2022 Guide to Stock Investment in Malaysia

  • by Money Life Research
2022 Guide to Stock Investment in Malaysia


Are you looking forward to a satisfactory amount of passive income to manage your expenses? We are here to furnish a few recommendations and tips which shall enable you to safely decide about stock investment in Malaysia. We are certain that all your intimidating questions and dilemmas shall be addressed through this post.

We’ve noticed several individuals are unaware of how to go ahead with stock investment in Malaysia. We are here to address your concerns.

Bursa Malaysia is the integrated exchange of Malaysia. They offer all the exchange-associated services which comprise trading options, clearing stocks, and payments, determining settlement and depository services.

Here are a few guiding tips that you should be knowing before involving yourself in the Stock Investment market in Malaysia.

Tip 1:

Equip yourself with ample knowledge about the different Investing Terminologies.

Tip 2:

Stock investments in Malaysia are always done in lots. A minimum of 1 lot is required for you to start as an investor. One lot is equal to 100 shares in the Stock Investment market in Malaysia.

Tip 3:

There are price limits for each stock which can go up or down on a particular day. They are referred to as Limit ups and limit downs.

Tip 4:

When the price of those stocks which are below RM1, the upper limit is circumscribed at +30 sen and the lower limit is positioned at -15 sen.

Tip 5:

You are required to open a Direct  Central Depository System Account or a Nominee Direct  Central Depository System Account which is a Trading Account for Stock Investment.

Tip 6:

Choose your account type – Cash account or margin account. A cash account facilitates you to buy shares on cash transactions, Margin account permits you to borrow funds to transact the shares. Unless you are experienced and assured of your trading capabilities, choosing a margin account type is not recommended.

Tip 7:

Remember to initiate the execution of trading the stocks with the lowest amount. Starting small is always safe.

TIP 8:

When the shares are held past the ex-dividend date, they are entitled to receive dividends. However, prices of the stocks tend to drop post the ex-dates. So be cautious and be vigilant to either hold or sell the shares. Constant observance of the stock prices shall help in this situation.

Tip 9:

Invest in those stocks that provide steady dividends. The simplest method to pick the stocks is to notice the products that are being sold regularly. Picking the stocks of those major companies is a recommended suggestion.

Tip 10:

Explore extensively the valuation methods to decide on the appropriate options of transacting in stock investment. Exploring the valuation methods shall also facilitate you to choose within your risk appetite.

Tip 11:

Capital dividends earned from your stocks are not taxable in Malaysia. It means that your stock value increases with capital gains. Capital gains are realized along with selling the stocks. The company which pays the dividend would have already paid the tax before they initiated the distribution to their shareholders.

Tip 12:

Long Term investments are always recommended as a short-term investment is not preferred in the prospect of investing. As a newbie investor, if you use your little savings to start investing, you can liquidate your investment and dispose of the shares with the long-term value investing option. 

Final notes:

Before you start with your investments, always have an emergency fund set up to help you in times of deep need. Happy investing newbie investors!!

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