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If you’ve been staying up to date with the investment news, you've probably caught wind of something called "halving." In the world of Bitcoin, this event holds significant importance for many, as they believe it's the driving force behind Bitcoin's ongoing price surge. However, not everyone is convinced, with some dismissing it as more of a marketing gimmick.  The halving event recently occurred on April 19, 2024, coinciding with Bitcoin's price at $69,736.75.  But what exactly is Bitcoin halving, and why does it matter? In this article, we'll explore the ins and outs of Bitcoin halving, its significance, and how it impacts Bitcoin prices. What is Bitcoin Halving? Bitcoin halving is the automatic reduction in the supply of bitcoin every four years. What this means for you is that the number of new bitcoins entering circulation gets cut in half. Imagine if you were collecting rare coins, and suddenly, the mint started producing only half as many coins as before. Naturally, this scarcity would make your existing coins more valuable over time. Similarly, bitcoin halving is designed to create scarcity in the cryptocurrency market, driving up demand and potentially increasing the value of existing bitcoins. Initially, when Bitcoin mining started, miners were rewarded with 50 BTC for each block they successfully mined. The rewards are then halved every four years: 28 November 2012: Reduced to 25 bitcoins 9 July 2016: Reduced to 12.5 bitcoins 11 May 2020: Reduced to 6.25 bitcoins 19 April 2024: Reduced to 3.125 bitcoins What is Bitcoin Mining? Bitcoin mining  is a process where specialised computers called ASICs (Application-Specific Integrated Circuit Miner)  compete to solve a complex mathematical problem. The first miner to find the solution gets to add the next block of transactions to the blockchain and is rewarded with newly issued bitcoin and transaction fees. While there's an element of chance, miners use powerful hardware to solve the problem faster, not just random guessing. This constant competition incentivizes miners to invest in even more powerful machines, which increases the overall computing power of the network, known as hashrate . The high hashrate makes tampering with the Bitcoin network incredibly difficult because it would require a massive amount of computing power. The Purpose of Bitcoin Halving Satoshi Nakamoto , the pseudonymous creator of Bitcoin, designed the cryptocurrency to have a fixed supply of 21 million coins. This reduction in block rewards serves two main purposes. Firstly, it ensures that the total supply of Bitcoin is limited. Secondly, it creates scarcity over time, which can potentially increase the value of Bitcoin due to the economic principle of supply and demand.  How Does Bitcoin Halving Work? Halving events are hard-wired into Bitcoin’s source code. Approximately every four years, the block rewards given to miners are cut in half. This process gradually decreases the total supply of Bitcoin, moving closer to the 21 million cap over time. The final Bitcoin is expected to be mined around the year 2140. How Will Bitcoin Halving Affect Bitcoin Prices? We’ve learned that halving reduces the supply of bitcoins, which in theory increases the price of bitcoin. Let’s take a brief look at the pattern of Bitcoin prices from previous halvings:  1. Bitcoin Halving on 28 November 2012  Reduced block reward from 50 BTC to 25 BTC . BTC price at start of halving: $12 BTC price 1 year later: $964 Percentage increase: 7985% 2. Bitcoin Halving on 9 July 2016 Reduced block reward from 25 BTC to 12.5 BTC . BTC price at start of halving: $663 BTC price 1 year later: $2550. Percentage increase: 301% 3. Bitcoin Halving on 11 May 2020 Reduced block reward from 12.5 BTC to 6.25 BTC. BTC price at start of halving: $8740 BTC price 1 year later: $58,250 Percentage increase: 540% (Please not that all price data was sourced from Coinmarketcap.com ) Based on previous cycles, Bitcoin prices tend to increase after each halving event. While past performance doesn't guarantee future results, many investors believe Bitcoin prices may rise following the latest halving. However, the impact is debated. While some believe the event is already priced in, historical surges and the concept of stock-to-flow ratio suggest otherwise. Predicting the exact rise is much like guessing how high a rocket will fly - difficult. This time, Bitcoin reached its highest price prior to the halving, adding another layer of uncertainty. In the end, Bitcoin remains a volatile asset with significant short-term price swings. The halving serves as a reminder for investors to approach with caution, weighing potential gains against inherent risks. What Happens When There Are No More Bitcoins? When all 21 million bitcoins are mined, no new bitcoins will be created. Miners will no longer receive new bitcoins as rewards and will only earn income from transaction fees . Even though no new bitcoins will be made, people will still be able to use bitcoin to buy and sell things. Instead of getting new bitcoins as a reward for mining, miners will earn money from the fees people pay to use bitcoin. So, if bitcoin is mainly used as something people keep to save money instead of using it every day to buy things, miners could still make money by charging higher fees for processing transactions. Special offer: If you're looking to start investing in cryptocurrencies, you can maximize your crypto investments with our exclusive offer. Use the code MMTVLM24 when you buy RM 250 worth of cryptocurrency on Luno , and you'll receive an additional RM 75 in BTC. It's a great way to boost your portfolio right from the start. Key Takeaways: Bitcoin halving is a programmed event that reduces miner rewards every four years, creating scarcity and potentially increasing Bitcoin's value in the long run. The halving can lead to short-term fluctuations in network hashrate as less efficient miners may be forced out. While past halvings have coincided with price increases, investors should exercise caution and due diligence. Disclaimer: Please note that this information isn't advice to buy or sell any financial products. Past performance doesn't guarantee future results, and we urge you to do your own research or seek professional guidance before making any investment decisions. 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.

You're probably thinking: "There's no way RM100 will make a difference in my investment!" Well, you're not wrong. BUT, as the Malay saying goes, 'sedikit-sedikit, lama-lama menjadi bukit'. When you're investing with this relatively small amount, you have to think about the long-term. How can you make the most out of your investment? The answer is, through compounding returns. This is when your investment returns are reinvested, generating additional returns in subsequent periods. We've listed out some investments you can consider and categorised them according to low-risk to higher-risk investments. Pick and choose the ones that suit your risk tolerance the most! Let’s get started. Liquid and Low-Risk Investments StashAway Simple StashAway Simple is a cash management portfolio that offers competitive returns. Their returns range from 2.5% p.a. to 4.1% p.a. , depending on the market. Their app is very intuitive to use and everything can be done online including opening an account, depositing and withdrawing funds. Majority of your funds will be invested in a Money Market Fund and some of it will be in invested in cash. TNG GOinvest Similar to StashAway Simple, TNG GOinvest is Shariah-compliant and returns can go as high as 3.7% p.a. This investment would be very convenient since most of us already have the TNG app on our phones. You'll just to sign up for it and deposit a minimum of RM10 to start investing! ASB/ASM It's a government unit trust fund that has a fixed price of RM1 , making it a relatively safe investment. The dividends return is around 5-7% p.a. , which is relatively high for a low-risk investment. However, keep in mind that ASB is only for Bumiputera while ASM is available for all Malaysians depending on the units available. Higher Risk and More Volatile Stock Market I bet you saw this coming. If you're really looking to grow your money, there's no better place than the stock market. Locally, you can invest in Bursa Malaysia where the minimum units you'll have to buy is 100. So, if you're able to find a stock that costs RM1 or lesser, you'll be able to invest in the stock market with RM100! Returns can vary depending on the volatility of the market but historically, active traders can earn up to 10% p.a. If Malaysian stocks aren't your thing, you can also invest in the US stock market. We recommend using Interactive Brokers to do your trading because of their low fees and broad access to a variety of US assets. Cryptocurrency Alternatively, you could also invest in cryptocurrency which is a decentralised currency. It is said to have a lot of potential in the future. While it's possible to earn high returns , it's also possible to lose everything because it’s still considered a risky investment. So, stick to large-cap crypto like Bitcoin and Ethereum . Some platforms you can use to invest in crypto are Luno and Tokenize Xchange . If you buy RM250 worth of any cryptocurrency on Luno , you'll get an additional RM75 in BTC. Use the code: MMTVLN24 to claim your free BTC! As for Tokenize , you'll not only be able to buy cryptocurrency but you'll be able to earn and stake your coins for even more returns! If you click on this and use the code: MMTV1 , you'll be able to get free RM25 deposited into your account! MyTHEO MyTHEO is a robo-advisor that invests in a variety of assets. Their algorithm will pick and select assets for you to invest in based on your risk tolerance. Their portfolio invests in over 20 ETFs which makes them one of the most diverse robo-advisor in Malaysia. Returns average at > 4% p.a. , depending on market conditions and your risk-tolerance. StashAway Similar to MyTHEO, StashAway is also a robo-advisor that manages your portfolio for you. You get to choose from a variety of investment plans like general investing, responsible investing, thematic investing, or goal-based investing depending on the kind of investment you want to do. Alternatively, you can also customise your portfolio if you want to be more hands-on with your investment. We would suggest you to invest on a regular basis, using dollar cost averaging to even out your loss and gains. Unit Trust Unit trusts are managed by fund managers who will pick and select individual stocks to invest in on your behalf. There are many different types of funds available in the market, so it's important to research and get an idea of the fund's focus. Conclusion Having RM100 every month to spare is a good way to start experimenting with investing and build your savings. And with the right plan, you can make your money work for you and achieve your financial goals. Do you have more than RM100 to invest? Maybe RM500? RM1,000? Well, you're in luck! We made a video about it on our YouTube channel where we talked about how you can invest strategically with a larger sum of money! Disclaimer: This is not an investment advice. All content produced are solely for education and entertainment purposes only. Please consult your financial advisor before making any investment decision.

KWSP has introduced a New Account named Akaun Fleksibel for Malaysians and it is free to withdraw anytime. Since the implementation of the Account Flexible in May 2024, RM2.93 million EPF members below the age of 55 have withdrawn an average of RM2,382. But, the big question is, how does this affect us as EPF members? Whether you have withdrawn or not, in this article we'll do a breakdown of what EPF is and the new EPF structure. What is EPF? Let's start with a little background on EPF. As many of you already know, EPF is a mandatory saving scheme for retirement in Malaysia. It was set up by the Malaysian government to ensure Malaysians have enough savings by the time they retire. I believe that without EPF, many Malaysians would retire poor. The key reason why EPF is effective is that it’s mandatory. You have to contribute to EPF even if you don’t want to. Based on its structure, you can’t simply withdraw money from your own EPF account either. As an employee, you contribute 11% of your salary into your EPF account, and your employer tops it up with another 12%. This money is kept there until you reach the age of 55, at which point you can withdraw from Account 1. So, technically, it forces you to save and at the same time, you can’t access it until you retire.  EPF Account Structure Before we dive into the new structure, let’s discuss the traditional structure. Previously, EPF had two accounts: Account 1 (Retirement Savings):  70% contribution, locked until age 55. Account 2 (Flexible Withdrawal):  30% contribution, for specific purposes like education or housing. What Caused the Need for EPF Account 3?  When the COVID pandemic hit, many people were laid off, businesses were forced to close down, and people struggled financially. In order to curb the situation, the government allowed a one-off withdrawal from EPF to help those affected. Eventually, this one-off withdrawal happened multiple times to continue helping many who were financially struggling but it also increased the demand for flexibility in accessing EPF funds. According to an EPF survey, 83% of public consultation feedback preferred empowerment through flexible withdrawal. With that, EPF decided to introduce a new structure. With the new structure, an additional Account 3, known as Account Flexible, allows you to withdraw money as and when you need it.  Following that, the initial accounts were renamed along with their allocations: Account Persaraan:  75% contribution (increased from 70%). Account Sejahtera:  15% contribution (previously Account 2). Account Flexible:  10% contribution (new account, allows for any-time withdrawal). Benefits and Concerns of New EPF Structure This new structure empowers EPF members with the flexibility to plan their finances better. Members can access a certain amount of savings in their EPF anytime they need or want and turn it into an emergency savings fund. On the other hand, there are some who are concerned that this might lead to irresponsible withdrawals and leave people with inadequate retirement savings. EPF's strategy to mitigate this is to increase the allocation to Account Pasaran by 5% , safeguarding retirement savings while allowing flexible access to some funds. EPF CEO, Mr. Ahmed Zulam, is confident that the impact of this new structure is manageable.   They expect withdrawals to be between RM20 billion to RM30 billion this year, with a RM4 to RM5 billion annual withdrawal from then on. Compared to 2020 and 2021, these numbers are lower, and EPF has managed funds well even with higher withdrawals in the past. Contributions are also looking good, with a 15% increase in 2023 to 97.56 billion ringgit and a projected net inflow of 50 billion ringgit. So, more money is coming in than going out, ensuring the stability of EPF funds. There is also a misconception going around that Account Flexible has a lower dividend rate. This is not all true. All three EPF accounts receive the same dividend rate of 2.5% .  Should you withdraw from your Account Flexible? Some might want to withdraw money to buy things, which is generally not advisable unless absolutely necessary. EPF is effective because it protects your money against impulsive spending. Many people lack self-discipline with finances, and EPF acts as a safety net for retirement. However, if you still feel like withdrawing to invest elsewhere for better returns, the choice is yours. Just be cautious, as many retirees have lost their savings to scams promising better returns. EPF pays the same dividend rate for all three accounts, so the idea that Account Flexible has a lower rate is a misconception. For more information about EPF, please visit KWSP’s official website . If you still need to withdraw money, you can make an initial transfer to Account Flexible between May 12th, 2024, and August 31st, 2024 . After that, 10% is allocated monthly to this account. The Bottom line Overall, I think the new structure is beneficial as it provides flexibility while increasing retirement contributions in Account Pasaran. EPF has a strong track record, so I am not worried about its performance or dividends. What do you think about this new structure? Share your thoughts in the comments below. Check out my video on EPF Akaun 3 where I share another bigger issue that will affect Malaysians in the future.  Disclaimer:  This information is for general knowledge only and does not constitute financial advice. 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.

Let me be real with you. I used to be the king of falling for the "cheap deal" illusion. Those bargain-basement buys felt like wins at first, but they always ended up costing me more in the long run. Take earphones, for instance. AirPods seemed like an extravagant splurge, so I bought a pair for RM70, then another for RM90. Guess what? Both started malfunctioning within months. The final straw was a knock-off pair of AirPods for RM300. Then, my wife surprised me with the real deal. Instantly, I noticed the difference - seamless connectivity, superb audio quality, and reliability. The original AirPods not only lasted longer but also provided a hassle-free experience. Initially, I thought I was saving money, but in reality, I ended up wasting more. Not only did I spend unnecessarily on cheap products, but I also wasted time and energy dealing with the constant malfunctions. The added frustration from frequent issues and the hassle of replacing them amounted to more than just the initial cost difference.  Which brings me to my topic today. Pro investors are adept at allocating their funds in the right places. They make strategic, informed decisions for long-term gains. We can use that same logic when it comes to spending our money. In this article, I’ll give you a brief breakdown of how you can spend your money like a professional investor.  1. Research Before You Buy In today’s digital era, buying a new item is easy. Anything can be bought at the click of a button. However, it’s still important to do your research before you hit “buy” on the first deal you see. "An investment in knowledge pays the best interest." — Benjamin Franklin Treat every purchase like a mini-investment. Do some research on the product you want to buy.  Read reviews, compare your options, and don't be afraid to look somewhere else for better deals.  2. Prioritise Quality Over Immediate Savings Don't be fooled by the siren song of "cheap." Seek out long-term value. To do this, you’ll need to look beyond the price. Consider the potential returns, such as the experience you’d get from the purchase. For instance, investing in a quality laptop for work or studies may seem expensive initially, but it will save you from frequent repairs and replacements, ultimately providing better performance and durability.  As Warren Buffett famously said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” This principle applies to everything, from gadgets to investments. Trust me, you’ll save yourself a lot of frustration and get your value for money in the long run. 3. Avoid the Temptation of Overspending While it’s important to prioritise quality over quantity, I’d say that it’s still important for you to remember to stay within your means. Avoid the temptation to overspend or accumulate debt. "If there is one common theme to the vast range of the world’s financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." — Carmen Reinhart Taking out a loan for a branded car is a recipe for disaster. Only purchase what you can afford comfortably without jeopardising your financial stability.  The Bottom Line Spending wisely is not just about saving money - it’s about making informed decisions that enhance your overall quality of life and financial well-being. By treating your expenditures like investments, you can ensure that your money is working for you, not against you. Just as pro investors aim for long-term gains, by following these steps, you too can achieve lasting value from your purchases and maintain a disciplined approach to your spending habits. Whether it's buying a reliable gadget, investing in education, or simply choosing durable products, these decisions will pay dividends in the form of reduced stress, fewer replacements, and a more satisfying overall experience. In the end, it’s about achieving a balance between cost and quality to ensure that each ringgit spent adds value to your quality of life. So, the next time you’re tempted by a hard-to-resist deal, remember to approach it like a pro investor. Your bank account will thank you. 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.

Flipping on your gas stove to cook dinner seems like a simple everyday task. This simple act is fuelled by Malaysia's thriving oil and gas industry, which has powered many homes and driven the economy for decades. As the second-largest oil producer in Southeast Asia, Malaysia is set to reach an impressive 679.38 thousand barrels per day in 2024 . However, with the world moving towards a more sustainable future, the Malaysian oil and gas industry faces significant challenges in adapting to greener energy sources . This article dives into the challenges and opportunities Malaysian oil and gas companies face as they navigate a shift towards a more sustainable future. Challenges Faced by Malaysia’s Oil & Gas Industry Energy Transition and Sustainability Netherlands-based PFZW, one of the largest pension funds in Europe, has exited its investment in over 300 fossil fuel companies , including giants like Shell, BP, and TotalEnergies, due to insufficient decarbonisation plans. The global push for greener energy is placing immense pressure on traditional oil and gas companies. With the increasing adoption of renewable energy sources, there's a growing expectation for the industry to reduce its carbon footprint. This shift underscores the significant challenge for Malaysian oil and gas companies, as they must balance sustainability with profitability while meeting stringent environmental expectations. Economic Pressures Economic pressures are another major challenge. Maintaining a strong balance sheet while navigating fluctuating oil prices and market conditions is crucial for survival. A prime example is national oil giant Petronas, which saw its full-year profit in 2023 drop by 21% compared to 2022 . This decline can be attributed to a significant decrease in energy prices. Petronas' CEO even warned of potential volatility in the remaining year, highlighting the uncertainty faced by the industry. Cost of Technological Advancements Beyond price fluctuations, companies also face the high upfront cost of transitioning to renewable energy infrastructure. This includes innovations in drilling techniques, data analytics, and emissions reduction technologies. Last year, Petronas estimated that by the end of 2023, clean energy investments were expected to reach USD 1.7 trillion, surpassing those in fossil fuels . Balancing these financial hurdles while navigating towards a greener future is a key challenge for Malaysian oil and gas companies. Keeping up with technological advancements is another important role for the oil and gas industry. As the sector evolves, companies must invest in new technologies to improve efficiency, reduce costs, and meet environmental regulations. Deleum Berhad’s Strategy in the Oil & Gas Landscape Deleum Berhad  stands out in the Malaysian oil and gas industry due to its solid financial background. The company holds a strong balance sheet, which allows them to invest and pursue strategic growth opportunities. In our recent podcast, CEO Ramanrao Bin Abdullah  attributes this financial health to the company’s cautious yet forward-thinking approach. Growth in the oil and gas industry increasingly ties to technological advancement. Deleum Berhad invests in cutting-edge technologies that enhance efficiency and sustainability. Under the leadership of Ramanrao Bin Abdullah, Deleum focuses on innovations that reduce emissions and improve operational effectiveness. Deleum Berhad aims for regional expansion beyond its strong position in Malaysia. The company explores acquisitions in Indonesia and Thailand to broaden its market presence. By targeting companies facing financial difficulties, Deleum leverages its strong balance sheet to drive growth while maintaining financial prudence. Conclusion: Navigating the Future of Malaysian Oil & Gas The Malaysian oil and gas industry stands at a crossroads, facing significant challenges from global sustainability trends and economic pressures. However, companies that adapt to these changes position themselves to thrive in the evolving landscape. To gain deeper insights into Deleum and other small-cap stocks, check out the   RHB Small Cap Jewel e-book . Watch our full interview with Deleum Berhad's CEO, Ramanrao Bin Abdullah, on   The FAQ Show podcast . 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.

No one ever wakes up in the morning and anticipates getting into an accident in the afternoon. That’s why it’s called an ‘accident’. You’ll never know when you’ll end up in an emergency such as a punctured tyre, a car breakdown, or even getting sick that month. Like it or not, unfortunate events like these are inevitable, and that means you’ll have to skip out on a few yum-cha sessions with your friends and it may even knock you into unexpected debt. That’s why you need an emergency fund. An emergency fund is supposed to act as your financial safety net to cover unexpected expenses. In this article, I’ll explain to you why you need an emergency fund and how you can get started on building one. What is an emergency fund? An emergency fund is a sum of money that is set aside to pay for unexpected expenses such as unforeseen car repairs, medical expenses, or unemployment. In Malaysia, the Employees Provident Fund (EPF)  suggests that you aim to save three to six months worth of your salary as an emergency fund . Depending on your financial responsibilities, you could save more.  Why You Need an Emergency Fund 1. It Gives You Financial Security An emergency fund provides a buffer between you and financial disaster. Whether it’s a sudden job loss, medical emergency, or major car repair, having a stash for times of need can prevent these events from becoming financial crises.  2. Reduces Your Financial Stress Knowing that you have money set aside for emergencies can significantly reduce stress. Life is unpredictable, but having an emergency fund can help you sleep better at night, knowing you're prepared for a rainy day makes a world of difference in your financial journey. 3. Prevents You from Going into Debt Without an emergency fund, you might end up relying on credit cards or loans to cover unexpected expenses. Eventually, this could lead to high-interest debt, making your financial situation even more challenging. An emergency fund protects you from falling into this debt trap. 4. You Won’t Need to Rely on Others Having an emergency fund means you won’t have to be financially reliant on others in times of crisis. You won’t need to borrow from friends, family, or financial institutions, which can help maintain your independence and financial health. How to Start an Emergency Fund 1. Set a Goal First, figure out how much you need to save. You can start by using a budget planning spreadsheet  to calculate your monthly expenses. Make sure to include your rent or mortgage, utilities, groceries, and any other necessities, and multiply by the number of months you want to cover. You can check out this video  we made on how to use a budget spreadsheet. 2. Keep Your Funds in a Separate Account Next, you’ll want to keep your emergency fund separate from your regular checking or savings account. Much like the concept of "out of sight, out of mind," the goal of this is to keep you from succumbing to the temptation to spend the money on non-emergency expenses. A smart way to store your money is in low-risk, highly liquid investments such as money market funds  like TNG Go+, StashAway Simple, or Versa Cash . These offer daily returns to help your emergency fund grow over time. 3. Start Small and Be consistent If the idea of saving several months’ worth of expenses seems daunting, start small. Instead, set a realistic initial goal, like RM1000, and gradually increase your contributions as your budget allows. Reaching your savings milestones will give you a positive boost of momentum and keep you on track with your savings.  Set up automatic transfers from your main account to your emergency fund. This way, you’re consistently saving without having to think about it. 4. Use Windfalls Wisely Unexpected windfalls like tax refunds, bonuses, or gifts can provide a substantial boost to your emergency fund. Rather than spending them impulsively, prioritise depositing these funds directly into your emergency savings to strengthen your financial safety net. 5. Review and Adjust Your Contributions Periodically review your emergency fund to make sure it’s still sufficient for your needs. As your life circumstances change—like getting a raise, moving, or starting a family—you may need to adjust your savings goal. Eventually, when you’ve saved up enough, you can start redirecting your cash into investments .  6. Maintain Your Emergency Fund Maintaining a healthy emergency fund is a cornerstone of sound financial planning. Remember that your emergency fund should only be for real emergencies and not for “emergencies” like buying a new phone or going on an unplanned trip. It’s also a good habit to always replenish what you use. If you do need to dip into your emergency fund, make it a priority to replenish what you used as soon as possible. This will ensure that you’re prepared for any future emergencies. Conclusion Starting and maintaining an emergency fund might seem challenging at first, but when you start setting attainable milestones, it’s a lot easier to follow through so you can build a solid financial safety net for yourself. While you can’t predict the future, you can definitely prepare yourself for it. By taking the necessary steps to build an emergency fund, you’re also investing in your peace of mind. So start small, and stay consistent, and you’ll be ready for whatever life throws your way.  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.

Uh-oh! The World Bank has released a report  saying that Malaysian students are not learning as much as they should. Despite lots of money being spent on the Malaysian Education System , Malaysian students are lagging behind in their studies. If we compare our country’s education system with Vietnam’s, Vietnamese students receive 10.7 years of learning within a 12.9 year schooling period, while Malaysian students spend 12.5 years in school, but the years of learning only add up to 8.9 years. Education plays a critical role in improving a country’s overall success, particularly amidst inflation and other economic challenges. Hence, we decided to look into key reasons why Vietnam’s education is doing its students justice. Here’s what we can learn from Vietnam: 1. Government Commitment In 2013, the Communist Party in Vietnam approved Resolution 29, a comprehensive education reform prioritising education in their socio-economic development plan. This reform focuses on stability and continuity, unlike Malaysia's frequently changing education policies, which hinder teachers' ability to adapt. 2. Focus on STEM and Teacher Training Vietnam places significant emphasis on STEM subjects and provides adequate training for teachers. They revamped their syllabus and ensured teachers are equipped with innovative teaching methods, leading to a 50% increase in STEM enrollment. In contrast, many Malaysian students aspire to become social media influencers rather than pursue STEM careers. 3. Teacher Assessment and Reward System Vietnamese teachers are regularly assessed based on student performance and are rewarded for their effectiveness. This system motivates teachers to ensure all students perform well, not just a few high achievers. 4. Teacher Workload Malaysian teachers face a heavy administrative workload, reducing their time for effective teaching and professional development. This centralised and top-down approach often leads to irrelevant and impractical training programs. 5. Preschool Education A weak preschool foundation in Malaysia exacerbates learning difficulties in primary school. Without compulsory and quality preschool education, many children start primary school unprepared, making it harder for them to catch up. I’ve made a video sharing my thoughts about this topic. Particularly on how our government can make improvements in our education system. Check out the full video  on our Youtube Channel !   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.

Ever dream of owning a part of your favorite yum-cha spot? IPOs allow you to do just that. IPOs, or Initial Public Offerings, give you the chance to become a part-owner of a growing company, like the popular cafe chain Oriental Kopi. Oriental Kopi has announced that their IPO is brewing . But before you take a sip, let's break down what you need to know as an investor about IPOs. What is an IPO? Ever wondered how companies like your favourite café chain go from local hangouts to big-time businesses? That's where IPOs come in. An IPO, or Initial Public Offering, is the first time a private company offers its shares to the public for purchase on a stock exchange. Companies use this as a way to raise money to expand their business. For example, Oriental Kopi is planning to list on the ACE Market of Bursa Malaysia for smaller companies. They’re planning to use the IPO money to expand their cafe’s across Malaysia, build a central kitchen, and expand their reach globally. This can be a recipe for future growth, which is why IPOs can be exciting for investors. What does this mean for investors? Investing in an IPO could potentially bring you two main types of returns: Better Share Price: Ideally, if the company keeps growing after the IPO, the share price could rise. This means you could potentially sell your shares for a profit later. However, keep in mind that the opposite can also happen, and the stock price might fall after the IPO, leading to a loss if you sell. Dividends:  Some companies pay dividends to their investors, which means you'll receive a share of the company's profits as a cash payout based on the number of shares you hold. However, not all companies pay dividends, and the amount can vary depending on how well the company is performing.  Considerations when investing in IPOs While the potential profit is exciting, as an investor, it’s important to remember that every investment comes with a risk. Here are a few things to consider before investing in an IPO.  New Player, New Risks Many IPOs involve young companies venturing into expansion. While this translates to high growth potential, it also means there's a greater chance of unforeseen challenges or a business model that might not work out. Research the company's business plan, its competitors, and the experience of the management team. Market Matters The stock exchange where the IPO is listed can influence the risk profile. Companies listed on the ACE Market, for example, tend to be younger and more growth-oriented, offering potentially higher returns but also carrying a higher risk factor compared to established companies on the Main Market. Be sure to make your investment decisions based on your risk appetite and investment goals. For instance, if you are not comfortable with high volatility, established companies on the Main Market might be a safer choice for you. (Learn more about the difference between the ACE Market vs. MAIN Market here.) Limited Track Record Since IPO companies are typically new to the public market, there's a lack of historical data on their stock performance. This makes it harder to predict how the stock price might behave after the IPO.   Wait for the full prospectus to analyze the company's financials. This document details the company's financials, future plans, and growth strategies. Having a closer look at these factors will help you understand the company’s potential. Valuation Uncertainty IPOs can be susceptible to the excitement of hype and trends, which can lead to overvaluation. This means you might be buying shares at a price that's higher than the company's actual worth. If the company doesn't meet expectations, the stock price could fall significantly. Compare the IPO price to the company's true value by looking at the earnings of similar companies. Liquidity Risk Newly listed IPO shares might not be very liquid, especially for companies on the ACE Market. This means it could be difficult to sell your shares quickly if you need to access your money. It’s best that you only invest in what you can afford to hold for a potentially long time. Lock-Up Period Some IPOs have lock-up periods where investors are restricted from selling their shares for a certain amount of time after the IPO. This can limit your flexibility in managing your investment. Remember to factor in lock-up periods in your investment strategy and adjust your timeline accordingly. Limited Information You might have limited access to all the information that the company's management does. This may put you at a disadvantage when wanting to make informed investment decisions. It’s always good to seek professional advice from a financial advisor to help you with your investment moves. Conclusion The bottom line: investing in an IPO is akin to trying a beverage at your favourite café. It could be a delightful surprise, but there's always a chance it might not be your cup of tea. Remember, investing should not be a mere shot in the dark; if you are, then you’re simply gambling. Always do your research before making any investment moves. 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.

As we rely more on online services for banking and shopping, the risk of falling victim to a scam has never been higher. There has been an alarming surge in scam reports, with losses totaling RM203.33 million in the first quarter of this year  alone! Scammers have honed their tactics to be so sophisticated that even the tech-savvy can get caught off guard. In this article, we've compiled the most common scams in Malaysia so you can spot them and learn how to protect yourself. Popular Scams in Malaysia 1. EPF Scam The EPF scam often involves scammers impersonating EPF officials and notifying victims that withdrawals have been made from their EPF Account 3. The scammers anticipate that the victims will panic and call to stop the withdrawal. Once they have the victim on the line, they feed them more lies and ask for cash to process their requests. Another variant of the EPF scam involves sending false messages to victims, claiming that their EPF accounts will be blocked within 24 hours unless they contact a provided phone number. However, official messages from EPF will display a five-digit shortcode as sender identification (ID) and will never be sent from a personal phone number. Additionally, EPF has also reported syndicates that advertise their services on social media,  offering help to contributors to withdraw their EPF savings early in return for a fee. To convince their victims, they submit falsified documents to facilitate withdrawals. If you encounter these syndicates, do not engage with them. They charge exorbitant fees, and you could also get into legal trouble for falsifying your application. 2. Loan Scam Loan scams are another popular scam in Malaysia. Scammers pose as legitimate lenders, such as bank employees or agents, and contact potential victims via direct message, SMS, phone call, or even an ad on social media . To build trust and validate their “legitimacy,” scammers may go as far as sharing their “business card” or sending photographs of bank staff in their premises. They then request personal documents from the victim. Upon receiving these documents, scammers inform the victim that their loan application has been submitted for processing. This is also an opportunity to deceive victims into sharing sensitive banking details and confidential information. Next, scammers request upfront payments for various fees, such as advance deposits, insurance, and taxes, to be made into an individual or company account. The payments continue until the victim realises that they’ve been scammed. Signs of personal loan scams in Malaysia include offers of guaranteed approval without a credit check, requests for upfront payments, a lack of verifiable contact information, pressure to act immediately, and offers that seem too good to be true. The biggest giveaway here would be that legitimate financial institutions and banks would NEVER authorise 3rd party agents for loans. Before making any payment for upfront fees, check with the bank’s official website or call the contact centre for more information.  3. Macau Scam Macau scams are another prevalent scam in Malaysia. In Kuala Terengganu, a 47-year-old businesswoman lost over RM200,000 after she fell for a Macau scam.   The term “Macau scam” was coined as it is believed to have originated in Macau or that the first victims came from there. A Macau scam is a deceptive scheme where imposters impersonate law enforcement officials, government agencies, or banks to trick you into revealing personal information or transferring money. The scam starts with you receiving a phone call with a spoofed number from someone claiming to be from a trusted authority figure like officers from the Royal Malaysian Police (PDRM), Bank Negara Malaysia (BNM), the Malaysian Anti-Corruption Commission (SPRM), or other agencies. The scammer will create a sense of urgency or make you panic by making up stories about accusing you of a crime, such as money laundering or involvement in a criminal investigation. They'll pressure you to “clear your name” by transferring money to a secure account, which is actually a fraudulent account controlled by the scammers. If you encounter one of these phone calls, it’s best to hang up immediately. Authorised personnel won’t contact you about sensitive matters through unsolicited phone calls. 4. Love Scam a.k.a Catfishing Be careful of the strangers you meet online. An employee of a higher education institution was left penniless after losing RM500,000 in a love scam . The victim had made contact with a “foreign” man through a dating website. These scammers create fake profiles on legitimate dating websites to trick you into entering a romantic relationship.They start by building a strong connection with you before asking for financial help, claiming they need it for illness, injury, travel, or a family crisis. These scammers can invest months into building rapport with you before making their move. Red flags to look out for would be fast declarations of love, reluctance to video chat and of course, financial requests. Some ways to protect yourself would be to always do a reverse image search on profile pictures, and be cautious of online profiles that seem too perfect.  Be careful of the strangers you meet online. An employee of a higher education institution was left penniless after losing RM500,000 in a love scam. The victim had made contact with a “foreign” man through a dating website. These scammers create fake profiles on legitimate dating websites to trick you into entering a romantic relationship.They start by building a strong connection with you before asking for financial help, claiming they need it for illness, injury, travel, or a family crisis. These scammers can invest months into building rapport with you before making their move. Red flags to look out for would be fast declarations of love, reluctance to video chat and of course, financial requests. Some ways to protect yourself would be to always do a reverse image search on profile pictures, and be cautious of online profiles that seem too perfect. 5. Job Scam or Recruitment Scam Job scams involve fake online job ads posted on social media, untrusted job portals, and sometimes even LinkedIn . Victims may also be directly approached by scammers via direct message or Whatsapp. These scams typically involve simple jobs with high returns or work-from-home arrangements to attract unsuspecting job seekers. The scammers promise a job opportunity following an initial upfront payment to secure an interview, training course, software, security clearance, taxes or fees. A good rule of thumb to remember when it comes to job scams is, if it seems too good to be true, then it’s probably a scam. Another way to tell if the job is a scam is if you’ve never applied for the job or the job description seems vague or too short. You can also check the company’s legitimacy by looking for it’s official website. 6. Investment Scam An investment scam promises potential investors a lucrative, low-risk, and short-term investment opportunity. Scammers entice victims by offering not-to-be-missed high returns or guaranteed investments in shares, real estate, options, or foreign currency trading. Genuine investment schemes will not promise guaranteed returns, especially not immediately. Investment scams are often marketed through social media platforms like  Facebook  or direct messages like WhatsApp. They are typically not licensed under the Securities Commission or registered as market operators. To spot and prevent investment scams, be wary of offers that seem too good to be true. Always verify the legitimacy of the investment by checking for proper licensing and registration. Or better yet, consult with a trusted financial advisor and do thorough research before making any decisions. 7. Messaging Scam SMS-based scams have been increasing in Malaysia , and unfortunately, many people have fallen prey to them. The latest tactic used by scammers involves impersonating telecommunication companies. Victims are lured through SMS messages from their supposed telco providers with a link attached to redeem their “loyalty points.” The messages claim that the victim has been awarded reward points and must claim them before they expire. Victims who click on the link are forwarded to a site that asks for their online banking information and the OTP number sent from the bank. This information is then used by scammers to access the victim's bank account and steal their money. If you come across such messages, verify the legitimacy of the message by contacting your service provider directly through official channels. Never click on suspicious links or provide sensitive information through SMS. What to Do If You Suspect a Scam While scammers are convincing and persistent, it is important for us to remain vigilant and cautious. If you suspect a scam, remember to do these three things: Stop:  Don’t give out any personal information and certainly don’t make any transactions—even if it sounds like you’re speaking to someone in authority (police, bank, etc.). Scammers rely on you not spotting these warning signs. Think: If your gut makes you suspect something is “off,” don’t ignore it. Ask yourself, “Could this be fake?” Don’t click links in messages, emails, or even on social media posts. Verify the legitimacy of the information from official websites or through secure apps. If you’re on the phone, say no, hang up, and block the number. Protect: Act immediately. If you’ve noticed unusual activity or suspect a scammer has your information, notify your bank and seek help. Acting quickly will allow them to implement the necessary protocols to prevent further harm. What to Do If You've Already Fallen for a Scam If you’ve already fallen for a scam, take these steps immediately to minimize the damage: Keep All Records:  Keep all your records of financial transactions relevant to the interaction with the scammer. Take screenshots of your interactions with the scammer. Notify Your Bank:  Contact your bank immediately to inform them of the scam and take steps to secure your accounts. Notify NSRC:  Provide the National Scam Response Centre with the details of the scam. They can help in taking further action. Make a Police Report:  Report the scam to the police to ensure it is officially documented. Report to Bank Negara (if necessary):  If the scam involves financial institutions, make a second report to Bank Negara. Contact PDRM's Commercial Crime Investigation Department:  Lodge a report with their Scam Response Centre at 03-26101559 and 03-26101599. Report to MCMC:  Alternatively, you can report the scam via MCMC's website, email them at aduanskmm@mcmc.gov.my , or WhatsApp them at 016-220 6262.   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.

Recent events have thrust cryptocurrency back into the spotlight , and it has reignited the hype around it. However, with so many hoping to get into crypto, there are some who have unfortunately fallen victim to crypto scams . You may think this would never happen to you, but the reality is, scammers are getting craftier and better at what they do! In this article, we’ll dive into what crypto scams are and how you can prevent them from happening to you. Types of Crypto Scams Crypto scams are fraudulent schemes targeting people interested in cryptocurrency. Common types of crypto scams include:  Pump and Dump Telegram Groups A pump and dump scheme is a type of market manipulation where a group of individuals artificially inflate the price of a cryptocurrency (often a newly issued or obscure one) through coordinated buying and hype.  How it works: The group of individuals acquires a large amount of cryptocurrency, and they then generate hype surrounding the crypto by spreading false rumours through social media. Once the price reaches a peak, the original investors, often called "whales," sell their holdings, causing the price to crash dramatically. Victims who buy into the hype after the price has already started to rise are typically the ones who suffer the most significant losses when the price crashes. Pump and dump schemes are illegal; however, the decentralised nature of the cryptocurrencies makes it difficult to prevent and prosecute these activities. Crypto Phishing Scams Crypto phishing scams are a common tactic used by cybercriminals to steal cryptocurrency. It involves tricking users into revealing sensitive information, such as private keys, passwords, or seed phrases, by posing as a legitimate entity.   How it works: Scammers create fake websites, emails, or messages that mimic reputable cryptocurrency exchanges, wallets, or other platforms. They lure unsuspecting victims through urgent messages claiming account issues, phony customer support requests, fake giveaways or promotions, and links to websites that are malicious. Once the victim clicks on the malicious link or fills in their information, the scammer will use this information to gain access to the victim’s crypto wallet.  Impersonators  Impersonation crypto scams are a common tactic used by fraudsters to deceive users into handing over their cryptocurrency or sensitive information. These scammers often pretend to be reputable individuals, companies, or platforms to gain trust. How it works: Scammers create fake social media profiles, websites, or email accounts that closely resemble legitimate entities, such as popular cryptocurrency exchanges, celebrities, or government agencies. They engage with potential victims, building rapport and trust over time with testimonials of “happy customers” and supposedly credible information of their identities. Once trust is established, scammers will ask for cryptocurrency or personal information such as private keys, seed phrases, or login credentials. When the funds are transferred, the scammers disappear, taking the funds with them. An alternate version of this scam involves the scammer requesting fees from victims under the guise of needing them to complete the transaction or release the "profits."  This can happen multiple times until the victim realises that they've been scammed. Unfortunately, by then, it’s often too late to recover the funds.  How to Spot Crypto Scams and Prevent Them While the tactics used to deploy these scams vary, the main purpose of the scammer is to trick victims into giving away their crypto funds and personal information. Here’s what to look out for to avoid getting scammed:  Guaranteed Returns Investment opportunities promising too-good-to-be-true returns are always a major red flag. Keep in mind that legitimate investment returns range between 1% and 10% annually. No legitimate investment agent will guarantee profits for any investment. Be sceptical of offers that seem too good to be true. Time Pressures Scammers often create a sense of urgency to pressure you into making quick decisions. If you find yourself being pressured to make a payment, then this should signal to you that it’s probably not a good idea to follow through with it. Requests for Personal Information Scammers will ask for personal information, such as your digital wallet password, or request you transfer your legitimate crypto funds to an alternate account they control. Never share your private keys, seed phrases, or passwords with anyone. Legitimate agents will never ask for this information. Unsolicited messages or calls Be cautious of unsolicited messages or calls claiming to be from cryptocurrency platforms or individuals offering investment opportunities. Always double-check websites, email addresses, and social media profiles for authenticity. Never click on links from unknown sources.  Fees to Release Profits:   Scammers often ask for fees to release your supposed profits. After showing fake evidence of high returns, they claim you need to pay processing, withdrawal, or tax fees before accessing your earnings. This tactic exploits your excitement about the fake profits to extract more money from you. Tips on How to Deal with Crypto Scams Here’s some advice to help you avoid falling victim to scams: If you’re uncertain about an investment, check with Bank Negara Malaysia , the Securities Commission Malaysia (SC), or Cybersecurity Malaysia for the licensing status of the company. Look for any warnings about cryptocurrency investments. National Scam Response Centre (NSRC):  If you suspect you’ve been scammed, contact the NSRC immediately and provide all relevant details. Police Report Records: Check if the investment account is linked to any police reports through the Royal Malaysia Police Commercial Crime Investigation Department’s website. 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 goal.

Imagine Malaysia’s economy getting a much needed boost, opening up to a market worth trillions, or seeing new job opportunities. It sounds a little far-fetched, right? Well, that may not be the case any longer. Prime Minister, Anwar Ibrahim has recently announced that Malaysia will soon be joining BRICS, an  intergovernmental organisation  to boost the economy in Malaysia. Malaysia's intention to join BRICS was first announced in June. Anwar emphasised that Malaysia's decision to join BRICS is centred on economic trade and cooperation, not on interfering with the domestic politics  of member countries like China and Russia. Anwar also highlighted that BRICS' GDP is US$26.6 trillion, accounting for 26.2% of the world's GDP. Joining BRICS is expected to benefit Malaysia’s economy. In this article, we’ll get into the purpose of Malaysia joining BRICS, and how it could benefit the Rakyat.  What is BRICS? Economic Opportunities and Trade Diversification Countries join BRICS to access new economic opportunities, diversify their trade partnerships, and gain greater influence in a multipolar world. By joining BRICS, countries benefit from enhanced economic cooperation, increased foreign investment, and collective bargaining power on the global stage. Less Dollar Dependence BRICS nations aim to reduce their reliance on the US dollar , which currently dominates international finance and gives the US significant power and influence. By trading in their own currencies, BRICS countries increase their economic independence and reduce dependence on the US financial system. The New Development Bank BRICS established the New Development Bank (NDB) to provide an alternative financial system that does not rely on the US dollar. The NDB helps stabilise member economies and reduce the impact of dollar fluctuations, offering funding for infrastructure and development projects within BRICS nations. Contingent Reserve Arrangement The Contingent Reserve Arrangement (CRA) is a financial support mechanism within BRICS designed to assist member countries during balance of payments crises or short-term liquidity problems. It acts as a safety net, allowing countries to request funds in times of financial distress until stability is restored. This arrangement complements institutions like the International Monetary Fund (IMF) , providing an additional layer of financial security for BRICS nations. De-dollarisation If more countries join BRICS and start using other currencies, the global demand for dollars could decrease , potentially reducing the dollar's value over time. However, the extent of this impact depends on how many countries make the switch and the stability of the alternative currencies. While BRICS is a significant economic group, the US dollar still holds a dominant position, and predicting the exact impact involves many variables, including the pace of adoption and the relative stability of other currencies. BRICS vs. G7: Key Economic Differences Let’s get into the key economic differences between the BRICS and the G7 . Historically, the G7 has wielded substantial influence in global economic governance. However, the rapid economic growth and development in BRICS nations have introduced a notable counterbalance to the established G7.  1. Population BRICS dominates a large amount of the world's population, with China alone boasting over 1.4 billion people. This massive population translates into several advantages for economic growth. A large domestic market allows businesses within BRICS countries to sell their goods and services to a vast pool of potential customers, facilitating economic expansion. Additionally, this large population translates into a significant labour force, providing companies with a readily available pool of workers to scale up production. The G7, on the other hand, comprises about 10% of the global population. But, people in these countries generally earn more money and have more spending power. This is exemplified by countries like Japan, which has a smaller population but high purchasing power. 2. Trading Power BRICS countries hold a significant share of global trade, controlling roughly 18% of the total. China, a major player within BRICS, is a leading exporter, particularly for electronics and machinery. However, BRICS is still developing its trade infrastructure and influence compared to the G7. The G7 countries hold a dominant share of global trade, accounting for around 45%. While their individual export volumes might be higher, the G7's true strength lies in setting the "rules of the game" for international trade. They establish tariffs, investment guidelines, and dispute settlement mechanisms to create a stable and predictable trading environment for all participants. 3. Economic Growth BRICS economies are experiencing dynamic growth, with rates hovering around 6-7%. This is particularly evident in countries like China and India. These fast-growing economies combined hold a significant share of global GDP (around 26%, projected to reach nearly $30 trillion with new members). In contrast, the G7 represents well-established economies with a dominant share of global GDP (around 45%). While their growth rates are slower, averaging around 2-3% annually, these economies boast highly developed infrastructure and technology, contributing to their overall economic strength. How Can BRICS Benefit Malaysians? Economic Growth and Job Creation BRICS membership could attract more foreign direct investment (FDI) from member countries looking to expand their economic footprint. This influx of capital could lead to investments in areas like manufacturing plants, creating new jobs for Malaysians. Additionally, working with BRICS countries can bring new technologies and innovations, boosting Malaysia's economic growth. Access to a Larger Market and Business Growth Joining BRICS would open up Malaysian businesses to the vast and growing markets of member countries. This can increase exports, allowing Malaysian companies to find new customers, especially for products like palm oil, which may be in high demand in countries like Brazil and Russia. This expanded market access can help local businesses grow and create more jobs. Financial Security and Stability BRICS nations are reducing their reliance on the US dollar in global trade. For Malaysia, this means lower transaction costs, as trading in BRICS currencies can cut down on currency conversion fees. Less dependence on the US dollar gives Malaysia more control over its financial system, making it less vulnerable to dollar value changes. If BRICS succeeds in using their currencies more, the Ringgit could strengthen against the USD. Access to NDB and CRA As a BRICS member, Malaysia would have access to the New Development Bank (NDB), which offers funding for infrastructure and business projects, often at better rates than traditional banks. Malaysia would also benefit from the Contingent Reserve Arrangement (CRA), which provides emergency financial assistance during economic downturns. This means that if Malaysia faces a financial crisis, the CRA can offer a financial safety net to help stabilise the economy. Conclusion The bottom line is, BRICS is not merely an economic alliance; it is also a significant global power in terms of the geopolitical climate . BRICS aims to challenge the dollar dominance held by the G7. If Malaysia officially becomes a partner country to BRICS, we may expect significant economic benefits, including increased trade, foreign investment, and technological advancements. These changes can positively impact Malaysian citizens by creating jobs, improving infrastructure, and enhancing educational opportunities. Local investors can benefit from diversified investment opportunities and improved financial services. However, the geopolitical implications of partnering with BRICS cannot be overlooked. Will Malaysia's partnership affect our existing relations in the West?   Watch my video  to find out more!  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.

Have you ever dealt with analysis paralysis? It’s where we get overwhelmed with too many choices. From deciding what to wear in the morning to picking a place to makan, our lives are full of decisions. Investing is no different. Knowing your investment style can simplify your decision-making process and help you stay committed to your investment plan. In this article, we'll explore the different types of investors, so you'll have a clearer idea of which investment style suits you best.  Let's talk about your risk appetite Your investment style is closely tied to your risk appetite. Risk appetite is the amount of risk an investor is willing to take in order to achieve a specific financial goal. It reflects the amount of risk you’re willing to take to achieve your financial goals.  Identifying your risk appetite involves assessing your financial goals, risk tolerance, and time horizon. Understanding these factors will help you determine your investment style.  Risk Level Characteristics Low You prioritise safety and predictability with your investments. You're comfortable with slow and steady growth and prefer to focus on preserving your capital.  Medium You’re looking for higher potential returns than you would with low risk investments. Under normal market conditions, you’re willing to take the risk moderately over a medium to long-term period.  High You understand the possibility of experiencing losses but are comfortable with the potential for higher gains. Very High Your primary focus is on maximising potential returns, even if it means facing the possibility of substantial losses. Some questions you can ask yourself to determine your risk appetite include:  What am I investing for? (e.g., Retirement, buying a home, children's education) When will I need the money? (e.g., In 5 years, 10 years, 30 years - here’s a cheat sheet  on how you can do this) What is my expected return on investment? (e.g., Do I want to preserve capital, or am I aiming for high growth?) How much money do I need to reach my financial goals? (e.g., Do I need RM500,000 for a home down payment?) How much can I comfortably invest regularly? (e.g., Monthly or annually?) Identifying your risk appetite will guide you in mapping out your investment journey  and making informed decisions that align with your financial goals. Now that you know what your risk appetite is, let’s find out what type of investor you are. 1. Conservative Investors Conservative investors take a passive approach to investing. Generally, they prioritize preserving their purchasing power and have a low to medium risk appetite. They’re all about stability and they aren’t keen on taking big risks. A conservative investor's portfolio will consist primarily of low-risk investment funds  such as MMFs, that are short-term and have high liquidity, and a small portion dedicated to safe bets, such as government bonds and blue-chip stocks. The benefit here is stability and a lower risk of capital loss to protect against inflation . However, the returns might be lower than in an aggressive portfolio. 2. Moderate Investors Moderate investors strike a balance between risk and reward. These investors have a “balanced” strategy, their goal is to weigh opportunities and can tolerate some risks for higher growth. A moderate investor’s portfolio might have a 50/50 or 60/40 structure that usually features a mix of asset classes like stocks , bonds , and REITs . Cryptocurrencies might be a smaller part of their portfolio compared to more aggressive investors. This balanced approach provides a mix of risk and return, with moderate growth potential, but market fluctuations can still affect returns. Moderate investors can reduce volatility by diversifying their assets  and spreading them across a range of stable investments. (Note: Examples mentioned may not be suitable for everyone and is presented for educational purposes only. ) 3. Aggressive Investors Aggressive investors are investors who prioritise maximum returns. They have high risk appetites and are willing to accept higher risk for higher potential returns. These investors take on an active approach to investing. They like to use a variety of tactical investment strategies, combined with analyst insights, to beat the market and potentially outperform their passive investor counterparts. Depending on their goals, an aggressive investor’s portfolio is dominated by volatile assets such as growth stocks, value stocks, or high-yield investments. Additionally, they may opt for a combination of stocks in emerging markets like biotech  and  AI . Typically, an aggressive investor’s portfolio includes 80-100% in riskier investments like stocks, with maybe 0-20% in low risk investments.  The potential for high returns is great, but the trade-off is a higher risk of significant losses and more volatility. You might need to rebalance your assets more often to maintain your target allocation. This frequent rebalancing can result in higher fees, which may reduce your investment returns. The Bottom Line Figuring out your investor type is crucial for mapping out an investment strategy that aligns with your financial goals, risk tolerance, and time horizon. Whether you’re conservative, moderate, or aggressive, there is no one-size-fits-all strategy. The best investment style for you is the one that allows you to accomplish your goals without sacrificing additional risks. Remember, regardless of which investment style you prefer, diversification is key. Spread your investments across different assets to balance risk and reward. Please keep in mind that the information provided is not intended to be considered official financial advice. Before making any investment decisions, we at Mr Money TV recommend that you conduct your own research or seek professional advice. 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.