Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

FI/RE

Best credit cards in Malaysia: Earn cashback & air miles with a hybrid strategy

By
Filed Under: Credit Cards, FI/RE, Financial Independence, Financial/Life Hacks 16

In today’s fast-paced financial world, choosing the best credit cards can mean unlocking rewards that not only ease your everyday expenses but also pave the way for your dream travel destinations. I personally think that credit cards are a great companion in one’s financial journey. You just have to make sure that you make prompt and punctual payments every month. You do not want to pay the 18% p.a. interest that comes with late payments.

If you struggle with self-discipline and all you see in a new credit card is more spending, there is no need to read on. Stick with your debit card, e-wallets and cash. However, if like me, you see credit cards as a smart way to defer payments and enjoy a month of interest-free benefits, then keep reading!

A small note is that ALL credit cards are charged RM25 SST by the government per card. This is a given and there are no two ways about it.

The best way to earn and rack up credit card points WITHOUT going into debt

Let me emphasize that you should not be looking to get too many cards and you should ALWAYS pay your credit card debt on time. You should all know that credit card’s late payment interest is the highest, which is why you settle them first.

The best way to rack up credit card points without going into debt is to treat your credit card like a debit card and only spend what you can afford to pay off in full each month.

Here’s how you can maximize points while staying financially responsible, remember these 10 golden rules:

1. Use your Credit Card for everyday expenses

  • Use your credit card for expenses you would have paid in cash or with a debit card anyway.
  • e.g. Pay for groceries, dining, petrol, utilities, and subscriptions with your credit card.

2. Always pay in full and on time

  • Avoid interest charges by paying your balance in full before the due date.
  • A good idea is to set up auto payments to avoid late fees.

3. Optimize bonus categories

  • Choose a card that rewards your spending habits (e.g., cashback and air miles – more on this strategy later).
  • Some cards offer 5X points on dining and travel while others focus on cashback for shopping or fuel.

4. Stack rewards and promotions

  • Use credit card promos, cashback apps, and e-wallets to double-dip on rewards.
  • Pay via ShopeePay, GrabPay, or Boost if they offer extra points for top-ups (e.g. Alliance Visa Infinite, Affin DUO Visa)

5. Take advantage of welcome bonuses

  • Many cards offer sign-up bonuses if you hit a spending target within the first few months.
  • If you were planning a big purchase, time it with a new card application. Look no further than websites like RinggitPlus and CompareHero.

6. Pay bills and large purchases with your card

  • Consider using your card for insurance, rent, or tuition fees, if there are no extra fees.
  • Some banks allow you to earn points when paying government bills via their online portals.

7. Use supplementary cards wisely

  • If you have family members, get them supplementary cards to earn points faster.
  • Ensure they follow the same pay-in-full policy to avoid unnecessary debt.

8. Convert points into valuable rewards

  • Redeem points for air miles, cashback, or travel perks (make sure you do the math and not just redeem random RM10 vouchers).
  • Some cards allow you to transfer points to airline or hotel loyalty programs for better value.

9. Be strategic with multiple cards

  • Use different cards for different spending categories (e.g., one for travel, one for dining).
  • Ensure you track your spending so you don’t overspend chasing points.

10. Avoid cash advances & unnecessary fees

  • Never withdraw cash as an advance from your credit card—it incurs high interest and fees.
  • Be mindful of annual fees and only pay if the perks outweigh the cost.

A sidenote – Maybank 2 Cards Premier AMEX Reserve is the worst card to have now

I’ve spent the past week researching ways to restructure my finances and optimize my credit card usage. I talked about my Maybank 2 Cards Premier previously here and even touted the cards as the best card for air miles.

They’ve since fallen from grace and are not worth it anymore. If you did not already know, Maybank has recently implemented a shared monthly quota of 100 million air miles across the board for ALL their users. The quota is often exhausted within minutes of the new month. This is ridiculous and no one is happy about staying up on the 31st and waiting for the clock to strike midnight to convert their friggin miles.

I foresee Maybank slowly increasing the 100 million point cap but it may be too late as everyone I know has moved to greener pastures. We’ll get to which card would be best for air miles in a bit, but let’s talk about cashback first as I believe that should be a priority.

The hybrid approach – Comparing the best credit cards for cashback and air miles

We will look at a few criteria for credit cards.

  1. Annual fee and waiver requirement
  2. Income requirement (no exorbitant invite-only cards for the ultra-rich etc)
  3. Cashback rate and point conversion rate
  4. Lounge access and travel insurance
  5. Recommended way to use said card and other terms and conditions

The best credit cards in Malaysia for Cashback

Maybank 2 Gold/Platinum Cards Review – Best Maybank Credit Card

Link to apply

Annual fee: Free for life
Income requirement: RM30,000 (gold) or RM60,000 (platinum) p.a.
Cashback rate: 5% (RM50 monthly cap)
Point conversion rate: 5x TreatsPoints for spending with AMEX, 1x TreatsPoints for spending with Visa/Master
Travel insurance: Coverage of up to RM700,000 when you charge your travel tickets in full (make sure to read the terms of the insurance in full and what it covers specifically)

Alright, so this one here has always been the OG and holy grail of cashback credit cards. Maybank 2 Gold Card is often considered the best entry-level credit card here in Malaysia. Also, there is no difference between the Gold and Platinum other than the fact that you get a higher credit limit with the Platinum. You get two cards from Maybank here – 1x AMEX and 1x Visa/Mastercard. We’ll mostly be looking at the AMEX card as it gives you the cashback and most points.

Previously, there have been cases where cardholders only activated their AMEX and left their Visa/Master dormant to avoid paying the RM25 SST on both cards. And as of 2018, we are unable to do this anymore.

“If the card is not activated within 3 months, the Service Tax will be imposed on the 3rd month.”

best credit cards in malaysia Maybank 2 cards AMEX SST

So be prepared to pay RM50 in SST to the government for both cards. Fret not though, read on and you’ll realise that the benefits outweigh the RM50 charge.

First and foremost, Maybank does not charge you any fees for both cards, it is free for life without any conditions. I plan to keep this card for life and never cancel it unless Maybank starts messing around with the fees or cashback.

With the Maybank 2 Cards AMEX, you get a guaranteed 5% cashback and 5X TreatsPoints.
A few things to note:

  • You get the 5% cashback only on weekends
  • There is a cap of RM50 per month. This means a maximum spending of RM1,000 per month.
  • You get 5X TreatsPoints if you use it during weekdays
  • No cash back for transactions related to government, utility bills and eWallets top-up.

I plan to use the AMEX for the following expenses:

  • Petrol (Petronas)
  • Accommodation (hotels, Airbnb etc)
  • Telco (CelcomDigi)
  • Grab food – pay direct instead of top up to GrabPay

Of course, I’ll do my best to swipe the AMEX only on weekends for the cashback. The above expenses should get me to RM1,000 spend every month to get RM50 in cashback. Get used to asking every cashier and merchant you meet – “Do you accept AMEX?”
You’ll be surprised that many actually do.

Maybank Islamic Ikhwan American Express Platinum Card-i Review

best credit cards in malaysia Maybank Islamic Ikhwan AMEX Platinum Card-i

Link to apply

Annual fee: Free for life
Income requirement: RM40,000 p.a.
Cashback rate: 8% (RM50 monthly cap, RM100 cap for Ramadhan and Syawal months)
Point conversion rate: 1X TreatsPoints for Gov Utilities, Education etc. (see above image)

This is an excellent card for ONLINE spending. You get 8% cashback with a cap of RM50 per month (RM100 on Ramadhan and Syawal months). It is free for life as well.

I plan to use this solely for online transactions – Shopee, Lazada and Grab. Make sure you’re using the AMEX as a payment method and not to top up. I’ll be using the previously mentioned Maybank 2 Cards AMEX for over-the-counter transactions and then Ikhwan AMEX for online ones. The monthly spending cap is just RM625 per month to reach RM50 in cashback.

We’ll focus solely on the card’s cashback prowess and set aside TreatsPoints, which fall short compared to those offered by the Maybank 2 Card AMEX. However, if you have sizable government bills, the Ikhwan AMEX provides 1X TreatsPoints for government transactions—making it a smart choice for those specific payments.

AFFIN DUO Visa Cash Back Review

best credit cards in malaysia AFFIN DUO Visa Cash Back

Link to apply

Annual fee: Free for the first 3 years. (RM75, subsequently waived with 12 retail transactions)
Income requirement: RM24,000 p.a.
Cashback rate: 3% (RM30 monthly cap)
Point conversion rate: Not worth looking into

Look at the t&c and you’ll find that this is the card that gives you cashback for e-wallet top-ups! And we’ll be opting for the Visa Duo and not the Mastercard.

Since I won’t be spending heavily on this card, I’ll only qualify for the RM30 monthly cashback instead of RM50—which requires a minimum spend of RM3,000. I’ll primarily use the card for e-wallet top-ups (which will yield a net gain) and for my monthly insurance auto billing. Together, these transactions should total RM1,000, hitting the RM30 monthly cashback cap.

UOB ONE Card Review

best credit cards in malaysia UOB ONE Card

Link to apply

Annual fee: Free for the first year. (RM120 subsequently years)
Income requirement: RM24,000 p.a.
Cashback rate: up to 10% (RM10 monthly cap per category)
Point conversion rate: Not worth looking into

One of the best credit cards out there, the UOB ONE Card has a few categories eligible for 10% cashback, with a monthly cap of RM10 for each category. You’ve got to hit >RM500 minimum spend per month to qualify. Categories include:

  • Petrol – 10% cashback
  • Groceries – 10% cashback
  • Dining – 10% cashback
  • Grab – 10% cashback
  • Other Retail Spend – 0.2% cashback

Note: There is a higher tier card called UOB ONE Platinum Card which has a higher cashback cap of RM15 per month and monthly minimum spend of >RM1,500. The income requirement is RM60,000 p.a.

RHB Shell Visa Card Review

best credit cards in malaysia RHB Shell Visa Credit Card

Link to apply

Annual fee: Free for the first year. (RM195, subsequently waived with 24 swipes)
Income requirement: RM24,000 p.a.
Cashback rate: up to 12% (RM50 monthly cap per category)
Point conversion rate: Not worth looking into

If your go-to petrol station in Malaysia is Shell, then this is one of the best credit cards for you. With a monthly spend of >RM2,500 on your card, you get a maximum of 12% cashback (RM50 monthly cap). Spending RM417 on your petrol per month would get you to the RM50 cap.

Hitting >RM2,500 monthly spend, you also qualify for 5% cashback (another RM50 monthly cap) on the following:

  • Groceries
  • Online Spend
  • E-wallet reload
  • Utilities

Spending another RM417 on the above categories will get you to the other RM50 cap as well. This leaves you with RM1,666 left to spend and getting only 0.2%. I didn’t like that I’d have to waste the RM1,666 leftover. This is a pretty good card if you’re willing to spend >RM2,500 on this card alone. You could potentially get RM100 in monthly cashback with this card. Not too shabby at all.

Bank Islam Visa Platinum Credit Card-i Review

best credit cards in malaysia Bank Islam Visa Platinum, Visa Infinite, Visa Gold Review

Link to apply

Annual fee: RM388 – waived with 12 swipes in a year
Income requirement: RM36,000 p.a.
Cashback rate: 3% – 5% (RM30 monthly cap)
Point conversion rate: Not worth looking into

Bank Islam has some pretty good credit cards lined up. We’ll take a look at the more attainable Bank Islam Visa Platinum Credit Card-i. You get a 3% cashback on spending between RM500 – RM1,499. Anything above RM1,500 and you’re eligible for 5%.

What I don’t like about this arrangement is that you only get cashback above a certain spending and that’s a big no for me. But otherwise, the cashback is pretty straightforward to reach and it’s a pretty good cashback %.

Bank Islam’s card is not the best credit card out there and is a hit-or-miss for me. I’d go for the other cards mentioned above for cashback.
Also, as it is an Islamic card, you’re prohibited from certain merchants.

best credit cards in malaysia Bank Islam Visa Platinum, Visa Infinite, Visa Gold Review

The best credit cards in Malaysia for Airmiles

Alliance Bank Visa Infinite Review

best credit cards in malaysia Alliance Bank Visa Infinite Card

Link to apply

Annual fee: Free for the first year. (RM438, subsequently waived with minimum spend of RM12,000 p .a.)
Income requirement: RM60,000 p.a.
Cashback rate: No cashback
Point conversion rate: 15,000 TBP for 1,000 Enrich Miles. RM2-3 – 1 Enrich Mile
Lounge access: 2X complimentary access to Plaza Premium lounge, 1X access to Travel Club lounge. Principal cardholders only

After talking about all the best credit cards for cashback, it is now time to look at air miles. Below are the Timeless Bonus Points (TBP) given for every RM1 spent.

  • 8X TBP – online shopping and e-wallet reload (RM3,000 cap, 1X TBP after)
  • 5X TBP – Dining, groceries and overseas transactions
  • 1X TBP – contactless transactions, entertainment, auto-billing, and other retail transactions (including Instalment Payment Plan, Flexi Payment Plan, JomPay and FPX transactions)

At its peak optimisation, the Alliance Visa Infinite card will convert 1 Enrich Point for every RM1.875 spent online.

Why this card? Not every merchant accepts AMEX, and the previous three cards come with monthly cashback caps. The Alliance Visa Infinite will act as my filler card, given that Visa is accepted almost everywhere. I’ll use this card for all other categories—places that don’t accept AMEX, like food, accommodation, parking, and more. You get the idea.

Now, this is by far not the best card for airmiles but it fits my strategy and needs. One of the best for miles is actually below – Maybank’s Singapore Airlines KrisFlyer AMEX Platinum Card.

CIMB Preferred Visa Infinite

CIMB Preferred Visa Infinite

Link to apply

Annual fee: Free for life (as long as RM250K AUM is maintained to remain a CIMB Preferred client)
Income requirement: Nil. You just need the RM250K parked with CIMB
Cashback rate: No cashback
Point conversion rate: RM2 – 1 Mile
Lounge access: 8X unconditional access to Plaza Premium lounge including for supplementary cardholders. Special access to prestigious lounges like Plaza Premium First in Malaysia.

This is one of the best cards in terms of Premium Plaza Lounge access. They have campaigns too where you can earn 35,000 bonus points by meeting a few conditions. If you’re eligible and have RM250K to park with a bank, go for it.

Maybank Singapore Airlines KrisFlyer AMEX Platinum Card Review

best credit cards in malaysia Maybank Singapore Airlines KrisFlyer AMEX Platinum Card

Link to apply

Annual fee: Free for the first year. (RM300 for subsequently years)
Income requirement: RM60,000 p.a.
Cashback rate: No cashback
Point conversion rate: RM2-2.5 – 1 KrisFlyer Mile
Lounge access: 5X complimentary access to Plaza Premium lounge

With this card, the biggest benefit by far is that you bypass Maybank’s ridiculous monthly 100 million miles cap that ALL their cardholders face. With this card, your Krisflyer miles are credited directly to your KrisFlyers account every month.

If you’re into miles, this card here would top the list for me. However, I decided not to sign up because after using my Maybank 2 Cards AMEX and Ikhwan AMEX, I wouldn’t have much left over to maximize this card’s benefits. I prioritize cashback first, and then any additional spending goes towards earning miles.

To keep it simple—following my hybrid strategy—if you’ve maxed out spending on your cashback cards and still have extra funds to spend, this card is an excellent option. Personally, I chose the Alliance Visa Infinite instead to serve as my filler card.

The 4 best credit cards in Malaysia – 2025 hybrid strategy

I spend an estimated RM5K per month using my credit cards. And these are the best credit cards that fit my hybrid strategy.

  1. Maybank 2 platinum cards AMEX – 5% cashback (RM1,000 spending)
    Petrol, accommodation, telco, Grab (weekends only)
  2. Maybank Islamic Ikhwan American Express Platinum Card-i – 8% cashback (RM625 spending)
    Government transactions and online spending – Lazada, Shopee
  3. AFFIN DUO Visa Cash Back – 3% cashback (RM1,000 spending)
    E-wallet reload and insurance auto-billing
  4. Alliance Bank Visa Infinite – Filler card for everything else
    Food, accommodation, parking, meta ads top-up etc. Anywhere that doesn’t accept AMEX.

These 4 cards make up my hybrid strategy. If you’ve got any ideas or suggestions that will help, please feel free to comment and let me know how I can improve and up my credit card game. Would genuinely love to be able to improve and let everyone know at the same time.

If you’re exploring credit cards, you might also be interested in Premier Banking in Malaysia. Discover the best Premier Banking options from Malaysian banks here.

As always, follow my Facebook and Instagram to keep up to date!

Tiger Brokers Review: Platform, Fees & Features

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Filed Under: Investment, Dividends, FI/RE, Financial Independence, Investment Portfolio, Sponsored, US Stocks 2

As of 2025, I am now using only MooMoo Malaysia and Rakuten Trade for my stock trading needs.

I have had an account with Tiger Brokers since 2020 but have yet to utilise it apart from trying out their interface and depositing a small amount in there.

If you are looking to trade international stocks and have yet to open an account with Tiger Brokers, you will be glad to know that there are huge perks to opening an account now.

Tiger Brokers Account Opening Referral and Promotion

  • 1 unit of Grab share
  • Unlimited commission-free trades for HK, SG, and China A-Shares for 365 days.
  • Unlimited commission-free trades for US stocks for 180 days. 

Account Funding Reward (Initial Deposit of SGD1,000 or more + execute 5 BUY trades)

  • SGD88 cash

The full T&C can be viewed hERE. The promotion lasts till 12 October 2022.

Why Tiger Brokers?

Fees

First off, as always, fees. Tiger Brokers’ zero-commission trading is huge and beats many other international brokers.

Now, zero commissions do not mean that trading of US shares is totally free because there is, of course, a platform fee of USD0.005 per share or a minimum of USD1 per trade. It is a fee, but it is cheaper in comparison to many other brokers. So, keep that in mind.

As I’ve mentioned many times, fees are important because they eat their way into your investment and you’ll find yourself paying a lot more than 1% at the end of day, say, 20 years.

You may think a 0.1% or a 1% fee is of no significance but with the compounding nature of long-term investing, we, as average investors, are looking at hundreds of thousands to millions of dollars in our investments at the end of the day.

Regulation and Protection

Tiger Brokers (Singapore) Pte Ltd is regulated by the Monetary Authority of Singapore (MAS).

Elsewhere, they’re also regulated by the SEC in the US, ASIC in Australia and HKSFC in Hong Kong. They’re compliant in all the countries they operate in so they’re safe. Apart from that, customer funds are held in a segregated trust account with DBS Bank Ltd. Custodian of investors’ shares is with the Central Depository (CDP) as well as overseas brokers.

Another important safety factor is that Tiger Brokers is listed on NASDAQ and under the ticker TIGR. This, in my book, adds credibility to Tiger Brokers as a brokerage platform. Their books and reports are easily accessible should you feel the need to refer to them as well.

Rewards

There’s a built-in rewards system for users of Tiger Brokers – Tiger Coins. By completing certain tasks (which aren’t all that hard) you’ll be credited with Tiger Coins which can be used to redeem rewards such as commission-free trades.

Account Opening and Registration

So, you’ve decided to open an account. Two types of accounts are available at Tiger Brokers – Margin and Cash Upfront. I’ll always recommend a cash upfront account to start with. If you’ve been trading and investing for a long time and are confident in your abilities, you can always move up and open a margin account.

Link to register hERE.

Funding Your Tiger Brokers Account

The are many ways to move your funds to Tiger brokers but the best I’ve found and that’ll save you fees in the future is this: You’ll have to open a bank account in Singapore. Basically, you transfer your monies to an SG bank account (you can use services like Transferwise etc to save on fees) and then from there into your Tiger Broker’s account.

Another transfer method to note is to use Wise which is integrated directly into the Tiger Trade APP, as part of a collaboration with Tiger Brokers. This method is fast and easy once it is set up. More info can be found here: https://www.tigerbrokers.com.sg/help/detail/87168024.

What I’ll be Using

As of 2025, I am now using only MooMoo Malaysia and Rakuten Trade for my stock trading needs.

As always, my Facebook, Instagram. Follow, keep up to date.

Because of Tiger Broker’s low fee structure, I’ll be looking to add a ton of long-term international stocks here. Especially US shares.

Love the rewards I get from trading as well in the form of Tiger Coins.

End.

Account opening rewards are looking good and you get rewards as you trade and invest.

If you’ve yet to sign up and want to, use the registration link hERE. Check out the full details of the promotion hERE.

Disclaimer

This post is sponsored by Tiger Brokers.

T&Cs apply. Please visit our website for other applicable fees: https://www.tigerbrokers.com.sg/commissions/fees.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Carsome Review – My Experience Buying and Selling My Car with Carsome

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Filed Under: FI/RE, Financial Independence, Financial/Life Hacks, Investment, Other, Travel, food and the finer things in life 9

This is my Carsome Review and my full experience of buying and subsequently selling my car with Carsome. I love cars and I’ve never bought a brand-new vehicle in my life. The car I just sold off was a 21-year-old BMW e46. I got the car back in 2013 and have been using it as my daily drive.

Carsome Review - Buying and selling BMW E46

The reason I had to let go of the car was the extremely high cost of maintenance. I had been consistently spending thousands of ringgit a year for part changes and enough was enough. This is why you shouldn’t ever keep an old continental car as your daily drive.

The options available to me were to sell the BMW and get another newer car or sell the BMW and use Grab. I decided on getting another vehicle as I actually like driving and after doing some simple calculations, owning my own car made more sense.

Carsome Review – Selling my Car to Carsome

I had been getting ads on Instagram from both Carsome and myTukar (now Carro) regularly by this time. Went car-browsing on both sites and spent hours sifting through them.

Some stuff to take note of, myTukar doesn’t accept cars over 20 years old. Carsome does.

Also, both of them gave me much higher prices compared to the local dealers you can find on Mudah. I predict a swift and timely death to 2nd hand car dealers all over Malaysia soon. They just can’t compete anymore.

So, took the plunge, sold my car to Carsome and got the best possible price (it was still a really shit price) and went browsing for my next car at Carsome.

Carsome Review – Buying a Used Car from Carsome.

For years now, I already knew the brand and car model I wanted (it is a hatchback). And that’s about as much as I’d like to disclose about my vehicle for now.

All I had to do was look out for one that had low mileage and was in good condition. I had already done my research on the car with all the known issues and what to look out for. There were only two real choices for me. The hatchback or the very compact and fuel-efficient Perodua Axia. Also a low mileage and good condition one of course.

I was in no rush to sell the car so I think I spent about a month or two just sifting through and browsing cars on Carsome and myTukar. I had about 6 tabs open on my browser every day on cars. The car I wanted came on sale in January on Carsome. It was the model I wanted and it had done about 50k in mileage. The same models were at 80-100k mileage and priced the same on sites like Mudah.

Made the call, went through the process and paid a refundable deposit of RM1,000 for the car. I had the salesperson bring the car over to KL all the way from Johor for a viewing.

Steps to Buying a Secondhand Car

Now I’m sure there are plenty of resources on buying secondhand cars online you can go through. Heck, some of you here may even be veterans and are better at it than I am. But here is what I did.

1. Inspection

One of the reasons I chose Carsome was for its inspection and checking system. There is a detailed report on the problems found on each car listed on their website.

Despite this, the very first thing I did was bring the car to a friend’s workshop and garage for a full inspection. Did an Onboard diagnostic (OBD) to make sure the car wasn’t tampered with. Paid RM150 for the inspection.

We checked for rust at the bottom and made sure no rust was found on the car’s mainframe. We noticed significant rust on the car’s front right absorber and mounting.

The salesperson from Carsome was a really good one and a friend of a friend. He agreed to have the car sent back to their workshop and to change the parts if there were issues found.

2. Test Driving

After waiting for about a week for the car parts to be fitted, I brought along a very kind friend who was a mechanic for the first viewing and test drive. Let him take the wheel and right off the bat, we heard weird sounds coming from the front whenever the car went over a speed bump.

And guess what? It was back to the workshop again! In total, I think I went for 3 test drives because of the sound from the front. Carsome changed: Absorbers, Mounting, Dust Covers, Bearing and even did the alignment for the wheels. At the end of 4 test drives over the span of a month, there was still some sound coming from the front over speed bumps but it was significantly less, I was already feeling really embarrassed for the back and forth and decided to just go ahead with the purchase. I decided that I would refit the parts on my own time later.

I think only companies like Carsome and myTukar will do this for you. If you’re purchasing from a secondhand car dealer, forget it.

3. Loan Application and Payment

I got the salesperson to submit my hire purchase application to a few different banks and settled on CIMB as they offered me the lowest rate at 3.1% for a 7-year loan. The loan came with a few conditions.

  1. Open a savings account with CIMB;
  2. Take the first year’s motor insurance with them; and
  3. Snatch Medz for one year.

Snatch Medz is a sort of life insurance where if I were to die or suffer a total disability, the loan would be paid off. This one cost me RM430 for the first year.

Used my credit card for the deposit, but had a problem increasing my credit limit with Maybank so I had to delay the purchase for another few days. Managed to get it settled eventually so a tip here is to get ahold of your bank earlier if you’ve already decided on the car. Get your points from the deposit! It is worth it.

Also, you may be interested to read about how long of a loan period you should go for, and what is a good way to look at car loans through a personal finance lens here.

Additional Stuff I Asked For

If you’re going to get a vehicle from Carsome or Carro (formerly myTukar), don’t forget to ask for additional freebies!

You can check out Carsome hERE.

Change all faulty parts!

Change in parts that were broken. As mentioned earlier, I got a lot of parts replaced. If you’re getting your car from a dealer like Carsome, you should do your inspection and ask for a change in faulty parts. Ask for everything!

Car plate number interchange

I got a discount for the exchange of my car plate number. I bought my own number through JPJ’s auction and had Carsome replace it at a discount. I think it was around RM200 cheaper to do it through their agent.

Promotions

Always remember to check what promos the dealer is having. It so happened that Carsome was having a TnG wallet promo and I asked for that.

They were also giving an RM1K discount if you sold your car to them and subsequently bought from them afterwards. I qualified for that and got RM1K off as well.

Petrol vouchers

And after getting everything sorted, I got my guy at Carsome to get me petrol vouchers! I got about RM300 worth of it.

End.

So I’ll most likely be using this car for at least another 10 years. Will be keeping it in good condition. I have still yet to buy a new car for myself. This article has taken a pretty sharp turn away from investing, but hey, buying a car costs money and making a good decision here is vital to investing too.

If you’re looking to sell or buy a car, head over to Carsome’s website. I’ve had a good experience with them. I can even get my salesperson to give you a call so drop me an email or a DM on Instagram.

Aaaaand, if you’ve been following me on Instagram, you would’ve noticed me posting pics of another vehicle occasionally. I invested in an old classic car and I’ll be posting much more about it soon!

A Review of CapBay – P2P Lending in Malaysia

By
Filed Under: FI/RE, Investment Portfolio, Other Investments 13

CapBay Referral Code (RM100)

If you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.

Register hERE.
Use my code: DIVMAGIC

CapBay Portfolio Update

An important note: First started investing in May 2021.

September 2024

Unfortunately, we’ve been hit with a default this time around.
RM1,305.68 to be exact. Of that RM1.3K, CapBay has managed to recover RM552.94.

On a brighter note, returns are not too bad – we’re at 7% annualised return. In total, I put in RM10K, and I got RM2K back, invested since May 2021.

I’ll continue to leave my money in there and let it roll, 7% per annum is not too bad at all. If and when it goes to above 10+%, then I’ll seriously consider depositing more.

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also, my code, for an additional RM100.

Register hERE.
Use my code: DIVMAGIC

If you’d like to read about my stock investments, my Freedom Fund can be found here.

July 2023

No defaults yet on my side and it’s amazing that the portfolio has been maintaining 11.1% for like.. forever. I’m going to check how this is calculated or if it is a bug..

As I only put in RM10,000 so far, since May 2021, this comes up to 17.95% returns in 2 years.

Nov 2022

Still happy with CapBay!

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.

I’ll be adding in a little more money the next time they have a promo.

June 2022

I’m pretty happy and satisfied with CapBay. With the markets in turmoil, CapBay is the one that outshines my other investments for the year at an 11% annual return. A little lower of course once you take into account the fees.

CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.

May 2022

Many of you have been asking for an update on my P2P lending portfolio on CapBay. The good news is that there are still zero defaults! And the even greater news is that the annual return is still above 10% right now.

I prolonged the update a little because this month marks the 1 year anniversary of my investment in CapBay. We put in RM10K back in May 2021. And now, we’ve got a net return of RM780.51. That is a 7.8% return. Not too shabby compared to the markets now.

In light of the decent returns and zero defaults, I’ll be placing another RM10K into CapBay. I wish I could spare a little more but I don’t want to spread myself too thin.

If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.

Read on for the step-by-step guide to register and how to choose your portfolios.

January 2022

I invested RM10,000 in CapBay back in May 2021. The first update (as below) was in September 2021 in which I got RM262.77 back, amounting to a 2.62% ROI in 5 months.

Fast forward to January 2022, from the same RM10K in investment, we’ve got a net return of RM525.15. That’s a 5.25% return in 8 months.

Not sure if we’ll be able to reach 10% in returns at the end of one year. But we’ll check back again in May 2022! Still pretty happy with the returns AND of course, no bloody defaults.

If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.

Read on for the step-by-step guide to register and how to choose your portfolios.

September 2021

I invested RM10,000 in CapBay back in May 2021. Here’s how the portfolio is doing almost 5 months after.

I’ve gotten back RM262.77 which was of course reinvested again. That comes up to about 2.62% ROI in 5 months. It does seem a little low right now but bear in mind that due to the nature of financing, it’ll take a few months for each note to mature. We’re looking at an average time period of 6 months per note. Below is an example of a note that took about 2 months to mature.

For now, I’m happy with the 2% return in 5 months. And I’ll probably keep the money in for 1 year or maybe 2 then re-evaluate CapBay’s performance.

The best part, however, is the zero defaults so far. That has always been a concern when investing in P2P lending. With no defaults in 5 months, I’ll be continuing with CapBay for the foreseeable future.

The P2P Lending Scene in Malaysia

I’ve been receiving inquiries on and off on what P2P platform I’m currently in. And if you’ve been reading the blog for a while, you’d know I had some money in Funding Societies. However, due to their increasing defaults, I’ve pulled out most of my capital.

Over the past few months, I’ve been looking to re-invest in the sector. I’m on the lookout for lower risks and default rates, somewhere my money can grow steadily at a reasonable rate of return. Which lead me to CapBay.

Types of Loans – Business Term vs Invoice Financing

During P2P’s infancy days, the loans offered by most platforms consisted of mainly business term loans. Which is, of course, the essence of P2P financing i.e. You lend money directly to businesses for a fixed period, typically between 12 to 36 months.

However, it is when the defaults came in that investors realized just how risky it was to hand out loans willy-nilly. And of course, the importance of really diversifying and not putting your capital into a few loans. Instead, when it comes to P2P financing, diversifying over many loans is advisable.

Fortunately for me, my returns today are still in the positive region. I’ve almost withdrawn 100% of my capital with a net return of 10+% per annum.

Right now, I’m looking to get back into the P2P scene as the industry as a whole matures. And I’m looking to lower my default risk by going for primarily Invoice Financing. There is lower risk here because investors are essentially lending money in the short term to SMEs based on a transaction.

In short, when an SME sells their services to a buyer on credit, they often must wait up to 6 months to get their payment. Invoice Financing allows these SMEs access to upfront payment. With Invoice Financing, the SME has already made the sale and the risk of default is actually transferred to the corporate buyer. Typically, Invoice Financing is for the short term, you’ll normally see a loan term of not more than 6 months.

Why CapBay?

CapBay specializes in providing Invoice Financing to SMEs who supply to blue-chip companies and government-related entities. Among the few P2P players in Malaysia, CapBay currently has had no defaults SO FAR since their launch in February 2020. This is no easy feat and caught my attention right away and got me digging for more info about them.

As reported by Fintech News Malaysia, CapBay is the fastest platform to hit RM100 million in P2P Financing. Typically, fast growth leads to problems with risk. The fact that they’ve managed to achieve this growth while still maintaining a 0% default rate is impressive.

How CapBay Works

CapBay works a little differently from the platforms I’ve used. They’re encouraging ”Auto-investing” whereby you let the platform pick the loans to invest in. As you all know, I’m a big fan of automating investments and so I will be using their Auto Invest feature all the way.

You choose from 3 different Auto Invest Profiles based on their respective risk profiles and potential return – Conservative, Moderate and Aggressive. If however, you want to have better control of your capital, you can choose to customize.

Within these 3 different profiles, you’ll find a further 3 categories of notes:
1. Select: Safer and lower return notes
2. Motor: Dealer financing notes
3. Diversified: Riskier and higher return notes

There’ll be a section for you to read up on these on the platform itself.

Another thing to note: Your uninvested funds will earn an estimated 1.7% per annum. This is a special feature called CapBay Plus that ensures you continue to generate returns on uninvested funds if you utilize their Auto Invest.

Simple Steps to Get Started

CapBay Registration P2P

You’ll need RM10,000 to start

This one here got me thinking a little and I know RM10,000 is a huge amount to start with for many, myself included. But after looking at the 0% default rate for a year, as well as the expected net return of up to 10% per annum on their investment opportunities, I’ve decided to go ahead. I’ll be posting updates on the performance here, probably on a regular basis.

Registration

CapBay Registration

Registration took me about 5 minutes. All the usual KYC are required. I.e. pics of your IC and a 5-sec video upload.

If you don’t have a webcam, make sure you download the app and register there as you’ll need to upload a video during registration as part of their KYC requirements.

CapBay Referral Code

And finally, if you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.

Register hERE.
Use my code: DIVMAGIC

End.

My Portfolio

CapBay Registration P2P

I’ve added in RM10,000 to the Auto-Invest feature and selected the Aggressive profile.

This image has an empty alt attribute; its file name is image.png

The Auto-Invest feature was quick and my funds are 40% invested in a few days. Returns range from 7.3% to 9.7% currently.

Look forward to future updates to my P2P portfolio.

Risks of P2P

Please understand that I consider P2P investing a high-risk venture. Even with CapBay’s focus on Invoice Financing, I still consider this to be a risky investment. But how else can you expect a potential net yield of up to 10% per annum.

This is why I’ve been doing a lot of research and looking around the Malaysian market. I’ll be testing the waters with CapBay and will let everyone know how it goes via my updates.

Dividend Magic’s Yearly Review

By
Filed Under: Financial Independence, FI/RE, Investment Portfolio 0

I’ll be using this anchor page to keep track of my overall investment portfolio. Updated yearly so I’ll be able to track and show a yearly gain/loss.

Moving forward, I’ll aim to keep my recording simple and clear-cut. So I’ll be able to track my yearly gain more easily. No more IRR, just simple yearly gain, including fresh capital and dividends reinvested.

The Year 2021

It has been a turbulent year. In terms of my portfolio, it has more or less stayed the same, which I am grateful for. The first half of 2021 saw prices plunge and then go up again in the latter part of the year.

My dividends have also increased ever so slightly to RM15,595.07 per annum in 2021. This is despite me having a smaller portfolio compared to 2020. Which is a win. Still, a long way to go to RM36K a year in dividends.

I’ve also managed to maintain a respectable savings rate in 2021 despite a drop in my income. Got a sizeable war chest ready to be deployed and I’m keeping an eye on a few local stocks as well as US ones. It has been a while where the Freedom Fund has been stagnant around the RM500K mark.

On the other hand, my crypto portfolio almost doubled in value from a year ago, this is after factoring in the huge year-end dip. I’ve also been consistent in putting money into my StashAway account. Returns have dropped compared to last year, but in the long run, I’m confident. My US portfolio has seen a drop come year-end, but we’re still positive.

My Investments

The Freedom Fund

Market value: RM501,858.09
Cash: RM100K
Dividends: RM15,595.07
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross investment: RM10,273
Market value: RM67,004
Capital gain: +552.23%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM48,000.01
Current Value – RM48,575.13
Time-weighted return – 10.19%
Money-weighted return – 2.79%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM11,433.23
Time-weighted return – 14.33%
Money-weighted return – 14.33%

StashAway Simple
Gross Investment – RM4,500.00
Current Value – RM4,769.28

TOTAL
Gross Investment – RM62,500
Current Value – RM64,777.64
Gain/Loss: +3.64%

My Overall Investment Portfolio

Freedom Fund: RM601,858.09
Crypto: RM67,004
StashAway: RM64,777.64
Total: RM733,639.73

Goals for 2022

I will focus on getting my dividends up. I’ll be adding more positions throughout the year. I’m looking at you Scientex!

Also, will be looking to do a monthly DCA into Vanguard’s S&P 500 ETF. As of now, I’ll be purchasing it through Rakuten Trade until a better brokerage becomes available.

The Year 2020

What a year it has been. My portfolio tanked in March when Covid hit. It even went into the red, a first for me. I missed the glove boat.

Bet on the recovery and my portfolio managed to sail through 2020 with an almost 10% gain y-o-y. As the portfolio increases in value and diversification, long gone are the days of 15-20% capital gains. I’ll be aiming to rebalance and refocus my portfolio next year. Cutting underperforming stocks and adding more winners.

I’ll also be focusing on my US portfolio moving forward. I’ve also made a decision to keep my US portfolio hidden to maintain some form of privacy. Don’t worry you’ll still be able to view it in percentage (%) form.

My Investments

The Freedom Fund

Market value: RM545,778.21
Cash: RM46,350.83
Dividends: RM15,415.64
Dividend yield: 3.33%

The Freedom Fund (US)

Crypto Portfolio

Gross Investment: RM13,808
Market Value: RM34,424
Capital Gain/Loss: +149.30%

StashAway

Dividend Magic – Risk (36% Risk Index)
Gross Investment – RM14,001.00
Current Value – RM15,378.03
Time-weighted return – 8.01%

Dividend Magic US – Risk (30% Risk Index)
Gross Investment – RM10,000.00
Current Value – RM10,603.19
Time-weighted return – 6.03%

StashAway Simple
Gross Investment – RM12,500.00
Current Value – RM12,559.17

TOTAL
Gross Investment – RM36,501.00
Current Value – RM38,540.39
Gain/Loss: +5.6%

My Overall Investment Portfolio

Freedom Fund: RM607,544.68
Crypto: RM34,424.00
StashAway: RM38,540.39
Total: RM679,125.07

Goals for 2021

The Freedom Fund and StashAway performed solidly for me in 2020. Obviously, I’ll want to see my dividends go up in 2021. It dropped a little this year with a few companies in my portfolio electing to withhold dividends.

I hope to see dividends surpass RM20K per annum barring any unforeseen circumstances.

Also, I want to eventually have my total investments (excluding my US portfolio) reach RM750K in 2021 and RM1 million by 2025. Setting the bar a little low there I know but I’ve learnt that the key to happiness is low expectations. And with RM1 million in investments, I should be able to hit my dividend target of RM36,000 per annum.

On the other hand, I will also be pumping money into my US portfolio (which as mentioned above will be tracked only in %).

Now, to the best performing asset for me in 2020 – Bitcoin and Ethereum. Almost at a 150% return for me at the time of writing and it is increasing. I set out to keep crypto to a maximum of 10% of my portfolio. I’ll continue to hold onto them coins for now.

dividendmagic.com.my

I consider every one of you reading as a stakeholder of Dividend Magic. So an update of the website at the end of 2020 would be apt.

As mentioned on my About page, at the rate the blog is growing, we will definitely be hitting a million (and more) views next year. A big thank you to everyone that has been frequenting the blog and interacting with me on social media. I appreciate every follow, like, comment, and share you’ve been so generous with. I love the community we’ve built and the friends I’ve made along the way. We’re a small but tight-knit bunch in Malaysia.

If you haven’t already, follow me on Facebook, Instagram, and now  to keep up to date.

To those that have been wondering if I’m making money via ads on the blog, the answer is finally a yes. But it isn’t much, unfortunately.

I’ve opted for the minimum amount of ads as well as the best-optimized placement for readers.

Right now, ad revenue itself is able to cover the running costs of the blog which I’m super grateful for. I don’t see this growing significantly, maybe I’m doing something wrong with the ads. With running expenses covered, Dividend Magic will be here to stay.

End.

Dividend Magic - We can do it!

That is all there is to update. 2020 was scary, thankfully, my investments are doing all right now. As always, it is important to stay invested and to attack when the opportunity presents itself. There will of course be some missed opportunities and lessons to be learned along the way. All my mistakes, all my wins, you’ll be able to see them here on the blog.

I’ll be updating my portfolios on a monthly basis as usual come 2021. Have a happy new year and I’ll see everyone in 2021.

FI/RE Guide – Financial Independence Retire Early for Malaysians

By
Filed Under: FI/RE 6

Financial Independence, Retire Early (FI/RE) is a movement dedicated to savings (sometimes extreme) and investment that allows its followers to achieve financial freedom and early retirement far earlier than traditional retirement plans.

Some proponents of the FIRE movement have retired as early as age 30, instead of the conventional and agreed-upon retirement age of 65.

Steps to Achieving FIRE

In recent years, I’ve seen more and more Malaysians embracing the FIRE movement, especially the millennials.

Of course, many of us are still striving to achieve financial independence, myself included. My aim is to achieve this by the age of 35. Below are some of the steps I’ve taken.

1. Saving

There are no shortcuts here. My savings rate has always been high and well above the average Malaysians. In the first few years of being in the traditional workforce, I saved like hell. I detail how I built my investment portfolio through frugality hERE.

Asians in general are predisposed to saving from the onset. I think most families cultivate savings as a habit from a young age and that alone will set us apart from other cultures. Saving alone, I think, accounts for 50% of your FIRE journey.

Emergency Fund

Saving and your emergency fund goes hand in hand. The first step is always to build a fund for emergencies. Steps and how I structure my emergency fund can be found hERE.

An emergency fund helps in two major ways. Firstly, it gives you peace of mind. And secondly, if and when an unexpected financial crisis occurs, you won’t have to liquidate your investments to cover those costs.

Having set up my emergency fund, my next step was investments.

Debt

I’ve been fortunate enough to get out of my education debt early thanks to wonderful parents.

Another huge debt hurdle I foresee Malaysians encountering in their lifetime is of course your mortgage. Two ways to go about this, either factor in your mortgage repayments into your annual expenses, or if it is cheaper, rent. If you’re lucky to have your parents leaving and bequeathing you the family home after they’re gone, you’re set in this department as well. Just make sure to take care of them.

Other debts such as credit card and personal loans, stay clear of them. If you have them, pay them off at once, then start on your emergency fund.

2. Grow Your Money

There are a 101 ways to grow your money. The path I’ve chosen is to invest in stocks. You may find that you have superior knowledge in other assets like real estate. Or you may prefer to put your money in robo advisors like StashAway. To each his own I say. As long as you’re investing in something that is an asset.

By investing in stocks, my money will grow in two ways.

a) Capital Gains

A capital gain is when my stocks increase in value. For example, purchasing Nestle 2 years ago for RM70 per share. Today, that same share is worth RM140 per share, giving me a 100% or 2X in capital gain in two years.

The same can be said for real estate. Purchasing a residential property at RM100K 5 years ago, you may sell it for RM200K in today for the same 100% gain in five years.

b) Passive Income

A whole article can be written on passive income alone. This is just what I did and you can read about it hERE.

To keep it simple here, passive income is income I receive without having to put in effort or work. Through stock investment, I get passive income via dividends. As a real-life example, I received RM16,322.26 in dividend income last year from my Malaysian stock portfolio – the Freedom Fund.

Another example of passive income using real estate as an example is rental. The rent you receive from your tenants can be considered passive income as well.

Your FI/RE Amount

Financial Independence Retire Early FIRE FI/RE Malaysia

The amount everyone is aiming for to FIRE is actually different. It depends on your monthly expenses. If you’re able to live on RM1,000 a month, you can achieve financial independence and retire at a much earlier age with a much smaller amount in the bank.

How I Calculate My FI/RE Amount

As a general rule of thumb, you want to have 30X your yearly expenses in the bank, the dollar amount most people go by is RM1 million. For me, I’ve calculated my annual expenses to about RM36,000. And 30X that amount is RM1.08 million.

This of course is my own personal amount, no family as of yet. For those who are worried about inflation, I believe that a good investment portfolio will negate the effects of inflation.

Using mine as an example, investing in consumer stocks like Nestle and real estate like REITs, inflation is taken care of by these businesses themselves. Ie. Nestle will raise prices to keep up with inflation. REITs like IGB REIT would definitely increase rental rates as the years go by.

If you however are just saving your money in FDs, you will have to account for inflation. So make sure your portfolio is invested in the right assets.

The First RM100,000

However, I’ve found it to be much easier to break down that RM1 million goal. Start with the smaller and (in my opinion) much harder-to-achieve goal of RM100K.

This is how I achieved my first RM100K.

After getting that RM100K, RM1 million becomes much, much easier. Snowballing from RM100K to a million is much easier than from zero to 100K.

The Different Types of FI/RE

I know I know, they confuse the hell out of me as well.

Fat FIRE

So Fat FIRE is the best FIRE of all. You’re basically living it up post-retirement and enjoying it to the fullest.

You’re able to survive without a job as your passive income more than covers ALL your expenses, not just your basic ones. It is of course the best way to retire, but also the hardest to achieve. You’ll have to be earning a lot as well as having a high savings rate.

But come post-retirement, think extravagant getaways, a beautiful home, and no more worrying about paying your bills.

Lean FIRE

This is the opposite of Fat FIRE where you basically cut your expenses as much as you can. If you’re prepared to lower your standard of living to the bare minimum post-retirement, Lean FIRE is for you.

People hop onto the Lean FIRE wagon when they realise that they aren’t able to save that much and/or time is running out. Also, if you prefer to spend your younger years enjoying and living a minimalist lifestyle after retirement, you may want to look into Lean FIRE.

Pros and cons here, if you’re absolutely all right with a minimal life, Lean FIRE is the way to go. You don’t need to save up as much for your retirement. It is a significantly lower amount. Also great if you don’t want kids.

Barista FIRE

This one here is pretty new to me. It is what’s between Fat and Lean FIRE. It basically means taking on a part-time job to supplement your income.

Thereafter, depending on how your investments do, you make a more informed decision moving forward. For example, if your stock investments do well over the next 3 years, and you’re able to achieve Fat FIRE, by all means, quit your part-time job.

Protecting Your Money

What happens now that you’ve achieved 30X your yearly expense?

You’ll want to protect and continue to grow my money. Some proponents of FIRE actually stop growing their money at this stage. Instead, opting to make small withdrawals (typically 3%) a year.

Personally, with stocks, I aim to continue growing my portfolio from a million to much more. Retiring early isn’t a part of my plan.

Regardless, you will want to protect your wealth by diversifying your money into less risky assets now. At this stage, I would start moving my stocks and building a more defensive portfolio. I’ll focus on maintaining my dividend income as well as preserving my portfolio’s value. No more risky bets at this stage.

How Long Will the Money Last?

If you can get to 30 times your annual expenses, technically, that is enough for you to live off – forever.

With prudent management of your wealth at this point, trust me, you’ll be able to live off that portfolio for a long time. You may even have some leftovers for the next generation.

FI/RE requires discipline and letting time work in your favour. This is why starting early on your savings and investing is so important. Just keep at it and in no time, you’ll be living off your passive income.

If you’re looking to start saving and start investing, you can check out our stock investment guide here.

If you’re interested in the concept of FI/RE and want to mingle and exchange ideas with like-minded people, we have a Facebook group hERE. To those that have already achieved FI/RE, please join us and share your journey.

As always, Facebook and Instagram. Keep up to date and help support the blog by following and sharing. Thank you!