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In the realm of investing, the saying "Don't put all your eggs in one basket" encapsulates the essence of diversification. But did you know there’s a specific, secret rule you can follow to do this? Read till the end to find out what it is! But first, let’s get a better understanding of what it means to diversify your investments. What Does Diversification Mean In Investments? Diversification is a risk management technique where investments are allocated across various financial instruments, industries, and other categories. The goal is to protect the portfolio against significant losses. Because asset classes often behave differently under various market conditions, by diversifying, an underperforming investment can potentially be offset by other investments that are performing better. Benefits of Diversification In Investments Reduces Risk This is the most apparent benefit. By investing in a variety of assets, the impact of a poor-performing investment is minimized. For instance, if you were only invested in stocks and the stock market crashed, you might face severe losses. But, if you're also invested in bonds, real estate, or other assets, these may hold up or even thrive when stocks underperform. Potentially Higher Returns Diversifying can help you achieve more consistent returns over time. While it might reduce the potential of "hitting it big" with a single investment, it provides a smoother, more predictable growth trajectory. Access to a Variety of Assets A diversified portfolio gives you exposure to different sectors, asset classes, and geographical regions. This broad exposure can be beneficial in times of local or sector-specific downturns. Flexibility in Changing Markets As markets evolve, having a diversified portfolio allows you to reallocate and adjust more fluidly, seizing new opportunities and mitigating emerging risks. How To Diversify Your Investments? Across Asset Classes This involves mixing different types of investments like stocks, bonds, real estate, commodities, and even alternative investments like cryptocurrencies. Within Asset Classes It's not just about having different types of assets but also about diversifying within each type. For instance, instead of investing in tech stocks alone, diversify across sectors like healthcare, utilities, and finance. Geographical Diversification Don't limit yourself to your home country. Investing in international markets can provide added protection against domestic market slumps. Personally, I also invest in US stocks as returns are usually higher and there are more established companies over there. Here’s an app I use to trade my US stocks. You can also find out more about M+ Global here. Dollar-Cost Averaging By investing fixed amounts at regular intervals, regardless of market conditions, investors can reduce the impact of market volatility. The Five Percent Rule Finally, the secret rule I've been talking about. The five percent rule is a concrete guideline to ensure diversification. This rule suggests that no single investment or asset should constitute more than five percent of your entire portfolio. For instance, if you’ve taken an interest in tech stocks, according to rule, you’ll only want to allocate five percent of your portfolio to those stocks. This is because while tech companies like Apple or Google are dominant players, the dot-com bubble burst serves as a reminder of the potential risks of over-investing in just one sector. Conclusion In the unpredictable world of investments, diversification remains a cornerstone of a sound investment strategy. While it doesn't promise total protection against loss, it plays a vital role in managing risk and aiming for steady, long-term returns. However, even with diversification, you should still periodically review and adjust your portfolio to ensure it aligns with your financial goals and the changing market dynamics. Subscribe to our financial newsletter for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.

Recently, we got the chance to speak to YB Liew Chin Tong, Deputy Minister of MITI. In our discussion, we always came back to one thing: despite Malaysia’s abundant natural resources and strategic location, our economy has not flourished as we may expect it to. So, in this article, we delve into three major issues impeding Malaysia's progress and outline potential solutions to stimulate economic growth. Issue #1: Shortage of FDI and DDI The first and foremost challenge is the limited availability of investable opportunities for both foreign and domestic investors. This scarcity has led to several problems like low wages, job mismatch (where professionals are forced to take up jobs below their qualifications), a lacklustre business environment, as well as slow economic development. The Solution: Active Participation in Global Supply Chains Malaysia needs to offer resources at competitive prices to attract foreign investors and become part of the larger global supply chains. Engaging in these supply chains can elevate living standards by creating high-quality jobs and promoting economic development. Steps to achieve this could involve: Improving the infrastructure for businesses Streamlining regulations for foreign investments Marketing Malaysia as an investment-friendly destination Issue #2: Untapped Potential in Natural Resources Malaysia is rich in natural resources, but our country has not fully harnessed this wealth. For instance, renewable energy, particularly solar power, remains an underexploited sector. The Solution: Introducing Supportive Initiatives One of the fastest ways to ensure we harness the potential of our natural resources is to provide initiatives and in a way, “push an agenda”. For example, recently, we’ve seen a lot of tax benefits to buying an EV. This “pushes the agenda” for Malaysians to be more eco-friendly and to turn towards renewable energy. Issue #3: Complacency in Improving Malaysia Economy Despite its potential, we have settled into a comfort zone of low-cost manufacturing. This complacency has led to an influx of unskilled foreign labour, a brain drain among Malaysians, and a lack of investment in research and development. The Solution: Foster a Competitive Environment To break free from complacency, Malaysia needs to create an environment that inspires competition. By offering higher wages, rigorous training, and more opportunities, the country can stimulate economic growth. Key strategies might include: Enhancing investment in research and development Promoting entrepreneurship and startups Implementing policies to retain local talent Currently, we see Malaysia taking steps to address these issues and we can only hope that it goes uphill from here. In our latest video, we talked about this issue in further detail. If you're interested, you can watch the video here.

Ah, the great debate when it comes to homeownership - should you buy a landed property or a high-rise property as your first home? In a recent poll we did on our Instagram, we asked our followers which they preferred: Landed vs. High-Rise and the answer we got was pretty surprising. 56% of 554 participants said they preferred owning a landed property to a high-rise (44%) So, today, let’s settle this debate once and for all. Here are the pros and cons of buying a landed property versus a high-rise property in Malaysia. Landed Property in Malaysia Pros 1. More Space This is a no-brainer. Landed properties typically provide a generous amount of space. In fact, if you’re lucky, you might even score yourself a backyard! This is particularly beneficial if you have a larger family, need more storage, or desire outdoor space for gardening, children's play, or pets. 2. Greater Privacy If privacy is high on your list when considering your first home, a landed property might be the ideal choice. There are no shared floors or ceilings with neighbours, so your home life remains undisturbed. 3. Freedom to Renovate Owning a landed property gives you the liberty to tailor it to your preferences. You can add extensions, renovate, or modify the property layout without needing to comply with strict building management regulations. Oh, and you won’t have to worry about neighbours filing noise complaints during your renovation. 4. Long-Term Investment Potential Whether landed or high-rise, properties will always appreciate in value over time. With that being said, landed properties definitely have a higher value than condominiums. This is due to the combined value of the structure and the land it sits on, making it a potentially lucrative long-term investment should you choose to use it as an investment. Cons 1. High Purchase and Maintenance Cost The cost of buying a landed property can be considerably higher due to the price of land these days. Additionally, the ongoing maintenance of the property, from the roof to the garden, can add up over time. 2. Higher Costs Purchasing a landed property typically involves a higher upfront cost than buying an apartment for many reasons. The main one is the square footage and the land it sits upon. Additionally, property taxes may also be higher for landed properties due to the larger land area. So, do expect a large downpayment before buying your dream home. 3. Longer Commutes Landed properties are often found in suburban or semi-rural areas, which might require longer commutes to city centres or workplaces. If not, your home won’t be as peaceful as you’d like it to be especially in the Petaling Jaya area. Think of SS2 or Bandar Utama which are surrounded by cars and busy highways. High-Rise Property In Malaysia Pros 1. Plentiful Amenities High-rise properties often come with a range of amenities that may not be feasible in a standalone house. These can include swimming pools, fitness centres, rooftop gardens, and communal lounges. 2. Lower Maintenance Living in a high-rise means that many maintenance tasks, such as landscaping and common area upkeep, are handled by the building management. This will definitely reduce the burden of maintenance on individual residents. 3. Security High-rise buildings often have advanced security features, such as surveillance cameras, access control systems, and on-site security personnel. This can provide a sense of safety and peace of mind for residents. 4. Location High-rise properties are typically found in urban or city-centre locations, offering convenient access to workplaces, entertainment venues, restaurants, shopping centres, and public transportation. This is also a good perk to have if you’re planning to one day, rent it out to tenants. Cons 1. Limited Privacy Living in close proximity to neighbours and sharing walls can lead to reduced privacy, especially in densely populated areas. Noise from neighbouring units can also be a concern especially if you have a baby trying to fall asleep at night. 2. Space Constraints High-rise apartments usually offer less interior space than landed properties. This can be challenging if you have a large family or need additional rooms for specific purposes like a home office or a guest room. 3. Monthly Fees Condominiums often have monthly maintenance fees. While these fees cover the cost of amenities and shared services, they can add to the overall cost of ownership. 4. Resale Value While high-rises may appreciate over time, their value might not increase as much as that of landed properties due to the limited availability of land in prime urban locations. Conclusion When it comes to deciding whether to buy a landed or high-rise property as your first home, it depends on various factors. You’ll need to consider your lifestyle, budget, location preferences, family size, and long-term goals. You should also consider the property’s investment value should you one day decide to use it to earn passive income through rental. Therefore, you’ll need to carefully consider these pros and cons to make an informed choice that best aligns with your needs and preferences. If you’re planning to buy a house with your partner, you’ll certainly need to have a serious conversation with them. Remember, buying a home is a huge commitment and a substantial investment. So, take your time, weigh all the pros and cons, and perhaps seek professional advice. Whether you go for a sprawling landed property or a chic high-rise condominium, the important thing is finding a place you can truly call home.

Recently, I experienced a significant shift in my life as a car owner that, honestly, even took me by surprise. After 9 years, I finally decided it was time to sell off my Peugeot and buy a new car. After some deliberate contemplation, I made a choice that was a perfect blend of practicality and personal satisfaction—I bought a second-hand Ativa for RM47,000. I know this might be unexpected, but let me walk you through my thought process behind buying a second-hand car. Reason #1 of Buying A Second-Hand Car: The Reality of Dreams and Actual Budget Probably just like you, I've always had the dream of owning a high-end car—a sleek BMW or a majestic Mercedes. Every time I passed a luxury car dealership, my eyes would inevitably linger. But, after careful introspection and an honest evaluation of my finances, I realized that shelling out over six figures for a car was simply unattainable at this moment. This reality check, though slightly grim, inspired a crucial pivot in my perspective. I started to ask myself: "If I strip away the allure of the brand, what are the things that genuinely bring me joy in a car?" The answer was quite clear— an elevated car like an SUV, a soothing sense of quietness, comfort, and, of course, a sound system that could make every journey a musical delight. With these criteria in mind, I test-drove an Ativa and fell head over heels for it. It was a match made in automotive heaven, and the decision was pretty clear. When a good friend of mine proposed selling his Ativa, I didn't hesitate for a second. Reason #2 of Buying A Second-Hand Car: The Unexpected Blessing of Substantial Savings This situation felt as though the stars had aligned. My friend's offer came at the perfect time— when I was actively looking to buy the very car he was selling. What struck me the most was how meticulously he had maintained his Ativa, with an impressively low mileage and a pristine overall condition. Plus, he had already added a few modifications, making it even more appealing. The most significant benefit, though, was the financial savings. A brand new Ativa would have put me back by RM68,000, but this secondhand car only cost RM47,000. This meant I managed to save approximately 20%—a windfall of RM21,000. I found myself giddy with delight, not just about the car, but the tremendous savings as well. Reason #3 of Buying A Second-Hand Car: Freedom to Personalize With Car Modifications Given this unexpected surplus of RM21,000, I decided to channel it towards making my new Ativa uniquely mine. I dove into the realm of car modifications, something I'd always been interested in but could never afford before. With the help of the amazing team at KL Auto Foam, I managed to install a new sound system and speakers for about RM2,800, got a leather steering wrap for RM300, soundproofing that cost around RM5,000, and a chassis auto-foam treatment for about RM2,000. Each of these upgrades has greatly enhanced my driving experience, making it more peaceful and comfortable. The Realities of Car Ownership This journey taught me an important lesson about car ownership: understanding that a car's value will always depreciate. I had to ask myself, "Is it really worth it to spend so much on a car, especially if it stretches my budget to its limit?" What I can suggest from my experience is that your car installments should not exceed 20% of your salary. More than that, and you might find yourself in a financial bind. To give you a deeper insight into my adventure with car modifications, I've made a YouTube video detailing my experiences with KL Auto Foam. Check it out here. Moreover, as a special treat for my followers, Auto KL is generously offering a 15% discount on all their services until 17 August 2023. Just mention Mr Money TV when you reach out to them. You can find them at this link: KL Auto Foam. I hope my experience and decision-making process gives you a new perspective on car buying. For me, choosing a used car has been a winning decision. Who knows? It might be the right choice for you too.

We all dream of financial independence, the freedom to pursue our passions, and the ability to provide for our families. Often times, we find ourselves Googling: "How to be a millionaire?" and the answers we get is vague. We might think that becoming a millionaire seem like a goal only attainable for a lucky few, especially if you’re only just starting out. The truth is, with the right plan and diligent execution, you can join the ranks of self-made millionaires, regardless of whether your timeline is 5, 10, 20, or 30 years. Here is your cheat sheet and guide on how to become a millionaire within different timelines. How To Be A Millionaire In 5 Years Here’s how to read the above table: In order to achieve your target of becoming a millionaire in 5 years, you will need to invest or save that money into financial instruments (eg: Fixed deposits, money market funds, unit trust funds, stock market, etc) that can generate returns. If you’re able to find an instrument that’s able to give you higher returns, then your monthly savings/investment into said instrument will be lower. But of course, with high returns, comes with high risk; so be wary of your risk tolerance before putting your money into any financial instrument. On top of that, if you’re able to fork out a large initial investment, then your monthly savings/investment will also be lowered. In this case, 5 years is a really short time period to become a millionaire, especially if you’re starting from the ground up. So the next few tables would be a little bit more realistic considering the average Malaysian salary. How To Be A Millionaire In 10 Years As you can see here, when your time horizon is longer, you’ll need less monthly savings/investments because you’re making use of the power of compounding. To understand more about how compounding interest works, check out this article. How To Be A Millionaire In 20 Years These days, people are always looking for ways to earn fast money. Unfortunately, that usually means you’re either taking on a lot of risk or you’re doing something pretty shady. So, with a 20 years time horizon, you’ll allow your money to grow with a pretty affordable monthly investment/savings plan. Based on the table above, if you’re earning between RM5,000-7,000, and putting your money into the stock market, you’ll definitely be able to achieve your RM1 million target. It just takes a little more time. How To Be A Millionaire In 30 Years Now we’re on to something. If you’re in your late 20s or early 30s, this cheat sheet is definitely realistic and actionable. Even if you have no capital, you’ll only have to set aside roughly RM500-RM1,000 every month into a financial instrument that’ll generate you returns above 5% p.a. Conclusion The key to becoming a millionaire is to have a long time horizon and understanding your risk tolerance. Generally, if you’re younger, you’re able to take on more risks with your investments as you’re able to ride out market volatility; which is why it’s always best to start investing early. However, it’s understandable that you may not have that much funds but even with RM100, you can start investing. Find out more about how you can do this here. We hope this cheat sheet helps and all the best in your financial journey to becoming a millionaire!

Compounding interest is often dubbed the "eighth wonder of the world" in the world of finance. More often than not, we only hear about compounding when it comes to investing. However, there’s a hidden side to it that not many talk about - compounding interest debt. Compounding Interest: Your Best Friend in Investing Compounding is the process whereby an investment earns interest, and that interest, in turn, earns additional interest over time. Think of it as a snowball rolling down a hill. The more it rolls (over time), the bigger it becomes because it's not just collecting fresh snow (interest), but it's also collecting on the snow it's already gathered (interest on interest). The essential ingredient here is time, and it's why starting your investment journey as early as possible is crucial. An example of compounding interest would be EPF. Let’s say currently you have RM10,000 in EPF and you get an annual return of 5.5%. Without compounding, a straightforward interest calculation would give you RM550 at the end of the year. However, with compounding, that RM550 gets added to your initial investment, creating a new base of RM10,550. The next year, your 5.5% return is calculated on this new total, and so forth. The beauty of compounding lies in its snowball effect. The longer your money remains invested, the larger the returns become, as your earnings keep getting reinvested. The power of compounding transforms your money into a high-growth, wealth-accumulating machine, helping you to grow your investments exponentially over time. Compounding Interest: The Invisible Threat in Debt On the other hand, compounding can become a major stumbling block when it's related to debt. The same principles apply, but this time they work against you. When you borrow money, the interest charged on that loan can compound, inflating the overall amount you owe. Let's say you have a credit card balance of RM5,000, and the Annual Percentage Rate (APR) is 18%. If you make only the minimum payment each month, the remaining balance continues to accrue interest, and that interest is added to your outstanding balance, leading to more interest. This compounding cycle can cause your debt to spiral out of control if not managed properly. Consequently, the same force that can help grow your investment can plunge you into deep debt if not managed the right way. Harnessing the Power of Compounding To make the most of compounding, consider the following: 1. Start early: The sooner you start investing, the more time your money has to compound and grow. Even small amounts invested early can lead to significant gains over time. 2. Reinvest earnings: Allow your interest or investment earnings to remain in the account for them to earn additional interest. 3. Manage debts wisely: Always try to pay more than the minimum due on credit cards and loans to avoid falling into a compounding debt trap. All in all, compounding is a powerful financial tool, acting as a catalyst in the investment process, while simultaneously being a potential peril in debt management. Understanding the power of compounding can significantly influence your financial literacy, guiding you towards wise investments and borrowing decisions.

Have you ever been pitched an investment product with promises of doubling your investment in 10 or 20 years? These investment consultants can sound incredibly charismatic and convincing, making their product seem like the most beneficial investment in the world. But how can you truly evaluate whether the return on investment is indeed good or not? Today, we will uncover a simple trick that will allow you to decipher the value of an investment return – the Rule of 72. Let's consider a scenario. If you were to invest RM10,000 in a fixed deposit account with a 4% interest rate, how long do you think it would take for your initial investment to double and become RM20,000? The answer is surprisingly simple if you use the Rule of 72. This principle is an effective way to calculate how long it will take for you to double your money based on a compounding return. What Is The Rule of 72? It's an easy mathematical equation: Using this formula, if the return is 4%, 72 divided by 4 equals 18 years. Therefore, if you invest RM10,000 in an investment that offers a 4% return per annum, it will take you 18 years to double your investment to RM20,000. With a 7% return, 72 divided by 7 equals approximately 10.28 years. Hence, a RM10,000 investment at a 7% annual return will take just over 10 years to become RM20,000. By understanding the Rule of 72, you now hold the key to quickly determine the time it will take to double your investment. Benefits of The Rule of 72 This simple rule can be beneficial in your everyday life. Imagine you're introduced to a promising investment opportunity. They guarantee that your RM10,000 will double in 20 years. It might sound appealing, especially when the advisor is exceptionally persuasive. But what is the actual return you're getting? Using the Rule of 72, you can quickly find out that the annual compounding return from this product is only 3.6% per annum. Knowing this, you might start comparing this product to other similar return investments such as bonds or fixed deposits. By asking the right questions, you can then discern whether the product is truly suitable for your financial goals. Although the Rule of 72 is a handy tool for quick calculations, making investment decisions should always involve more in-depth study and analysis. But when you need swift answers to questions like: how long it will take to double your investment; or what the compounding annual return is, the Rule of 72 is an excellent tool to have at your disposal. Incorporating the Rule of 72 into your investment decision-making process will not only help you make better informed decisions, but it also might make you look pretty smart, too. So, will you use the Rule of 72 in your investment journey?

MYTHEO is the latest contender in the robo-advisor space in Malaysia. How will it compare to other notable players like StashAway or Akru? Let’s find out. What Is MYTHEO? MYTHEO is a robo-advisor that invests in global ETFs across different asset classes, including but not limited to stocks, bonds, commodities, real estate and many more. Originally from Japan, the investing platform landed on our shores in 2019. Today, they are known to have one of the most diverse portfolios in comparison to other robo-advisors in the Malaysian market. Here’s a list of ETFs that MYTHEO invests in. What Makes MYTHEO Different From The Rest? One of the main features that set MYTHEO apart from others is its algorithm, AI and machine learning technology. They use this tech to build a customised portfolio based on your risk profile and long-term goals. This is also why when you first sign up for an account, you’ll be required to take a quick assessment that’s aimed to understand your individual financial goals, investment horizon, and risk tolerance level. Following that, their algorithm will filter and select the most suitable ETFs for your portfolio. Additionally, MYTHEO also uses their cutting-edge technology to carry out portfolio structuring, auto rebalancing and asset reallocation. 1. Portfolio Structuring In line with their belief in diversification, MYTHEO’s algorithm allocates your investments into three Functional Portfolios, each with its own purpose and targeted benefit. The three Functional Portfolio are as followed: 2. Auto Rebalancing This feature is designed to ensure your portfolio remains aligned with your investment goals, even amidst the ever-changing market dynamics. By rebalancing, MYTHEO adjusts the composition of your portfolio based on the three Functional Portfolios in response to market movements, which helps to maintain your desired level of risk exposure and potential returns. MYTHEO checks and rebalances your portfolio automatically. This will give you the peace of mind to sleep well at night, knowing that despite market prices fluctuating day to day, your investment is performing as it should be. 3. Asset Reallocation When it comes to investing, other than choosing the right assets to invest in, the next most important thing is to review and readjust your investment to make sure they are in line with your investment aspirations. With MYTHEO, you won’t have to worry about this as their technology will continually reallocate your investments in an effort to optimize returns. This strategic relocation is designed to strike an effective balance between risk and return, thereby helping you grow your wealth in a controlled and measured manner. Fees, Minimum Deposit & Returns MYTHEO’s fees range on the higher end of the spectrum at 0.5% - 1% p.a., in comparison to other robo-advisors in the market that usually offer a fee of > 1% p.a. However, this higher fee could be attributed to their active Ai and machine learning. Besides that, there will also be a minimum deposit of RM100 required when you fund your account. Now the part we’ve all been waiting for - MYTHEO’s investment returns. Across all their portfolios, their returns average at ~5% p.a. But do note that this number will fluctuate depending on market conditions and the type of portfolio you’ve selected. MYTHEO’s Investment Products MYTHEO offers three investment products namely: MYTHEO Omakase, MYTHEO Global ESG and MYTHEO USD Trust (MUST). 1. MYTHEO Omakase This product represents MYTHEO’s primary investment offering whereby you leave it all to their algorithm, AI and machine learning to make investment decisions for you. However, this does not mean that you have no control whatsoever, in fact, with MYTHEO Omakase, you’ll still be able to customise your portfolio, specifically your risk profile, to suit your personal preferences. The real value of this product lies in its technologically-driven decision-making process. The advanced technology employed by MYTHEO can help mitigate the risk of making impulsive investment decisions, often influenced by human biases, thereby potentially enhancing your overall returns. MYTHEO Global ESG This offering is specifically designed for investors with an interest in sustainable investing. Meaning, your investment will go towards ETFs that focus on environmental, social, and corporate governance (ESG) values. Although sustainable investing is a “relatively” new space, you won’t be limited to a small market because MYTHEO Global ESG will diversify your investment to different markets and regions like the US, Japan, Canada, Australia, China, and the broader Asia Pacific region. This diverse geographic allocation offers two key advantages. Firstly, it allows you to invest in companies that are leaders in ESG practices across the globe, not just within a single market. Secondly, the diversification across various economies can potentially spread risk and provide opportunities for more balanced returns. MYTHEO USD Trust (MUST) This product is quite different from the first two mentioned above. MYTHEO USD Trust (MUST) is a USD trust facility that allows you to keep your deposit and investment proceeds in US Dollars. You can think of it as a money market fund with the principal difference being its focus on the USD. It accrues interest on a daily basis, leading to an impressive annual return rate of 4.58%. These returns, coupled with relatively low fees that stand at just 0.5% per annum, make MUST an attractive option for investors seeking a stable and low-cost investment vehicle. A primary advantage of this product is that it offers a level of protection against market volatility and exchange rate fluctuations. However, it might not be the best defence against inflation. Consequently, MYTHEO USD Trust may be best utilized as a short-term investment or a parking place for your funds when you are between investments or anticipating market downturns. Account Opening Opening an account with MYTHEO is so simple and fast. Just six steps and you’ll be on your way! 1. Click here to open your MYTHEO account. 2. Get started by filling in your name and email address. 3. Fill out the assessment (mentioned earlier) by answering six simple questions about your investment goals and risk tolerance. 4. MYTHEO will stimulate your projected earnings and you can adjust the variables accordingly to re-stimulate new projections. 5. Fill in your username, personal details and don’t forget to use our code: MMTV1 to get 6 months of fee-free investing. 6. Confirm your registration via TAC. In less than 5 minutes, you’ll be all set to start investing in global ETFs! Robo-Advisor Comparison: MYTHEO, StashAway, Akru When it comes to long-term investing using a robo-advisor, the most effective way to compare its competitiveness is through its past year's performance. According to an article by The Edge, let’s compare MYTHEO, StashAway and Akru’s past performance for their most aggressive, most balanced and most conservative portfolios. Most Aggressive Portfolio Based on this, it shows that in 3 months, Akru’s most aggressive portfolio was making gains of 3.70% which is 0.33% and 0.19% higher than MYTHEO and StashAway respectively. For 6 months, MYTHEO was still making gains of 0.80% while StashAway and Akru were starting to make losses of -0.97% and -0.10% respectively. At 9 months, all three were making losses with StashAway making the biggest loss at -6.40%. And in a year, StashAway’s most aggressive portfolio made a loss of -5.70% in comparison to Akru’s loss of -5.10% and MYTHEO loss of -3.18%. Most Balanced Portfolio When it comes to their most balanced portfolio, Akru made the most losses while StashAway made the least. So, for the 12 months period, StashAway won. Most Conservative Portfolio Just looking at the 12-month performance, we can see that the difference is wide. Akru made a loss of -0.80% compared to StashAway’s loss of -5.21%. This is a difference of 4.41%. Our Verdict Akru Review Akru did quite well for their most aggressive and conservative portfolio but their conservative portfolio definitely needs to be rebalanced more frequently as it made quite a big loss. All in all, if you’re much more conservative with your investment, you can consider using Akru. MYTHEO Review When MYTHEO gains, they don’t really gain a lot. However, what stood out to us was that MyTHEO was able to hold its fort when the market got bad. Their algorithm was able to “predict” their losses and quickly diverted their funds elsewhere to “shield” their funds. StashAway Review When the market gains, StashAway gains a lot. But when the market loses, StashAway loses just as much. This is because their portfolio correlates to the market very closely. This may not be a bad thing because a sudden shock is normal. Historically, the market always bounces back up after a dip. Should You Use MYTHEO? If you’re new to investing or simply don’t have the time to trade individual stocks, you can consider using a robo-advisor like MYTHEO. Not only will you have a widely diversified portfolio but you’ll also be able to get pretty steady returns despite volatile market conditions. Once again, click here to sign up for MYTHEO and don’t forget to use our invitation code: MMTV1.

Year after year, we always hear Malaysians complain about one thing: The Ringgit weakening. We’re constantly comparing the exchange rate between MYR and SGD, MYR and USD or even MYR and THB. So, let’s get to the bottom of it and try to understand why the Ringgit keeps weakening. Understanding How Malaysia Manages Its Currency Before we address why the Malaysian Ringgit is becoming weaker, first, we need to understand how Malaysia manages its currency. The management of the Malaysian Ringgit (MYR) rests in the hands of Bank Negara Malaysia (BNM), our country’s central bank. When it comes to managing our currency, BNM has taken the approach of adjusting our interest rates or Overnight Policy Rates (OPR). This currency policy is known as a managed float system against a trade-weighted basket of currencies. So what is a managed float system? First, we need to understand what a float system is. In a float system, the value of a currency is allowed to "float" or change freely based on supply and demand in the foreign exchange market (FOREX). For example, if currency X offers a high-interest rate or is in a growing economy, investors will be attracted to it and buy more of it, hence, making currency X appreciate. On the other hand, investors may also sell currency X if it has a low-interest rate or is in a volatile economy, hence, making currency X depreciate. So, a float system is entirely dependent on the will of the market. When it comes to a managed float system (BNM’s approach), it applies both the float system and the additional adjustment of interest rates/OPR. So, instead of allowing the MYR to be completely at the mercy of market sentiment, BNM will adjust the OPR to control the attractiveness of the MYR. Then, following the same theory as the float system, investors will either buy or sell based on how high or low our interest rate/OPR is. To summarise it in one sentence, a managed float system is like a halfway point between a completely free market and a tightly controlled one. Because of this, the value of the Ringgit can fluctuate in a “predictable” manner according to changes in the market. MYR vs USD: Is the MYR Currency Just Not Attractive? Now that BNM has hiked OPR to 3.00%, why hasn’t our Ringgit gone up as well? Is the MYR just not attractive to investors? Well, not exactly. Other global currencies are also depreciating, so it’s not just us. This is because the USD is strengthening as a currency. After the US resolved its debt ceiling crisis last month, investors naturally turned back to the USD as a safe haven to put their money in. On top of that, the US Federal Reserve (Feds) has also been raising its interest rates over the past few months making the USD even more attractive to investors. One thing that needs to be understood about FOREX investing is that investors will usually convert “lower-valued” currencies into ones with “higher value”. For example, currently, we’re seeing investors converting their MYR into USD because of how attractive it is (as explained above). In a way, when this happens, money is “going out” of Malaysia and “coming in” into the US, hence making the MYR depreciate against the strengthening USD. Now we know why 1 USD = RM4.65. But what about 1 SGD = RM3.45? MYR vs SGD: Why is SGD Currency Doing So Well Despite USD Strengthening? Earlier we mentioned that other global currencies have also been depreciating against the back of a strengthening USD; but for some reason, the SGD is doing just fine. In fact, they’re doing great! Why is that? To answer that question, we need to understand how Singapore manages its currency. Singapore’s central bank, The Monetary Authority of Singapore (MAS) has also adopted a version of the managed float system; but instead of adjusting interest rates/OPR (like how BNM does it), MAS employs an exchange-rate-centred monetary policy, whereby it manages the value of the SGD within a specified range by actively buying and selling its currency and foreign reserves. For example, if the SGD falls on the lower end of its range—becoming too cheap—MAS would use its foreign reserves to buy back SGD, driving its value back up within the range. The converse happens when the SGD is at the higher end of the range. This strategy enables Singapore to maintain the "price" of the SGD within a predetermined range, effectively controlling the exchange rate without significantly impacting its attractiveness to investors. This difference between BNM’s and MAS’s monetary policies can lead to diverse outcomes when the USD strengthens. For instance, the SGD might not depreciate as much because MAS can adjust its policy to stabilise the SGD, whereas the MYR could depreciate more due to BNM's policy of allowing it to float more freely. This explains why the SGD didn't depreciate as much as the MYR when the USD strengthened recently. Why Can’t BNM Adopt MAS’s Monetary Policy? Well, here’s the thing, all countries have different monetary policies to suit what the country needs. In Malaysia, our government decided to set in place the managed float system against a trade-weighted basket of currencies following the economic turmoil of the Asian Financial Crisis in 1997. Back then in 1998, the MYR had been freely trading in the turbulent seas of international foreign exchange markets. However, the storm of the 1997 Asian Financial Crisis was brewing on the horizon and Malaysia found itself amidst a catastrophic economic crisis, posing to sink our currency. ​​In response to this, Malaysia chose to transition from a floating policy to a more rigid exchange-rate policy. Rather than allowing the MYR to fluctuate according to a basket of different currencies within a certain range (like MAS’s current monetary policy), the decision was made to lock onto one currency at a fixed rate. This strategy is known as pegging. So, on the 1st of September 1998, Malaysia pegged the MYR to the US dollar at a fixed rate of 3.80 MYR/USD. Freed from the unpredictability of the forex market, MYR's value remained steadfast during the tumultuous economic conditions of the financial crisis. This strategy ushered in an era of stability in the midst of economic chaos. After the storm had passed, on July 21, 2005, the peg was officially removed. Since then, the Ringgit has been operating under a managed float system against a trade-weighted selection of currencies. Why Did Malaysia Unpeg Its MYR Currency From USD? The short answer is that it was to prevent the country from running out of money. We have to remember that in order to maintain the rate of a currency against a target (pegging), the government has to keep buying and selling their currency or foreign reserves to push the rate up or down accordingly to maintain it within the fixed range. But what happens when a country’s currency falls on the lower end of that range and they would need to sell off all of their foreign reserves? What happens if a country runs out of money? Thankfully, this hasn’t happened to Malaysia because of our decision to unpeg our MYR from USD. But the same cannot be said for Hong Kong that’s facing the threat of a broken peg and potential financial crisis. This just goes to show that pegging a currency, while a potentially effective short-term measure in times of crisis, can lead to problems down the line if not reconsidered when circumstances change. How Should Malaysians Feel About The Falling Ringgit? It’s understandable and valid that Malaysians feel angered and worried about the weakening Ringgit. But we need to keep in mind that there is a larger picture than the exchange rates we see on the money changer TV screen. The managed float system that BNM has adopted is a strategy that provides us with the flexibility to navigate the rough seas of global economics while protecting the treasure of our foreign exchange reserves. Because at the end of the day, we don’t want to end up like Hong Kong, now do we? Let’s also not forget how by maintaining our monetary policy, our country’s economic fundamentals and investment climate will be given the chance to thrive. Just this year alone, Malaysia has become a beacon, attracting investments from the economic giants of China and Japan. Just recently, we even attracted RM14.6 billion worth of investments from Texas Instruments. Although these investments may not immediately bolster the Ringgit, they are building the fundamental structure for robust economic growth, creating jobs, and driving technological advancements. So, as Malaysians, we have a role to play. We must remain patient, stay informed, and when the time comes, vote with the best interest of our country in mind. We may not see the fruits of our efforts within a few weeks, months or even years, but have faith and trust that we're nurturing the seeds of a prosperous future for us and our kids a decade from now. Did you know that besides the current economic downfall that we're facing now, we might see another financial crisis happen soon? Find out what this crisis is about here.

In 1997, the Asian Financial Crisis demolished Malaysia’s GDP. And soon, we might be facing another detrimental financial crisis - one that might change our economic landscape forever. And what crisis is this, you might ask? It’s the Aging Population Crisis. Introduction Back in 1700, Earth’s population was the size of less than half of China’s demographic. But today, we have eight billion people living and breathing on our planet. The world has never been this crowded, and it all started post-World War Two. Between 1950-1987, 2.5 billion babies were born and this was a good thing because rapid population growth means a growing workforce which in turn, helps build the nation's economy. In fact, between the 1950s and 2022, the world went through rapid modernization and economic growth because of this workforce. Quickly, a strong workforce became the backbone of a booming economy. As a result of that, for a country, a healthy demographic was very important because it meant higher tax revenue for governments. With higher tax revenues, governments would be able to fund projects which civilians could take advantage of. For example, infrastructure in healthcare, retirement pension and social security. The Aging Population Crisis: Examples Through Population Pyramids So, how do we know if a country’s age demographic is healthy? Well, it will look like this. Healthy Population Pyramid: Kenya A healthy age demographic means there are more younger people in society that can replace older people. In other words, having the younger generation replenish the workforce and drive consumer growth, the two main pillars of economic growth. Unfortunately, this healthy age demographic is becoming less frequent, especially in developed countries like Japan and Singapore. Extreme Population Pyramid: Japan & Singapore In these two extreme cases, we can see that their demographic is aging and the younger population is dwindling. This means, at one point, they will have more older people than younger people. And if this problem persists, these two countries will come face to face with a lower workforce and lower consumer growth. By now, we know that when this happens, it leads to lower tax revenue and since these countries’ governments use it to fund social programmes, at one point, they may start running out of money. When that happens, it could very well mean that the older Japanese and Singaporean citizens would have to come out of retirement and join the workforce once again. All because they simply can’t afford to retire. Dwindling Population Pyramid: Malaysia Coming back to Malaysia, we are forced to face the truth that we are not far from the extreme cases discussed previously. Our population is declining and the effects of it are already being seen. Back in 2013, the mandatory retirement age was raised from 55 to 60 years old. This goes to show that our workforce is lagging behind and is not being replaced as quickly as it should be. We are staring directly at a potential retirement crisis. Keep in mind that with an aging population, there will be a significant increase in healthcare costs, pension withdrawals and so on. At the same time, there are fewer younger people who will be able to contribute to the workforce and consumer spending, which leads to lower tax revenue. In other words, the younger generation will spend way more than they can earn leading to the potential crash of the existing system and structure. So if you are expecting to retire in the next 30-40 years, you might want to think again. The Aging Population Crisis: How Did We End Up Here? Tracing the roots of our current population crisis brings us face-to-face with the consequences of rapid modernization and its influence on traditional family structures. In the past, women were given fewer opportunities. Their roles predominantly centred around marriage and raising children. However, as education and employment opportunities presented themselves, more and more women were starting to join the workforce. This shift, while a triumph for gender equality, unfortunately, presented women with a challenging decision to make: prioritize their careers or their families. A considerable number of women opted to postpone starting families to focus on career advancement. And working mothers encountered issues ranging from maternity leave restrictions to fewer work opportunities, coupled with inadequate support easing their transition back to professional life. Moreover, another daunting factor that has fueled the aging population crisis is the rising cost of living. Today, the economic pressure of raising children is a heavy burden for many households. Consequently, families are shrinking, a trend visible not only in Malaysia but in other developed countries as well. The Aging Population Crisis: What Does This Mean For Us? Looking forward, we can expect to see some significant shifts on the global stage. One of these is a more relaxed stance on immigration policies to bring in foreign workers. Actually, we're already witnessing the beginning of this. Workers in Africa, Vietnam, and Indonesia - countries that have a healthy age demographic - are starting to fill the gaps in the workforce of nations struggling with an aging population. Moreover, the dream of a quiet retirement is becoming less achievable for many. Instead of living out their golden years, the older generation might have to extend or even rejoin the workforce. In fact, we might even see the retirement age increasing once again like what is happening in France. If this aging population crisis were to persist, we will soon see that it's not the younger ones but the older generation that could become the backbone of society, the main force keeping our economy driving along. But with that being said since the older generation will make up a larger population and chances are, they will have to stay in the workforce for longer, this means they will have more time to accumulate more wealth. With that, naturally, they will be the biggest consumers in the market. So, products and services that focus on solving these older generations’ needs will be the opportunity for businesses and careers. One of those industries would be the healthcare sector. On top of that with a declining workforce, more and more industries are adopting AI and tech to fill in the gap in the workforce. Therefore, it is important to equip yourself with relevant skillsets, for example understanding how to use ChatGPT or generative AI tools in your work to stay relevant and get ahead in your career. Conclusion Addressing the aging population crisis we're currently facing is no simple task, and certainly not a quick fix. But that doesn't mean we're left without options. There are proactive steps we can take now, to brace ourselves for what's coming, and to remain relevant in a rapidly evolving world. Truth be told, this is a massive topic and we've only dipped our toes into it. If you're interested in diving deeper, there are excellent resources to explore. Books like "2030" by Mauro F. Guillen shed light on potential future trends and strategies we could adopt. Guillen paints a picture of how these demographic shifts could actually open up opportunities for regions like Africa, Asia, and the Middle East. Another insightful read is "The End of the World Is Just the Beginning" by Peter Zeihan, where he unravels the evolution of global demographics and its likely impact on our future. At the end of the day, we all have our individual idea of what's in store. It's crucial to do your own research, form your own opinions, and understand how these changes might impact you personally. But regardless of our individual views, one thing is clear: this crisis has the potential to impact us all. So let's be ready. Let's prepare ourselves for what the future might hold. We also made a video talking more in-depth about this crisis. Watch it here.

If you’ve heard of ASB, you’ve also probably heard of ASB Financing. But what’s the difference between these two and more importantly, which can make you more money? What’s The Difference Between ASB and ASB Financing Loan? ASB is a fixed-priced unit trust for Bumiputera Malaysians. In a way, you can consider it a “capital-guaranteed” and low-risk investment because its price is fixed at RM1/unit and only requires a minimum investment of RM10. Historically since 19990 (inception), ASB average dividend returns are between 5%-14% p.a. which is pretty good, all things considered. Actually, if you’d like to know more about ASB and their other investment options (ASM & ASN) you can check out this article here. In comparison, ASB Financing Loan is an alternative method to invest in ASB. This means, instead of cash investment (using your money to invest), you can borrow money from selected banks through a loan to finance your ASB investment. Harness The Power of Compounding With ASB Financing Loan If you’ve been into investments long enough, you’ll eventually hear the phrase “the power of compounding” being thrown around a lot. Essentially what it means is to earn interest on both the initial amount of money invested and any interest already earned. Over time, this snowball effect can lead to an exponential growth of your money. One of the ways to make full use of the compounding effect is to have a large initial investment capital; which is where ASB Financing Loan comes in handy if you don’t have that kind of capital on your own. To better understand this, take a look at this example: (BTW, this example was taken from our e-book, The 7 Steps Money-It-Right Framework. If you want to get your hands on it, check out our website where you can sign up for our newsletter and you’ll get it for FREE!) How Does ASB Financing Loan Work? Firstly, you need to understand how ASB’s income distribution/dividend works. It’s based on this formula: This means, if you have a larger average monthly minimum balance, you’ll be able to generate larger returns. And through ASB Financing Loan, it's a sure-fire way of ensuring your average monthly minimum balance is a big amount. To have a clearer picture of this, let’s compare investing with ASB Financing Loan versus monthly cash investment: Scenario 1: You’re given RM50,000 in ASB Financing Loan with a financing rate of 3.5% for a tenure of 20 years. Scenario 2: You invest RM300 in cash investment every month for 20 years. Therefore, with ASB Financing Loan, it gives you the ability to have a larger monthly minimum balance which will enable you to leverage on the power of compounding (and generate larger returns) without having to fork out a large capital investment on your own. However, do note that since this facility functions like a regular loan, it’s not assured that you’ll even get the loan in the first place and if you do, you’ll have to repay the monthly instalments according to a financing rate (determined by the bank you’ve selected) for a fixed number of years which will affect your overall returns (offset your returns with the loan interest). Tips And Tricks Choose the bank that offers the lowest financing rate. Retain the dividends to harness the power of compounding. Subscribe to ASB Financing Loan takaful/insurance that protects your investment in the event of death or disability. Pros and Cons of ASB Financing Loan Pros Allows you to have a large capital that will ensure a large average monthly minimum balance which can in turn, allow you to gain more in dividend returns. Improve credit score if you’re disciplined with the monthly repayments. Cultivates forced savings because you’re tied down to paying back the loan which is going into building your investment/savings. Cons ASB dividend rate is not fixed so there may be a chance that you’ll be servicing a higher financing rate for your loan (especially if there is a hike in OPR) in comparison to how much you’ll be earning through ASB’s dividends. Can damage credit score if you fail to pay the monthly repayments. Low liquidity because you can only withdraw ASB Financing Loan’s annual dividend in lump sum in comparison to conventional ASB cash investment where you can withdraw your money at any time. How To Apply For ASB Financing Loan? First, you’ll need to ensure that you’re eligible for it. ASB Financing Loan Eligibility: Malay or Bumiputera Aged 18 years and above Fixed income, minimum 3 months salary slip; if doing business, the company statement must be stated within 6 months Not blacklisted by any bank including CTOS and CCRIS records If you’re eligible for it, the next thing you’ll have to do is select a bank of your choice. Here’s a list of banks you can apply to for ASB Financing Loan: Maybank CIMB RHB Bank Simpanan Nasional (BSN) Alliance Bank AmBank Affin Bank Bank Muamalat Bank Islam Hong Leong Islamic Bank Once you’ve selected a bank, you’ll need to determine how big of a loan you’re allowed to borrow. This can be done by talking to the bank representative. Generally speaking, if your monthly salary is low, the financing loan offered will also likely be low. This is to ensure that you’re able to make the monthly repayments and not go into debt. After that, you’ll need to prepare certain documents to proceed with the loan approval. Required documents for ASB Financing Loan: ASB Financing Loan application form Photocopy of identity card (IC) A copy of your bank statement or pay slip for the last three months A copy of the front of the ASB account book Our Verdict on ASB Financing Loan Is ASB Financing Loan worth it? I would say it’s worth it but comes with some precautions. This is mainly because of the fluctuating ASB dividend rate and loan financing rate. Currently, we find ourselves in an environment with rising interest rates. Naturally, this means the financing rate for the loan will increase as well. So now, we’re faced with a situation where we could be servicing more for the borrowed funds than we are earning from ASB. However, based on past historical records, ASB has managed to ensure that their dividend is more than enough to cover the financing rate. For example, if we take a look at 1998, the average Malaysia OPR was 9.0% and yet, ASB was still able to provide dividend returns (including bonuses) of 10.50%. This goes to show that ASB is still relatively profitable and is able to give good returns to investors. If you’re more of a watcher than a reader, we also made a video explaining ASB Financing Loan and it’s even in Bahasa Melayu! You can watch it here.

Batch 05’ are the latest SPM graduates and are now having to ask themselves the ever-important question: What do I want to do now? Should I start working or should I further my studies? According to our Education Minister, Fadhlina Sidek, 48% of the 2021 SPM leavers chose not to continue their studies. That’s 180,000 graduates - a staggering number. And as reported by The Malay Daily, there are three reasons why this is happening: 1) The availability of job opportunities in the gig economy. 2) The perception that further education does not contribute to better job prospects. 3) The rise in influencer culture. What I want to explore in this article is the validity of these three reasons and whether or not they should dictate if SPM grads get their degrees in this day and age. Reason #1: Job Opportunities in the Malaysia Gig Economy In recent years, we’ve seen a boom in the gig economy, mainly driven by the food rider and e-hailing industry. So much so that our government had plans to subsidise motor licenses and vehicle purchases. In other industries like media and entertainment, freelancing has made a comeback after MCO and is thriving once again. Then as a result of hybrid and work-from-home culture, more and more people are starting to pick up on freelance jobs or side hustles, contributing even more to the gig economy. All of these have become appealing for SPM grads and we understand why! The gig economy is easy to get in and if you're lucky, it can become quite lucrative. Let’s say you have a skill like video editing, you can simply offer your services and there will be people who are willing to pay for it. Or even if you don’t have any skills, you can become a GrabRider - you’ll just need a license and a motorcycle. The thing with the gig economy is that with some effort, you’ll get to see the monetary rewards pretty quickly. And what’s more appealing than money, right? Well, sorry to burst your bubble but there are downsides to the gig economy. One of the main downsides is that it is a very easily replaceable industry. Think about it, let’s say you were to get into an accident and it debilitates you from becoming a GrabRider, there is a line of people waiting to replace your job simply because the entry requirement is so low and it doesn’t require many skills other than riding a motorbike. There’s also no career progression and at any moment, you may lose it all (grim, I know but it’s the truth). In the USA, we’re already seeing this where food delivery riders are getting their jobs replaced by drones. It’s only a matter of time before we see this happening in Malaysia too. Personally, if the reason for you not to pursue your education is to get into the gig economy, I think it’s going to be an uphill battle and requires you to plan much further into your future. You’ll need to ask yourself about what you want to do 5 to 10 years from now and whether or not the experience you’re gathering from here on out will contribute to that goal you have in mind. Nonetheless, if you find yourself in a situation where you need to earn some extra money to help support your family, going into the gig economy is one of the fastest ways you can do this. Then after that, if you want to pursue a degree, you can still do it because, with tertiary education, you’re not tied down to an age requirement. Reason #2: Getting A Degree Does Not Mean Better Job Prospects In Malaysia From the get-go, this reason is rather invalid. According to a study in 2018 by OECD, it shows that workers with tertiary education generally earn 60% more than those who only have a high school diploma. This is further supported by the starting salaries offered by companies where if you’re an SPM graduate, your pay will likely range between RM1,000-RM1,500; a diploma will get you RM2,000-RM2,500 and a degree will get you a starting salary of RM2,800-RM3,500. Of course, depending on the industry you’re in, sometimes your experience matters more than your educational qualifications. However, it can’t be denied that for the most part, with a single piece of paper, your starting salary will greatly differ. The other thing about getting a higher salary from the start is that it propels you forward in terms of salary increment. Naturally, as you progress further in your career, you’ll get paid more; and if your starting salary is RM3,500 at 23 years old as a fresh degree graduate, by 27 or 28 years old, you can expect to earn around RM5,000-RM6,000. In comparison, if you’re an SPM graduate, you may lose out on career progression, especially in a traditional corporate setting, consequently not getting the salary increments you deserve. Reason #3: The Rise in Influencer Culture Social media platforms like Instagram, TikTok and YouTube has given rise to a completely new industry - influencers. We all probably follow at least one influencer and have seen the life they portray through their feed. It’s all about glamour, fun and most importantly, money. A lot of it. Whether it’s from affiliated marketing, sponsorships or ambassadorship, these influencers seem to be living the high life and most of them are in their early 20s! So, we totally understand why this lifestyle is appealing to SPM leavers. But the reality is, it’s not all sunshine and rainbows for influencers. When you become an influencer, you’re essentially working for yourself. You own a business and that business is you. You’ll need to learn how to market, brand and position yourself in the ever-evolving industry, and pick up on business strategies to keep yourself relevant as well as profitable. Otherwise, another influencer will quickly rise up and take over your spotlight. Additionally, contrary to popular belief, payment doesn't always come in monetary form. Some influencers get “paid” in terms of products. Sure, you’ll get to keep the latest clothes collection and beauty products but those products don’t pay for your bills. So, most influencers find themselves still having to work their day jobs while hustling on the side to grow their business. And as we all know, starting a business is never easy. It requires a broad amount of knowledge that you’ll have to learn on your own now that you’ve decided not to pursue a degree. You’ll have to grow and learn from your mistakes a lot quicker than your peers who have the chance to experiment in university because the consequences for you are much greater. Conclusion So, can a degree guarantee a bright future in Malaysia? Well, it depends. If you’re planning to pursue a career in fields like medicine, law, accounting, engineering, or computer science, then you’ll definitely need a degree solely for practical purposes. However, if you’re planning to go into business, marketing or media, then maybe that 3-4 years spent in university is not necessary. If you’re able to gather the right experiences, build your resume/portfolio and make valuable connections, you should be able to land a job or start your own business. Just bare in mind that there will be some trials and tribulations you’ll face along the way. With that being said, it’s also important to acknowledge that furthering your education requires a lot of money and there are some who are not privileged enough to do that. The good thing is that in this day and age, most companies, especially in the media industry, will hire SPM graduates even if they have no experience. What’s more important (and what employers look out for) is the strong attitude of wanting to learn and constantly improve their craft. Actually, we made a video talking about this and we dove further into why SPM grads think this way (and it has everything to do with our education system), so, if you’re interested, you can check out the video here.