Personal Finance Education: A Missing Piece in Malaysia’s School Curriculum

 

Introduction: The Missing Piece in Malaysia's Education System

In Malaysia, students can recite complex chemical formulas, solve calculus problems, and explain the different types of clouds. Yet, many leave school without knowing how to open a bank account, file a tax return, or even budget their monthly expenses.

This isn't just an academic flaw—it's a life flaw.

Imagine if every Malaysian teenager graduated understanding how savings, debt, and investments work. How different would our society be? Fewer bankruptcies, less financial stress, and maybe, more financial freedom.

Let’s dive into why personal finance needs to be part of every school syllabus.

The Importance of Early Financial Literacy

Learning about money early creates habits that last a lifetime.

When students are exposed to concepts like budgeting, saving, investing, and credit management during their formative years, they develop financial confidence early on.

Research shows that people who are financially literate:

• Are less likely to fall into debt traps

• Are better savers and investors

• Achieve higher lifetime wealth

In a country like Malaysia, where household debt stands at more than 80% of GDP, this education is not just nice to have—it’s necessary.

What Personal Finance Should Cover in Schools

✅ Budgeting – How to allocate income wisely
✅ Saving Strategies – Building emergency funds, understanding compound interest
✅ Smart Spending – Differentiating needs vs wants
✅ Understanding Debt – Credit cards, PTPTN loans, mortgages
✅ Basic Investing – What are REITs, ETFs, stocks, and ASB?
✅ Insurance Essentials – Why life and health insurance matter
✅ Tax Basics – How Malaysian income tax works

Teaching these skills could better prepare students for real-world financial decisions immediately after graduation.

Why It's More Important Than Ever in 2025

Today's young adults face a different world:

• Gig economy: Freelancing and self-employment are booming. Without stable pensions, financial literacy is crucial.

• Higher living costs: Housing, healthcare, and education costs are soaring.

• Financial scams: Crypto scams, investment frauds, and Ponzi schemes are everywhere online.

Without education, our young generation risks becoming vulnerable to these traps.

Real Examples: Financial Mistakes from Lack of Education

Example 1:
A fresh graduate takes on multiple credit cards, maxes out limits on "YOLO" lifestyle choices, and struggles for years with minimum payments.

Example 2:
A newlywed couple buys a luxury condo with a 90% mortgage, neglecting to budget for renovation, maintenance fees, or sinking fund contributions, leading to financial strain.

Conclusion: A Better Future Starts with Financial Literacy

Financial literacy should be viewed not as an optional elective, but as a core subject—just like Mathematics or Bahasa Malaysia.

Imagine a future where every Malaysian teenager knows:

• How to manage a budget

• How to invest prudently

• How to plan for retirement

• How to avoid debt traps

It’s time for Malaysia to take financial education seriously—because managing money well is just as important as academic achievements.

REITs Demystified: A Deep Dive into Real Estate Investment Trusts for Malaysian and Singaporean Investors

Introduction: Why REITs Deserve Your Attention

If you've ever thought of owning property for steady rental income but balked at the capital needed, the hassle of dealing with tenants, or the paperwork involved—then REITs might be the game-changer you're looking for.

Real Estate Investment Trusts, or REITs, are professionally managed investment funds that allow you to invest in a portfolio of real estate assets just like you’d buy shares on the stock market. In essence, you become a partial landlord of shopping malls, offices, warehouses, hospitals, and more—without needing to deal with leaky pipes or tenant drama.

This post dives deep into how REITs work, what makes them attractive (especially in Malaysia and Singapore), their risks, and how you can start investing even with a small capital base.

What Are REITs and How Do They Work?

REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. In Singapore and Malaysia, REITs are listed on the local stock exchanges—SGX and Bursa Malaysia respectively—and are regulated by their financial authorities.

When you buy units in a REIT, you're essentially buying a stake in the trust’s portfolio of properties. You earn a share of the income generated—mainly from rental proceeds—usually in the form of dividends.

The key players in the REIT ecosystem include:

• Unitholders (You, the Investor) – provide the capital

• REIT Manager – oversees asset acquisition and portfolio strategy

• Property Manager – handles day-to-day operations

• Trustee – safeguards investors’ interests

• Shariah Advisor (for Islamic REITs) – ensures Shariah compliance

Let’s now look at the reasons why REITs are growing in popularity among income investors in both Malaysia and Singapore.

1. Low Capital Requirement – Start Small, Think Big

One of the biggest barriers to owning physical real estate is the sheer amount of capital needed. In Malaysia, even a modest apartment in Klang Valley costs upwards of RM400,000. In Singapore? Let’s not even go there—prices easily start in the six-figure SGD range.

REITs lower this entry barrier drastically.

Still, while you can start small, it’s advisable to invest with at least RM3,000 or SGD3,000 to avoid brokerage fees eating into your returns. Look for low-cost brokerages where fees are below 1% of your capital.

Tips:

• Use brokers with low minimum commissions (RM8–RM10 in MY, SGD10–SGD15 in SG).

• Reinvest dividends using DRP (Dividend Reinvestment Plans) when available.

2. High Liquidity – Unlike That Unsold Apartment

Real estate is notorious for being illiquid. It can take months to sell a property, especially in a down market. REITs, on the other hand, can be bought or sold instantly like any other stock.

Daily transaction volume:

• S-REITs: SGD200–300 million

• M-REITs: RM20–30 million

That’s a lot of buying and selling, which gives you peace of mind—you can always cash out quickly if needed.

3. High Dividend Yields – Regular Passive Income

REITs are popular among retirees and passive-income seekers for one reason: consistent cash payouts.

Average dividend yields (as of end-2024):

• S-REITs: ~6.5%

• M-REITs: ~5.4%

These yields generally outperform government bonds in both countries. The reason is simple—REITs are required to pay out at least 90% of their taxable income to enjoy tax exemptions. That means most of the rental income is passed directly to investors.

Malaysia Note: M-REITs withhold a 10% tax on dividends for both residents and non-residents.

Singapore Note: S-REIT dividends are tax-free for both locals and foreigners.

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4. Diversification and Lower Risk

Investing in one property means putting all your eggs in a single basket. But REITs often hold dozens of properties across multiple locations and sectors.

For instance:

• Axis REIT (MY): Owns over 50 industrial/office properties.

• CICT (SG): Owns 24 office and mall properties including Raffles City and Bugis Junction.

Regulations cap borrowings:

• SG: Gearing capped at 50%, interest coverage ≥1.5x

• MY: Gearing capped at 50%, new development limited to 15% of assets

This level of oversight reduces the chance of overleveraging and default.

5. No Hassle, Fully Managed by Pros

Let’s face it—being a landlord isn’t glamorous. Tenants default, appliances break down, and agents take commissions. With REITs, you don’t deal with any of that.

Professionals handle:

• Lease management

• Property upgrades

• Tenant sourcing

• Regulatory reporting

As a unitholder, your only job? Monitor distributions and read quarterly reports.

Challenges and Risks of REITs

It’s not all sunshine. REITs, like all investments, come with risks.

1. No Leverage Like Physical Properties

Buying a property? Banks may finance up to 90% of the purchase price.

REITs? You invest what you have. While margin trading exists, it's riskier due to stock market volatility. This limits your upside compared to leveraged property investing.

2. Volatility – Stock Market Nature

REITs are stocks. They trade daily. Prices go up and down due to interest rate changes, market news, or even global events (remember COVID-19? S-REITs tanked 40% in March 2020).

Volatility is NOT the same as risk. Just don’t panic-sell based on price swings—focus on fundamentals like:

• Occupancy rates

• Rental revisions

• Gearing and interest coverage

• Asset location and type

3. Some REITs Are Riskier Than Others

Not all REITs are created equal. Watch out for:

• Low occupancy rates

• High gearing ratios

• Poor tenant diversification

• Weak sponsor backing

Shariah-Compliant REITs – An Ethical Option

In Malaysia, several REITs are Shariah-compliant, such as Al-Aqar Healthcare REIT and AXIS REIT, meaning they avoid interest-based financing and lease properties aligned with Islamic principles.

For Muslims looking to grow wealth ethically, Shariah-compliant REITs are a valid option and are screened by reputable Shariah boards.

How to Get Started with REIT Investing

1. Open a brokerage account – Use platforms like Rakuten Trade (MY), FSMOne, Tiger Brokers (SG).

2. Screen your REITs – Look at:

   • Distribution Yield

   • Price-to-NAV

   • Gearing Ratio

   • Occupancy Rate

3. Diversify – Don’t just pick one. Spread across multiple REITs in different sectors.

4. Reinvest Dividends – Consider compounding your returns through DRP.

5. Monitor Regularly – Read quarterly reports, attend AGMs if possible, and stay updated on macroeconomic developments.

Conclusion: Are REITs Right for You?

REITs aren’t a get-rich-quick scheme. They are a stable, relatively low-risk, income-generating investment suitable for:

• Busy professionals looking for passive income

• Retirees seeking consistent yields

• First-time investors testing the market with small capital

Whether you're in Johor or Jurong, REITs offer a smarter, hassle-free way to tap into real estate—without the usual burdens of being a landlord. The key, as always, is doing your due diligence, staying disciplined, and diversifying wisely.

Disclaimer: This article is for informational purposes only and does not constitute a buy or sell recommendation. Always do your own research or speak to a licensed financial advisor before making any investment decisions.

Debunking Common Myths About Investing

Investing is one of the best ways to grow wealth, yet many people hesitate due to misconceptions and fears. Whether it’s the belief that investing is only for the rich or that it’s too risky, these myths can prevent individuals from taking control of their financial future. In this post, we’ll break down some of the most common investment myths and provide clarity on how investing really works.

Myth #1: You Need a Lot of Money to Start Investing

Reality: You Can Start Small

One of the biggest misconceptions is that investing is only for the wealthy. In reality, thanks to modern financial platforms, anyone can start investing with as little as RM100. Many online brokers, robo-advisors, and investment apps allow fractional investing, making it easier than ever to build wealth with small contributions.

How to Start Small:

• Use robo-advisors like StashAway, Wahed Invest, or MYTHEO to automate your investments.
• Invest in Exchange-Traded Funds (ETFs), which provide diversification at a low cost.
• Consider dollar-cost averaging (DCA), where you invest a fixed amount regularly to reduce the impact of market volatility.

Myth #2: Investing is Too Risky and Like Gambling

Reality: Smart Investing is Based on Strategy, Not Luck

While all investments carry some level of risk, equating investing to gambling is misleading. Gambling is purely based on chance, whereas investing is about making informed decisions based on research, trends, and financial analysis.

How to Reduce Risk:

• Diversify your portfolio—invest in different asset classes (stocks, bonds, REITs) to spread risk.
• Invest for the long term—historically, markets recover from downturns, and patient investors see solid returns.
• Understand your risk tolerance—choose investments that align with your financial goals and comfort level.

Myth #3: You Should Only Invest When the Market is Doing Well

Reality: Timing the Market is Almost Impossible

Many new investors believe they should only invest when the market is "safe" or doing well. However, trying to time the market often leads to missing out on good opportunities. Even professional investors struggle to predict short-term market movements accurately.

What Works Better:

• Stay invested consistently—long-term investments generally yield better results than trying to jump in and out of the market.
• Follow a disciplined investment plan, such as dollar-cost averaging, to take advantage of both market highs and lows.

Myth #4: Individual Stocks Are the Best Way to Get Rich

Reality: Diversification is Key to Long-Term Success

While success stories of investors making millions from single stocks exist, they are rare. Putting all your money into one or two stocks is extremely risky. Instead, most successful investors diversify across industries and asset classes.

Better Strategies Than Stock Picking:

• Invest in broad market index funds (like S&P 500 ETFs) for long-term growth.
• Consider REITs (Real Estate Investment Trusts) for exposure to property markets.
• Explore dividend stocks for passive income while reducing volatility.

Myth #5: You Need to Be a Financial Expert to Invest

Reality: Anyone Can Learn the Basics and Start Investing

Investing doesn’t require a degree in finance. With plenty of free online resources, financial literacy has never been more accessible. Even legendary investor Warren Buffett recommends simple, long-term strategies like investing in index funds over complex stock-picking methods.

How to Get Started Without Experience:

• Follow personal finance blogs, YouTube channels, and podcasts to learn from experts.
• Use robo-advisors that automate investment decisions based on your risk level.
• Start small and gradually build your confidence.

Myth #6: Investing is Only for the Young

Reality: It’s Never Too Late to Start Investing

While starting young gives your money more time to grow, investing at any age can still provide financial benefits. Even if you're in your 40s or 50s, investing in a diversified portfolio can help secure your retirement.

How to Invest at Different Life Stages:

• In your 20s & 30s: Focus on growth investments like stocks and ETFs.
• In your 40s: Balance growth with stability (e.g., bonds and dividend stocks).
• In your 50s & beyond: Shift towards lower-risk investments and ensure a steady income stream for retirement.

Final Thoughts: Don’t Let Myths Stop You from Building Wealth

Investing is one of the most effective ways to grow wealth over time, yet many people avoid it due to misconceptions. By understanding the truth behind these myths, you can make more confident and informed investment decisions. The key is to start as early as possible, stay consistent, and keep learning.

Are you still hesitant about investing? Challenge these myths and take control of your financial future today!

What Trump’s New Tariffs Mean for Malaysia – And Your Wallet

 

A Tariff Storm Is Brewing – Here’s Why You Should Care

2025 started with a bang—and not the good kind for the global economy. In April, former U.S. President Donald Trump made headlines by reintroducing sweeping tariffs on imports from over 185 countries. The base rate? A bold 10%, with even stiffer penalties for nations like China, whose goods now face tariffs exceeding 100%.

But what does this mean for Malaysia, for our exports, and most importantly—for you as an investor or everyday consumer?

Let’s unpack the situation in a practical, financially-minded way.

What Happened: A Quick Breakdown

• U.S. Tariffs (April 9, 2025): Trump reintroduced tariffs affecting 185 countries, with China’s goods now facing a 104% rate.

• China’s Response: A 84% retaliatory tariff on U.S. goods and a media campaign targeting U.S. sentiment.

• Impact on Others: The EU and India are also hit, facing 20% and 26% tariffs, respectively.

Malaysia falls under the 24% category, and due to our export-heavy economy, that can send ripples through multiple sectors—especially electronics, palm oil, and automotive components.

Malaysia’s Response: Cautious but Resilient

According to MITI (Ministry of Investment, Trade and Industry), Malaysia has no plans for retaliation. Instead, we’re engaging diplomatically while monitoring impacts closely. The government is confident that diversification of trade partners and strong intra-ASEAN ties will soften the blow.

Prime Minister Anwar Ibrahim stated that while the tariffs are not ideal, the Malaysian economy remains resilient, thanks to stable domestic demand and strategic investments in manufacturing and semiconductors.

How It Impacts You

So, how does this all translate into your day-to-day finances and investment strategy?

Here’s what you should watch for:

📌 1. Prices May Go Up

Imported U.S. goods may get pricier. Think electronics, machinery, and certain branded items. Inflation could sneak in via supply chains, especially if companies pass increased costs to consumers.

Tip: If you’ve been eyeing imported gadgets or components, now might be the time to buy before prices rise.

📌 2. Export-Oriented Stocks Could See Volatility

Companies in Malaysia that rely heavily on U.S. exports—like glove manufacturers, semiconductors, or auto part suppliers—could see stock price fluctuations.

However, firms with a more diversified global clientele may be more stable.

📌 3. Investing in Diversification Becomes Key

This event underscores the value of diversification. If your portfolio is overly reliant on export-driven or foreign-exposed stocks, now’s the time to rebalance.

Tip: ETFs or unit trusts with exposure to ASEAN or global sectors less affected by tariffs could help you weather the storm.

📌 4. Safe-Haven Investments May Rise

With market instability, more investors may move into gold, REITs, or dividend-paying stocks to maintain a steady income and hedge against volatility.

Tip: Watch local REITs with strong property holdings and consistent dividends.

📌 5. New Opportunities for Malaysia

Interestingly, tariffs on other countries may position Malaysia as an attractive alternative. Global companies looking to relocate their manufacturing hubs may consider Malaysia due to:

• Political stability (compared to some neighbors)

• Competitive labor and logistics

• Pro-business government policies

The Bigger Picture: The Global Chessboard

Geopolitical moves like tariffs are part of a larger economic chess game. Malaysia, while small compared to the U.S. or China, is not a pawn—it’s a nimble player that can benefit if it plays smart.

This is a reminder that financial literacy is more essential than ever.

Final Thoughts: Stay Educated, Stay Nimble

We don’t control tariffs or trade policies, but we do control how we respond.

• Reassess your spending.

• Diversify your investments.

• Stay updated with credible news.

And remember: resilience isn’t about avoiding hardship—it’s about adapting to it.

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💬 “In the midst of chaos, there is also opportunity.” – Sun Tzu

Real Estate Investment: Is It Right for You?

Real estate has long been seen as one of the most stable and lucrative investment options. Many wealthy individuals have built their fortunes through property investments, and the idea of owning physical assets is attractive to many investors. But is real estate investment right for you? In this post, we’ll explore the benefits, challenges, and key factors to consider before diving into the property market.

Why Consider Real Estate Investment?

Unlike stocks or bonds, real estate is a tangible asset that can provide both passive income and long-term appreciation. Here’s why investors often turn to real estate:

1. Stable and Tangible Asset

Unlike paper assets like stocks, real estate is a physical investment. It holds intrinsic value and is less prone to extreme fluctuations compared to financial markets.

2. Passive Income Through Rental Yields

Owning rental properties allows investors to generate monthly income. In Malaysia, rental yields in key areas such as Kuala Lumpur and Johor Bahru range from 3% to 6%, depending on the type of property.

3. Hedge Against Inflation

Real estate values and rental income often increase over time, helping investors keep up with inflation. Property owners can adjust rental rates to match rising living costs.

4. Leverage for Bigger Returns

Unlike stocks, real estate investments allow you to use leverage. By taking a mortgage, you can purchase a property with a small down payment and grow your returns using borrowed capital.

Challenges of Real Estate Investment

While real estate can be rewarding, it is not without risks and challenges. Here are some potential drawbacks:

1. High Initial Capital Requirement

Buying a property requires a significant upfront investment. In Malaysia, a typical down payment for a property is 10% of the purchase price, excluding legal fees, stamp duties, and renovation costs.

2. Liquidity Issues

Unlike stocks, real estate is not a liquid asset. Selling a property can take months, especially during economic downturns. Investors need to be financially prepared for market fluctuations.

3. Maintenance and Management Costs

Property ownership comes with additional costs such as maintenance, property taxes, and management fees if you hire an agent. Rental properties require continuous upkeep, which can eat into profits.

4. Market Fluctuations and Regulatory Risks

Government regulations, interest rates, and market conditions can affect real estate values. In Malaysia, policies such as the Real Property Gains Tax (RPGT) impact how quickly investors can profit from property sales.

Key Considerations Before Investing

Before making a real estate investment, consider the following factors:

1. Investment Goals

Are you looking for passive income, long-term appreciation, or a combination of both? Residential properties are great for rental income, while commercial properties offer higher yields but come with higher risks.

2. Location Matters

The property’s location significantly impacts its value and rental demand. In Malaysia, areas with strong job markets, public transport access, and commercial activities tend to perform better.

3. Financing and Mortgage Rates

Most investors use loans to finance property purchases. Compare mortgage rates and calculate monthly installments to ensure affordability. The Debt Service Ratio (DSR) is an essential factor banks consider before approving loans.

4. Market Timing and Economic Conditions

Research market trends before making a purchase. Buying during an economic downturn can lead to better deals, while peak markets may result in overpriced properties.

Is Real Estate Investment Right for You?

Real estate investment can be highly profitable, but it requires careful planning, financial stability, and long-term commitment. If you have sufficient capital, understand the risks, and are willing to manage the responsibilities of property ownership, real estate can be a great addition to your investment portfolio.

However, if you prefer a more liquid investment or want lower maintenance investments, alternative options like stocks, REITs (Real Estate Investment Trusts), or ETFs may be more suitable.

Would real estate be a good investment for your financial goals? Evaluate your risk tolerance, financial situation, and investment strategy before making a decision.

From Poverty to Prosperity: 5 Life-Changing Financial Habits for a Better Future

Growing up in a poor household can feel like a never-ending cycle. Limited opportunities, financial struggles, and a lack of guidance often make it seem impossible to escape. However, history has proven that many individuals have broken free from poverty through mindset shifts, skill-building, and disciplined financial habits.

If you’re struggling financially or come from a low-income background, here are five practical steps that can change your story. These aren’t just theories, they are real strategies used by successful individuals worldwide.

1. Learn a Skill That Pays

One of the most effective ways to escape financial struggles is to learn a high-income skill. Unlike traditional education, skill-building doesn’t always require a university degree, you can learn from experienced professionals, online courses, or hands-on practice.

Why Learning a Skill Matters:

✅ It gives you a competitive edge in the job market.
✅ You can monetize your skill through freelancing or business.
✅ It allows you to increase your earning potential over time.

Top Skills to Learn in 2025:

• Digital Marketing (SEO, social media, content marketing)

• Software Development & AI (Coding, machine learning)

• Graphic Design & Video Editing

• Sales & Negotiation Skills

• Personal Finance & Investing

📌 Tip: If you don’t know where to start, consider platforms like Udemy, Coursera, or YouTube tutorials to learn valuable skills for free or at a low cost.

2. Master Financial Literacy

Money is not just about earning—it’s about managing, growing, and investing it wisely. Sadly, most schools don’t teach financial literacy, leaving many people clueless about wealth-building.

What You Need to Learn About Money:

📌 Budgeting & Saving: Learn how to control your expenses and save at least 20% of your income.
📌 Investing Wisely: Understand assets like stocks, ETFs, real estate, and crypto to make your money grow.
📌 The Power of Compound Interest: Even small investments today can lead to massive wealth over time.

Example: If you invest RM500 per month in a diversified stock portfolio earning 7% annually:

• In 10 years → RM86,000

• In 20 years → RM247,000

• In 30 years → RM566,000

📌 Tip: Read books like The Psychology of Money by Morgan Housel or Rich Dad Poor Dad by Robert Kiyosaki to understand wealth-building better.

3. Study Wealthy & Successful People

If you want to succeed financially, observe and learn from people who have already done it. Wealthy individuals often share common habits, mindsets, and strategies that set them apart.

Key Lessons from Successful People:

✅ They focus on long-term investments rather than quick money.
✅ They practice discipline and delayed gratification.
✅ They keep expanding their knowledge and networks.
✅ They understand the value of multiple income streams.

How to Learn from the Rich:

📌 Read autobiographies & finance books from successful entrepreneurs.
📌 Listen to business & investing podcasts
📌 Follow financial experts on YouTube & social media.

📌 Tip: Follow successful Malaysian entrepreneurs to learn from their journey.

4. Embrace Failures & Rejections

Most successful people have failed multiple times before making it big. The difference is that they kept going despite the failures.

Why Failure is Essential for Growth:

✅ It teaches you valuable lessons.
✅ It builds mental resilience.
✅ It helps you adapt and improve over time.

Real-Life Example:

Jack Ma, the founder of Alibaba, was rejected from Harvard 10 times, failed to get a job at KFC, and faced countless rejections before building his multi-billion-dollar empire.

📌 Tip: Don’t fear rejection—apply for that job, start that business, or pitch your idea. If you don’t try, you’ll never know what’s possible.

5. Make Sacrifices & Stay Disciplined

Financial success doesn’t come overnight. It requires daily sacrifices and consistent effort.

Habits That Can Change Your Life:

✅ Wake up early and work on your goals.
✅ Limit unnecessary spending (cut impulse buys, dining out, etc.).
✅ Invest in self-improvement (courses, books, networking).
✅ Build passive income streams (investments, side hustles).

Short-Term Sacrifices for Long-Term Success:

❌ Skipping weekend entertainment → ✅ Learning a new skill.
❌ Spending RM500 on gadgets → ✅ Investing RM500 in stocks.
❌ Watching Netflix all day → ✅ Reading books that build knowledge.

📌 Tip: Successful people don’t chase short-term pleasure. They delay gratification to build long-term wealth.

Final Thoughts: The Power of Taking Action

Escaping poverty or financial struggle is possible for anyone—but it starts with action. Don’t just read about success—take steps today to transform your financial future.

🔹 Learn a high-income skill.
🔹 Educate yourself on financial literacy.
🔹 Study and follow wealthy individuals.
🔹 Don’t fear failure—keep pushing forward.
🔹 Make sacrifices and stay disciplined.

If you implement even one of these strategies, you’ll be on a completely different financial path in the next few years.

🚀 Your future depends on the actions you take today. Start now!