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Author: bmotrader   |   Latest post: Mon, 29 Mar 2021, 10:16 AM

 

Top 6 Rising Investment Opportunities in Malaysia

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Malaysia is a beautiful country with a rich history and wonderful people. There are wonderful opportunities in Malaysia for a huge range of investments with the potential for some significant profits. With the end of the Covid-19 Pandemic in sight, international borders are starting to open and the world is looking to recover from the economic damage. Malaysia’s economy was growing rapidly before the pandemic and it is expected to bounce back quickly.


Now, if you want to take advantage of those investment opportunities, it is important that you know where to look first. To take advantage of Malaysia’s recovery and make some serious money, here are the top 6 rising investment opportunities in Malaysia.


 

1. The Casino Industry

For the local population, gambling is highly regulated in Malaysia due to the country’s Muslim laws, but there is one casino group, the Genting Group, which has been very successful. While many local players flock to live casinos in Malaysia to get around the restrictions, tourists prefer to stay at the beautiful Resorts World Genting in the state of Pahang, which has an excellent casino. For investors, the Genting Group offers a fantastic opportunity to make money as the only real company in the gambling industry. The Genting Group is publicly available to trade on the international markets, and the share price has risen more than 66% since March 2020. With borders set to open again hopefully in the coming year, direct investment in the casino industry and through stocks could be a great addition to any investor’s portfolio.

2. Real Estate

Malaysia made big changes a few decades ago to help ensure that the country would be a prime tourism destination in the future. This resulted in tourism becoming the country’s third biggest revenue stream pre-pandemic. Many international investors have profited hugely from real estate in Malaysia over the past two decades with average property prices rising almost 50% over the last ten years. It’s no secret that remaining competitive is expected of the market in question, but - there are some potential risks which need to be considered. Firstly, the Malaysia government has attempted to make housing more affordable for the population and there have been times when the market has been over saturated. There were also some restrictions placed on foreigners buying property in 2008. It is still possible, however, to buy property and make a profit, particularly in good areas for tourism and make a profit. This can be done directly or through property management firms. 

3. Retail Investments

Shopping in Malaysia has become big business with visitors flocking from all over Asia and the rest of the world. There are huge shopping malls in Kuala Lumpur and other cities in the country which are owned by both domestic and international companies. In 2020 Retail numbers dropped to their lowest in twenty years due to the Covid-19 Pandemic, but with the successful global vaccine rollout, the country is hoping that once its lockdown measures are relaxed and its borders open again, that the retail industry will have a rapid V-shaped recovery. If this turns out to be the case, it would be a perfect opportunity for both Malaysian and international investors to make some serious returns in the retail sector.

4. The Airline Industry

Investing in the airline industry in general is always an unpredictable venture and that has certainly been the case in Malaysia. Malaysia’s biggest airline, Air Asia, has had a journey of dizzying highs and lows since it was founded in 2001. The airline grew quickly to become one of the most popular budget airlines in the world before its share price plummeted in 2015, in part due to the tragic crash of AirAsia Flight 8501. After that, the price climbed steadily before peaking in March 2018, and everything seemed to be back on track before a consistent drop in price in the three years following. Every successful trader knows, however, that where there is unpredictability, there is also opportunity. South East Asia has become one of the prime tourism spots in the world, and with everyone just waiting to be allowed to travel again, the region is expecting a huge influx of visitors as soon as regulations are lifted. AirAsia and other budget airlines could be in for a huge few years if they can position themselves well, and any investors who make the right decisions now could benefit enormously from the revival.

5. International Stock Trading

The easiest way for international traders to invest in Malaysia is through exchange-traded funds (ETFs). These ETFs provide a diverse range of stocks. The best aspect of using them is based on the fact that they can further be traded on the major US stock exchanges without any problems. Quite a lot of popular ETFs can be found, depending on your investment needs. That being said, the most commonly used ETF is the iShares MSCI. More precisely, Malaysia Index Fund. This ETF is a useful one as it works in correlation to the MSCI Malaysia Index.

Another way for international investors to invest in Malaysia is with American Depository Receipts (ADRs). The main reason for this lies in the fact that they enable investors to avoid unnecessary foreign exchanges. These ADRS allow investors to purchase stock in individual companies as one part of a larger portfolio. However, it is important for investors to note that many ADRs do not offer much in terms of liquidity and are often difficult to trade at good prices. Some of the most popular ADRs include the Genting Group discussed above, as well as Malayan Banking Berhad, MBf Holdings Berhad, and Tenaga Nasion Berhad.

6. Domestic Stock Trading

It is also possible for international investors to trade directly on Malaysia’s own stock exchange, the Bursa Malaysia. There are around one thousand companies listed on the exchange making it one of the largest in all of Asia. The exchange offers a huge variety of investment opportunities for international investors but they may need to open foreign brokerage accounts to trade, as well as having to pay taxes on any profits made through their trading in the form of foreign capital gains taxes.


 

Malaysia offers so many fantastic investment opportunities, and with a light at the end of the tunnel of the Covid-19 Pandemic, there has never been a better time to start making plans. From the casino and tourist industries, to real estate and airlines, with some careful thought and the right timing, there is some serious money to be made through investing in Malaysia. 


In the end, it all boils down to planning in order to have good execution. There are quite a lot of parameters that you need to consider, but after reading this article - you are already on your way to handle this. Good luck with investing!


 

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