Top 5 Low-Risk Investments in Malaysia You Should Check Out!

As one of Asia's most lucrative marketplaces, Malaysia is an investor's dream destination. Here are 5 low-risk investment opportunities that all investors should be considering.

1. Bonds

As a type of investment that's open to both individuals and groups of investors, bonds are usually issued by the Malaysian government in order to raise funds for various development projects. What investors get for their capital is their money back with interest after the investment period is completed. Bonds usually mature within one year or a little longer. Those who enter into bonds with a longer maturity period can expect higher interest rates and the opportunity to earn more from their initial investment. As one of the safest investment options, bonds are largely risk-free unless you attempt to sell off your bond before it reaches the date of maturity.

?2. Amanah Saham Bumiputera

Also called ASB, this is a trust that was set up in 1989 that's now managed by the Permodalan Nasional Berhad. Although it was originally intended to save funds for long-term repurposing, the ASB has since diversified its financial portfolio to include not only bonds and shares but also money market devices. This type of investment opportunity is accessible to any Bumiputera above the age of 18. ASB units are easy to purchase as they are sold via licensed agents and banking facilities. The PNB website also sells ASB units online for investors based outside of Malaysia. This has become a popular investment method for locals as the returns are quite attractive. ASB units can also be sold back to the PNB at your convenience so it is also risk-free.

?

3. Real Estate Investment Trust

REITs are another great way to get a foothold in Malaysia and it is also perhaps the most income-earning investment option available to foreigners. Whether it's the PARKROYAL Serviced Suites Kuala Lumpur or any other service apartment near KLCC or elsewhere in the country, there is money to be made in investing in residential, commercial, retail and industrial properties around Malaysia. Avoiding the pitfalls of total purchase real estate investments allow foreigners to cash in on a percentage of property earnings. REITs are beneficial to new investors as they are easy to liquidate, diversify and manage without being directly involved.

?4. Exchange-Traded Fund

Also called ETFs, exchange-traded funds are investment funds that contain everything from bonds, commodities, stocks and securities. ETFs are traded on stock exchanges unlike mutual funds and more conventional forms of investments. One of the advantages of exchange trade fund is that they can be sold and bought like any other stock based on market values and how it fluctuates in the stock exchange.

5. Fixed Deposit

Fixed deposits or term deposits are other low-risk investments that foreigners can add to their portfolios. With guaranteed returns that carry an assurance from the local government, one cannot find an investment less risky than FDs. All investors need to do is buy an FD from a local bank, which will determine a period of maturation between a year and 5 years.