272 Replies to “A Guide to Stock Investment in Malaysia”

  1. Hi Leigh, i saw your investment in best dividend stocks in Malaysia and i dont understand 1 things.
    Is it a dividend interest per annum?
    if yes why not just invest in ASB or ASM which is almost same interest dividend and safer?

    1. Hi Michael,

      I usually tell ppl to focus on the dividend yield. Which is the % one.

      Well I am all for ASB. In fact if one is a bumiputra, max out ASB. Then go into shares.

      And two, ASM is very very limited. The fixed price one, not the variable price shit ie. Unit Trust.

  2. Hi,

    Thanks for sharing and hope is not too late for me to follow you.

    Hope you can help me with the following inquiries:-
    1) Should i invest in a single share or diversify during initial investment?
    2) Along the way, should I accumulate one lump sum each time then only invest in share?
    3) How many % is ideally to allocate for REITs?

    1. Hey Lee,

      Never too late my man.

      1. Depends how much you’re starting with. I’d suggest bout RM7K per share initially. If you have RM14K, go two shares. =)
      2. Yes that’d be best. If the alternative is to invest RM500 each time, its better to save up and accumulate. Then invest.
      3. That’s up to you, if you’re defensive, go 70-80%. REITs are still stocks.

  3. Hello Leigh , Im From Indonesia , How to Invest in Malaysian REITS ? & How many times i received the REITS Dividend in a year ?


  4. Hi Leigh,
    If the company I worked in offers Employee Stock Purchase plan, should I take it? What’s your take on such schemes? I need to buy in USD though.

      1. Hi Leigh,

        I have some newbie questions here:

        1. Currently I’m thinking should I open a trading account form Rakuten or Hong Leong? Which one would u suggest or recommend for a newbie?

        2. Is Rakuten and Hong Leong can buy REITS as well?

        3. If the stocks or REITS’ price are drop, but I did not sell it out, is this consider I’m not losing any money? I means we won’t physically losing money? It just that the dividends might become lesser right?

        Hope can get yr advise.

        1. Hi Agnes,

          1. Both Hong Leong and Rakuten are fine.
          2. Yes both are brokers. Essentially the same and you can buy REITs with both.
          3. If you don’t sell, its called a paper/unrealized loss. Dividends usually stay the same for REITs. Unless the company has a significant drop in profit.

          1. Thank you so much for reply, I’m really appreciated it ! 🙂

            So is this consider normally we won’t lose our capital in REITs most of the time??

          2. Hi Agnes,

            Of course not. Where’d u get that idea from haha.
            REITs are stocks, that u must understand. And stocks go up and down. But in the long run, they almost always go up

  5. Hey there, been following your amazing blog a bit and I do have some questions as I am planning to begin my foray into Bursa.

    1) I am planning to open a Direct CDS account although I am still not too sure who to pick. I see you are using HLE broking and I have seen many people positively commending it, although the processing time to open an account is somewhat longer apparently. I have read that you are going to try out Rakuten? But till now they only have nominee accounts which were not recommended. I only have a Maybank bank savings account but apparently based on reviews they are not really that great compared to like HLE?

    2) You mention minimum investment should be RM8K for cost effectiveness, but is that RM8K in one single share? Or can it be multiple different shares but compile up to RM8K? i.e. RM4K in Maybank, RM4K in IGB REIT, etc.

    Many Thanks! 🙂

    1. Hey Jules,

      Glad to have you onboard!

      1. Maybank’s fees has since dropped and are similar to Hong Leong’s. So go ahead if you’re looking for a direct account.
      I’m personally going to try out Rakuten BECAUSE they are offering a nominee account with very low fees compared to other brokers. And they’ve confirmed that they will not be charging for corporate actions. I plan to use Rakuten for stocks that offer DRPs. And eventually move my whole portfolio over.

      2. RM8k in one single transaction. So yea, one stock. This is because of the RM8 or 0.1% minimum fee charged. 0.1% of RM8K would be RM8. So anything below RM8K, you’ll still be charged RM8 as a minimum. I hope this helps!

      Do write in more frequently and keep us updated on your progress! Also, the account opening! Thanks!

      1. Thanks for your reply Leigh, appreciate it! 🙂

        Further questions on my questions:

        1) Do Direct CDS accounts not qualify for DRP (which I presume is Direct Reinvestment Plan)? Or is it that you would have to reapply on your own for each stock for the DRP if using a direct cds account. And also corporate actions as in the DRP itself?

        2) RM8K is a sum to save up and invest in one shot to a single stock, so it is best recommended for me to go for one stock first once I have 8K ready? Maybe one of the stocks in your ‘best dividend stocks in malaysia’?

        Much obliged! 😀

        1. Hey Jules,

          1. All shareholders qualify for DRPs. (DRP stands for Dividend Reinvestment Plan, more on DPRS hERE) And you’re right, having a direct CDS account means you’ll have to go through the hassle of going to the post office etc. Although, I’ve recently learnt we can do that online through Tricor.

          2. yup! Go for one stock. Then your next 8K would be in another different stock if you’re planning to diversify.

          Hope this helped!

          1. Hello Leigh,

            I was wondering whether you have considered investing outside of Malaysia. For example our neighbor Singapore has lots of good investments. Their S-Reits seems to be more interesting than our local M-Reits, (i.e. stronger and stable currency, wider choices, no withholding tax, etc). For blue chip comparisons I am not too sure of that regard, I think Malaysia blue chips are pretty good too besides the currency part.

            I am sort of torn whether to start investments in Malaysia or perhaps look towards Singapore. Wondering if you have an experience/view on this.

          2. Hi Jules,

            Yes as a matter of fact I have. I’m thinking of our neighbour Singapore too but waiting for the right time. I’ll have a post up on how to invest in Singapore soon

  6. Hi. I just went to Hong Leong (Jalan Kia Peng) to open the trading account . they said that i need to wait max 2 weeks before the approval. By the way, i am quite confused about the fees. What did you mean by saying minimum 3k ? Is it the total amount for each session? For example, can I buy company A’s stock 1000 k + company B 1000 k + company C 1000k in one transaction with single charge? Is that what you meant? Or is it like i need to buy 3000 k rm stock for each company the minimum?

    hoping to hear from you.

    1. Hi Halim,

      Congrats on opening the account!
      By minimum, I mean the most cost-effective. That’s about RM7K, and I suggest RM3K as a rough estimate. And yes, RM3K per stock would be good. RM1K wouldn’t be very cost effective.
      In fact you can buy a share with RM10, but your fee would be RM8.. So it doesn’t make much sense. I hope this clarifies.

      1. hi again. okay so basically i’ve gt the approval now for the hong leong. by the way, another newbie question. how can i start to make the transaction? do i need to click buy and just make the transfer /payment, or do i need to transfer some money into my account first and only after that i can start purchase? because i read something about making minimum deposit/minimum trading first… hoping to hear from you

        1. Hey Halim,

          Nice and congrats on the account opening!

          First you’ll have to transfer the money and then only purchase. It takes a while for the system to capture it ie. half a day at most.

          1. hi thanks for your previous advise. ive transferred it . the cash amount is already there. however the opening trading limit is shown to be still 0.00 … is this normal?

          2. hi leigh. yes everything’s sorted. in fact i already bought several counters. thanks for the knowledge and guidance! God bless!

  7. Hello sir…I hv a cds acc with maybank..so far, I’ve been buying stocks for long term and the dividends. Now, I would like to buy stocks to generate a small daily income…say about rm50 a day…is tat possible…may I hv your advice on this matter….tqia…

  8. Hello,
    Everyone is screaming a market crash is imminent . Just curious to know if you are going to trim down your portfolio?

    Do you mind sharing your strategies on how to deal with a market crash?

  9. Hi divvy leigh, im new to stock investing and would like to ask how safe are ‘blue chips stocks’ like nestle, i have been doing research online and mostly saying they safe and very stable in general term. Can i still get the same dividend yield especially recently there are trade war happening or stuff like that. Thank you.

    1. Hey Mc,

      Yup, I’d say Nestle is a safe bet. Dividend yield would depend on two things, your purchase price and the company’s payout. Nestle has been consistent though.
      Hope this helped.

  10. Thank you for all the information! Appreciated.

    1) May I know the minimum volume of holding (eg:100?1000?) to qualified to receive a dividend?
    Just bought few REITs and wonder how it works.

    2) How do I know or check that if this moment I am still qualified to get a dividend? Is there a website to check if we buy now and will still get dividend? Thank you.

    3) How do I get the dividend slip?

    -Fellow 90’s investor.
    Thank you so much.

    1. Another question.
      4) How will the dividend paid to me if I invest through Rakuten? To my bank account? Or send to my address according to information given to Rakuten?

      5) How do we get invited to AGM? Any requirement? Thanks.

      1. Hi Greyson,

        4. See. Rakuten offers Nominee accounts instead of a Direct account. Your dividends should first go to them, and they’ll remit it to you. Do let me know if Rakuten charges you a fee for this. I’d go on a rage trip if they do.

        5. Not sure how it works for a nominee account. They’ll prolly send the invite to Rakuten and Rakuten will in turn, inform you.

    2. Hi Greyson,

      1. 1 units. (if I’m not mistaken)

      2. You can check the company’s Ex-dividend date. If you purchased before the Ex date, you’ll receive dividends.

      3. It’ll be sent to your address. The address you filled up at the broker’s office.

  11. Hi Divvy, your webpage got me all hyped up in investing thanks!

    But.. I am new on investing and I don’t have much capital but I would still want to start investing.

    How should I start calculating it if I’m only investing in REITS on an amount of RM 1k ?
    I plan to invest in two different REITS ( 500 for each )

    I am still figuring out how to calculate the divindends that I would get based on the dividend yield.
    The dividend yield says ( 5.63 % ) whereas the REIT price atm is (1.70) per unit

    Thanks in advance ^^

    1. Hey Jayden,

      RM500 per stock is too little. The transaction fees will not be worth it. Might I suggest at least RM3k per stock? Or if you really want to push it, RM2k per.

      Well, the REIT will cost you RM1.7 to buy. Per unit. You get a yield of 5.63% after you’ve bought it. Every month.

  12. HI, Mr/Ms, I am student, 22, new to stock market. However i have strong passion in day trading and swing trading. Which brokerage website is the most acceptable in Malaysia? On the side note, i wish to do foreign trading so rakutentrade is out of my option.. Thanks in advance for your reply, I really looking forward to your answers!!

  13. Hi there, it is very informative. Can I ask about stamp duty. What is the stock i purchase not even 1000. Let say penny stock. It is rm 10 chargeable as well? I just want to start trading. Still looking more information about this

    1. Hi Sir,

      Thanks for sharing your experience and journey, just want to get some input from you if you don’t,hehe
      1) Can you share with me what are few things you will look at when pick up new stock into your portfolio?
      2) When look at the QR of company, what are important things you will paid attention to (eg:amount of debt,asset and etc) or we need to go through every single details in the QR?


  14. Hi Divident magic,

    May I know why I can hardly find anyone talking about investing in China stocks ? Is it because Taxable hurdle or foreign exchange issues ? Hope you can provide some insightful opinions, thanks in advance !

  15. Hi Divvy,

    Awesome informative blog. If you don’t mind me asking:

    1) I’m a Maybank user but I noticed Maybank’s current brokerage fees is 0.42% with RM12 Minimum Fees. Much higher compared to some other brokers like HLe or M+ which is around (~0.1% / RM8). Do you recommend to go with Maybank, HLe or M+?

    2) Since we should invest when possible (8k cost effective transactions), does it mean each time I accumulated 8k, I should directly invest to any of the stock in my portfolios (when I have one)? Irregardless of the current stock’s current price. Cause there might be times where all stocks in my portfolio are at “uptrend”? Or should I wait until they are at better pricing or research some other stocks that might be of better pricing? Which might be waiting for a very long period of time.

    I plan to buy and hold for long term(5 to 10 years at least) and invest when I have saved up enough. Thanks.

    1. Hi Max,

      1. I’d recommend the lower brokerage fees one definitely. You’ll save more in the long run.
      2. No you shouldn’t just invest when you hit RM8K. Take the time to do some research and buy at the right price.

      Hope this helped and sorry for the late response.

  16. hi, can I know ur criteria of picking the stock, is it based on its dividend policy? Or dividend track record?

  17. Hi Sifu,
    I am just starting to learn stock trading. So please bear with me for the novice questions.

    In term of services provided, what is the difference between Remisier and Broker to me?
    I noted they charge differently example remisier charge is 0.4% when selling but broker only charge 0.1%.

    Thanks in advanced

    1. Hi Samantha,

      Remisier is a physical person that u call to place trades. I see no point in having them now because u can purchase or sell with a click of a mouth yourself.

  18. Thank u very much for u answer.
    Glad to know i can , will go to see a local broker when im back in town,
    Would be happy to offer you a drink when im back .
    Thanks a lot

  19. Hey ,

    I would like to know if its possible for a foreigner to invest in stock investment in Malaysia.
    Im french living in Cambodia and im coming to KL 4,5 times a year , im wondering if i can do it .
    Thank you very much for your blog this is very informative and useful.

    1. Hi Clement,

      Yes you definitely can. I’d suggest giving one of our local brokers a visit the next time you’re in town.

      Hope this helped! Do let us know of your progress.

  20. hi Leigh, Can i get your advice how to check when is dividend paid for each company ? and what are the criteria which must be fulfilled in order to get this dividend payout ? Thanks.

    1. Hi KY,

      what I find is that most companies are fairly consistent in that they pay out regular dividends on the same month every year. A simple google search will be able to tell you better. I’ve got mine all put down in an excel spreadsheet and tracked.

      Hope this helped

  21. Hi Leigh, I was trying to read the annual report on a Technology Share – KESM Industries. Their sales, nett profit, cash holding are all experiencing growth yearly and very consistent with past 3 years trending based on my opinion. Yet the share price have tumbled quote sharply in 2017. So for me, results is good but why the share price go the opposite ? Do you mind sharing your views and opinion on the possible reasons for this ?

    1. Hey Jian Yong, yes in Malaysia your dividends won’t get taxed by LHDN except for REITs. REITs will automatically cut 10% out of gross Distribution per Units they distributed to you.

  22. HI Leigh, just wondering do you know where we can go to view more than 5 year period for a particular share price ? So far i can only see up to max of 5 years. Thanks and appreciate your kind advice as always.

  23. Hello, Divvy.

    From your freedom fund section, I would like to know that your “gross investment amount” of each stock – is that already take into consideration of brokerage fee, stamp duty, clearing fee and GST to come out this calculation?

    Also, you mentioned about only need 1 CDS account with Bursa regardless of how many brokerage account you can open with the bank. Meaning to say, can I purchase a ABC company shares through HLBank broker but I manage to sell it with Maybank broker in the future?

    Thank you.

  24. As someone who is late in their 20s and has just started investing, this is pretty useful. My question is after you open a brokerage account – let’s say with HLB or Maybank. What is next? Do you give instructions to the broker on which companies to invest? Do you become a day trader? How do you go about in making orders in the form of market order, limit orders and stop orders? If you could explain the technicalities of what comes next – that’ll be helpful.

  25. Hi sir, I am 20 this year and new to investment. Would you mind guiding me on which types of investments should i proceed and how to start it in producing a monthly passive income? I am still a student and does not have much capital.

    1. Hi Joel,

      Welcome to the site!

      As this is mainly a stock investment site, my passive income are derived almost entirely from dividends.
      Since you do not have much capital, might I suggest saving up for now.

      Hope this helped.

        1. Hi Joel,

          It all depends on your take home income I guess. I’d say invest every 3 months if you can afford it. The ideal amount is around RM7-8K per transaction.
          Hope this helped

  26. HI Leigh, first of all many thanks for your kind sharing. I am 43 and only starting to invest now and thanks to your articles. You mentioned something on the right price to buy. If I am thinking of holding the stock for long term like 5-10 years do I need to wait for right time to buy the stock if I got a 6 month time frame between now until August just to wait for the lower price which may not happen ? If I look at the 5 year charts most of the blue chip company shares actually go up eventually. thanks for your sharing.

    1. Hi Gan,

      THanks for your kind words and I’m glad to hear you’ve decided to start investing. It’s never too late but the earlier you start, the better your returns will be.

      Looking at charts tells you nothing. Only that in the long term, good solid companies will go up in value. I’d suggest you try reading the company’s annual reports and understand the business. If you like what you see, go ahead and purchase it. Sometimes, waiting can be a double edged sword.

      Hope this helped.

      1. HI Leigh does the trading vol of the share ever affect your decision making to buy a share or what info you can deduce from analysing a high vs a low vol stock ? Assuming we are talking about blue chip companies which we want to hold for long term investment

        1. Hi Gan,

          In short, not really. Because there will always be buyers and market makers for blue chip companies. I’ve never dabbled in start ups and penny stocks tho. For those companies, trading volume would matter to me.

          Hope this helped.

          Thanks for reading!

  27. Hi Divvy,

    Thanks to you, I am very inspired to start investing. I have a few questions though (apologies if the questions are silly).

    1. I just check Maybank, It seems like you can create an Maybank Share Trading account if you are an existing Maybank2u users. Is this the CDS account that you were mentioning?

    “If you are an existing Maybank2u user, you can apply for a Share Trading/Margin Financing account online”

    2. Is dividends a separate earnings in addition to the price of the share going up? If I bought at RM 1.00 and it increases to RM 1.20, 0.20 is my dividend right? The dividends earnings is sent out and I have to save it to reinvest it again?

    3. If I were to start investing now, is it a good time now or after the election. What can we expect to happen to the stocks price during election?

    Thanks for your reply.

    1. Hi Cynthia,

      Thanks for writing in, all questions are welcome!

      1. Yes your share trading account would be your brokerage account. Remember to get the Direct Cash account. You need to do it at their branch. For IC verification and your signatures. You can try online though, it might be something I missed out on.

      2. Yes! dividends are separate. Your RM0.20 is your capital gains, that’s not your dividends. Companies pay out dividends when they make money, those are separate from your capital gains.

      3. I’d say before and after (depending on the results). But please read up on the stocks you’re going to invest in beforehand.

      Hope this helped!

  28. Hi. I am so happy to discover your blog. Thanks for sharing all the information. I have a question. Is it possible to open a trading account with Rakuten trade ( to trade in Malaysia market) & another trading account with Maybank (to trade in US market) ?

    1. Hi Qiu,

      As per my reply previously to @Cheng, I’d say you should just go for Maybank.
      Rakuten can come later after I’ve gotten confirmation that they will not charge for corporate actions in the future as they only offer Nominee accounts.

      Hope this helped!

      1. Hi. I was following your blog recently and I have registered an account with Rakuten. Now that you mentioned its not recommended anymore, should I close the account and find another brokerage firm? I actually deposit some money into that account. If u recommend me to close the account, I can actually choose from Maybank or cimb. Which would u recommend?

        1. Hi Desmond,

          Nah no need to close the account. You can just keep it in case they upgrade it in the future.
          I’d say go for Maybank, only because I’ve got no experience with CIMB.

          Hope this helped

  29. Hi Leigh,

    After reading your blog, i think i should start investing but first of all i need the CDS and the broker account. From the comments I read in this blog, mostly it is Maybank,CIMB and Hong Leong Bank. What about the Rakuten Trade? Actually maybank is the main bank i am using, hence, i am considering either to open the broker account with Maybank or Rakuten Trade. It seems that Rakuten Trade has lower fees structure and less hassles due to online account opening. Besides that, what are the other concerns i should take note? Rakuten trade just entered Malaysia market recently? is it reliable to use their service? If they were to decide leave Malaysia market after a few years, will it be a trouble to me? I reckon it shouldn’t be any issue since the shares I bought should be with the CDS account and not Rakuten trade,right? I am a bit worry to try out their service because previously Rakuten (e-commerce) did pull out from Malaysia market after some time here.

    1. Hi Cheng,

      I’d recommend you open with Maybank for now as it will be easier for you to transfer in money to invest. You’ll just have to go to their investment branch once for the opening. Thereafter, its all online.

      For Rakuten, I won’t recommend it for now as it is a Nominee account and they’ve not been clear if they will charge for corporate actions in the future ie, when you receive dividends or sign up for Dividend Reinvestment Plans.

      If you buy shares under a direct CDS account, it’ll be under your name. If it is under a Nominee account, it’ll be under the broker’s / trustee.

      TLDR: Go for Maybank =D

      Hope this helped

  30. Hi,

    I am a newbies in this investment world and still reading there and there about stock investment.

    1) Let’s say I have open direct CDS account with CIMB. What is next course of action? Where will we buy/sell shares?

    2) What do you meant by this statement:

    “With that in mind, ideally I would recommend you start with RM8K, but of course I realize that not everyone starting out is comfortable spending such an amount, which is why the lowest amount one should use to execute a trade would be in my humble opinion RM3K.”

    Minimum is 8K or 3K? In case I want to invest 3K i the beginning, I just find share that fit my budget right?

    Sorry, need more depth understanding. 😀

    Appreciate your help…


    1. Hi Mohamad,

      1. I’m sure CIMB will have a nice guide for you to follow.
      2. OK, because the fees charged by brokers are along the lines of minimum of RM10, after which it’ll be 0.1%. So to maximise this, or should I say to reduce your total fees per transaction, RM7-8K is the ideal figure.

      1. Your blog is definitely an inspiration, coming off from an investment background, I have learnt a technique call dollar cost averaging which make sense in term of a more steady cost per share. However as a fresh grad, to start investing, the 7k-8k per transaction would render dollar cost averaging impossible.

        Hence my question

        1)Do you not advocate dollar cost averaging? Consider your freedom fund investment, to wait to invest that number of stocks @ 7k-8k per transaction, it would take a long time to accumulate your portfolio (to achieve your variety; diversification effect so to speak).
        2) Does the benefit of dollar cost averaging outweigh the transaction cost? (Jan 1k, Feb 1k, … August 1k=8k, transaction cost would be 8*8=RM64; 64/8000*100%= 0.8% ) versus (August one lump sum 8k, transaction cost would be RM8; 8/8000*100%=0.1%)
        3) The example in 2 also does not consider the compounding effect that happen since January say the investment horizon is 10 years, by starting in the first month of the year initially would, in my theoretical knowledge limited opinion, compound more times (12th month interval) as compared to one that invest on an every 8th month interval

        Thank you for the input, it is definitely amazing to put theoretical knowledge to use and obtain feedback from the experienced investors

        1. Hey Mac,

          1. Dollar cost averaging doesn’t really work for me because I am doing my research. The fees will kill me as well. What amount of averaging are u suggesting? RM100 or RM1000 per month? And in how many stocks at one go? It makes more sense when u are averaging in a mutual fund.
          2. Nope, over the long run, the fees will be huge. I’d rather spend some time researching the companies I like.

  31. Hi, Leigh.

    I’m Richard and I’ve been following your blog and investment journey. I’m amazed and astounded with your success which is truly inspirational.

    I was hoping you Could help me with some question that i have with HLeBroking which i find confusing as i’m New to investing in stock market. I have a day job and cannot be constantly Monitoring the market. I place an order in the morning and usually check whether it is matched in afternoon and again in evening.

    Let’s say i wish to buy 10000 shares of A stock at RM1.00; However at the end of trading day, only 500 shares were partially matched, hence i was charged RM8 and other fees for that RM500 shares.

    1) How do ensure that the order is only executed If i get a complete match (ie 10000 shares) instead of a partial match (500shares)? I want to fully maximize the brokerage fees, stamp duty fees, etc for each transaction and buy at the best buy price.

    2) If i put a good to date order until, Let’s say End of the month, and my order for 10000 shares are only partially matched on End of Day 1 trading, Will it still be executed? Or Will it continue to accumulate from Day 1 of trading until Day 30 of trading for all 10000 shares to be filled up and executed together?


    1. Hey Richard,

      Those are questions I have as well. Unfortunately, I cannot answer them. Maybe some readers on here know? Anyone?

      I’d suggest placing your orders at the market’s current selling price. Ie. get it matched immediately. That’s what I always do as I, like you, do not have the luxury of time to monitor my transactions every minute.

  32. Hi Divvy, I really like your website and how you’re offering valuable insights to everyone. I come from a below average family (we have enough to eat, but nothing more than that) and I really look forward to the idea of investing, though it may seem daunting and intimidating to me.

    I currently do not own a CDS account yet. I did some research and it seems like I only need rm10 to open one. I currently don’t have any capital for investment (like the 8k you mentioned above). All the minuscule savings I already have is currently locked in my FD. The reason I want to open a CDS is in case a worthy IPO pop up suddenly.

    These are my questions:
    Is it advisable that I open a CDS account 1st just for the sake of exploration? Will the account become inactive or go into expiration. Or is there an annual fee of rm10 that I will have to pay even if I’m not using that account? (I have to know to decide whether to open the account as soon as possible).

    Is it worth investing on IPO? I heard they require only low initial capital and grow well over the course of many years.

    P.S I’m mainly interested in long term investment and especially dividends as a form of passive income.

    Thank you in advance!

    1. Hi Ah Weng,

      We all come into this world under different circumstances. Do not let investing scare you, it’ll be the path to your freedom so embrace it with all you have.

      As far as I know, your CDS won’t expire. However, you should just double check this with your broker when you open one. I’d say go ahead and open your CDS first. Figure out how to buy/sell stocks so when the opportunity comes, you can grab it by the balls.

      I rarely opt for IPOs.

      Thank you for reading my friend.

  33. Hi Divvy,

    I’ve been reading your blog for some time now and I find it to be really informative.Thank you for sharing with us public layman all your knowledge about financing. I have one question for you. I’m a Malay. If I had 200,000k, should I put all that money in ASB and get 7-8% dividend yearly or should I venture into stocks as well?

    1. Hi Moobs,

      I’d put it into ASB first. If I’m not mistaken, you can get a 200k loan to place into ASB. Frees up your cash for other investments.

      Thanks for reading and writing in.

  34. Hi Divvy,

    I have opened a CDS account before years ago with another bank. However I stopped trading stocks few years back to focus on other things, and now would like to re-enter the stocks market world again.

    However I am planning to open another trading account with a different bank. Will I be able to do so without much hassle, as in multiple CDS accounts? Or will the new broker (bank) continue to utilize my old CDS account?

    Thanks a lot for the reply 🙂


    1. Hi Alfred,

      If your CDS account is still active, your new brokerage will be tied to it. All can be checked thru the system so don’t worry.
      There’s no point in having multiple CDS accounts.

  35. Hi, I have not registered for any CDS or Broker yet.
    May I know if I can do intraday transactions using a cash account?
    From what I have not seen such information…the comparison table I saw on iMoney didn’t state clearly, and same for the website of respective brokers too.
    As I am new into the market, I would like to stick with cash upfront but would like to have the function to do intraday too.

    Secondly I see you are a good monitoring system…Do you mind to share the ‘thing’ which you use to track your portfolio, if it is an excel spreadsheet file, or other means?

  36. Hi There. I feel grateful that you are willing to share your opinion to the public regardless of the purpose underneath this article.
    I wonder since the heavy stocks being your first selection to buy, would the dividen derived be your priority too? Thanks.

    1. Hey James,

      Thanks for writing in and for your kind words!

      Dividends play a big role in my purchases. A more important factor is the company and its business. Even with low dividends, I’d still go for a good company.

      Hope this helps

  37. Hello, Divvy. Just wanted to ask how we should go about planning for retirement in the far future, like 30 years from now. Do I estimate expenses in today’s ringgit or the ringgit 30 years from now?

    Depending on the answer, my estimates can be way different. Also, you said something about not deducting inflation costs from one of your previous comments, the one right below, actually?

    How does this work? Practically every FI website I’ve visited has said that inflation has to be accounted for to get the real rate of return. Or am I misconstruing what you said?

    1. Hey Rex,

      Good to hear from you.

      You can plan ahead by using a financial calculator. You estimate it together with inflation of course. I’d be conservative and take at least a 3% inflation rate.

      As for the comment, I had to search for it and I believe this is what you meant:

      “Living off dividends of RM1.3m of stocks should be more than enough. Don’t forget your stocks will grow with inflation. So you don’t have to deduct that 4% inflation. That’s one of the wonderful things about stocks, businesses grow with inflation.”

      What I meant was because the user was investing in stocks, and stocks tend to grow in line with or even more than inflation. Because businesses will increase their prices in line with inflation. If not, all of them would be bankrupt by now.

      Hope this clarifies. =)

  38. Hi, after i transfer my money to my account, may I know what is the next step? We go to bursa website right? How to buy the stocks? Securities or derivatives?

    1. Hey Wei Ling,

      After you’ve got your funds in, you’re ready to purchase your stocks.
      No you don’t go to Bursa, you’re supposed to login to your account on you broker’s website. Which broker are you using?

      They should have tutorial videos on there. But they should’ve taught you when you opened the account. XD

      Let me know if you bump into any problems along the way. Always happy to help.

      1. Hi Divvy,
        I now own some shares thru an online broker. I like to know, how can I proof that I own the shares that I bought? Is there some kind of share certificate or something official from the company I bought into?


        1. Hey Andrew,

          Certs have long been abolished. If you opened a direct CDS (Central Depository System) account, your shares are all there under your name.
          You’ll receive your CDS statements in your mail or online.

          Hope this helped!

  39. Hi, Divvy. I currently have RM 500K saved up and I’m in my late twenties. Judging by how things are going right now, I should make it to 1.2 or 1.3 million by the time I’m in my early forties. I then plan to retire at that time because the amount of money I have at that time is more than enough to sustain my life even at a withdrawal rate of 1.5 percent, so it’ll be a good cushion for any recessions. Do you think this is plausible, especially in the long term?

    1. Hi Mel,

      Thanks for writing in. First off, let me say that RM500K in your late twenties is a tremendous feat.
      Achieving 1.2- 1.3 million in 10 years should be no problem at all. Are you currently investing that RM500K?

      I personally do not think RM1.3 million is enough for you to sustain you living expenses. That’s because of inflation. In 10 years time, RM20,000 per year isn’t enough. I would argue that it isn’t even enough now.
      Also, I always encourage one to go for a capital preservation method instead of withdrawing 1.5%, try to live off your returns / interest. For the sake of your future generation.

      I’d recommend you start investing your money now, if you haven’t already. The above recommendations are general in nature because I don’t have all the details about you and I don’t even know your goals in life.

      1. Ah, I guess I was a bit too nebulous with my earlier comment. I have my 500K invested in what I deem to be highly valued stocks (highly diversified across a myriad of industries, of course) and to that end, I plan to do the same with my 1.3 million as well. Of course, like any sane investor, I don’t plan on touching my principal at all, heck, I have two rental properties, a fully furnished terrace house and a semi furnished terrace housr, which yield me a combined profit of 2100 per month so that I don’t have to withdraw from my principal during downturns. As it stands currently, I’m living off of my rental profits alone with about RM 600 saved ( I’ll owe this to me being a heavy proponent of minimalism) I dont touch my salary at all and invest all of it, so over time it added up. I also received an inheritance, which aided a lot in me hitting this number at this age. What I was actually trying to say in my previous comment was this; Do you think that when I reach 1.3 million, I could live off of the dividends accrued ( I’m assuming a quite conservative return of 6 percent p.a here). Subtracting average national inflation from the equation and you get 2 p.a in actual growth. I plan to only live off of RM 20,800 p.a, which is actually 200 more than what I actually spend per month, so I’ll be using up somewhere around 1.8 percent out of the actual 2 percent growth I get, so there’s still room to grow. There’s also the additional security measure in the form of my rental properties. As for my goals in life, there’s nothing too extravagant that I want to indulge in, actually. I like reading a lot and writing, as well as watching anime, all of which don’t really cost much. I’m planning on side hustling post retirement through my writing so earning potential is still there, though, I’ll actually enjoy this, unlike my job 😛 I hope to receive more specific advice from you, now that I’ve basically laid down my entire financial situation. Thank you, again.

        1. Hi Mel,

          Ah ok this explains a lot.

          Looks like you’ve got everything set and planned out.
          Wonderful that you’ve got RM500K invested already. So the 1.3m will be 100% stocks right? Not including your properties?

          Living off dividends of RM1.3m of stocks should be more than enough. Don’t forget your stocks will grow with inflation. So you don’t have to deduct that 4% inflation. That’s one of the wonderful things about stocks, businesses grow with inflation. =D

          You’re set!

          Do drop me a PM on FB if you can. Maybe let me know how you did it and I can write a post on you and check back again 10 years later! (with your discretion and approval of course)
          You’re an inspiration to us all! Real life financially independent Malaysian!

  40. Hello, I’m receiving 400k from my parents in inheritance. Just wanted to ask how much of a head start that’d give me in reaching my goal of 1.5 million.

  41. Hi, my application for opening a cds account has just been approved by HLeBroking. May I know what is the next step to start trading?

        1. Hey Kit,

          Thanks for writing in!

          Yes it can be daunting at first. Have you managed to figure it out? I’m sorry for the late reply.
          They’ve a pretty comprehensive guide on the HLe site itself under FAQ I think.

          Let me know if you’ve got trouble locating it.

  42. Hello, it’s me again! Sorry for the bother, but I just wanted to divulge your opinion on this. I see that you’re a proponent of investing in individual stocks but is it really secure? For the long term, I mean. Also, does managing your portolio of stocks require a lots of hands on interaction, like every day? Because I think that’ll be a huge time sink. Also, what would you reccomend a new investor do in order to pick the right stocks , or at least, as close to right as possible.

    1. Hi Rex,

      No bother at all. Managing a long-term dividend and fundamentally sound company takes up none of your time. Most of the time spent will be on analyzing the company before you invest. Thereafter, I monitor and keep tabs on the company like once a month. You can even do it once every quarter or once every 6 months.

      I’d recommend a new investor to do their homework right and pick the right stocks at the right prices.

  43. Before I can start trading, I need to deposit cash into HLeBroking. My income is mostly in Maybank and therefore if I were to use e-payment via M2U and this would incur RM0.53 per transaction. Would it be more cost effective if I were to use IBG to transfer to HL savings account (RM0.11 per transaction) and subsequently from HL savings account to HLeBroking account? Some lead time incurred but what is your opinion when there are few transactions within a month? Sorry for being out-of-topic.

    1. Hi Janice,

      I can’t remember if I did an instant transfer or if there is an option for the normal one when transferring from M2U to your brokerage account. Like u said though if you’re ok with the time it takes, I don’t see a problem doing what you mentioned.

      However, I do remember there being the option to transfer without IBG though. It’s been awhile since I put in money sorry.

  44. Hi Leigh,

    Your articles are packed with information and are truly helpful. I would like to have an income stream through investment. I am currently 18 yet I’ve always wanted to invest since I was younger.

    I hope you are able to guide me on the steps I should take.

    I look forward to your response.


      1. Hey Leigh, thanks for replying fast

        As I’m only 18 and currently in university I don’t have much money with my account balance hovering just above RM1k.

        I have spent this night reading your previous articles on REIT, financial planning, etc.

        I would like to ask what would you do if you were in my shoes, how would you invest?

        I will be opening a M2U savers account tomorrow and will be alloting RM100 per month into that account, what other steps should I take to get a good return on investment?

        I know my questions are more on financial planning but I would greatly appreciate your help.

        I look forward to your response and I’ll be sure to reply


        1. Hey Jay,

          Yup! You’re more at the savings stage now. Continue reading up on investing and start reading annual reports of companies you like and want to invest in. Now is the time to build a watchlist.
          In your shoes, I’d open a M2U savers account. Save up till I have RM5-10K. Move that to Maybank’s GIA account. That’ll act as your emergency fund. Thereafter, its time to save again and invest when you have RM3K maybe. If you have your family to handle your emergencies for the time being, go ahead and invest.

          Hope this helped! Happy to see someone as young as 18 taking an interest in their finances. =D

          1. Thank you for the informative and helpful responses Leigh and Mr Lye Heng Foo. I would like to ask you more questions and for more guidance so I can maximize the most out of my money at the moment through investment.

            Today I have successfully opened a M2U account and bought RM 500 in the Unit trust CIMB-Principal Global Titans Fund through CIMB Clicks e-Invest. Initially I wanted to purchase CIMB Asia-Pacific Dynamic Income Fund but the minimum investment amount was RM1000 which is a little above my budget hence I went for the latter. I figured it would be a good idea as suggested by Mr Lye to by into a fund as I do not have much.

            I would just like some feedback on my choices and what I should do next.

            Thank you for answering and I look forward to your response


          2. Hey Jay,

            I’m not sure if it’s a good idea to buy your funds through CIMB. How much did they charge you in service charge? If you’re adamant on purchasing UTs, I think you should buy them through Fundsupermart.

            As you may have figured out through the article, I am not a proponent of unit trusts and mutual funds here in Malaysia.

            Hope this helped.

          3. Hi Jay,

            Congratulations on your first invesment towards early retirement!

            I just checked out CIMB Clicks eInvest, and the commission charge seems to be 2.5%, slightly higher than fundsupermart.com.my (at 1.75%). For small amount, I guess it doesn’t really matters, as I guess it is probably more convenient if you already have CIMB bank account.

            By the way, coincidentally, I do have some investement in CIMB Asia-Pacific Dynamic Income Fund as well, at fundsupermart, and the minimum initial investement is also RM500. I do not have CIMB Global Titans Fund though.

            Looking at the details of the 2 funds, you will learn that one is limited to Asia Pacific (excluding Japan), while the other is focused on developed countries (US, Europe & Japan). My details are from:

            Both the fund performance are good in my opinion, although the Global Titans seems to be slightly better, and older (more mature). It is important to know that the risks of the investment at the target geographical locations. As a rule of thumb for any investment, please diversify. If I have only RM1000, I would split RM500 for each fund, as both of these funds are completely “mutual exclusive” in the geographical investment.

            And as with any investment, “dollar cost averaging” is the key to successful investment.

            Good luck in your investment. Please let me know if you have further questions. Hope it helps !

          4. Do remember that once you have bigger capital from regular savings in unit trusts and financial knowledge in investing on your own, you could start to buy stocks.

        2. I would suggest buying into mutual fund if you have anything less than RM1K per transaction. And especially if you are planning to invest RM100 every month. Otherwise, the brokerage fee (minimum RM8/RM10) is going to eat up all your stock return. Mutual fund fee is much higher in term of percentage, but since there no minimum charge, it will come out cheaper. Suggest you take a look at fundsupermart.com as the commission fee is low (1.75% for equity fund), and everything is done online. If you need consultation, then you have no choice but to pay more for Public Mutual (at 5.25% fee for equity fund). Investing RM100 at 1.75% fee is only RM1.75, compared to RM8 for stock purchase. Eventually, when you have bigger capital, you can withdraw from mutual fund, and buy stocks on your own. Hope this helps.

          1. Btw, in comparison, for efficient “saving” on brokerage fee, best to invest at least RM8K per transaction if your brokerage firm is HL. Brokerage fee could range from 0.05% to 0.4%, and subjected to minimum of RM8-RM12, depending on the brokerage firm and the account type (cash/collateral with T+3/collateral with T+10) that you opened.

  45. Hi Leigh,

    It’s me, come to kacau again haha.

    I deposited into my trust account yesterday. The Cash Available Balance shows the amount I deposited but the “Opening Trading Limit” still remains 0.00. Does it mean that I still can’t start to trade?

    I tried to place an order. I entered the number of shares & price, then clicked “OK”, then it asked for “trading pin”. What is “trading pin” and is this required trading pin normal?

    1. Hi Lim,

      Always happy to hear from you. 🙂

      Hmm, usually my trading limit goes up first and a few days later the cash balance is updated.
      As long as you can trade it should be fine though. Trading pin is your account pin. Its normal to require a pin when u place orders.

      Hope this helped!

      1. Hi Leigh,

        I submitted an order for a REIT and got all matched today. Does it mean I just done my first trade and I own the shares from now on?

        If so, thank you so much for all your guidance man ! You have made my life easier from selecting a broker to owning my first share.

        BTW, may I know what is the difference between the buy price and sell price?

        When we buy a share we refer to the buy price right?

        I noticed that the best buy price is always lower than best sell price. Since buyer buys shares based on the buy price, I wonder how the matching is done if seller sells he/her shares to the buyer based on the sell price which is higher than buy price?

        1. Hey Lim,

          Yup! Congratulations on your first shares. =D

          When you’re buying, you look at the sell price because that’s the price people on the market are selling at.

          Hope this helped!

        2. Hey Lim,

          Yup! Congratulations on your first shares. =D

          When you’re buying, you look at the sell price because that’s the price people on the market are selling at.

          Hope this helped!

          1. Hi Leigh,

            Oh I see. I look at the wrong value haha. Thanks!

            Ermmm… Do you mind sharing how you track and monitor the performance of the shares you bought? Like what are the numbers you are tracking, returns, cost and etc.
            A post about this maybe? Just a small tiny suggestion. Cheers =D

          2. Hi Lim,

            Thanks for the suggestion!
            I just monitor through my broker’s platform. Favorite List.
            Lots of numbers and figures my friend. Most important – the price.

  46. Hi Leigh,
    I have mbb nominee acc and wanna change to direct acc, how to go about?
    Will i have a broker/ remisier to assist me in trading with the direct acc?
    How to trade using mbb direct account? (Eg online etc)

    1. Hey Lye,

      You should call up Maybank and ask/tell them you want to switch to a direct account.
      Yes, you will still have access to a remisier. But be warned that if you go through remisiers, you will be charged more in fees. You should just trade online yourself.
      All brokers have tutorials to teach you how to use their platform.

      Let me know how it goes bro. Many MBB users have been duped into opening Nominee accounts. Some even mentioned they’re facing difficulties in switching to a direct account. Hope to hear back from you

    2. Hi,I been mbb nominee account before,just transfer to direct account.actually is very easy,just call your mbb investment agent,he/she will ask you sign some document like open nominee account.within a week then can use direct account once activate.if you want to transfer your counters need to be inform them also, transfer counter need to be charged.you call them mbb investment for more detail.

      1. Hey Li Lin,

        Thank you so much for sharing!

        There you have it guys! Call MBB up and change it to a direct account asap. Doesn’t make sense to hold a nominee account.

        1. Just called MBB, can’t changed account but can open a new direct account. The shares cannot be transferred to new account for free. Just sell and buy again.

          1. Hey Fong,

            Yea you should open a new one then. You can try asking them to waive the transfer fees. Selling and buying again, you’ll incur fees as well. Be sure to see which one is cheaper, to transfer or buy and sell.
            Let us know how it goes.

          2. Just opened a direct cds account in MBB, now I have 3 cds account in MBB! The other is non-margin account which I don’t use since I opened it.
            I think easier to manage compared to opening in HLeBroking. Will update the pros and cons. But I takes 2 weeks to activate. It’s ok for me. I don’t trade too frequently.

          3. Hey Fong,

            You opened a margin account? You should get a non-margin (cash upfront) direct cds account bro.

            Normally margin accounts will charge you higher fees and interest for trading on margin.

  47. Hi Leigh,

    Finally I got the funds into HLe to start invest. So according to your reply earlier, I will get charged the fees each time I buy the stock. If RM 8,000 is the threshold to offset the fees charged, then I’d need RM24k to just buy 3 Reits…I’m so broke lol. Is there a better way to buy many stocks and minimize the fees?

    1. Hey Shin,

      RM8,000 won’t offset the fees lol. I meant it would be the most cost efficient amount. Because you’ll be paying RM8 anyway (in the case of a Hong Leong brokerage account).

      Start with 1 REIT first, if you can’t save RM8K in 6 months or a year, start with a smaller amount. RM3K or RM5K is totally fine. You’re worse off if you don’t invest.

      1. Hi Leigh,

        Thanks for reply. I tried trading on the platform today, keyed in the order since morning but didn’t get matched. Am I doing something wrong or there is simply no seller? How long normally before an order gets matched?

        1. Hey Shin,

          Haha you probably keyed in a much lower price that’s why it didn’t match. No one was willing to sell the shares to you.
          If people are trading at RM1.20 and you put in an order at RM1.00, you’ll probably never get a seller. I normally just buy at whatever people are selling at and get matched immediately.

          Hope this helped! Let me know if you have trouble

          1. No actually, i tried to buy according to the last done price and experimented with 0.01 below the sell price. Both didn’t get matched. So what went wrong?

          2. Hey Shin,

            Hmm.. Now that’s weird. Try queueing according to the selling price at that time. Should be able to get it. No point waiting whole day because of 0.01 and the stock ends up rising by a lot.
            Snap it up when you think the price is right.

          3. No actually, i tried both buying at last done price and 0.01 below the sell price. Both didn’t get matched. What went wrong?

      2. Oh well, anyway after last friday’s closing I send an order to queue for the next trading day. Let’s see if the same thing happens again…


        1. Hey Shin,

          Not really advisable to do that unless you’re really pressed for time. You never know, the market may tumble overnight and you’ll end up in a bad spot.

          Hope this helped! Let me know when you got them shares 🙂

          1. Oh I see. I didn’t think of that. Incidentally, Does the quantity I keyed in matter? As in if people didn’t sell the quantity I put, even though the price is right, it won’t be matched?


          2. Hey Shin,

            Let’s say you queued for 1,000 units. If someone matches at 500, you’ll see a partially matched indicator. The remaining 500 will have to wait until it matches with your buy price again.
            Hope this helped heh. Keep the good questions coming!

          3. Hi Leigh,

            My Reits got matched just now. So a few more questions I wanna ask:
            1. What happens next? I read about something T+3 where the money will auto deduct from the fund?

            2. I occasionally saw some stocks that are selling say, at 1.50 throughout the day, but for a short moment it will dip to 1.46. But it jumps back to 1.50 after maybe 1 minute. What gives? I tried to buy at the low price but obviously it never got matched that way.

          4. Hey Shin,

            Congratulations! How many different REITs did you buy? Or is it just one?

            1. Yeap. If yours is a cash upfront account you don’t have to worry. Your limit will automatically drop and on T-3 you’ll notice the deduction.
            2. Mostly happens during the pre-opening and pre-closing sessions. My guess is people are trying to reduce and increase the prices.

            I’ve heard there are ways to queue for these but I’m not sure how it works sorry.

          5. I just bought 1 atm to test, I bought YTL Reits. Will add more later. Don’t they gave you some sort of acknowledgment for owning the shares?

          6. Hey Shin,

            They used to when you had to buy shares through mail orders. They’ll issue certificates.
            It’s all electronic now and your acknowledgment can be found in your CDS account.

            May your REITs bring you ever more dividends!

          7. Hi Leigh,

            I have a question but not sure how to word it. Um…at the moment of buying the shares, how do I know if I’m qualified to receive the dividend payout for the next period? And where can I find the announcement as to when the company declares its dividend as well as the amount?

            Also, does these type of announcement affect the fluctuations of the share prices? Thank you.


          8. Hi Shin,

            You can visit the company’s website or just google ‘ABC Bhd dividend’. You should find a few sites listing their previous dividend months.
            If you see a C* beside your counter it means you’re still eligible to receive the coming dividends. If it is an X* then you’re not eligible.

            Dividends declared will, of course, affect the share price. If it is higher than expected then the price goes up. Vice versa.

            Hope this helped!!

          9. A couple of good websites for such info would be
            I3investor.com and Malaysiastock.biz

          10. Oh, you mean the *C and *X in HLe ecTrade right? That’s indicative of that day’s status only, yes? What if neither C or X shows?

            I took a look see on i3investor under Disclosure> Entitlement. I think that’s the place to see the declarations? What does Ex.date and Ann. date mean?

          11. Hey Shin!

            Yeap that’s indicative of that day’s status. If neither shows, it means there are no dividends incoming in the near term.
            Yup i3 is a good place to look at a stock’s dividends.

            Ex is the X*. Announcement is just the date where the company announces its dividends etc.

            Hope this helped

          12. Hi Leigh,

            I’m here to seek your advice again. So I started to receive dividends from the Reits and shares purchased. I took out all the dividends received and put together with my salary saving each month to re-invest them. Is this move from this point forward strategic? I wanted to replicate what you’re doing with your freedom fund. Although the returns I see now is hardly significant.


          13. Hey Shin,

            Yes! Accumulate your savings and dividends, then when you’ve enough, invest! Congratulations on your dividends btw. Passive income ftw!

            As mentioned previously, the optimum amount would be RM7K and above per transaction. If you can’t save that amount in 6 months, invest whatever you’ve managed to save up then.

            Hope this helped!

  48. Ah, I see. Well, 3 million seems like a lot from my perspective, but I’m sure it’ll be easier and easier to hit that target when you hit your first million and compound interest ramps the snowball effect up a notch. I plan to retire on a sum of 1 million ++ only because my annual expenditures don’t really amount to much, usually around 1800 per month, 2k if I really splurge. I’ve got my own property through inheritance so rent isn’t really an issue. Do you think 1 million is a good lump sum to retire on for someone with my lifestyle? I’m also hell bent on remaining child free so children won’t be in the equation, ever. Does your method of putting dividends when you receive them in FDs still work with my projected lump sum, which is like three times smaller than yours?

    1. Hey Mel,

      RM3 million was just a figure I plucked out, it could be 1m or even 500K. The point is we will have an amount saved up to be used throughout the year so there’s no need to count on your dividends arriving every month consistently, as long as you average out your annual dividends, you should be fine.

      To get a more accurate picture of your retirement, may I know your age this year as well as how much you’ve saved already?
      With the info given, RM2K monthly expenses puts you at around RM24K yearly. At a rate of return of 5%, your capital needed is only RM480,000. RM1 million+ would be more than sufficient. The good thing about stocks is that company profits are expected to keep up with or even beat inflation. You can even afford a more lavish lifestyle.
      And yes your dividends should be kept in an interest bearing account. I’d suggest Maybank’s GIA-i.

  49. Hi, does Hong Leong charge you any fee of your dividend payout?In MBB,I was charged about rm5-6 every time dividend come out. If dividend Is Rm4 only, I will get nothing (good thing is I no need to pay them!!!)

    1. Hey Fong,

      Nope they don’t charge at all. Do check if yours is a Direct CDS account and not a Nominee account. You should have a direct one.

      Please do keep us updated! I wana know why MBB is charging you for your dividend.

      1. Just to share some info, all nominees account will have such charges. I have experience with both nominee and direct account. Many years back, when they sent cheques for your dividend, I find it very convenient to use nominee account as I don’t have to go to bank to bank it the cheque, and there is outstation cheque processing fee as well. But not anymore currently, now with direct account, we can choose dividend auto-bankin from Bursa to the choice of banks directly, and it is free. So, I cannot understand why we still need nominee account, where they charge a few ringgits for each dividend for this.

        1. Hey Lye,

          Thanks for sharing this! Yup it used to make sense when they delivered dividend cheques in the old days. Right now, Nominee accounts are more for individuals or companies etc that don’t have the time to fill up the necessary forms for stuff like DRP or to purchase warrants etc. Not recommended for average investors.

          1. Totally agree, for regular investors, direct account is what they should get. And to add more for the benefit of all readers here, only direct account can be used for IPO application. Nominee accounts cannot be used for IPO application. This is another plus point for getting a direct accounts.

            Big thank you to your time and effort to guide all the new investors here. I liked the investing knowledge you have promoted in your blog, which is based on long-term investment, and discourages speculation (or usually read as gambling :D). Keep up the good work! I will definitely continue to follow your blog, and impart my knowledge, wherever needed & necessarily.

      2. Just checked, it is Maybank Nominees (Tempatan) Sdn Bhd. I think I better change to Hong Leong. Can we manage the cash in the account like MBB? I mean can we transfer the money to current accounts and back in Hong Leong ourselves?
        In RHB osk, they charge rm12 compared to MBB Rm8, and hard to transfer the money in rhb.
        Thanks and regards.

        1. Hey Fong,

          Yup you might want to get it changed to a direct account. I’m confused, are you using Maybank or RHB now?

          If you’re using Maybank, there’s no need to switch to Hong Leong, you can just call Maybank and get them to switch you to a direct account. If you’re using RHB OSK, I’d suggest you switch brokers because their fees are too high.
          Not even staying competitive.

          1. My 1st cds is RHB, 2-3 yrs ago opened account in MBB, majority is MBB now because RHB osk is inconvenient for me for the payment.
            Good thing of RHB is I won’t trade too frequently because of it’s inconvenience and higher fee. Lol. Can buy and hold for long term.
            I will check with MBB for the change. I remember last time I call MBB to enquire for the charges, they only replied me that can’t be waived but never inform about direct account.

          2. Hey Fong,

            Ah ok ic. Forget RHB, you should get Maybank to change you to a direct CDS account.
            If they still insist you can’t, just switch to hong leong. Don’t forget to give them a good scolding before that. XD

            Keep us updated on how it goes!

          3. HLE has started charging RM5 for every dividend received for a nominees account, probably starting June 2017. They were sneaky about it by hiding this information inside a general announcement about all fees. As a result I didn’t notice until a few months later. By then I have lost close to RM100 in total due to this RM5 fee.

            It is a silly fee because it has been free for the past 7-8 years with HLE. I will pay whatever fee they charge (i.e. for subscription to rights issue) because they are providing a service. But RM5 for EVERY dividend? What sort of service is HLE providing? I can understand if you charge RM0.50 or something like that, but RM5???

            I got pissed of with HLE that I have now applied for an account with Maybank (direct CDS) and moving my entire portfolio out of HLE. Now they can pry the RM5 out of my cold dead hands. Maybank works better for me anyway as it is currently my main bank.

          4. Hey Eugene

            Thanks for writing in.

            Damn! Firstly, thank you for taking the time to keep us updated. Secondly, DAMN! I totally agree, why would anyone charge for dividends..

            I’m sure many will move their funds elsewhere once they discover that RM5 charge. And yes other brokerages are offering equally good rates nowadays.
            Sorry to see you go, let me know how Maybank charges if you can. I’d like to keep the table updated. Who knows, I might move as well. =D

            Thanks again Eugene, hope to hear from you again soon.

      3. Hi. Leigh, Can you use apple and android apps to trade in Hong Leaong cds? Can we make payments and collect payment through bank? Thanks.

  50. Hi, I’m someone who wishes to be financially independent before I hit the age of 50 and it’s nice to see a blog that focuses on that goal from a Malaysian perspective because all I’ve seen are anecdotes from devoloped countries so far. The thing is, based on your Freedom Fund which I just glanced through, I assume that dividend returns each month fluctuate wildly? If that’s the case, how are you supposed to live off of those in retirement, when you’re not receiving monetary compensation at all, if there’s a month where you receive 1000 and another where you get 200?

    1. Hey Mel,

      Thanks for writing in! Yup most sites on FI are all from the West.

      As for the dividends not coming in monthly, don’t worry about that as it’s not an issue. I won’t be relying on monthly income.
      Instead, I’d probably want like a RM3 million portfolio. The dividends earned will be put into an FD or savings account. And I’ll draw from there. Of course, that account I draw from would be sufficient to last me more than a year. So dividends coming in different months won’t matter at all.

      Hope this helped explain!

  51. Hi Sir,

    I wonder if I can start investing rm100 every month? I am very new to this umm REITs etc. I really love all your posts but I just do not know when to start. I am 18.

    1. Hey Jesper,

      Don’t worry about the age my man. The earlier the better. Start saving.
      If you invest RM100 every month, the fees will kill you. I suggest saving RM100 every month, then you invest that RM1,200 every year. Or if you can save more, try to hit RM2K a year. Remember, the higher your amount invested, the less you pay proportionally in fees.

      Hope this helps! Please ask as many questions as you can and lets get you started on investing.

  52. Hi Leigh,

    I finally get my account activated with HLeBroking, waited for almost 2 months. Thanks a lot for your informative post !

    BTW, how can I confirm that my account is a direct account?

    Under “Account Details” column,
    Account Quantifier : (blank)
    Account Name : Lim xxxx (my name)
    Account Type : Collateralised Account

    The “Collateralised Account” confuses me

    1. Hey Lim,

      Thanks for writing again!

      I don’t know what’s gotten into HLe, 2 months is a bloody long time if you ask me.

      You can always call and ask. Just have your client code ready. Takes about 5 minutes haha.
      Collateralised is a margin account if I’m not mistaken. I don’t recommend anyone to invest on margin. You should change that to a cash account instead.

      1. Thanks for your quick reply Leigh!

        I will keep writing in bro haha. Sorry in advance if I ask some silly questions in future.

        Okay I will give the bank a call to check it out.

        Thanks for the guidance ya. Glad to see your blog is getting more attention and comments. Cheers =D

      2. Same goes here, took more than 2 months for activation.
        As for this collateralised account, l called up 2 different officers, they said it is a cash account… ???
        By the way, thanks Leigh. Had been reading alot of your articles, a good motivation for me to start investing. Well, better too late than never. 🙂

        1. Hey Clarice,

          Thank you so much for your kind words. Really appreciate it and it really makes my day when someone new starts investing.

          As far as I know, a collateralized account is a margin account and you can trade even if you don’t have enough cash in the account. Which broker are u using?

          1. The officer told me the same thing too, a cash account.

            Leigh, the collateralized account is stated at “My Account” > “Customer Info” > “Account Type”.

            However, “Product Type” is “Value Trade”.

            Are your info the same too Leigh?

            Found on HLB website:

            * ValueTrade => trading limit cash 0.99x
            * PowerTrade => multiple up to 2x cash and share collateral
            * 1Trade => Cash 2x Shares 2x multiplier

  53. Hey, I’m writing in again.

    I just wanna ask you one of the questions that’s been bugging me for a good while now and while this question doesn’t really relate to the article, it does have something to do with investment and early retirement know-how so I hope you’ll be able to answer it.

    You’ve probably heard of the 4 percent rule, so I’m gonna skimp explaining on that. The thing is, since all the research on its practicality( and to a lesser extent it’s overt optimism of market performance) has been done based on the US markets, is it still aplicable in Malaysia? If no, what would you deem (or estimate) to be a “safe withdrawal rate” , that’ll last longer than 30 years preferably, in our country?

    While I’m here, I’d also like to ask how you increased your portfolio value from 3000 to 300000 in just a few years. I apologize if I’ve got the figures wrong but I swear I read some comment on the site which said you did just that and if so, I want to know how.

    1. Hey Rex,

      Thanks for writing in again man. Keep the good questions coming!

      The 4 percent rule works. But in a general and broad sense, it’s based on historical returns of the stocks in the US. To a certain extent, Malaysian markets do follow the US’ trend.
      I don’t think we should base our withdrawal on 4 percent. I’d suggest you estimate your future expenses and costs (include inflation). And from there, determine how much capital you should have instead based on your expected returns.

      Yup the figures are sort of right, I got that big amount mostly through savings. I save a lot and I have a few streams of income ie from businesses I have shares in. The returns from investing help as well. Can’t stress the importance of savings when it comes to investing.

      Hope to hear from you soon on your financial plan!

  54. Great job on explaining 🙂
    I have a few questions though.
    a) By using your strategy of long term buying and holding, is there a chance that the stocks you buy will stop paying you at a certain point or as much because of internal company problems? Would this mean you’re practically broke? I know of stock diversification but is there a chance of the aforementioned scenario happening even with that measure taken?
    b) Say I’m planning to be financially independent, and I want to live off my dividends one day. Your strategy of reinvesting your dividends to further cause your investments to snowball would mean that I woudn’t have any dividends to life off of for the month, no?
    c) Is there any chance of Vanguard coming to Malaysia anytime soon? I’ve read about it extensively on it on another website (Money Moustache) and I’ve found it to be one of the best deals I’ve seen.

    I’m sorry if you find any of the questions I posted here to be silly or inane. I’m only 16 years old, so it’s obvious that my knowledge is lacking. However, I wish to be fully brushed up in this area by the time I’m in university.

    1. Hey Rex,

      Age doesn’t matter when it comes to investing! Thanks for writing in my man.

      a) Investing in good companies long term, I’d say the chance of that stock not giving you dividends is close to zero. Only small companies go broke. But then again, anything can happen. This is what we call risk.

      b) Well you’d have a job won’t you? I’m living off my salary now and reinvesting my dividends for the future. Maybe when I’m 50 or 60 I’ll stop working, then the dividends will most definitely cover all my expenses.

      c) Very little chance. We don’t have a big enough market. I also think our current mutual fund players would lobby our government to prevent someone like Vanguard from ever setting foot in Malaysia.

      Keep writing in my friend! Always happy to help. Ask as many questions as you’d like.

  55. Hi there, started reading your blog (and numerous others) I think 4 hours ago and haven’t stop reading yet lol. I’m 18 and want to start investin as soon as possible

    If say I have rm3000 to invest from today, and can add a capital of RM400+ every month, what would you recommend I invest into?
    Sorry, I am extremely new to this world. But doing my homework on how everything works, getting a real jist of it.

    Also will it be time consuming to manage your shares on a daily basis? Since I’m super busy during school time, but want to start investing

    1. Hey Angie,

      Real glad to have you with us, and at such a young age as well.

      RM3,000 is a good place to start at 18. You need to open your account with a broker first. As for your RM400 a month, I suggest you invest every 6 months. That way, you can invest RM2,400 each time, saving you on transaction fees.
      I’d recommend REITs for starters. As for which REIT, you’ll have to do your own research and analysis.

      The wonders about long term fundamental investing is that you don’t need to manage it daily. Once a month is fine, sometimes even every quarter. You don’t need to hound and sniff at your stocks every day. Stress free!

  56. I like how are your investing theories so simple to understand for us beginners out there. I have made my first trade not long ago but still can’t figure out the exact calculations on the fees imposed on it. Do you mind breaking down the exact calculation for me?
    Let’s say I bought 5000 unit of stock A at RM1 each. Thanks! 🙂

    1. Hey Wilson,

      There are a few parties that charge you. I’ll be using my broker – Hong Leong as an example.

      First your broker charges you a fee, mine is 0.106%.
      Second our government comes and takes a bite in the form of a stamp duty – RM1 for every RM1,000 invested. (max of RM200)
      The final bite comes from Bursa Malaysia’s clearing fee – 0.03% of contract value. (max of RM1,000)

      With your contract value at RM5,000, just do the math. 🙂
      Hope this helped!

  57. Hi there,

    May I know when you said long term, how long does it mean? 5 years, 10 years?

    Because even if you have RM300k+ in the portfolio, it’s kinda meaningless if you can’t use the money. After all, that is why you invest, is it not?

    1. Hey Shin,

      I mean much more than 10 years. Probably until the day I die.

      It isn’t meaningless to me. Look at my portfolio as a tree and its fruits as the dividends. The bigger my tree, the more fruits I have to eat. With RM300K, I have about RM12K of fruits to consume each year.
      It doesn’t make sense to cut down the tree that’s feeding you right? I can always pass it on to the next generation. The tree will grow! 🙂

      In short, I invest for the dividends (them fruits) that will help fully fund my lifestyle eventually. That’s the gist of my financial independence.

      Hope the analogy works for you XD

      Thanks for writing in Shin.

      1. Hi divy,

        Lol I only saw this now. So can I say, your method is to keep investing from all the income you get from the full time job, and let the interest compound itself? I was wondering if I follow your steps, would I be able to achieve that too? As a start.

        Do you only have this investment portfolio and job, without other income streams?

        I would like to accrue more funds to have a more lavish lifestyle…but I don’t know if it’s possible to have that just by investing and not doing business.


        1. Hey Shin,

          Thanks for writing in, keep it coming!
          Yes I save most of my salary to invest, the returns from my investment I will reinvest it again. You’ll most definitely be able to get to your financial goals quicker this way.

          I have a day job, a business and my investment portfolio. I think a lot of people are fooled by the misconception that one has to start a business to make money / get rich. Just do what you’re good at, and if the right opportunity comes along, by all means, start your business. To me, savings and investing are the most important components to be financially independent.

          1. Hi Leigh,

            Let’s say for example I decided to buy 2 different Reits, am I allowed to buy these 2 in a single transaction? To avoid multiple charges of clearing fees etc. Or maybe you can tell me how does it work?


          2. Hey Shin,

            Sure thing! It’s a good question for someone who hasn’t started investing yet.
            You’re only allowed one stock per transaction. You’ll be charged twice in your example given.

            Hope this helped and keep the questions coming =D

      2. Hello Leigh,

        I am writing in again. Recently I received my first dividend from Sunreits. However, there is a difference between the amount I calculated and the actual amount that I received. It was short about RM5. Do you know why this happened? Are there some sort of fees charged by Sunreits?


          1. Hi Leigh,

            Oh…How can I get the dividend voucher? I only saw the money from Maybank2u transaction history.

            I purchased Sunway REITs. But I thought you explained there are no taxes for the dividends received?

          2. Hey Shin,

            REITs are different, the 10% is reflected but they don’t pay corporate tax. Corporate tax in Malaysia is 19% right now. I meant no corporate tax when I said ‘no tax’. You’re actually saving that 9% in difference. Sort of.

            Hope the article I linked earlier is helpful in explaining the special tax mechanics of a REIT.

  58. HI. From 3k to 350k..Wow…. Do you buy and sell daily. Or you retain for a few months and monitor the increment percentage before sell it?


  59. Hi Leigh,

    Previously I opened a CDS account back when I was working with CIMB. That was part of their ESOS project, if Im not mistaken. As a young new joiner back then, I did not care much of this CDS account, until after recently. My question is: 1) does CDS account have some sort of expiry date or frozen account due to non-activities? 2) how can I check whether my account is a nominee or direct trading account? 3) can I open another CDS account, let say with HL apart from the one I already got?

    Need your expert opinion on this bro. Thanks

    1. Hey Haza,

      You only ever need one CDS account. It is held with Bursa if I’m not mistaken. So you can open your brokerage acc with any other banks. It’ll all link back to that one CDS account.
      1. I’m not sure if there’s an expiry, you have to call and ask. I’m quite certain there isn’t though.
      2. To find out if it’s a direct a/c you should again call and ask.
      3. Yes you may! Like I mentioned, it’s all linked to that one CDS.

      Hope this helped! Let me know if any of my info is inaccurate.

    2. 1. No expiry date, but it could be made dormant/inactive. Need to apply for re-activation if it becomes dormant.
      2. Please check with your broker (in your case would be CIMB Investment bank)
      3. Yes, you can. There is no limit to the number of CDS account you can have. You can even have 2 CDS accounts under same broker for different type e.g. cash-only trading account, or collateral T+3 trading account.

      Hope it helps. Happy and successful investing in stocks.

  60. You had inspired me to start fund like yours,hopefully it is not too late.
    So for a start,should I invest in Reits first or blue chip stocks or unit trust?Lets say the beginning capital is around RM10-20k
    How regular is your share investment when you first started?

    1. Hey Lee,

      Yea both REITs and blue chips will do fine. Remember that the higher your investment per trade, the lower your brokerage fees and other related costs.
      I invested everytime I saved up around RM7 -8K when I first started.

      Hope this helped.

  61. Hello,

    Since you using HLeBroking, can I ask you whether the platform has market tracker or watch list with EPS, P/E ratio, Current ratio, Debt Ratio, interest cover, price to book ratio, and dividend yield column for easy fundamental analysis?

    Thank you 🙂

    1. Hey Jady,

      Yup. Look for EquityTracker in your account. They have most figures there. Not too sure about the ratios but you can easily calculate them from the figures.

      Hope this helps and let me know if you have trouble with it.

  62. Hi your post is very helpful for newbie!

    Have a few questions and hope you don’t mind sharing 🙂

    1. Any source for me to obtain historical data on Malaysia overall market or a specific stock up to 15 years?
    2. When you are analyzing whether its a good stock to buy, what indicators do you usually take as a parameter? I have tried googling it, there’re tons, so just thinking in your personal investing strategies what usually do you look at?

    Hopefully to get a reply from you, as your post is really informative!

    thanks 🙂

    1. Hey YFong,

      Of course I don’t mind sharing. =D

      1. Not all companies have been in business for 15 years. I use Hong Leong’s equities tracker. It goes back up to 5 years. The rest you could go to Bursa or the company’s website I suppose.
      2. There are tons out there and I don’t discuss my research methods. It’s gona be very very exhaustive and at the end of the day everyone will have their own way of doing things.

      Thanks for reading buddy. Hope to hear more from u soon!

  63. Hi sir, your blog has been very informative and inspiring.
    May i know which trading account type would be better? Nominee or direct trading account?

    1. Hey William,

      Definitely direct my friend. You will incur lots of unnecessary fees with a nominee trading account.

      All the best on your road to investing!

      Thanks for reading.

      1. Hi sir, what kind of fees will be incurred on a nominee account? I made a mistake of not ticking the account type box when applying because the woman over the counter told me not to choose and that someone from the brokerage site will call and advice me on it.

        1. Hey David,

          Sorry for the late reply, your comment got stuck in my spam box. =(
          I’m not too sure about the fees but they will definitely be higher. Call them and get it changed.

  64. Considering that I’m a lazy investor, in your experience, which broker is ideal for me or has the lowest cost? I just wanna buy a bunch of ETF/index funds and forget about them until next year and so on…

    1. Hi Chandra,

      Yes I do have experience and I hold Berkshire Hathaway and Vanguard ETFs in my portfolio.

      The fees and taxes are very high and I would advise to purchase large amounts at one time to minimise fees. I just buy and hold my US stocks, and don’t forget the exchange rates. =)

        1. If you’re talking about Class A shares I think it’d be in the region of $200K last I checked. But for Class B shares, I think a few hundred should do. (I own class B shares btw)

      1. I’m a lazy investor, and I have heard lots of great things about Vanguard.

        I would greatly appreciate if you could provide some tips on purchasing Vanguard funds in Malaysia.

        I’m thinking of opening an account with Hong Leong Bank. Will that be the channel to buy Vanguard funds?

        1. Hey Twi,

          In reply to both your questions, if you plan to invest in Vanguard funds, they are unfortunately not available locally.
          You can however purchase US ones through brokers like Hong Leong. I personally own some Vanguard ETFs through Hong Leong and because of the high transaction costs involved, I get 0 net dividends every year.

          So, I’d suggest buying it through brokers like TD Ameritrade. I hear you can email the singapore branch with your particulars and open an account easily. They provide much, much better rates. I plan to try them out soon but do keep us updated if you are planning to try it.

          Thanks for reading!

  65. Hello and thanks for your post it’s very informative. I do not live near Hong Leong Investment could I apply online?

    1. Hi Alycia,

      Unfortunately you will have to be physically at the branch to apply for a broking account. I’d advise to give them a call beforehand to find out what documents they require.

      Thanks for reading. =)

    1. Hi Emmanuel,

      Of course my friend. Your fees may be a little higher in terms of % compared to when you invest more. But who cares, the most important step when it comes to investing is to START.
      Go for it and godspeed.

    1. Thanks for the love Suraya.

      It’s actually KLSE investors, set it as a hyperlink but forgot to color it. Fixed!

      And please feel free to provide a link to your site so everyone can visit you and learn about personal finance. =)

  66. It would be great to include explanation about the trading hours since you are targeting newbies in stock investment.
    What is Pre-Open? What is Pre-Close? Can I buy/sell shares at this time?

    1. Hi Ethan, my bad. During the pre-opening and pre-closing phases, you’re able to start queuing based on your desired prices.

      Pre-opening phase is from 08:30 – 09:00, during this time orders can be entered and cancelled but will not be matched. Orders are matched based on the top procedures at 09:00 sharp.

      Pre-Closing (16:45 – 16:50)

      Closing orders may be entered, amended or cancelled.
      Orders will not be matched.

      Closing (16:50)

      No new orders will be accepted
      Orders entered during the Pre-Closing phase will be matched.
      Once orders are matched, the Trading At Last phase will take effect.

      Trading At Last (16:50-17:00)

      Only limit orders may be entered and matched at the closing price.
      Orders may be entered, amended & cancelled.

      Hope this helps!

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