The best and most practical investment in Malaysia IS AN INVESTMENT IN YOURSELF. Investin your EDUCATION! LEARN! BUY BOOKS AND COURSES.
Lol no jk jk I’m not that annoying (usually). I mean, that advice is true. But still annoying.
As of time of writing (October 2020), these are the 3 most practical investments in Malaysia: EPF/KWSP, PRS and SSPN/SSPN-i.
Why these 3? Because you can get income tax relief up to RM15,000 annually, combined. Regardless whether the investment performs well or not – and this is outside your control anyway, depends on the economy and all – you will still ‘gain’ via reduced tax payment and other practical benefits uniquely offered from each of them.
Let’s go into details.
#1 – EPF/KWSP (Employees Provident Fund/ Kumpulan Wang Simpanan Pekerja)
Hands up if you have ever typed anything along these lines in Google Search:
‘How to cope with cost of living’
‘How to make a budget’
‘How to reduce spending’
‘Ways to increase income’
‘What is the best credit card’
‘Where can I get a loan’
Or some other variation of these
May I just say that the first page of Google results were designed to be there in the first place – someone lovingly crafted an SEO-optimised article, especially for the incoming Malaysian traffic. Oh, Malaysians, especially our generation, will be flocking these articles, desperate for help to counter the rising cost of living.
The articles are likely short and filled with bite-sized information. The advice given are, for better or for worse, generic, and usually ends in ‘yes you too can save money/make extra income with these methods, try it now!’. Then perhaps they will plug in a product or a service.
How do you know if you are receiving good advice or not?
In 2015, I took advantage of the PRS Youth Scheme, invested RM1000, and received RM500 from the government. The scheme have since expired, but I’d still recommend PRS just for the up to RM3k annual tax rebate. Let’s put all the stuff I researched about PRS into a compilation. Hope this helps someone out there!