6 Type of Investment in Malaysia That Make Sense in 2025

You know that feeling when your money just sits in the bank doing absolutely nothing? I used to think saving alone was enough. But in Malaysia’s current economy, if you’re not exploring investment in Malaysia, you’re probably losing out.

That realisation hit me a couple of years ago, and since then, I’ve tried (and sometimes failed at) different ways of investing. So if you’re a first-time investor or just curious, here’s an honest look at investment in Malaysia — what works, what doesn’t, and what you should know in 2025.

What is Investment in Malaysia?

At its core, investment in Malaysia means putting your money into assets, products or platforms that grow your wealth over time. Unlike saving (where returns are minimal), investing can generate higher profits — if done right.

There are different types of investments in Malaysia: stocks, unit trusts, real estate, digital assets, and even fixed income instruments like fixed deposits in Malaysia. But choosing the best one depends on your goals, risk appetite, and how involved you want to be.

1. Unit Trusts: The Easiest Way to Start

   If you’re not the type to read financial reports or analyse stock charts, unit trusts are a great beginner-friendly option. You’re basically pooling money with other investors, and a professional fund manager does the rest. To compare usual stock trading with stock trading, it’s like picking your skincare products one by one or buying the package for convenience. For unit trusts, the fund managers have packed the essentials into a package for you for the selected investment theme/region/sector. 

While on the banks’ app, investing in unit trusts is as simple as shopping on Shopee. Browse, pick and pay.

Pros:

• Low barrier to entry (RM100 can get you started)
• Managed by professionals
• Widely diversified 
• Generally having lower risk compared to stock trading

Cons:

• Management fees can eat into returns
• Less control over specific stocks

2. Fixed Income: Slow and Steady Wins (Sometimes)

Fixed income instruments like government bonds or corporate sukuk might not sound sexy, but they offer predictable returns. This is great for people who prefer stability over volatility.

You can access these through local banks, or platforms like BondScanner.

Pros:

• Safer than equities
• Suitable for long-term conservative investors

Cons:

• Lower returns compared to stocks
• Not as liquid as other investment types as fixed tenure might applied

If you’re looking for consistent income, bond papers are worth exploring.

3. Real Estate: Tried and True, But Expensive

Property has always been a favourite form of investment in Malaysia, especially among older generations. However, rising property prices and rental market fluctuations mean it’s not always a guaranteed win.

That said, projects in up-and-coming locations or soho units with Airbnb potential can still be profitable.

Pros:

• Tangible asset
• Potential for rental income and capital appreciation

Cons:

• High upfront cost
• Profit-sharing with agency for hiring tenants
• Maintenance and tenant issues
• Challenges in looking for potential buyer for turnover as overall property buying power of Malaysia is low in average 

4. Stocks & ETFs: For the Risk Takers

Buying shares in Bursa Malaysia or U.S. stocks via platforms like M+ global or MooMoo lets you grow wealth faster, but with higher risk. Exchange-traded funds (ETFs) give you broad exposure without picking individual stocks.

Look out for thematic ETFs or dividend-paying stocks if you’re aiming for long-term passive income.

Pros:

• High growth potential
• Flexible investment amounts

Cons:

• Requires research and market timing
• Volatile in the short term

5. Digital Investments: The New Kids on the Block

Robo-advisors (like StashAway or Versa) are automated platforms that build portfolios based on your risk level. You set your goals, and the algorithm adjusts your investment accordingly.

Then there’s P2P lending or equity crowdfunding (like Funding Societies, Capsphere) which lets you invest in local SMEs for potential higher returns.

Pros:

• Fully digital
• Transparent and beginner-friendly

Cons:

• Some platforms still unregulated
• Returns may vary
• Default risk especially for P2P investments

6. PRS (Private Retirement Schemes)/ Investment-linked Policy: A Tax-Friendly Retirement Plan

If you’re thinking long-term, PRS is one of the most underrated investment plans in Malaysia. It’s a retirement savings scheme that gives you tax relief of up to RM3,000 per year, and the same goes to investment-linked insurance. It’s investing in unit trust as well but with different product designs. For instance, there might be a lock-in period and early redemption is not encouraged.

A variety of funds are available, including Islamic options.

Pros:

• Long-term growth
• Tax incentives

Cons:

• Come with a lock-in period
• Early withdrawal penalties

Get to Know Limitation Act Malaysia

If you’re planning to invest in assets like property or engage in loan agreements, you might want to be aware of the Limitation Act Malaysia. It outlines the time limit for legal claims (usually 6 years for contract-related disputes). This matters in cases like unpaid rental or investment fraud claims — knowing your legal rights is just as important as picking the right investment.

How to Start Investing in Malaysia Today

Not sure where to begin? Here’s a quick roadmap:

If you’re wondering how to invest in Malaysia, the key is to start with what you understand. Don’t just follow hype (even if it’s crypto or gold). Take your time, ask questions, and treat investing as a journey, not a race.

TLDR: Which Investment in Malaysia Suits You?

Here’s a quick breakdown:

Everyone’s financial path is different. Whether you go big on property or take baby steps with robo-advisors, the goal is to make your money work harder than your savings account ever could.

Final Thought:

In fact in this era, with the world’s high inflation rate, not investing is the biggest risk. With so many options for investment in Malaysia, there’s something for everyone. Start small, stay consistent, and remember – your future self will thank you.

FAQ

Q: What’s the best investment in Malaysia for beginners?
A: Unit trusts or robo-advisors are a solid starting point due to diversification (lower risk) and automation.

Q: Can foreigners invest in Malaysia?
A: Yes, but some restrictions apply depending on the asset class (e.g. property).

Q: Is there a minimum amount needed to start investing?
A: Some platforms start at RM10. So yes, investing in Malaysia has never been more accessible.

Q: What’s the safest type of investment in Malaysia?
A: Fix income products like government bonds.

Q: Does Malaysia offer Islamic investment options?
A: Yes, from Shariah-compliant unit trusts to Sukuk and Islamic ETFs.