WANT TO INVEST IN BURSA? HUMBLE GUIDE BY NIK ZAFRI

Disclaimer : I am not a share expert and I gave up my license a long time ago. What I’m sharing here is purely based on my personal experience and observation. It may not suit everyone’s risk appetite or investment goals, so please treat this only as an unqualified personal guide, not professional financial advice. Always do your own research or consult a licensed investment adviser before making decisions.

Before investing a single sen, get familiar with how the stock market works.

Bursa Malaysia is the main stock exchange in Malaysia. It’s where public companies list their shares, and investors buy/sell them.

1) When you buy share

It means that you own a small part of that company. You can profit in two ways:

• Capital gain : buying low and selling high,
• Dividends : regular payments from the company’s profits (many Malaysian companies are good dividend payers).

2) Open a CDS and Trading Account

a) To invest, you must have:

• Central Depository System (CDS) Account (managed by Bursa Malaysia),
• Trading Account (with a stockbroker or bank)

b) How to open:

Choose a broker (examples: Maybank , CIMB , RHB, Hong Leong Bank Berhad , or online platforms like Rakuten Trade  or M+ Online),

• Submit your IC and supporting documents,
• Fund your trading account (some start as low as RM100)

Rakuten Trade and MIDF Invest are good for beginners - based on my own experience, they’re user-friendly and low-cost.

3) Learn the Different Types of Stocks

Generally, Malaysian stocks can be grouped into:

• Blue Chips: Big, stable companies (e.g. Maybank, PETRONAS Chemicals Group Berhad (PCG), Tenaga Nasional Berhad ) – lower risk, steady dividends.
• Growth Stocks: Smaller or mid-sized companies with potential to grow fast (e.g. tech, healthcare) – higher risk, higher reward.
• Dividend Stocks: Companies that consistently pay dividends (e.g. REITs, utilities, telcos).
• Speculative/Penny Stocks: Cheap, volatile, high risk - avoid until you have experience.

4) Study Before You Buy

Wise investors look at both fundamental and technical factors.

4.1 Fundamental analysis : Earnings per share (EPS), Price-to-earnings ratio (P/E), Dividend yield, company management and business model, Industry trends

4.2 Technical analysis: Price charts (candlesticks), support and resistance, volume trends.

For beginners, focus more on fundamentals first! Learn to value a business, not just its share price.

5) Build a Small, Safe Portfolio

Start small : say RM500–RM1,000 per month.

This way, you’re not putting all your eggs in one basket.

6) Be Patient and Think Long-Term

Stock investing is not gambling.

The “wise choice” is:

• Investing in strong companies with good track records.
• Holding long enough for compounding to work.
• Reinvesting dividends.

Avoiding panic selling when the market dips.

You may not get rich overnight, but in 5–10 years, consistent and disciplined investing can grow your wealth significantly.

7.0 Keep Learning

Here are some tips and recommended resources:

• Bursa Academy (free online learning by Bursa Malaysia),
• InvestSmart by SC Malaysia

Some of the books that I've read:

• The Intelligent Investor (Benjamin Graham)
• One Up on Wall Street (Peter Lynch)

8.0 “Wise” Start

Let’s say you invest RM1,000 in Maybank at RM8.80 per share.

Annual dividend yield ≈ 6% → RM60 a year. If price rises to RM9.50, you gain ~8% in capital. Total gain ≈ 14% = RM140 (Yes, it's not big, but it's steady and definitely low risk).

Do that every month, and in 5 years you’ll have built a portfolio worth many thousands even more with reinvested dividends.

9.0 SIMULATED PORTFOLIO

Here's an example of simulated portfolio with low risk and expected annual return, based on your monthly budget and risk appetite

Let's assume RM1,000/month, moderate risk, and short-term (1–2 years).

That means your goal is to make steady gains without too much exposure to volatility - something practical and realistic for Bursa Malaysia .

Here’s a smart short-term portfolio simulation designed around those parameters.

9.1 Bursa Malaysia Stock Investment Plan (Moderate, Short-Term)

Monthly Investment = RM1,000/month. Time Frame = 12–24 months

a) Portfolio Allocation

b) Expected Performance (Estimates for 1–2 Years)

This may sound modest, but for short-term investing, it’s realistic and protects your capital while letting you learn market behaviour.

10.0 Strategy and Tips

• Use Dollar-Cost Averaging (DCA):

Invest RM1,000 every month regardless of price. This smooths out volatility.

• Monitor Quarterly Results:

Keep an eye on companies’ QRs (Quarterly Reports) - if profits drop for 2 straight quarters, reconsider holding.

• Set a Profit Target:

Aim to sell if a stock rises 10–15% within 6–12 months. Don’t get greedy - short-term means locking in profits wisely.

• Reinvest Dividends:

Even short-term, reinvesting dividends increases compounding effect.

• Avoid Chasing Hype:

Stay away from “goreng” or speculative counters unless you can afford the loss. Stick with sound fundamentals.

Let’s say you start with:

RM400 → Maybank (RM8.80/share)

RM250 → IGB REIT (RM1.80/share)

RM250 → Inari (RM3.00/share)

RM100 → kept as cash

After one year:

Maybank rises to RM9.30 (+6%) and pays 6% dividend → 12% total gain

IGB REIT pays 5% dividend, price stable → 5% gain

Inari rises 15% → 15% gain

Average total gain ≈ 10% (RM1,200 → RM1,320)

If reinvested monthly, your annual profit could reach RM800–RM1,000, not huge but safe and smart.

10.0 Your Simulated 12-Month Investment Roadmap

Here’s your 12-month Bursa Malaysia Stock Investment Roadmap - tailored for RM1,000/month, moderate risk, and a short-term horizon (1–2 years). 

(Total target investment: RM12,000)

This plan balances steady growth, dividend income, and learning experience without overexposing you to market risk.

a) Portfolio Mix at Year-End

b) Expected Return (Short-Term Estimate) 

c) Rebalancing and Exit Plan

• Rebalance every 6 months (or when a stock gains/loses >15%)
• Lock in profit when a counter exceeds +10–15%, then reinvest elsewhere.
• Cut loss if a company falls >10% and fundamentals worsen (check quarterly results).
• If market dips sharply but fundamentals remain intact → buy more (average down).

11.0 CONCLUSION

Investing in Bursa Malaysia can be both rewarding and educational when approached with patience, discipline, and a clear strategy. Even with a modest monthly commitment, wise investors can gradually build wealth through sound stock selection, consistent monitoring, and reinvestment of returns. While short-term profits are possible, the real value lies in understanding market behaviour and making informed choices rather than chasing quick gains.

Remember; as stated in the disclaimer ; this guide is not professional financial advice, but a reflection of personal experience. Every investor’s journey is unique, so always do your own research and invest only what you can afford to hold. The key is not to predict the market, but to prepare and participate in it wisely.

Quantum Computing: Malaysia’s Next Leap - Nik Zafri's Overview

 

1.0 WHAT IS IT ANYWAY?

Here's a "simple" way of explaining it? (the "geeks" will understand :-)

Classical computers rely on bits (0s and 1s) to process information. Quantum computers use qubits, which can be 0, 1, or both at the same time thanks to two principles of quantum mechanics:

• Superposition - A qubit can exist in multiple states simultaneously,
• Entanglement - Qubits can be linked, so changing one instantly affects the other, no matter the distance.

This means quantum computers don’t just process faster they can explore a vast number of possibilities simultaneously, solving problems that would take classical supercomputers centuries.

2.0 POTENTIAL

Let me provide you with the 3 good examples :

i) Banking and Finance - which relies on Monte Carlo simulations to assess market risk, fraud detection, and portfolio optimization. Quantum algorithms can run these simulations exponentially faster. e.g. One investment bank could use quantum systems to price complex derivatives in seconds instead of hours, giving real-time insights into market volatility.

ii) Logistics - Malaysia’s manufacturing and port sectors (e.g., Port Klang, Penang Port) depends on efficient routing and supply chains. Quantum computing can optimize routes for trucks, ships, and flights simultaneously, cutting costs and fuel. e.g. A logistics provider like Pos Malaysia could optimize last-mile delivery during festive surges, reducing delays and operational costs.

iii) Cybersecurity - Quantum poses a paradox - it can break today’s encryption (RSA, ECC) but also provide quantum-safe encryption. Malaysia’s banks, telcos, and government agencies must prepare for “Q-Day” (the day quantum breaks classical security),

3.0 CATCHING UP?

Malaysia is not starting from zero. We have:

• Talent pipelines through UM, USM, UKM, and MMU in physics, engineering, and computer science,
• Growing AI ecosystem (Malaysia AI Roadmap 2021–2025) that can integrate with quantum research,
• Regional collaboration opportunities with Singapore, which already invested heavily in quantum research hubs.

4.0 CHALLENGES

High cost of quantum infrastructure, limited R&D funding, and brain drain. But Malaysia could leapfrog by :

• Partnering with global players (IBM Q Network, Google Quantum AI, Alibaba Cloud Quantum Lab),
• Encouraging public-private partnerships to pilot quantum solutions in finance and logistics,
• Training a workforce that blends quantum physics with computer science and industry know-how.

4.1 Sub-Topic : What about Data Center?

Yes, what about it? Some questions being posed at me during my visit to tech exhibitions.

a. Quantum as a Service (QaaS) - As mentioned above, quantum computers are expensive and delicate (they need cryogenic cooling close to absolute zero). Instead of everyone buying their own quantum hardware, they’ll be hosted in specialized quantum data centers, accessed via the cloud.

I foresee :

• Malaysia could attract investment by becoming an ASEAN hub for quantum cloud hosting,
• Local industries (finance, logistics, oil & gas) can then access quantum capabilities without owning the machines.

b. Data Center Optimization with Quantum

• Data centers face massive energy consumption challenges,
• Quantum algorithms can optimize power usage, cooling systems, and server workloads.

e.g. A quantum-powered model could balance workloads across servers more efficiently than current AI, cutting electricity costs in large centers like those in Johor.

c. Cybersecurity for Data Centers

• Data centers store critical data (banking, healthcare, government).
• Quantum threatens current encryption methods making post-quantum cryptography essential for data centers to stay secure.

Malaysia’s MDEC and CyberSecurity Malaysia could certify quantum-ready data centers to attract foreign investors.

d. Data Processing and AI Integration

• Data centers already power AI and big data analytics,
• Quantum accelerates certain computations (e.g., database searches, pattern recognition).

e.g A Malaysian data center serving logistics clients could use quantum-assisted optimization to speed up supply chain simulations across ASEAN.

e. Malaysia’s Edge

Malaysia is already an attractive site for data centers due to affordable energy, land, and submarine cable connectivity.

By integrating quantum R&D partnerships (with IBM, Alibaba, or Singapore), Malaysia can jump into the Quantum Data Center Era.

5. CONCLUSION

Quantum computing will not replace classical computing but complement it in areas where classical machines struggle. For Malaysia, the choice is clear: stay as a consumer of global solutions, or invest early and shape the narrative in ASEAN.

Quantum computers won’t replace data centers, but data centers will become the gateway to access quantum computing worldwide.

The next leap may not be in decades, it could be within the next 5 to 10 years.

Malaysia has caught up before, look at how we adopted mobile tech, fintech, and renewable energy.

The question is: ARE WE READY TO TAKE THE QUANTUM LEAP?