Investing in Malaysia
Investing in Malaysia
Malaysia is becoming the hottest place for investors in 2016. “I like it here” is the general response of the investors who come to Malaysia to invest in various kinds of projects. With a healthy economy, sophisticated workforce, supportive government and good infrastructure, Malaysia is one of the most attractive top-list destination for potential investors.
Malaysia is ranked as the country with 14th most competitive economy and has been given 6th position by the World Bank for being the easiest country to do business in. It has a newly industrialized and state-centric economy.
The risk that investors face here is mainly due to the country’s political conditions and deficits. In 2008, the political tensions and electoral issues became the cause of an economic crisis which introduced instability to the country’s economic image and has lead the investors to be more cautious in the future.
For foreign investors, the easiest way to invest in Malaysia is ETFs (Exchange-Traded Funds). Other choices include ADR (American Depository Receipts) and the Bursa Malaysia Stock Exchange. The country’s stock exchange offers multiple investment choices with 1000 companies being one of the largest stock exchange in Asia.
The third largest revenue contribution in Malaysia is through tourism. Due to this fact, Real estate has also become one of the most popular investment options for the foreign investors coming to Malaysia. But, this market is highly competitive with prices of a home rising nearly about 50% in 2002-2012.
Living cost in Malaysia is relatively low and the unemployment rate is less than 3% per year. With property prices rising worldwide, Malaysia is the only country where property prices are cheap and investors can easily put their money here. The economy is relatively quite stable which adds to making Malaysia a good choice overall.
If you are new to the investment front, then investing in fixed deposit is one of the easiest and safest thing to do. It provides the new investor with the advantage of regular earnings. One may invest money for a specific duration in a bank and gain interest. This is one of the best and low-risk ways to gaining good interest and beating inflation.
Another option for the new investors is the Unit trust. It’s like investing in a group and the money that is invested collectively becomes the fund’s assets which are later invested. It is an ideal option for young investors coming to Malaysia to start their journeys as potential future investors.