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.
