (CDS) account in Malaysia?

Here, you will learn how to invest in stocks, from start to finish, even if you have never done so before. I will walk you through 5 simple steps of opening an account, doing research, buying, holding and selling your stocks profitably.

  1. Open a CDS cum brokerage account and fund it

    The easiest way is to open an online stocks trading account, get your identify verified and pay RM 10 fee account opening fee.
    Transfer money into it and you are ready to invest.

  2. Do fundamental value investing analysis

    This is your research stage to determine the intrinsic value (aka fair value) of any listed company in a sector that is within your area of competency and interest. You want to pick undervalued stocks.

  3. Buy low at the right market timing

    Spot or wait for any stocks in your watch list that is below or within its fair value range. Or at least, great companies at a fair price.
    Buy in one tranche or separate into a few tranches.

  4. Monitor stocks price & hold for dividends

    Pay attention the stocks price movement every now and then, while keeping up-to-date with any news or recent developments related to the company you are invested into.

  5. Sell High & Reinvest

    A company stocks with growth prospects should appreciate in price over time. Once it is fairly or over-valued, sell it to reap the profit. May need to sell at a loss too if fundamentals deteriorate.

  6. Rinse and Repeat

    Use the same stocks investing strategy to continuously make consistent & compounded returns to grow your net worth.

Any authorized depository agents such as stocks brokerage firms or banks can help you open a Central Depository System (CDS) account. A trading account with stockbroker or banks will usually be opened simultaneously when you open the CDS account.

If you have multiple trading account, you have to open separate CDS account for each trading account. Sharing CDS account is prohibited

In short, a CDS account is an electronic account which is maintained by Bursa Depository. It is used to keep track or your shares or stocks movement. Shares will be credited to your account when you buy and debited from your account when you sell on due date.

Consideration #1: Online versus offline

Online: It’s no surprise that today you can enroll into some stock market courses online,  at the same time, stock trading itself has long been done online via self service trading platform. It has now evolved into apps form, where we reckon that is the way to go here rather than going through the offline way (through phone call with remisiers or dealer).

The main advantage of online trading Account over offline trading account is lower brokerage fee (transaction cost). For online trading account, you may call help-desk to start trading but they may impose high brokerage fee. Also note there is stamp duty and clearing fee involved for each stocks buy or sell transaction.

Offline (Manual): Please be expected to fill and sign in CDS Opening Account Form. At the same time you have to sign two copies of specimen cards.

Your stock broker will have a collection account for you to deposit your money into your stock broking account. Use online transfer of FPX payment via online banking. Easy peasy.

Consideration #2: Cash or Margin Account

Most brokers have an option for you to choose between Cash or Margin Account (aka Collateralized account).

For Cash account, total trading limit of the day is equal to the amount of cash you have in your trust account. The advantage of Cash account is lower brokerage fee.

How much lower?

It could be 2x to 4x lower, for example…

0.1% per trade transaction (excluding GST) for Cash account, versus 0.2% to 0.4% per trade transaction for Margin account.

For some stock brokers, the higher brokerage fees is only charged if margin is actually used in a Margin account, otherwise the fee defaults to lower cash account rate even though it is a Margin account.

For Margin Account, you are allowed to trade beyond the amount of cash that you have in trust account. Normally, broker allows at least 2 times the amount cash that you have.

On top of that, if you have shares in the attached CDS account, they also can be used as collateral to increase your trading limit.

I highly recommend you go for cash account for a start because as Warren Buffett said, you should not borrow money to invest.


Trust account is an account where your broker keep cash that you deposited. They may pay interest on the money keep in this account.

Consideration #3: Direct Accounts versus Nominee Account

For Nominee trading account, you appoint your broker to hold shares on your behalf.

It means that, when you are buying stocks of public listed entities and holding them, your name will not show on the registration book of existing shareholders directly, instead it will show your stock broker name.

The advantage is, you do not need to do any paperwork such as fill up forms for bonus issue, right entitlements and others.

The most important is your broker have to remember the dateline for all the paperwork, not you. But you still need to instruct them on what to do.

However, the disadvantage of nominee account are you are not eligible to apply for IPO and you may not receive the annual report or some gift vouchers easily.

Recommendation: Direct Accounts to keep things simple and be hands-on as a beginner.

Fastest Online Stocks Trading in Malaysia
The fastest and easiest method to start invest online in Malaysia is via opening a CDS + stocks brokerage account via Rakuten Trade.

You don’t even need to step out from your house or office using this method. And you can do this in record time – 10 minutes or less.

Seeing is believing, so I’ve recorded a step by step stock tutorial video below to show you how it’s done.

If you’re new, this could be the best stock trading tutorial you will come across for a long time. Heck, it could even beat some of those stock market courses online or value investing courses out there.

Online Brokerage Fees Comparison in Malaysia

By the way, do NOT even think of opening a stocks trading account with platform like eToro or WeBull which are not licensed and not registered for regulated stocks investing activities in Malaysia.

iv) How to start selecting the right stocks to invest into

You can shortlist by asking yourself:

What is my interest and/or circle of competence?

Trust me,

You might be tempted to be the Jack of all trades and try to tackle all sectors are there in the stock market…for the sake of picking the most profitable or undervalued sectors and stocks…

But this indiscriminate stocks picking approach will kill your you faster than you give up waking up 530 am every morning to run 10 km.

It’s a very long run, like a  marathon, NOT a 100 meters sprint.

Due to the above, you will start to feel stocks investing is a chore (it shouldn’t), and making matters worse, you will get frustrated when things didn’t work (especially the profit or returns went below your expectation)

You don’t have to believe me, so I welcome you to try to be ‘Jack of all Trades’

(then revisit this article after you give up in 1-2 years time)

micro stocks sector in Bursa Malaysia Rakuten Trade

The reality is – most of us already have limited time for the thing that we know (or we think you know) in our lives (like our career, etc)

So from prudent personal finance management perspective, I don’t see why we should burden ourselves with more things that is beyond our circle of competency for now, when you are just starting.

Check out some stock market tutorial available at our Youtube channel below.

With that being said, if you still have zero clues, then you don’t need to have a crystal ball to make predictions. Pick your poison from these 2 sectors:

Consumer Goods and Industrial Goods/Services

…in any stock market, regardless of market cap.

Then niche down to micro sector, just like when I pick Padini Holdings using Equities Tracker.

invest in stocks - niche down sector in stocks investing


Why Consumer Goods and Industrial Goods/Services sectors?

Because they are tied to 2 major components in Maslow’s hierarchy of needs, and that is food, clothing and shelter.

Regardless of economic or financial markets conditions or , company that produces boring goods for our day to day usage or consumption like eggs, coffee and other form of beverages (even alcohol or tobacco, although they are not Shariah compliant).

maslow-hierarchy of needs in stocks investing

Same goes for industrial goods or services utilized in commercial settings for constructing our homes, like  steel, pipes, rubber gloves, parts of electrical appliances, etc.

v) Why fundamental analysis is important to invest in profitable stocks

Fundamental analysis with the end goal of computing a listed company intrinsic value (and to some extent, the Price-Earnings or P/E ratio) is the core of long term value investing strategy or criteria.

Why intrinsic value?

With this informed estimation, you can determine if stocks is undervalued, fairly valued or over-valued.

Undervalued stock is one that is selling at a discounted price, relative to its ‘intrinsic value’ and vice-versa.

Veteran or aspiring stocks investor always want to look for undervalued stocks in the hopes that they will eventually rise to reflect their intrinsic value.

That being said, different investors have different valuation methodologies to calculate intrinsic value. Therefore, advise you not to lose sleep over the best or the right way to come to an intrinsic value. Even experts themselves have differing opinion when presented the same financial data of a public-listed company.

However, without fundamental analysis, you are driven by 2 primitive things, just like most people are, the moment you step into the share market:



When the economy improves, people become bullish about the market.

Greed will cause 3 things in most people:

  • Boost their confidence to the point of arrogance
  • Stimulate risk-seeking behavior,
  • Motivate them to chase the winners

If you are one of the people affected by these, it will blind your judgement and subsequently result in poor decision making.

As most people are fixated to short term gains when prices are rising, they are more than willing to purchase stocks overpriced.

…which results in the prices of the stocks being bid up to an overvalued level.

You mustn’t fall into this trap.

the stock market emotional roller coaster

How NOT to fall into such psychological trap?

Well, one major factor why people are vulnerable to losing money in the share market is that they use emotion in their decision making process.

Compared to systematic and logical approach, this method requires no work.

It’s effortless.

Instead of performing due diligence, such as analyzing the underlying business performance, profit growth prospects and value of the business, emotional decision-making uses some mental short-cuts based on similarity & familiarity to judge what the market will do next.

For example, when you receive some negative news of a stock, it will link the news to price falling and will trigger the fear of loss. In such case, the most natural reaction is to sell the stock without investigating further.

The massive disposal of a stock will then lead to its price plunging. Likewise, the fear of loss also causes people to ignore bargain.

See the downfall of NOT doing any fundamental analysis?

Your mind have not information it needs to think clearly, and as a result, you tend to sell stocks in panic when prices crash.

Here’s a fact

When stocks price nosedive, the innate fear of losing in human will be triggered.

The self-defense mechanism then kicks in immediately.

People will suddenly become risk averse.

In addition, the exaggerated bad news cast over the media will result in extreme stress, further triggering the fight or flight response in that primitive reptile part of your brain .

reptile brain in stocks investing

When the emotions are combined with the herding mental shortcut (belief of following other people selling is safer than doing it differently), it leads to panic selling, as the depressed investors unwittingly allow their emotion to overcome rational thinking in the decision-making process.

This explains why the speed of stock price falling is much faster than that of its price rising.

emotions investing in stock market

This matter is compounded when most of the investors do not like to read financial reports; many of them do not even bother to understand the companies’ businesses

…and hence do not know the actual worth of the businesses when they bought the stocks.

They buy the stocks solely based on hype and hope that the stocks price will double in 12 months.

During economic crisis, when everyone rushes to sell the stocks and analysts also give strong sell recommendations; whatever you fear will be validated and therefore you will rush to liquidate their positions hastily to prevent further loss.

In a book titled The Little Book of Value Investing, Christopher Browne stated that

“Most people seek immediate gratification in almost everything they do including investing. When most investors buy a stock, they expect it to go up immediately. If it doesn’t, they sell it and buy something else.”

This statement is further supported by Robert Cialdini that

“Quite frequently the crowd is mistaken because they are not acting on the basis of any superior information, but are reacting, themselves, to the principle of social proof.”

The myopia always leads to ignorance of the underlying business and overemphasis of short-term gain.

In summary, when the hot stocks lose their momentum and heading south, uninformed investors will be spooked by the selloff and tend to sell immediately at a loss.

Therefore, it is hardly surprising that most people have never even won a cent in their investments.

vi) How to invest into the best dividend paying stocks

A newbie misconception that you probably have to go through is –

The more research or homework you do in your share market investing, the better you are to get the results (return) that you desire.


If you are thinking of (KLSE) value investing in Malaysia ala Warren Buffett, you got to apply what I call as ‘strategic value investing’.

It means, not being a value investing 101 professor who only knows value investing formula or theories but instead,  being a practical world-view investor who also knows business trends and globalization.

Knowing all the stock investing or trading strategies in the stock market can only get you so far.

In other words,

You need to realize that despite all hard work put in, you may still suffer short term paper losses.

And it’s not because you are dumb, lazy or not trying hard enough,

It’s because there are factors beyond your control, like geopolitical risks and black swan events.

But if you are patient, deliberate, methodical with a long term time horizon…

Then the stock market will reward you many folds.

Watch this lesson below.

By the way, here’s an example of a negative Black swan events affecting your stocks investing returns.

Black swan events that happened to stocks investing in Bursa Malaysia: Case study #1

Imagination Technologies Group, a UK-based designer of mobile graphics processors suffered massive stocks price drop in April 2017 and subsequently put itself up for sale in June 2017, soon after Apple, its largest customer and one of its biggest shareholders, said it would phase out use of its technology in products including the iPhone.

No amount of studying its annual reports (aka stocks fundamental analysis) or doing technical analysis for the sake of determining the stocks is a good buy could have prevented calamity.

In other words, even if you are so sure that the stocks is undervalued at the point you bought it, you will still be subject to huge, unexpected financial loss.

share market investing black swan event 1
share market investing black swan event 2

Another example of a black swan event, but a positive one, coupled a hint of geopolitical element (note: political risks had always been the major driver of stock price in short term)


Black swan events that happened to stocks investing in Bursa Malaysia : Case study #2

Thai’s apology to Najib lifts Supermax

Former Supermax Corporation Bhd managing director Datuk Seri Stanley Thai has apologised to Prime Minister Datuk Seri Najib Razak for his involvement in Malaysian politics.

Again, no amount of analyzing annual reports or financial reports or technical analysis could have predicted this.

Black swan events that happened to stocks investing in Bursa Malaysia : Case study #3

RPT erases RM 2.6b from Genting Malaysia market cap in one day

Corporate actions such as Related Party Transactions which does not benefit minority shareholders will send stocks price tumbling like no end.  Even if you are a conglomerate like Genting (the only casino operator in Malaysia)

vii) How to Invest during Recession

viii) Best Stocks to Buy during a Stock Market Crash / Crisis / Recession

Truth be told,

The pain of waiting your paper-loss investment to go back up without the ability to do anything productive is excruciating.

Except doing something, anything stupid like panic or depression-induced selling.

Which is why most people does exactly that, because there’s nothing else to do!

If you think a stock is undervalued, it could just be what you think. If everyone else agree with you at a later date, you win. But if everyone else disagree with you after you bought in, you lose, BIG TIME. So sometimes it really doesn’t matter what you think, and in stocks investing, you just have to live with the fact that sometimes, you win some, and at other times, you lose some. What matters is to learn whatever which has occurred, move on and hopefully make better stocks investment decision going forward. Make it part of your life, not your entire life.

The solution the the conundrum of stocks investing above?

Cushion your stocks investment portfolio with consistent and guaranteed dividends (cash flow), even in the worst of times.

Treat it like a consolation price, if you may.

But Why Dividend Paying Stocks?

There are a few reasons WHY:

1: Investing in Dividends Paying Stocks provides High Certainty & Predictability

Dividend income is more predictable than projecting capital gains. After all, dividends are realized cash whereas capital gains are merely on unrealized paper gains and they are subjected to changes on a daily basis.

In other words, your investment returns would not fluctuate depending on the mood or sentiment of Mr Market.

Instead, you’ll reap the certainty of hard cold cash flowing into your bank account regularly if you choose to invest for dividends.

2: Investing in Dividends Paying Stocks Pay Your Monthly Bills

This is true and logical.

Regular dividends stream pay your fixed bills. This includes your rent, mortgage, car loan, utility bills, Astro, insurance and grocery.

After you had the above covered, it is nice to have the dividends cover your discretionary expenses like dining at fancy restaurant, going to movies, dating, or an overseas vacation.

Again, this is only applicable for investors who are receiving dividend income regularly, not one who is for capital gains where their gains are mostly on ‘paper’, if any.

#3: Investing in Dividends Paying Stocks Boasts Your Confidence

It is customary to receive your first dividend income into your bank accounts within 3 – 6 months after purchasing a dividend paying stocks.

Subsequently, based on the amount of stocks unit purchased, you would continue to receive dividends either on a quarterly or semi-annually basis.

Picture this.

If you are a beginner investor and had started to receive cash returns every 3 months once from your portfolio, you would probably get a fine dose of ego boast about it regardless even if  the price of your stock is down.

Psychologically speaking, the stock you bought is ‘good for something’ and it incentivizes you to keep it over the long-term.

#4: Investing in Dividend Paying Stocks comes with much Lower Risk

A quick definition of  a good stock investment is when the stock has great fundamentals coupled with an undervalued price.

Often, stocks which are consistent in their dividend payouts possess great fundamentals.

These include:

  • Resilient business model,
  • Competent management team,
  • Healthy balance sheet
  • Strong cash flow
  • Proven track record of growing profits consistently.

As a result, you minimize your risk or chances of making poor investment decisions if you just stick to stocks that have the qualities above.

With lesser investment risks, it ensure your long term financial plan and post-retirement financial independence is intact amidst the volatility in the financial markets.

#5: Investing in Dividends Stocks Builds Up Your Portfolio

Now if you are currently making tons of money and do not need to rely on dividends to fund your current lifestyle, then it could accelerate your wealth accumulation.


Because you could reinvest your dividend income into another dividend stock,  and this enables you to further expand your portfolio (aka the ‘stacking’ effect).

In other words, over time, you may not need to save money to invest, but instead, using more dividends to fund your future investment. It works like a flywheel effect where you use profits to generate more profits.

#6: Investing in Dividend Stocks removes the need for Capital Gains?

Does it mean that investing for capital gains is no longer relevant once you receive good dividends from your stocks investing?

Of course no.

Investing for stocks capital gains is great if you are more sophisticated as an investor.

This means, if you are a skilled stocks investor (like Koon Yew Yin), then, your chances of achieving capital gains will be greater than one who has no skill at all.

In most cases, people who are into quick capital gains but without any sort of fundamental and/or technical analysis skills are often gamblers and speculators in the stock market.

They are often thrill-seekers who treat any stock market a big legal casino.

They are absolutely not long term profit-driven, which is completely a different mindset with stock investors as they are very short term profit-driven.

Learn more: Why Trading Stocks & Treating the Stock Market like a Casino Does NOT Work

#7: Investing in  Stocks is Investing with Clarity

How differentiate between an investor and a speculator?

It is shockingly but incredibly easy.

If you interrogate a person who claimed he is investing for capital gains, then probe further:

‘How much capital gains are you expecting?’

If his reply is: ‘As high as possible la, abuden!’

..which is quite a norm reply, coming from a stocks ‘investor’ with a speculative mindset.

On the contrary,  true investors had already calculated and possess reasonable goal for their expected returns before buying into a stock or any investment.

For instance, if you ask a dividend guy what he is investing for, you are likely to hear him say:

‘I’m expecting to make at least 5-8% annually from this stock investment over a period of 5 years or more’

Definitely, he is investing with clarity and with purpose, not so much into luck, rumours, random tips, or hear says.

A speculator becomes an investor when the trades are not working out. As a result, he holds on and assumes himself an investor.

An investor becomes a speculator when he invests in companies not because of the company’s fundamentals but because of potential quick gains.

#8: Investing in Dividend Stocks does NOT require you to be a Rocket Scientist

Dividend investing helps beginner investors to make stock investment decisions easier, faster and better.

These decisions made are mostly based on facts and figures, logic, and common sense.

Thus, if you can do some simple mathematical calculation, you can become successful in dividend investing – easy peasy.

Here’s a quick way to determine whether a stock is undervalued or overpriced.

Obviously, the reason why people invest in stocks market is to earn more than how much banks are promising in Fixed Deposits, which is around 3%.

Put simply, any stock with dividend yields below 3% is overpriced. On the flip side, if the dividend yield of a stock is 5% and above, stocks investors may look into it as it is considered to be undervalued at its current price.

In a nutshell, dividend investing is a simple but the best stock trading strategy which promotes investor, even the new ones,  to ‘Buy Low, Hold for Dividends, and Sell High.’

#9: Dividend Investing is Investing for Capital Gains

What? This seems like contradicting statement.

No, there’s no typo here.

Stocks with consistent dividend payouts are in demand by a larger pool of investors.

Institutional investors like KWSP, pension funds, Tabung Haji, insurers and mutual funds literally need dividend paying stocks in their portfolio for long term stability.

It’s simple economics – anything that is in demand by many, including stocks, will appreciate both in price & value.

These institutions have billions and are still receiving billions of dividends from the amount invested.

In times when the markets are uncertain and volatile, institutional investors need to adopt a defensive stance to their portfolio but they are expected to still deliver returns to their stakeholders.

It may explain why dividend stocks tend to achieve sustainable capital appreciation over the long-term.

That being said, the best way to cushion your stocks investment portfolio is via exposure to the REIT sector in the stock market.


Compared to conventional dividends from any public listed companies, stocks dividends (distributions) from real estate investment trusts possess these traits unavailable in any other stocks sectors

  • Guaranteed consistency
  • Guaranteed high payout ratio
  • Inflation hedged
  • High Pricing power

What is Malaysia Best Investment Returns?

Malaysia’s best investment return over the long term definitely lies in the form of consistent dividend paying stocks. 

Whatever happens to your investment capital, you are still getting your returns in the form of dividends.

The best dividend paying stocks are Malaysian REIT stocks, because it is the only stocks sector which can guarantee a quarterly or half yearly dividend payouts regardless of bull or bear markets.

I will also consider the best investment return is the an investment that does not risk of dropping as much as the broader market.

For example, an investment which drops 50% needs 100% gain just to break-even.  But an investment which drops 25% just needs 33% gain to break-even.

The only way to reduce downside risk is by having a guaranteed dividends attached to an investment even if it is affected by market drop. And the only investment that comes with guaranteed dividends in Malaysia or anywhere in the world are REIT stocks.

Now It’s Your Turn

Phew! I put A TON of work into this guide. So I hope you enjoyed it.

Now I’d like to hear what you have to say.

What’s the sector you prefer investing in Malaysia and why?

Is it Consumer Goods stocks? Industrial goods stocks? or REIT stocks?

Let me know by leaving a comment below.

Related resources (but not comprehensive enough):

Investing Basics: How to Trade Stocks in Bursa Malaysia

Beginner’s Guide to Investing in Malaysia

Why Invest in Stocks? Money tips from Bursa Malaysia

How to Start Trading on the Malaysian stock market

Young investors – Getting Started – Beginner’s Guide to Investing

What can you invest with RM1000? – A quick guide

How to buy shares in Malaysia and open a Malaysian brokerages

Stock Investment Course Malaysia

The Best Stock Trading & Stock Investment Books (also for stock market beginners)

How to Invest on Malaysian Stock Market (Money Compass)

This Post Has 79 Comments

  1. Shobana

    Hi Sir,
    You didn’t explain anything about bank stocks. Please give some input on it.

    1. CF Lieu

      What about bank stocks when there are so many options out there? 🙂

  2. Sodium Chloride

    Thank you very much for this comprehensive article, really helped me to see a picture of how investing in shares is!

    1. CF Lieu

      Awesome to hear your feedback!

  3. mira

    Thanks for the great information provided! 

  4. Claudia Davis

    Best guide I came across so far, thanks!

  5. Alfred

    Do you need a loan? We give out all kind of loan such as debt loan, business loan, medical loan, home loan, student loan .Contact us [censored]

    WhatsApp us for quick response or Call or Text asap : [censored]

    Best Regards
    Alfred Shock

  6. Alf

    What is the best platform to buy stock in Malaysia? Or mayb name a few good ones? And also which one has the best phone app?

    1. CF Lieu

      Ar you’re asking on the context of – which platform I can open an account without any hardcopy paperwork, and without leaving my desk + chair? 🙂

  7. Jonathan

    Any form of loss of money while investing in stocks, forex, binary option or crypto is a painful thing most especially when you had high hopes on such an investment. I personally lost 72k€ over a year of investing in binary option and forex. Luckily for me I found it was all a scam and I fought to get my money back

  8. cavy

    Very informative articles and videos!! Thank you!!!

    1. Sherra

      A good introduction to investing. Thank you very much!

      1. CF Lieu

        awesome, thanks for your feedback. Which part you find most useful? 🙂

  9. Jennifer Coleman

    Just the kind of resources I need as a Malaysian expat, thanks

  10. Rose Lily

    Unbelievable number of valuable video lesson here! thanks and keep it up

  11. Brad Lohhy

    Work from home

  12. brian F

    Your Youtube channel is full of great lessons, keep it up

  13. claCK

    Best lesson so far I came across, thanks

    1. herber m. fowler

      Thanks for showcasing the reality of a 3 figures percentage again

  14. Lee XY

    Thanks for the easy to comprehend video lesson, keep up the good work!

  15. David

    Thanks for the really comprehensive write-up!  

  16. bruce david

    Hello everyone..Welcome to my free masterclass strategy where i teach experience and inexperience traders the secret behind a successful trade.And how to be profitable in trading I will also teach you how to make a profit of $12,000 USD weekly and how to get back all your lost funds feel free to email me on( deleted ) or whataspp number is [deleted]

    1. Marcos Xavier

      Great work! The content is really filled with a lot of fundamental information for beginners. Well done. What would be your views to trade through Maybank 2u…Lieu…
      Any success stories to be shared.

      1. CF Lieu

        thanks! for your kind feedback. Well, there’s equal number of success and failure stories – that’s part and parcel of learning (aka ‘paying the tuition fees’). Recommend you check this out as well! –

  17. CNF

    Thanks for coming up with such a comprehensive guide which I can actually use

  18. ronald williams

    I agree this is truly a world class content piece

  19. Faeiz

    Whew, world-class content there LCF!
    I guess I am too late to find this one.
    Looking forward to your new content!

    1. CF Lieu

      Thank you for your utmost kind words and compliment Faeiz, that means a lot

  20. Ankur Anand

    Thanks for sharing the post. The way you narrated the post is good and understanding. After reading this post I learned some new things. Please let me know for the upcoming posts.

  21. Harith

    Thank you so much for this, as a student who wishes to start building a long term investment portfolio as a safety net in the future, this guide explains the benefits and the methods I’ve been scouring the net for, lucky I didn’t end up following ridiculous online get rich quick webinars, cheers!

    1. CF Lieu

      Harith thank you for your kind words and compliment! Which part of this article you like the most?

  22. Naim

    This is informative and a lot of hard work has been put to make this article. Thanks!

    1. CF Lieu

      Thank you Naim for your comments! Appreciate you!

  23. Junn

    I’m Junn, from UOB Kay Hian.

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    As low as just ** 0.1% or MIN RM 8 ** brokerage fees
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    1) SEMINAR (physically / learning online)
    – A to Z training from platform training to fundamental or technical analysis seminars.

    2) Private WhatsApp group providing trading ideas.

    3) Foreign markets accessible (US, HK, SGX)

    4) Robot orders (Stop Limit & Limit if Touch)
    – System help execute orders while you’re working.

    – Technical Screener & real-time charting software.

    6) RESEARCH REPORT (covered US, HK, SG, M’sia market)
    – From whole market, sector, to particular listed company.

    7) IDSS (intraday short selling)

    6) Provide 2.38% interest per annum in trust account.

    Never ask never know, any inquiries please WhatsApp me via: or call 016-2413 687

    Happy trading/investing.

    1. CF Lieu

      Nice, is there a demo of UOB Kay Hian brokerage account?

  24. Mrs. Stacy

    I am Mrs Stacy, i want to invest in any business in good faith I have equity capital for profitable investment. Get back to me via email: [email protected] with your business proposal or your project plans for review.

    Mrs Stacy

  25. Zafur Akhlaque

    Hi, I live in karachi, Pakistan. How can I invest in Malaysian REITs. Please provide complete details. Thanks in advance.

    I really liked your article.

    1. CF Lieu

      Zafur, thanks for your compliment. First step is – are you able to open a bank account in Malaysia? If you can, then you can invest in Malaysian REITs 🙂

  26. Tracy

    What r the potential REIT to invest now? Better go to Bursa Centre o open account online?

    1. CF Lieu

      Hey Tracy, there’s no ‘Bursa Center’ as you put it. There’s only Bursa Malaysia, which you need to have a CDS account. To do that, you approach a stocks broker – conventional ones are bank-linked like Public or Hong Leong eBroking – they will link you with Bursa and open the CDS account for you as well. Alternatively, you can do it 100% online like RakutenTrade.

      To understand on the potential of REITs, I’d highly recommend you check out the online class we conduct weekly –

  27. Kevin

    Would you please recommend a broker that has good mobile platform to use? Thank you. Rakuten looks popular but I kind of worry dealing with institution that is not solid and established. Example, rhb wont go away anytime soon. But rakuten, I am personally not convinced they’re reliable. Pardon me if I’m wrong here.
    I don’t plan to trade frequent, but aiming for dividend. Thank you.

    1. CF Lieu

      Hi Kevin, if you don’t trade often, then you don’t need a good mobile stocks brokerage platform (an app). The best way to view your stock holdings is still via the stocks brokerage website, which is perhaps one of the reason, conventional bank-backed stocks brokerage focus on enhancing their trading platform, but not the app.

      Does this make sense? Question?

  28. Yessaya

    Can cover Lam Soon Berhad.
    Go to their website

    1. CF Lieu

      What do you mean?

  29. Lauren Kent

    I was really against bitcoin at first until I decided to give it a try, Mark made me see the light in investing in bitcoin. I’m really glad I did because it changed my life. Mark is a trusted and genuine trader and I can vouch for him. Get in touch with him [email protected].

  30. Nur HA

    Thank you for sharing this article. Very informative and it really help for beginner like myself. Even how to set up a CDS account. Thank you, sir!
    So to answer your last question..I may put my investment on industrial goods like..plastics or gloves? What do you think?

    While waiting for your reply, I’m going to read the next article about what to invest with rm1000. 😉

    1. CF Lieu

      Nur Ha, you are most welcome. That sounds splendid for a start but you want to know the industry well and preferably have much interest into it.


    This is so much great info you have covered here! Any suggested investment for 2019 trend?

    1. CF Lieu

      Yes, KISS – keep it simple stupid 🙂

  32. Frank Briggs

    Do you need an urgent investor, a binary trader and a bitcoin miner? Contact us by email to get more information about our investment service. email: [email protected]

  33. mywebsite

    Can I simply just say what a relief to discover somebody who genuinely knows what they’re talking about on the
    net. You certainly realize how to bring a problem to light and make it
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    It’s surprising you are not more popular given that you surely possess the gift.

    1. CF Lieu

      thank you!

  34. Selva

    “How to really Invest in Stocks in Malaysia?” I’ve search for it for few months to really understand about stock investment and how it really works. The title and the content are really related compare to some other articles that I came across. It builds our confident and aware of pros and cons. Thank you for sharing the great information.

    1. CF Lieu

      Thank you for your compliments Selva!

    2. CF Lieu

      Great to hear!

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  36. Syahri Rusli

    Is there any stocks in Bursa Malaysia which pay monthly dividend?

    1. CF Lieu

      Hey Syahri, unfortunately NO 🙁 Why?

  37. gelo buendia

    Anaconda sold 4,330 ounces of gold in Q2 2018, generating metal revenue of $7.4 million at an average realized gold price* of $1,695 per ounce; the Company also generated $0.1 million from the sale of aggregates.
    Strong revenue and lower costs enabled the Point Rousse Project to generate EBITDA* of $3.3 million for the second quarter of 2018, and $6.6 million for the first half of 2018.
    Operating cash costs per ounce sold* at the Point Rousse Project in the three and six months ended June 30, 2018 were $872 (US$675) and $885 (US$693), respectively.
    The Company has revised its 2018 annual guidance for operating cash costs per ounce sold from $1,100 to below $1,000, as a result of the strong operational performance from the first half of 2018, as well as the forecasted operating cost profile as the Company fully transitions to higher-grade production from Stog’er Tight.
    On a consolidated basis, EBITDA* for the three and six months ended June 30, 2018 was $2.3 million and $4.6 million, respectively, compared with $3.0 million and $3.6 million in the comparative periods.
    All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, were $1,360 (US$1,053) and $1,368 (US$1,071) for the three and six months ended June 30, 2018.
    In the first half of 2018, the Company invested $2.7 million in its exploration and development projects, including $2.0 million on the Goldboro Gold Project in Nova Scotia.
    Net loss for the three months ended June 30, 2018 was $549,543, or $0.01 per share, which included transaction costs related to the takeover bid for Maritime Resources Corp. (“Maritime”) of $740,018, or $0.01 per share. Excluding transaction costs, Q2 2018 net income was $190,475, or $0.00 per share.
    As at June 30, 2018, the Company had a cash balance of $7.9 million, net working capital* of $9.9 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.
    Anaconda successfully completed a non-brokered private placement for $4.5 million in June 2018, which will enable continued drilling at the Goldboro Gold Project, the Argyle Deposit, and other prospective targets at the Point Rousse Project.

  38. gelo buendia

    TORONTO, June 15, 2018 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) will host a live video webcast on Wednesday, June 20, 2018 at 10:00 a.m. EST in connection with the Company’s formal offer (the “Offer”) to acquire all of the issued and outstanding common shares (“Maritime Shares”) of Maritime Resources Corp. (TSX-V:MAE) (“Maritime”), together with the associated rights (the “SRP Rights”) issued under the shareholder rights plan of Maritime dated March 15, 2018, in exchange for consideration of 0.390 of an Anaconda common share for each Maritime Share.

  39. Can I just say what a comfort to uncover somebody that truly understands what they are talking about over the internet.
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    I was surprised that you’re not more popular since you most certainly possess the gift.

  40. soon yuan

    REIT, steady and potentially growth for beginner like. Thank you for the effort and sharing of knowledge.
    Happy investing

    1. CF Lieu

      thanks for stopping by soon yuan! happy investing to you too!

  41. Gopal

    Thank you so much for your detail explanation.

    1. CF Lieu

      Glad you find it useful! Do subscribe for our FOC 4 weeks investing course at the top of this page.

  42. It’s a shame you don’t have a donate button! I’d most certainly donate
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  43. Ezra Grey

    DO not invest in Binary options, they tell you sweet things when it comes to putting money in, but when you want to take out your money they become horrible and easily unavailable. I lost a total of 632,000$ to various binary options companies, one might call me a fool looking back at the time I definitely feel that way but my intentions was just trying to make more money with my money. During this perilous times after this brokers had taken all I had, was lucky enough that I came across Binaryoptionrecoveryspecialist (dot)-(com), within a week I was able to have my funds recovered to me, can’t thank you enough and even though there means of recovery are discreet, I just had to put this out there to help all others in the same situation.


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  46. Franklin Morais

    Thank you. Very clear. No B S.

    1. CF Lieu

      Glad you found it so Franklin!

  47. I was just browsing through the internet looking for some information about how to invest in stock market? and came across your blog. I am impressed by the information that you have on this blog not all blogger share this.

    It shows how well you understand this subject. Bookmarked this page, will come back for more.

    1. CF Lieu

      Appreciate your comments

  48. ML

    Rakuten Trade seems to be pretty new in town, may I know if you could recommend another one? Is it better to open with existing bank account? What are the things to consider when choosing?

    1. CF Lieu

      ML, HLebroking is recommended too. Low brokerage fees (circa 0.10%) is one thing to consider if you trade frequently

  49. TharmaD

    I would like for my nieces to participate in Financial Planning of some sort. They are 21 this year and I was hoping to provide them with the foundation/knowledge of Financial Planning.

    I wan them to understand how to be financially sound and what they should start doing after they finish their Education. Most of us start working and start spending. However, with knowledge, they will learn to invest their money for their future as well.

    I am not certain if I am at the right place. Hope to hear form you soon. Thank you.

    1. CF Lieu

      Tharma, I see you already subscribed to our free 3 weeks email course on investing. For anyone reading this, you are encouraged to too, it’s free so you have nothing to lose.

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