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Do you ever feel that your own wants and needs don’t matter, or do you find it hard to say "no" to people even when your gut tells you to? Maybe you struggle to be yourself around others or hesitate to say what you really want to say. If so, you might be a people-pleaser. A people-pleaser is someone who has a strong desire to avoid conflict, seek approval, and ensure that those around them are happy—even at their own expense. Not surprisingly, this habit tends to creep into various facets of your life. It could seriously impact not only your mental and physical state but also your financial wellbeing. While having plenty of empathy and maintaining positive relationships is admirable, constantly prioritising others' needs at the expense of your own is not. Today, we’ll talk about the impact of people-pleasing and give you a few tips on how you can break the habit to keep your finances from spiralling out of control.  How People Pleasing is Costing You and How to Change It 1. Saying “Yes” to EVERYTHING Do you often find yourself agreeing to things just because you'd feel bad for saying “No”? Imagine you've decided to cut back on weekly lunch outings to save money, but a coworker invites you to join them for lunch. Because you fear missing out (FOMO) or don't want to disappoint your colleague, you end up going. Constantly agreeing to unplanned social events due to FOMO can lead to numerous unplanned expenses and derail your budget plan.  Let's say your goal is to save RM50 per week by cutting back on lunches. Agreeing to an unplanned lunch could eat up a significant portion of that savings, setting you back from your financial goals. Maybe a typical lunch with a colleague costs around RM20-RM30. That might seem like a small amount, but it adds up quickly. Imagine indulging in five unplanned lunches a month – that's RM100 to RM150 you hadn't budgeted for! This unexpected expense can significantly impact your ability to save or invest for your future goals. Politely decline: Understand that it's okay to say "no,” and that doesn't make you a bad friend. Practice saying “no” and politely declining invitations. It’s alright to be honest with your friends, and let them know you're cutting back to save money. Find a compromise:  This doesn’t mean that you must avoid having any kind of fun. You could suggest alternatives by proposing more budget-friendly activities, like bringing your lunch and eating together at a park or a common area. Good times don’t always require big money.  Plan ahead: Allocate a small budget for social outings each month, so you can still enjoy time with friends without breaking the bank. 2. Overcommitting to Others Are you always putting your priorities on the back burner for others? Do you take on more work for other colleagues when your plate is already full? Do you sacrifice your weekends to be there for family members? Not having boundaries and always being available for others comes from a fear of disappointing others. But stretching yourself thin to meet everyone’s expectations will eventually lead you to burnout and even stunt your personal growth. Remember the old saying, "Time is money"? When you're burned out, your efficiency drops, potentially delaying project completion or hindering your ability to take on new projects. You could also be missing opportunities for personal or professional growth. Saying yes to everything means saying no to something that could benefit you. Not prioritising your me-time deprives you of much needed R&R and the opportunity to develop yourself—all important for your wellbeing and productivity. Know Your Limits:  Before saying yes, take a breath and assess your workload. Can you realistically handle another task? Don't be afraid to politely decline if your plate is full. Schedule "Me-Time": Prioritise your well-being by blocking off time in your calendar for rest, hobbies, or personal development. Treat these times as you would any important appointment. Communicate clearly: Work on communicating your limits and being honest with colleagues and family members about what you can realistically commit to. This helps manage expectations and avoids overcommitment. The Power of "Maybe": Unsure about an immediate answer? A simple "Let me check my schedule and get back to you" creates space to assess your commitments before giving a final response. Prioritising your time, and communicating effectively, helps you prevent burnouts and free up space for personal growth and well-being – all essential for long-term success. Remember, a happy and healthy you is a more productive you 3. Overspending on Others Are you the generous friend in your group, always picking up the tab or lending money? Maybe gifting is your love language, and you enjoy expressing your care through thoughtful presents. However, do you often find that some friends don’t pay you back, and you’re too hesitant to remind them? While these habits might make you seem kind, they can also be a double-edged sword, setting an unhealthy standard in your friendships. Constantly lavishing others with extravagant gifts and always paying the bills while ignoring your own expense limit can be financially disastrous. In our current economic climate, no one can afford it — and no one should have to. If the state of your mental health isn't enough motivation for you to make a change, maybe a quick glance at your bank statements will help. Split the bill clearly: Stop offering to pay, and let them know you’ll pay for yourself. This will subtly communicate to your friends that they must do the same. If they don’t take the hit, suggest splitting the bill upfront or “going Dutch. ” Remind your friends: If someone owes you money, gently remind them. You could send a text saying, “Hey, here’s your share of the bill from dinner the other night! I accept QR transfers.” Remember, it’s okay to ask for your money back; your friends should understand and respect that too. Budget for gifts: You don't have to shower others with gifts and monetary experiences to gain their love and approval. But if you do want to spend money on your friends, create a gift budget by allocating money specifically for spending on others. This gives you a clear picture of how much you can afford to spend and allows you to stay within your budget. Setting boundaries and managing your spending on others helps you maintain healthy friendships without building resentment and derailing your finances. 4. Avoiding Conflict at ALL COST Have you ever felt yourself hold your breath at the thought of being in a confrontation? Avoiding conflict for the sake of “keeping the peace” means you’ll struggle to get what you need and may create situations that worsen over time. For instance, imagine you’re offered a job and the salary is lower than you expected. Your fear of confrontation could hinder you from negotiating for a better salary. Similarly, if you’re already employed, you might avoid asking for a promotion because you fear being rejected and upsetting your boss. If you’re a freelancer, you might undercharge for your services to win approval from your clients. While you may think these habits help build business relationships and maintain harmony, you risk undervaluing your worth and the quality of your work. Over time, not only does this reduce your income, but it also hampers your career growth, makes you feel undervalued, and, of course, puts a massive halt on your financial journey. Know your value: Before any negotiation, research standard salaries or service rates in your field. This empowers you to speak confidently about your worth. Practice makes perfect: Role-play potential scenarios with a friend. Practise assertive communication, highlighting your value, and focusing on solutions. Practice saying things like, "That's a great offer, but with my experience, I was hoping for something closer to RM [your desired amount]." Start small:  Build your confidence by negotiating small things first. Focus on solutions, maybe suggesting a longer contract in exchange for a slightly lower rate for your freelance work. It’s okay to say “No”: Don't be afraid to decline an offer that undervalues your skills. Remember, a polite "thanks, but no thanks" opens the door for future opportunities that align with your worth. Prioritising your needs and developing assertive communication skills will aid you to effectively negotiate and achieve financial success without creating unnecessary conflict. Confidence is key! Conclusion Trying to break free from the habits of people-pleasing can be a challenge, but it will significantly improve your financial and personal well-being. Remember, you can’t keep pouring from an empty cup. By setting boundaries and prioritising your needs, you’ll notice a positive shift in your financial situation and overall life satisfaction. 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 since the COVID-19 pandemic, a staggering 41% Malaysians  have reported that their mental health has been affected by financial stress. And with the rising cost of living , along with the fluctuation of the Ringgit currency , it’s no surprise that a lot of us are feeling the pinch from the increasing price of Nasi Lemak. If you’re also worried about money, you’re not alone. Today we’ll talk about how you can manage financial stress and share some tips on how to improve your financial well-being.  What is Financial Stress?   Financial stress is the anxiety and worry that come from facing financial difficulties. This can include not having enough money to cover expenses, dealing with debt, or worrying about future financial stability. Financial stress can affect various aspects of your life, from your mental and physical health to your relationships and overall quality of life. Recognising and addressing financial stress is crucial for maintaining both your well-being and your relationship with money. Signs of Financial Stress include: Constant Worry If you find yourself frequently worrying about money, it’s a sign that you’re experiencing financial stress. Avoiding Finances Ignoring bills, avoiding financial conversations, or not checking your bank account can indicate financial stress. Physical Symptoms Stress can manifest physically, causing headaches, sleep disturbances, and other health issues. Impact on Relationships Financial stress can lead to arguments and strain in relationships with family and friends. Tips to Manage Financial Stress 1. Improve Your Financial Literacy In other words, educate yourself. Building a solid financial literacy foundation will make a significant difference in your personal finances, as it will empower you to make better financial decisions. Read books like “Rich Dad, Poor Dad” by Robert Kiyosaki or “The Total Money Makeover” by Dave Ramsey. ( Check out our Best Money Tips playlist  on our YouTube channel !) 2. Create a Budget A budget helps you understand where your money is going and where you can cut back on. List all your income and expenses, categorise them, and set spending limits for each category. Create a budget that forces you to spend within your means . You can use budgeting apps like You Need A Budget (YNAB)  or Wally  to track what goes in or out of your account. If food takes the biggest chunk out of your salary, check out our article on how to cut down your food budget . 3. Build an Emergency Fund An emergency fund acts as a financial cushion for unexpected expenses. Start small by saving a portion on your income each month until you have at least three to six months' worth of expenses saves. You can set up automatic transfers into a no-touch account to stay consistent with your savings. 4. Prioritise Debt Repayment Paying down your debt can relieve a lot of financial stress. In Malaysia, the outstanding balance for BNPL transactions is RM0.9 billion, while credit card debt stands at RM40.3 billion in 2023. Use strategies like the debt snowball method (paying off smallest debts first) or the debt avalanche method (paying off highest-interest debts first). Consolidate high-interest debts into a lower-interest loan to simplify repayment. (Learn the top 3 Methods to Pay Off Your Debt in Malaysia .) 5. Set Financial Goals for Yourself Having clear financial goals gives you a sense of direction and purpose in your financial journey. Set short-term and long-term goals, and create a plan to give yourself a blueprint to follow in order to achieve them. For example, a short-term goal could be saving RM5,000 in six months, while a long-term goal might be buying a house in five years. (Learn How to save RM10,000 in 3 months! ) 6. Practice Healthy Financial Habits Consistent financial habits lead to long-term financial stability. Pay your bills on time, avoid impulsive spending, and review your finances regularly. If you have trouble staying on track, set up reminders for bill payments and review your budget monthly. 7. Seek Professional Advice If you find yourself getting overwhelmed and are unsure of where to start, seek professional help from financial advisors to provide personalised advice and strategies to manage your finances. Look for certified financial planners or use free financial counselling services. Organisations like Agensi Kaunseling dan Pengurusan Kredit (AKPK) offer free financial advice and debt management services. Key Takeaways Financial stress is common, but it’s important to address it to maintain your overall well-being. Creating a budget, building an emergency fund, and prioritising debt repayment are crucial steps to managing financial stress. Improving your financial literacy and setting clear financial goals can enhance your relationship with money. Remember, it’s a journey. Take small steps, stay consistent, and seek help when needed. By implementing these strategies, you can take control of your financial situation, reduce stress, and build a healthier relationship with money. If you're struggling, consider reaching out to a financial advisor or counsellor for personalised guidance. 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.

Imagine spending a fortune to study only to end up with no job security. Being a doctor was once a profession every parent dreamed their child would pursue. Today, it is one of the most overstretched and underpaid jobs in Malaysia. Over the last three years, a staggering 3,346 contract doctors have resigned . What led to this drastic change? In this article, we'll do a breakdown on why being a doctor is the worst job in Malaysia and the challenges we face to rectify it. History It all started in the early 2000s, many doctors left government practice to work for the higher pay offered by private sector. Instead of addressing the root cause, the government chose to produce more medical students. This led to the establishment of 32 local medical schools by the late 1990s and early 2000s —more medical schools than Australia has. The Contract System In December 2016, the Ministry of Health introduced a contract system as a temporary measure to manage the backlog of medical students, the shortage of permanent positions, and the lack of training programs. Under this contract, junior doctors received a five-year contract: three years as housemen and two years as medical officers (MOs). The starting pay for a houseman is RM 2,947, increasing to RM 3,397 as an MO—that’s a mere RM 400 increment. Imagine spending so much money to become a doctor only to be given a five-year contract with no job security! This system left many junior doctors without job security, let alone adequate training. Getting certified to treat the sick isn’t sufficient to be a doctor. To be a good doctor, you need hands-on experience and guidance from senior doctors. However, because of the excess of contract doctors, there was a lack of guidance from senior doctors. Many junior doctors are forced to face high-pressure working environments alone, with a steep learning curve and limited opportunities for career progression. This is especially concerning as Malaysia becomes an ageing society with increasing demands for specialised medical care. According to experts, Malaysia needs 23,000 specialists in the next six years, but the current system limits the number to 8,972 specialists. This shortfall affects everyone, not just doctors. The lack of specialists means longer wait times and reduced access to quality care for patients. The Impact of the Covid-19 Pandemic Speaking of high-pressure working environments, when the COVID-19 pandemic hit Malaysia, the flaws in the contract doctor system became glaringly evident. Contract doctors worked tirelessly on the front lines which led many of them to burnout and tender their resignation. Many doctors expressed their frustration and mental health struggles, which led them to initiate the " Hartal Doktor Kontrak " rally on July 26, 2021. They demanded equitable treatment, better working conditions, and career progression opportunities. Despite risking their lives during the pandemic, these doctors still faced job insecurity and limited career prospects. Madani Government’s Response and Ongoing Challenges In response, the Madani government has attempted to address some of these issues. The Budget 2024 allocated RM 41.2 billion to the Ministry of Health, with more than half designated for increasing contract doctors' pay. Prime Minister Anwar Ibrahim announced the creation of 12,800 permanent positions by 2026, with 6,000 to be absorbed by 2025. On-call allowances have also been increased to RM 80 per hour. To boost specialisation, the ministry has incentivized junior doctors with full-paid study leave and Federal Training Allowance under the Hadiah Latihan Persekutuan program . Experts suggest several long-term solutions, including extending contracts to ten years, matching salaries with permanent counterparts, and maintaining the quality of medical school graduates. Some even propose a clock-in, clock-out policy for better work-life balance. However, these reforms face significant challenges due to legacy issues and inadequate funding. Adequate funding is crucial for implementing necessary improvements, and Malaysia's healthcare expenditure is only 5.1% of GDP, below the recommended 6-7%. Insufficient funding limits the Ministry of Health's budget for doctor salaries and allowances. Another significant challenge is the quality of medical schools. With too many schools and students entering the profession for the wrong reasons, the system churns out low-quality doctors. These poorly trained doctors, once they become seniors, perpetuate the cycle of inadequate training. Ensuring high-quality education and training is essential for improving the medical profession in Malaysia. I've made a video that explores this topic further. You can watch the full video here:  The Bottom Line Reforming Malaysia's healthcare system is going to be a monumental task for the Madani government. It requires political will, adequate funding, and a commitment to quality. The current government is attempting to make strides, but given the current economic state of Malaysia, the journey is going to be a long one. What are your thoughts on this? If you have any insights or suggestions on improving the medical system in Malaysia, please let us know in the comments! 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.

If you grew up collecting LEGOs, then you could potentially be sitting on a gold mine. In fact, your LEGOs could be more valuable than gold. A study by Russian researchers  found that LEGO sets outperformed stocks, bonds, and even gold! You’re probably thinking... HA? Really AH? How could these plastic bricks be worth more than precious metals?! Why are LEGOs so valuable?  The LEGO market is booming , with some even considering LEGO sets as their own asset class. Many people invest in jewelry, antiques, and artwork, but investors can also make thousands of dollars in the secondary LEGO market. From 1987 to 2015, the market price of unopened LEGO sets has grown in value by around 11% annually , outperforming gold and many traditional investments . LEGO sets have carved out a niche in the investment world, proving that these colorful bricks are more than just toys. Much like any other investment, the asset value depends on how people perceive the asset. For example, if a vintage car from a bygone era is meticulously restored, it might appeal to collectors who appreciate its historical significance or unique design. Similarly, the value of a LEGO set is driven by a combination of rarity and childhood nostalgia.   Unopened sets from discontinued themes or those with limited production runs tend to be more valuable due to their scarcity. This limited supply, coupled with high demand from LEGO enthusiasts who grew up with these sets, drives up the price. These sets trigger fond memories and a desire to own a piece of their childhood, further increasing their collectability and value.The LEGO brand has been selling toys since the 1960s, and has built a massive fanbase over the years. And decades later, they’ve found a lot of fans in their many buyers who are in their 30s and 40s, seeking a nostalgic connection to their childhood and are willing to pay a lot more for them. For instance, a 35-year-old service engineer from New Jersey  initially bought his favourite Lego kit simply to reconnect with his childhood. But twenty years later, he discovered the kit was going for more than it’s 1996 retail price of only $85—to a whopping $2405! He quickly jumped into what proved to be a lucrative market of buying and selling Lego sets online and ended up making $500K in just two years. What to Know Before Investing in LEGOs Imagine buying LEGOs today and reselling them at a marked-up value later. But before you run out to buy the first LEGO set you see, there are a few things you need to keep in mind. Production and Availability Not all LEGO sets are created equal in terms of investment value. Sets with limited production runs or those discontinued years ago tend to hold greater value. This includes exclusive convention sets, special editions with unique minifigures, or sets tied to short-lived themes. The limited supply, coupled with collector demand, drives up prices. Nostalgia Factor Sets that bring back childhood memories are often more valuable. Themes popular during your formative years or those linked to iconic movies, books, or historical events can be more desirable due to the sentimental value they evoke. Set Condition Similar to collectible items, the condition of a LEGO set significantly impacts its value. Ideally, for maximum investment potential, you'll want a sealed, unopened box in mint condition. Used or opened sets, even if complete, will generally fetch lower prices. Market Research is Essential You need to be really passionate about LEGOs and do thorough research on online marketplaces and collector forums to understand current market trends and identify the value of sets with investment potential. The Bottom Line In conclusion, certain LEGO sets have proven to be valuable investments, sometimes outperforming traditional assets like gold. However, as with any investment, it's important to consider factors that could impact their value, such as market trends and the condition of the set. If you're an avid LEGO fan or collector, you could turn your childhood hobby into a lucrative investment opportunity. But always remember to do your own research (DYOR) and understand that every investment carries its own risks. 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.

Bitcoin has been around for a while now, but much like the Ramli burger stalls that keep popping up on every corner, other cryptocurrencies have emerged since Bitcoin's debut. These cryptocurrencies  are known as altcoins. While the buzz around Bitcoin  still remains, altcoins have emerged as a popular alternative to Bitcoin. But what are altcoins exactly, and what are they used for? In this article, we’ll cover what altcoins are, why they exist, and how do they stack up against the Bitcoin? Let’s dive in! What are Altcoins? Altcoins are alternative cryptocurrencies that emerged after Bitcoin. The first altcoin, Namecoin , was introduced in 2011, and since then, thousands of altcoins have been created. While Bitcoin remains the most well-known and widely used cryptocurrency, altcoins offer different features and functionalities that make them unique. Why do Altcoins Exist? Some Altcoins are made to improve on Bitcoin’s limitations, such as transaction speed, security, and scalability. Others are created for specific purposes, like enabling smart contracts, providing privacy, or supporting decentralized applications (dApps) . In essence, altcoins broaden the scope of what cryptocurrencies can do and how they can be used. Types of Altcoins Speaking of, let’s get into the various types of altcoins available and what they do. 1. Stablecoins Stablecoins are designed to provide stability in the volatile cryptocurrency market, making them useful for trading, transferring value, and as a store of value. Investors use stablecoins to hedge against market volatility, transfer funds quickly and inexpensively, and earn interest through decentralied platforms (DeFi platforms).  Examples of stablecoins include Tether (USDT) , Binance USD (BUSD) , Gemini Dollar (GUSD) , and Paxos Standard (PAX) . 2. Utility tokens Utility tokens provide access to a product or service within a specific blockchain ecosystem, such as paying for transaction fees or accessing dApps. Investing in utility tokens like Ethereum can be beneficial if you want to participate in the network’s services, such as staking, voting on proposals, or using dApps built on the platform. 3. Security tokens Owning security tokens is similar to owning shares in a company. They represent ownership in an asset, company, or revenue stream and are designed to follow regulations to ensure investors everything is done legally and safely. For example, if you own TZROP tokens , you own a piece of the tZERO  company. This means you could earn money if the company does well, similar to how owning stock in a company works. You can also buy and sell these tokens on certain platforms. 4. Governance tokens Governance tokens give holders the ability to participate in the decision-making processes of a decentralized network, allowing them to vote on proposals and changes. Holding governance tokens like Uniswap  allows you to have a say in the future direction of the project, potentially influencing key decisions and benefiting from the project's success. 5. Meme coins Meme coins are created for fun and community engagement, often lacking a serious purpose and driven by social media and community sentiment. Investing in meme coins like Dogecoin  can be highly speculative, but if you time the market right, it can yield significant returns. However, it’s crucial to understand the risks involved due to their high volatility and potential lack of intrinsic value. Key Differences Between Bitcoin and Altcoins Purpose and Use Case Bitcoin was created primarily as a digital currency to enable peer-to-peer transactions without intermediaries like banks. It's often called "digital gold" because it's viewed as a store of value. Altcoins, however, often have specialized uses. For example, Ethereum (ETH) is known for its smart contracts, allowing developers to create decentralized applications (dApps), while Ripple (XRP) focuses on fast and cost-effective international payments. Technology Bitcoin's blockchain is designed to be secure and decentralized, but this means it's slower and less scalable. On the other hand, altcoins, like Ethereum and Ripple, use different technologies to process transactions faster and more efficiently. Transaction Speed and Fees Bitcoin transactions  can be slower and more expensive because only a limited number of transactions can be processed every 10 minutes. When many people are using Bitcoin, it gets congested, causing delays and higher fees to speed things up. In contrast, many altcoins offer faster and cheaper transactions by using different technologies and consensus mechanisms, making them more efficient for everyday use. For instance, Litecoin  and Steller (XLM)  which both offer faster and lower cost transactions.  Market Perception and Adoption Bitcoin is the most well-known and widely used cryptocurrency, often viewed as a safe and reliable choice. In contrast, altcoins offer more variety and innovation, addressing Bitcoin's limitations like transaction speed and costs, but they can be riskier and less stable. Should You Invest in Altcoins? Many investors wonder if they should invest in altcoins. Over the past few years, altcoins have come and gone, while Bitcoin (BTC) remains the "gold" of cryptocurrencies. Some believe that BTC is the only way to go in the crypto universe. However, there are always two sides to the coin (pun intended). Investors looking to diversify within the crypto market might benefit from altcoins, as they can be more affordable than Bitcoin and offer unique growth opportunities. Nevertheless, it's important to approach all cryptocurrencies with caution, given their high volatility and significant risks. There are thousands of altcoins on the market, and distinguishing the legitimate ones can be challenging. The Bottom Line In a nutshell, Bitcoin and altcoins offer distinct investment opportunities and risks. While Bitcoin remains the leading cryptocurrency, altcoins introduce innovations and solutions to Bitcoin's limitations, contributing to a more versatile and efficient crypto ecosystem. However, altcoins are generally more volatile compared to Bitcoin. Before investing in either, be sure to do thorough research and read all the fine-print before investing in any cryptocurrency. Disclaimer: Please note that this information isn't advice to buy or sell any financial products. 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.

Let's face it. Managing your finances these days can feel like climbing Mount Kinabalu blindfolded. Between the ever-fluctuating Ringgit  and the rising cost of roti canai, it's easy to feel overwhelmed. Some might run to the idea of getting a financial advisor, but what do you do if you don’t have the budget for professional advice? ChatGPT, a natural language powered by AI Chatbot, has been changing the way we live and work . A study by Zippia.com shows that 77% of people use a service or device that’s powered by AI.   While some fear AI taking over our jobs, others see its potential as a tool to streamline tasks. But this begs the question; Can ChatGPT help us manage our Ringgits? That is why I decided to conduct an experiment to find out. The purpose of this case study is to put ChatGPT's financial advice capabilities to the test to see if it can help you make better financial decisions. Testing GPT -3.5 and GPT-4.0 for Financial Advice I’ll ask for financial advice from both GPT-3.5 (Free Version) and GPT -4.0 (Paid Version). GPT-3.5 is limited to information up to the year 2022, you wouldn’t use this to browse the web. GPT -4.0 is the paid, updated version of ChatGPT with more data, and it is supposed to deliver more accurate results.  ChatGPT Prompts based on Financial Topics 1. Budgeting First, let’s test ChatGPT’s ability to help us budget. Budgeting is the act of creating a budget that estimates your revenue and expenses for a specific time period.  ChatGPT Prompt for Budgeting: You are a financial budget expert. I’m looking for advice on how to budget. My monthly income is RM3,000. I’m RM15,00 in debt. Create a detailed budget breakdown for my budget plan. ChatGPT’s Response:  GPT -3.5 The Bot responded with eight budgeting tips tailored to my monthly income based on the amount I provided. It assumed I had insurance expenses and included Malaysia's average insurance cost in the breakdown.  GPT -4.0 The Bot categorized my expenses into fixed expenses, variable expenses (for discretionary spending), debt repayment, and savings for emergencies or future goals. It then provided a detailed budget allocation breakdown, offering tips on how to reduce costs in areas like groceries, alternative transport options, and discretionary spending. Overall, I found GPT-3.5’s response somewhat overwhelming, with a lot of general information to sift through. GPT-4 immediately provided a useful starter template that I could copy and paste for my own use. The paid version of ChatGPT offered advice that was specific, useful, and in line with budgeting best practices. (Click here  to learn how to pay off your debt in Malaysia.) 2. Savings Next, we’ll test ChatGPT’s ability to give savings advice. Saving is the process of setting aside a portion of one's current income for future use, or the accumulation of resources in this manner over time. ChatGPT Prompt for Savings: You are a financial savings expert. I’m looking for ways to save money. I want to save RM10,000 in 12 months. My monthly income is RM4,000. List 3 popular saving methods and how I can practice them. ChatGPT's Response: GPT -3.5 The Bot suggested budgeting and expense tracking, automating savings transfers, and living frugally.  GPT -4.0 The Bot recommended the 50/30/20 rule, the pay yourself first method, and the envelope method . It also included additional tips to cut back on spending.  Overall, the responses were acceptable. The advice given was practical and addressed my question about money-saving methods. However, I found the initial response from GPT-3.5 slightly unrealistic, as there is only so much a person can do to reduce costs. 3. Reading Material Now we’ll get into what ChatGPT will recommend in terms of reading material to increase our knowledge of financial literacy. ChatGPT Prompt for Financial Reading Materials: You are a financial advisor. I am working on improving my financial literacy. I am a beginner in money management. Suggest popular books on topics such as saving and investing. ChatGPT's Response: GPT 3.5 The Bot listed seven popular titles and authors, including Robert Kiyosaki's Rich Dad, Poor Dad and Benjamin Graham's " The Intelligent Investor". GPT 4.0 The Bot categorised a total of 11 books into four categories: books on investing, general financial literacy, personal finance, and books on saving and money. These included "The Intelligent Investor" for investing, "Rich Dad, Poor Dad" for general financial literacy, "The Simple Path to Wealth" by JL Collins for personal finance, and "The Total Money Makeover" by Dave Ramsey for saving and money. Overall, I found the results to be somewhat similar. Both versions recommended well-known titles like "Rich Dad, Poor Dad" and "The Intelligent Investor." The paid version went the extra mile to divide the titles into categories and provided insight into how I might find the books helpful. 4. Investing Lastly, let’s test ChatGPT’s ability to give investment advice. Investing is the act of distributing resources into something to generate income or gain profits.  ChatGPT prompt for Investing: You are an investment expert. I am seeking advice on how to invest in the long-term. I am a risk-averse, passive investor who is new to investing. I want my investments to be recession-proof. Give me advice on how I should be investing my money. I have RM10,000 to invest. Suggest investment options that suit my investment personality and risk appetite. ChatGPT's Response: GPT 3.5 The Bot provided me with investment advice and suggested various investment options based on my risk tolerance, including ETFs, Dividend Paying Stocks, Gold, and REITs, along with examples. It followed up with investment strategies such as Dollar Cost Averaging and regular portfolio rebalancing.  GPT 4.0 The Bot began by reminding me to save 3-6 months' worth of living expenses before investing. It then recommended that I keep my savings in a high-yield savings account for easy access. It then provided a sample portfolio into which I could invest my RM10,000. It did not make any stock recommendations, but it did provide examples of investment opportunities. The bot's response also included platforms for passive investors, such as StashAway  and MyTHEO .  Both versions of ChatGPT responded to my request with conservative investment advice that matched my risk tolerance and investing style. The responses included strategies that a new investor should use when starting out. GPT-4's response provided a step-by-step guide to investing my money in a way that matched my risk tolerance. A beginner might find GPT-4’s response to be a good starting point. However, it's important to recognise that both versions did not factor in potential market changes or fluctuations that could impact investment decisions over time. Both versions did emphasise the importance of consulting a professional, and doing adequate research.  (Check out our beginner-friendly guide on how to start investing in Malaysia !)  The Bottom Line From my brief test, I found that ChatGPT can provide a basic understanding of finances. It offers helpful guidance and education, but it's important to note that it cannot replace professional financial advice. Both the free and paid versions lack the capability to consider critical factors such as economic trends and potential job insecurity, which are crucial for making sound financial decisions. If you want to improve the responses, you can feed ChatGPT with additional information about your income, expenses, goals and timeline, for more concise guidance on how to reduce spending, build savings, pay down debt, or create an investment plan. While ChatGPT can be used as a form of research, consulting with a qualified financial advisor is still necessary for comprehensive financial planning. 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.

Investing can be an intimidating journey, especially if you’re new to the financial world. In the context of the Malaysian investment landscape, understanding the fundamentals and various options can make the journey smoother and more rewarding. Here Are 5 Things You Need To Know Before Investing In Malaysia (Comprehensive Beginner Guide) Understanding Your Investment Goals and Risk Tolerance Before investing, you need to identify your financial goals and understand your risk tolerance . This can provide you with a roadmap for your investment journey, guiding you in selecting the right investment vehicles and strategies. You can ask yourself these questions when figuring out your investment goals and risk tolerance: 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?) How comfortable am I with losing some or all of my investment? What is my financial situation? (e.g., Do I have debts, an emergency fund, stable income?) Have I ever invested before, and how did I react to market fluctuations? (e.g., Was I stressed when my investment value decreased?) What is my investment time horizon? (e.g., Am I investing for a short-term goal or long-term growth?) How actively involved do I want to be in managing my investments? (e.g., Am I interested in actively trading, or do I prefer a more hands-off approach like a managed fund?) To give you a picture of why understanding your financial goals and risk tolerance is important, take a look at this example: If you're saving for retirement 30 years down the road, you might consider riskier investments like stocks , which may offer higher returns over the long term. Conversely, if you're saving for a down payment on a house in 5 years, a more conservative approach with fixed deposits or bonds may be suitable. Start with a Solid Financial Foundation Building an emergency fund and reducing high-interest debts should be your priority. A general rule of thumb is to have at least 3 months' worth of your expenses as your emergency fund. Meanwhile, when it comes to reducing your debt, you can consider the Avalance Debt Repayment Method or the Debt Snowball Method. By doing this, not only will you have a taste of financial security, but you will also be able to take calculated investment risks without jeopardizing your immediate financial stability. Think of it as a financial cushion , softening the blow should there be one. Explore Different Investment Options In Malaysia, there are various investment avenues catering to different risk levels and goals. Your job is to find one that aligns with your goals and suits your risk tolerance the best. Here are some investment vehicles you can consider. a. Savings Accounts and Fixed Deposits Example: BSN offers Term Deposits with different tenure options. Investing RM1,000 in a 12-month fixed deposit may provide a 3.35% return, a safe and guaranteed option. b. Government and Corporate Bonds Example: Malaysian Government Securities (MGS) are considered safe and provide regular interest. A 10-year MGS might yield around 3-4% per annum. You can buy government and corporate bonds either through Bursa Malaysia or over-the-counter (OTC) at appointed banks. c. Unit Trust Funds Example: Investment banks like Kenanga, Affin Hwang, and Public Mutual offer various unit trust funds. Check out FSMOne to pick out a unit trust that’s best for you. d. Stock Market Example: Investing in blue-chip companies like Maybank or META, which has historically shown steady growth, can be a starting point for stock investment. To invest in US stock, check out M+ Global. Don’t forget to use our code: T30E and if you deposit RM1,000, you stand a chance to win a mystery share! e. ETFs and REITs Example: ETFs like MYTHEO Omakase or Vanguard 500 Index Fund ETF can diversify your portfolio, ensuring you’re not putting all your eggs in one basket. Meanwhile, Sunway REIT allows investment in Sunway's real estate properties, providing regular income through dividends. Invest in the most diversified ETF in Malaysia using MYTHEO . Use our code: MMTV1 to get 6 months of fee-free investing! f. Robo-Advisors Example: StashAway , a robo-advisor platform in Malaysia, customizes a portfolio for you based on your risk tolerance and goals, even allowing investment with as little as RM10. Diversification Is Key Putting all your money into a single investment can be risky as it exposes you to market threats that can potentially lead to significant financial loss if that particular investment performs poorly. So, instead of investing RM10,000 solely in let’s say, Maybank stocks, you should instead spread the investment across different sectors, including technology, healthcare, and consumer goods, to reduce risk . This is because we will never know when market sentiment towards Maybank may change and if you’re not in tune with the latest news about it, you might find yourself in a sinking ship, unable to recover your losses. Regularly Monitor and Review If there’s one thing you should take away from this article is that investment is not a 'set and forget' process. You need to regularly review it to make sure that your investments still align with both your personal and financial goals as well as risk tolerance . This is especially true in the constantly changing market environment we find ourselves in to ensure we achieve long-term success and financial security. Conclusion Starting your investment journey in Malaysia, even if you’re a beginner and only have a small budget , is entirely feasible. Simply by understanding your financial goals, risk tolerance, and taking practical steps, you can begin building your financial future. The key is to start small, learn continually, and gradually grow your investments in alignment with your comfort and objectives. 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 the world of investment continuously evolves, diversifying your portfolio remains a key strategy in mitigating risk and potentially enhancing returns. For most Malaysian investors looking to diversify, delving into the US stock market might be a considerable option. In this article, we examine two primary categories of stocks: blue chip stocks and small cap stocks , detailing their pros and cons as well as how you can start investing in them today. What Are US Blue Chip and Small Cap Stocks? US Blue-Chip Stocks Blue-chip stocks represent well-established companies with a history of stability, reliability, and strong performance. They are often leaders in their respective industries, boasting a large market capitalization . Companies like Apple , Google , and Microsoft fall into this category, representing secure investment avenues that typically offer consistent returns and dividends . US Small Cap Stocks On the other hand, small-cap stocks represent companies with a smaller market capitalization , usually between $300 million and $2 billion . These companies, such as Revolve Group or Sunrun are often in their growth phase, with the potential to offer substantial returns , albeit at higher risk levels. How to Invest in US Small Cap and Blue Chip Stocks from Malaysia? Step 1: Preparing for Investment 1. Research and Knowledge Building Before investing, build a strong foundation by understanding individual company performances , the US market trends, and sectoral growth patterns . Utilize resources like financial news platforms , investment forums, and analytical tools for this purpose. 2. Understanding the Currency Risks You should also be wary of currency fluctuations between the USD and MYR. Currency risks can be mitigated by employing hedging strategie s or diversifying the investment portfolio to include assets with low correlation. Step 2: Selecting the Right Investment Platform 1. Choosing a Brokerage Firm Select a reputable brokerage firm that offers access to the US stock market. One of the most reputable brokers in Malaysia is Interactive Brokers . Find out how you can use Interactive brokers here . 2. Setting up an Investment Account Open an investment account with your chosen brokerage, ensuring to comply with all documentation and regulatory requirements, including proof of identity and address. Step 3: Investment Execution 1. Building a Diversified Portfolio Create a diversified portfolio that includes a mix of blue-chip and small-cap stocks . Consider consulting with a financial advisor to tailor a portfolio that matches your risk tolerance and investment goals. 2. Continuous Monitoring and Management Once the investment is initiated, maintain a vigilant eye on the portfolio's performance. Make adjustments based on market trends, economic developments, and company performances to optimize returns. Should You Invest in US Small Cap and Blue Chip Stocks? Well, it all comes down to your investment goals, risk tolerance, and whether you’re confident enough in your investment knowledge . Here are some pros and cons for you to weigh out your decision. Pros of Investing in US Small Cap and Blue Chip Stocks 1. Diversification Investing in blue chip stocks or established companies can add a stable component to your portfolio, possibly mitigating risks associated with market volatility. Meanwhile, when you invest in US small cap stocks, you’re diversifying your portfolio into sectors or industries that are underrepresented in the Malaysian market. For example, you can include stocks such as Apple or Google (blue-chip) and a promising small-cap stock in the tech sector to have a balanced exposure to the growth dynamics of the US market. 2. Potential for High Returns Blue chip stocks typically provide steady returns over the long term, including regular dividends. Meanwhile, small cap stocks have the potential to offer higher returns, especially if you invest in companies during the early growth stage. However, always consider that there’s a much bigger risk if you’re investing in small cap stocks. Cons of Investing in US Small Cap and Blue Chip Stocks 1. Currency Risk In both small cap and blue chip stocks, you’ll need to consider the currency risks involved in investing in US stocks, as fluctuations in the USD/MYR exchange rate can impact returns. One way you can minimise this impact is by hedging your investments through financial instruments that offset currency risks , ensuring that they are not adversely affected by fluctuations in the USD/MYR exchange rate. 2. Geographical and Cultural Distance Being geographically and culturally distant from the US market might result in a lack of nuanced understanding of market trends and company performances for both small cap and blue chip stocks. To mitigate this, you could consider employing US-based financial advisors or using analytical tools that provide in-depth insights into the US market. Conclusion Investing in US small-cap and blue-chip stocks can be a lucrative avenue for those seeking to diversify their portfolios and potentially reap substantial returns. However, it comes with its set of challenges that can be overcome with meticulous preparation and knowledge. By thoroughly understanding these dynamics and strategizing accordingly, you can make informed decisions that align with your investment goals and risk tolerance. 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.

In the world of investment opportunities, forex trading has established itself as a lucrative avenue for investors globally. In Malaysia, a growing number of individuals are looking towards forex trading as a means to earn profit. This article aims to provide a comprehensive guide to Malaysians who are considering venturing into forex trading . Let's delve into the aspects that you need to know about forex trading in Malaysia. Table Of Contents What Is Forex Trading and How Does It Work? Currency Trading In Forex How Are Forex Trades Quoted? (How To Read/Understand A Forex Trade) Commonly Used Forex Terms The 3 Ways To Trade Forex Forex Trading Strategies - Hedging and Speculating How To Start Forex Trading As A Malaysian Investor Where To Trade Forex in Malaysia? Pros and Cons of Forex Trading Advice for Protection Against Scams My Thoughts on Forex Trading As A Malaysian Investor What Is Forex Trading and How Does It Work? Forex trading (FX), also known as foreign exchange trading , involves the buying and selling of currencies in the foreign exchange market with the aim of making a profit. For instance, if you believe that the MYR (Malaysian Ringgit) will appreciate against the USD (US Dollar), you might buy MYR and sell it later at a higher price to make a profit. The forex market is the largest financial market globally, with daily transactions amounting to over $6 trillion. The market is open 24 hours a day, five and a half days a wee k with currencies traded worldwide in the major financial centres of Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich—across almost every time zone. Currency Trading In Forex In forex, currencies are traded in pairs (forex quote). The value of one currency is always determined in comparison with another currency. There are seven major currency pairs that account for about 75% of trading in the forex market: EUR/USD USD/JPY GBP/USD AUD/USD USD/CAD USD/CHF NZD/USD How Are Forex Trades Quoted? (How To Read/Understand A Forex Trade) 1. Currency Pairs As mentioned above, a forex quote is represented with two currencies. For instance, USD/MYR, where: The currency on the left , (the USD) is the base currency. Meanwhile, the currency on the right (the Malaysian Ringgit) is the quote currency. 2. Bid and Ask Price When you look at a forex quote, you'll generally see two prices: a) Bid Price: The price at which you can sell the base currency . It is the highest price that a buyer is willing to pay for a currency pair. b) Ask Price (sometimes called the Offer Price): The price at which you can buy the base currency . It is the lowest price that a seller is willing to accept for a currency pair. For instance, if USD/MYR is quoted with a bid price of 4.1500 and an ask price of 4.1505, it will look something like this: USD/MYR: 4.1500 (Bid) / 4.1505 (Ask) 3. Spread The difference between the bid and the ask price is known as the "spread". Using the example above: Spread = 4.1505 (Ask) - 4.1500 (Bid) = 0.0005 The spread is essentially the broker's commission for executing the trade (though it can also reflect market liquidity). 4. Pips A "pip" is the smallest price movement that a currency pair can make based on market convention. Usually, a pip is equivalent to a 0.0001 change in value. For example, a one-pip movement would be a change from 4.1500 to 4.1501. Think of this 4-digit (or 5-digit) as a reflection of the incredibly high volume and liquidity in the forex market, which leads to very small and frequent price movements. This granular pricing helps traders to make more precise decisions and potentially profit from these tiny fluctuations. To wrap it all up, imagine you are at a marketplace. The currency pair USD/MYR is like an item you want to trade. The seller (the market) is asking for 4.1505 MYR (ask price) for each USD. If you agree to buy at that price, you have made a deal. Conversely, if you want to sell USD, the market is willing to buy it from you for 4.1500 MYR each (bid price). The small difference in price (0.0005) is kept by the broker as their fee for facilitating the trade. Commonly Used Forex Terms 1. Lot Forex is traded by what’s known as a lot, or a standardized unit of currency . The typical lot size is 100,000 units of currency, though there are micro (1,000) and mini (10,000) lots available for trading, too. 2. Leverage Because of those large lot sizes, some traders may not be willing to put up so much money to execute a trade. Leverage, another term for borrowing money , allows traders to participate in the forex market without the amount of money otherwise required. 3. Margin Trading with leverage isn’t free, however. Traders must put down some money upfront as a deposit —or what’s known as a margin. 4. Long and Short To "go long " means to buy with the expectation that the value will rise . Meanwhile, to "go short " means to sell with the expectation that the value will decrease . The 3 Ways To Trade Forex Similar to stock trading, forex trading also involves speculation of future currency price movements. Forex traders attempt to buy currencies they believe will appreciate in value compared to other currencies or to get rid of currencies they predict will see a decline in purchasing power. There are three different ways to trade forex: 1. Spot Forex Market In the spot forex market, currencies are bought and sold according to the current price , which is determined by supply and demand dynamics in the market at that particular time. The main characteristic of the spot market is that the physical exchange of the currency pair takes place at the exact point the trade is settled – ‘ on the spot ’, which is generally within a two-day period . 2. Forward Forex Market In the forward forex market, instead of executing a trade now, contracts are bought and sold between two parties who agree to trade a set amount of a currency pair at a specified price at a designated date in the future (or within a range of future dates). The contracts in the forward forex market are binding (private) and are usually closed out before the designated date, with the parties settling for the price difference. 3. Futures Forex Market Similar to the forward market, the futures forex market deals with contracts to buy or sell a certain amount of a currency pair at a specified price at a designated date in the future. However, unlike the forward market, the futures market deals with standardized contracts that are traded on (market) exchanges rather than privately. Forex Trading Strategies - Hedging and Speculating In forex trading, both speculating and hedging are common strategies employed by traders and investors to make profits or protect their investments from adverse market movements. This is especially prominent in the forward and futures markets where traders speculate or hedge against future price changes in a currency. Let's delve deeper into these two strategies: 1. Speculating a) Definition: Speculating involves buying or selling currency pairs with the expectation that they will move in a favourable direction, allowing you to make a profit. It is like making an educated guess where you predict the direction of currency values and trade based on your predictions to make a profit. b) Example: Imagine you are betting on a football match. You've done your research and believe that Team A is going to win. You place a bet on Team A. In forex trading, it's quite similar. Let's say you believe that the Malaysian Ringgit (MYR) will strengthen against the US Dollar (USD) in the near future based on current economic indicators. You buy a lot of MYR/USD, hoping to sell it at a higher price later when (and if) the MYR strengthens, thus making a profit. c) Characteristics: Short-Term to Medium-Term Trades Speculative trades often happen over short to medium-term periods , ranging from a few minutes to several days or weeks. High Risk Given the nature of speculation, it is often considered a higher-risk strategy as it depends on price movements which can be unpredictable. Leverage Speculators often use leverage to amplify their potential profits , though it also increases the potential losses . Technical & Fundamental Analysis Speculators rely heavily on technical and fundamental analysis to make informed decisions on the potential direction of currency pairs. Profit Motive The primary objective of speculation is to make a profit from the price fluctuations in the forex market. 2. Hedging a) Definition: Hedging involves taking positions in the market to offset potential losses that may be incurred, effectively protecting your investment from adverse market movements. It’s like taking out an insurance policy for your trades. You make trades to offset potential losses to your investment from adverse market movements, kind of a safety net. b) Example: Let's stick to the football match scenario. To safeguard your bet on Team A, you also place a smaller bet on a draw, so if Team A doesn't win, your loss is minimized because you win the draw bet. In the context of forex, suppose you have a significant investment in the US market, and a fall in the USD value could result in a loss. To hedge this, you might also take a position that profits if the USD falls (like buying EUR/USD). This way, if the USD does fall, the loss in your investment is offset by the profits from your EUR/USD trade. c) Characteristics: Risk Management Hedging is primarily used as a risk management strategy to protect investments from unwanted market movements. Cost Involvement Hedging can involve costs, as it might require taking multiple positions which might not always result in profits . Complex Strategies Hedging strategies can be complex, involving multiple financial instruments such as futures, options, and spot forex trades. Long-Term Perspective Hedging is often employed with a longer-term perspective , looking to protect investments over extended periods. 3. Putting Them Together - Hedging and Speculating To tie these concepts together, imagine you are a business owner in Malaysia who has to pay a US supplier in USD after a month. Given the volatile nature of the forex market, the MYR/USD exchange rate can fluctuate significantly in a month. Speculating: If you believe that MYR will strengthen against USD in this period, you might wait to convert your MYR to USD, expecting to get a better rate later. Hedging: To protect yourself from potential losses if the MYR weakens instead, you might use a hedging instrument (like a forward contract) that allows you to lock in the current exchange rate for a future date. This way, even if MYR weakens, you won't have to pay more than what you had locked in. How To Start Forex Trading As A Malaysian Investor Step 1: Educate Yourself Understand the Basics : Learn the fundamental concepts of forex trading including currency pairs, pips, leverage, and margin. Get to Know the Market Analysis Techniques : Equip yourself with knowledge of market analysis techniques such as technical analysis and fundamental analysis. Keep Abreast of Economic News : Stay updated with global economic news as it has a significant influence on forex markets. Step 2: Choose a Reliable Forex Broker Regulated Broker : Ensure to choose a broker that is regulated by a reputable authority. In Malaysia, the main regulatory body is the Securities Commission Malaysia (SC). Transaction Costs : Compare transaction costs, spreads, and potential commissions charged by different brokers. Step 3: Develop a Trading Plan Trading Strategy : Develop a trading strategy based on your risk tolerance, capital, and trading style. Risk Management : Incorporate risk management strategies to protect your capital. Step 4: Open a Trading Account Documentation : To open a live trading account, you'll need to provide necessary documents such as proof of identity and proof of address. Minimum Deposit : Be aware of the minimum deposit requirements of the broker. Step 5: Start Trading Analysis : Conduct market analysis before you enter a trade. Placing Trades : Learn how to place trades, including market orders and pending orders. Monitoring Trades: Monitor your trades regularly and make adjustments as needed based on market conditions. Continuous Learning : Forex trading is a continuous learning process. Learn from your trades and improve your strategies over time. Where To Trade Forex in Malaysia? I know there are a lot of brokerages out there but to be honest, I don’t really trust them. So, I’m going to recommend some banks and trusted financial institutions that have been approved by Bank Negara Malaysia . 1. Appointed Overseas Office (AOO) The AOO serves to facilitate wider price availability and enhance the liquidity of ringgit FX transactions outside Malaysian trading hours. Here are some of the banking groups involved: Al-Rajhi Banking & Investment Corporation (Malaysia) Berhad AmBank (M) Berhad Bank of America Malaysia Berhad Bangkok Bank Berhad BNP Paribas Malaysia Berhad And more depending on the country. 2. Counterparties Counterparties comprise all the licensed onshore banks in Malaysia, both local and foreign banks, custodian banks both local custodians and global custodians as well as international central securities depositories. Here are some of the banks for both. a) Licensed Onshore Banks Affin Bank BerhadBNP Alliance Bank Malaysia Berhad AmBank (M) Berhad Paribas Malaysia Berhad Bangkok Bank Berhad And more . b) Custodian Banks Affin Hwang Investment Bank Berhad Alliance Bank Malaysia Berhad Alliance Investment Bank Berhad Bank of Singapore Bank of America And more . 3. Primary Market Makers Bank of America BNP Paribas CIMB Bank HSBC Bank JP Morgan Chase Maybank Standard Chartered Bank Deutsche Bank Pros and Cons of Forex Trading Now, you might be asking yourself, should you consider going into forex trading? I mean, these days, there are a lot of scams going around after all. So here are the pros and cons of forex trading so that you can weigh it out and determine if it's the right choice for you. Pros of Forex Trading 1. Liquidity and Market Hours The forex market is incredibly liquid and operates 24 hours a day during weekdays, allowing for flexible trading hours. Example: A Malaysian investor can trade with international markets at any time, potentially profiting from economic events happening in different time zones. 2. Leverage Forex trading offers leverage, which means you can control a large position with a relatively small amount of capital. Example: A trader with a small initial deposit can potentially make significant profits by utilizing leverage wisely. 3. Diversification Forex trading can be a good option for portfolio diversification. It can potentially yield profits irrespective of the trends in other markets. Example: During economic downturns, a Malaysian investor can potentially hedge risks or make profits by trading forex as it may not be directly correlated with the stock market. Cons of Forex Trading 1. High Risk and Leverage While leverage can amplify profits, it can also exponentially increase losses. Example: A newbie investor from Malaysia might use excessive leverage, only to find that a small adverse movement in currency pairs wipes out their entire capital. 2. Complexity and Need for Knowledge Forex trading is complex and requires a deep understanding of market analysis, which can be overwhelming for beginners. Example: A Malaysian investor who jumps into trading without adequate knowledge might make uninformed decisions, leading to substantial losses. 3. Vulnerability to Scams Unfortunately, the forex market has been a breeding ground for scams and fraudulent activities. Pump and Dump Schemes : Perpetrators inflate the price of a currency pair artificially and then sell their positions at a high, leaving innocent investors with worthless assets. Phoney Forex Trading Investment Funds : In Malaysia, there have been cases where scammers have set up fake investment funds promising guaranteed returns, only to disappear with investors' money. Misleading Marketing and Signal Sellers : Individuals might encounter scams where service providers promise "guaranteed" profitable trading signals for a fee, which turn out to be false. Advice for Protection Against Scams 1. Due Diligence Conduct thorough research to validate the credibility of brokers and investment platforms. 2. Regulatory Compliance Always choose brokers regulated by reputable bodies like the Securities Commission Malaysia (SC) to ensure a secure trading environment. 3. Education Educate yourself to discern genuine opportunities from scams. My Thoughts on Forex Trading As A Malaysian Investor In my opinion, I think it’s very hard to earn a profit through this because the forex market is notoriously volatile and complex, requiring a deep understanding of economic indicators, market trends, and trading strategies to navigate successfully. Moreover, the influx of scams adds an additional layer of risk. There are a lot of scams these days so if you want to do it, make sure you use a credible brokerage that adheres to regulations set by authoritative bodies to safeguard your investments. Like I always say, make sure you equip yourself with enough knowledge through diligent research and education, as well as constantly update yourself on market news and analyses. This is a realm where informed decisions are vital to securing profits. Moreover, exercise caution with your investment capital; definitely don't put all your money into it. Diversification is key after all, not only within the forex market but across different financial instruments. By following these guidelines, I hope you can craft a more resilient and potentially successful investment journey in the volatile world of forex trading as a Malaysian investor. 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.

Deciding on a type of investment can be quite tricky especially when there’s a myriad of options available in the Malaysian market today. Should you invest in bonds for something safer? Or should you invest in stocks for higher returns? In this article, we will help both novice and seasoned Malaysian investors understand the nuances of these investment choices. Let's dive into the fascinating realm of Malaysian bonds and stocks, unravelling their complexities to pave your path towards informed investing. Understanding Bonds and Stocks in Malaysia Bonds  are essentially  loans given to corporations or governments . When you buy a bond, you're lending money in exchange  for periodic  interest payments  and the return of the bond's face value  when it matures. They're generally considered lower risk with stable returns.  Malaysian government bonds, like Malaysian Government Securities (MGS), are popular examples. Stocks , on the other hand, represent ownership in a company . Buying a company's stock means you own a part of that company . Stocks are riskier  than bonds but offer higher potential returns . Well-known Malaysian stocks include Maybank, Petronas, and AirAsia. Choosing Between Bonds and Stocks As Investments in Malaysia There are some factors that you’ll need to consider when you’re choosing between these two investment vehicles: Risk Appetite Assess how much risk you can handle. Stocks can fluctuate significantly, offering higher potential rewards and risks, whereas bonds generally offer more stability. Investment Duration Your investment time horizon is crucial. Stocks typically perform better over the long term, while bonds are often more suitable for short- to medium-term investments. Income vs. Growth Are you looking for regular income or long-term capital growth? Bonds are income-oriented, while stocks are more about growth. Market Analysis Keep an eye on market trends and economic indicators. Certain market conditions favour stocks, while others favour bonds. How To Invest in Malaysian Bonds and Stocks with 5 Steps 1. Selecting a Broker Research and Compare Start by researching various brokers. Look for reviews, user experiences, and compare their services. Your choice should align with your investment needs. Platform Reliability and Tools A good broker should offer a reliable trading platform with analytical tools, real-time data, and educational resources. Regulatory Compliance Ensure the broker is regulated by Malaysian authorities like the Securities Commission Malaysia. This adds a layer of security to your investments. Customer Support Good customer service is crucial, especially for beginners. Check if the broker offers accessible and knowledgeable support. Brokers to Consider Maybank Investment Bank, CIMB Investment Bank, and Rakuten Trade are reputable options. Each has its unique features and services, so choose the one that best suits your investment style. 2. Setting Up Accounts Stock Trading Account To trade stocks, you need a Central Depository System (CDS) account. This account holds your stocks and ensures smooth transactions. It can be set up through your chosen broker. Brokerage Account for Bonds For bonds, a standard brokerage account is usually sufficient. Some bonds can be bought directly, while others might require an intermediary. Documentation and Verification Be prepared with necessary documents like your identification and financial records. Verification processes are crucial for security and compliance. 3. Understanding Fees Brokerage Fees Different brokers charge different fees. Compare these costs as they will impact your investment returns. Other Charges Be aware of potential hidden fees like annual account maintenance fees, inactivity fees, or charges for using certain platform features. Bonds vs. Stocks Fees Typically, bond transaction fees are lower than those for stocks. However, the cost can vary based on the bond type and the transaction volume. 4. Doing Your Homework Use Research Tools Leverage the research tools provided by your broker. These can include market analysis, investment news, and performance charts. Educational Resources Many brokers offer tutorials, webinars, and guides. Utilize these to understand market trends, investment strategies, and risk management. Understand Your Investments Study the historical performance, financial health of companies (for stocks), and the creditworthiness of bond issuers. 5. Tips When You’re Starting Off Invest What You Can Afford to Lose As a beginner, it's wise to start small. This minimizes risk as you learn. Diversify Don't put all your eggs in one basket. Diversifying your portfolio across different stocks and bonds can balance risk. Monitor and Learn Regularly monitor your investments and market conditions. Use your initial experience to refine your strategies. So, Should You Invest in Stocks or Bonds in Malaysia? After delving into the intricacies of bonds and stocks in the Malaysian market, the question remains: which investment vehicle should you choose? The answer, quite frankly, depends on your individual financial situation, goals, and risk tolerance. Bonds , with their lower risk profile  and steady income generation , are a solid choice for investors who prioritize security and stability over high returns. They are particularly suitable for those nearing retirement or individuals who prefer a predictable income stream. The Malaysian bond market, with options like Malaysian Government Securities (MGS), offers a reliable avenue for such investors. On the other hand, stocks , despite their higher risk , present an opportunity for substantial growth . If you have a l onger investment horizon  and can stomach market fluctuations, stocks could be your ticket to potentially higher returns. Companies like Maybank, Petronas, and AirAsia have shown that well-chosen stocks can significantly enhance an investor's portfolio. The key, however, lies in understanding your own financial landscape. If you're young , have a stable income, and can afford to take risks , leaning towards stocks might be more beneficial. Conversely, if you seek stability or are nearing retirement , bonds  could be a safer bet. With all that being said, I think the most important aspect of investing is still diversification . A mix of stocks and bonds can balance risk and return  in your portfolio. This approach allows you to enjoy the growth potential of stocks while the bonds provide a safety net against market volatility. In conclusion, whether you choose to invest in bonds or stocks in Malaysia, the decision should align with your personal financial goals, risk tolerance, and the current economic landscape. Remember, there is no one-size-fits-all answer in investing; it's about finding the right balance that works for 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.

Taking your first step into global stocks can feel overwhelming. With so many investment options available, it’s not surprising that new investors often feel unsure of where to begin. And with good reason: if not done correctly, investing in global stocks can be very expensive. But don’t worry, we’ve got you covered. In this article, we’ll break down what global stocks are, explain common stock market terms, and share tips on how to start investing in the international market. What are Global Stocks? The global stock market, also known as international stocks, connects investors with companies from around the world. It allows individuals to buy and sell shares (ownership units) in these companies, offering investment opportunities beyond their own country. For example, if you're a huge fan of Apple , the global stock market lets you invest in them even though you're not from the US. Similar to the local stock market, global stock prices can be affected by various factors beyond the company's performance, including currency fluctuations, economic conditions in the foreign country, and global political events. Why You Should Start Investing in Global Stocks Diversification Ever heard the phrase “don’t put all your eggs in one basket”? As an investor, diversifying your portfolio is a simple and healthy investment practice. Spreading your investments across different countries can help reduce risk. When a particular market or sector performs poorly, your overall portfolio might be cushioned by positive performance in other regions. Growth Potential The biggest appeal of venturing into the foreign market is its growth potential. For example, if you compare Malaysia's projected GDP growth of around 3.8%, emerging economies like China (8.1%) and India (7.2%) are expected to experience significantly faster growth, according to the IMF.   These markets are driven by young populations and booming tech & manufacturing sectors. While riskier, a small allocation to these markets through ETFs can diversify your portfolio and unlock higher growth potential. Better Exposure Investing in the global market gives you access to companies that might not be available in your local market. You can invest in innovative or leading companies in specific industries that might not have a local presence. This can help hedge against potential risks in your local economy, such as political instability or currency devaluation. Currency Appreciation If you invest in a company whose stock price rises and the foreign currency strengthens against your own, you could benefit from a double advantage. For example, if a Malaysian investor buys shares in a Singaporean company and the company’s stock price rises while the Singapore dollar (SGD) strengthens against the Malaysian ringgit (MYR), the investor would gain a double advantage. In the right market conditions, investing in global markets is a great way to diversify your investment portfolio and maximize your profits. Considerations When Investing in the Global Market As you know, in every investment transaction, there is a risk you need to be aware of: Market Volatility Investments in the global market exposes you to added volatility influenced by geopolitical events and currency depreciation.  This could lead to potential losses, which is why understanding your financial goals, risk tolerance, and investment horizon is important. Global Transaction Fees The most significant barrier to investing in global stocks is the added transaction cost, which varies depending on the foreign market you want to invest in. For example, IBKR offers the lowest brokerage fees, across 150+ countries, which is cost-effective for investors. There may be additional costs like FX conversion charges, transfer fees, and annual maintenance fees that you should know about on top of the brokerage commissions, so it’s always important to do your homework before you settle on a broker you can trust. Tips for Getting Started in the Global Stock Market 1. Understand Your Investment Goals and Risk Tolerance Keep in mind that investing comes with unpredictable risks. Before investing, take a moment to understand your financial goals and your risk appetite . This can provide you with a clear roadmap for your investment journey and guide your investment decisions. 2. Plan Your Investment Strategy Next, plan your investment strategy based on your personality, discipline, and risk tolerance. This strategy will guide your decisions about when to buy or sell. If you want to test your strategy without losing any money, use a paper trading feature. Paper trading is a simulated experience where you can practice buying and selling investments using fake money. This will help you get comfortable with investing, test your strategy, and learn from mistakes without any real financial loss. 3. Diversification is Key A well-diversified portfolio can help you maximize your expected returns without taking on unnecessary or unwanted risk. Spread your investments across different assets (stocks, bonds, etc.) to minimize risk. As a beginner, start small with foreign stocks. Consider Exchange Traded Funds (ETFs) that focus on emerging markets - they offer instant diversification across many companies in one purchase. Bonus Tip: Dollar-cost averaging helps you buy more shares when prices are low and fewer when they're high. Invest a set amount regularly, regardless of the price, to smooth out market fluctuations. 4. Choose a Cost-effective Broker To buy global stocks in Malaysia, you need to find a stock broker that offers international trading. There are plenty of brokers on the market, but choosing the right investment broker is crucial for beginner investors when starting their investment journey. Factors such as margin fees and conversion rates are important to consider, as they can directly impact your investment costs and returns. Tip: Always choose a broker with transparent and competitive pricing and low currency conversion rates to minimize investment costs and maximize your gains. Interactive Brokers (IBKR) offers you the freedom to trade with low brokerage fees, no hidden charges, and no minimum deposit amount. This means that even if you leave your deposit in your account for more than 6 months, you won’t be charged for inactivity. After completing the necessary account opening procedures, you can fund your account and start trading. 5. Avoid Chasing Trends Next, decide which stocks to trade. Look for stocks that have the potential for big profits. It's essential to research and understand how stocks perform. Tip: Don't chase trends. Avoid chasing "hot stocks" based on hype or speculation. Focus on companies with a solid track record, strong fundamentals, and long-term growth potential. 6. Regularly Monitor and Review Investing isn’t a 'set it and forget it' deal. Keep an eye on your investments to make sure they still align with your goals and risk tolerance. Watch market trends and adjust your investments as needed to stay on track with your financial goals. Back to Basics for Getting You Started Understanding basic stock market terms is essential for anyone looking to start investing. Here’s a list of 15 key terms that every budding investor should know.  General Terms Stock Definition: A stock represents ownership in a company. If you buy shares of Apple Inc., you become a part-owner of the company. Dividend Definition: A dividend is a payment made by a company to its shareholders, usually from its profits Example: If you own 100 shares of a company that pays an annual dividend of $2 per share, you will receive $200 in dividends each year. Market Capitalization Definition: The total value of a company’s outstanding shares of stock. Example: If a company has 1 million shares outstanding and the stock price is $50, the market capitalization is $50 million. Portfolio Definition: A collection of investments owned by an individual or institution. Example: Your portfolio might include stocks, bonds, and mutual funds. Market Trends Bull Market Definition: A period when stock prices are rising or are expected to rise. Example: The stock market experienced a bull market from 2009 to 2020, with many stocks reaching record highs. Bear Market Definition: A period when stock prices are falling or are expected to fall. Example: The stock market entered a bear market in early 2020 due to the COVID-19 pandemic, causing prices to drop significantly. Rally Definition: A period during which the price of stocks or bonds increases continuously. Example: The stock market experienced a rally after the announcement of the new economic stimulus package. Correction Definition: A decline of 10% or more in the price of a security or market index from its most recent peak. Example: If a stock falls from $100 to $90, it is undergoing a correction. Investment Strategies Day Trading Definition: Buying and selling stocks within the same trading day to take advantage of short-term market movements. Example: A day trader might buy shares of a tech company in the morning and sell them in the afternoon if the price goes up. Short Selling Definition: When an investor borrows shares and sells them, hoping to buy them back at a lower price. Example: If you short sell 100 shares of a stock at $10 each and the price drops to $8, you can buy them back at the lower price and make a profit. Hedge Definition: An investment made to reduce the risk of adverse price movements in an asset. Example: Buying gold can be a hedge against inflation since gold often retains its value when currency value drops. Arbitrage Definition: Buying and selling an asset in different markets to take advantage of differing prices for the same asset. Example: If a stock is trading at $100 on the New York Stock Exchange and $102 on the London Stock Exchange, an arbitrageur would buy the stock in New York and sell it in London. Investment Instruments ETF (Exchange-Traded Fund) Definition: A type of investment fund that is traded on stock exchanges, much like stocks. Example: SPDR S&P 500 ETF (SPY) is an ETF that tracks the performance of the S&P 500 index. Bond Definition: A fixed income instrument representing a loan made by an investor to a borrower. Example: When you buy a U.S. Treasury bond, you are lending money to the U.S. government. Mutual Fund Definition: A mutual fund pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. Example: Vanguard 500 Index Fund is a popular mutual fund that tracks the S&P 500 index . Conclusion Investing in global stocks offers a wealth of opportunities for diversifying your portfolio and potentially boosting your returns. With the right approach, you can make the most of the global stock market and achieve your financial goals. Happy investing! 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.

It’s a hard pill to swallow. Imagine opening your inbox to find a notice that you’ve been laid off. Unfortunately, in Malaysia, almost 160,000 people lost their jobs due to the Covid-19 pandemic . When you’re laid off, you’re not going to be in the clearest state of mind. Losing your main source of income is not only stressful but also emotionally draining. Although it might be really tough to get started, it’s vital that you plan your finances effectively during this challenging time. In this guide, we’ll walk you through the first five steps to getting your finances in order after being laid off. 1. Process Your Emotions I know this doesn't seem directly related to finance, but hear me out. When dealing with job loss, your emotional state will undoubtedly be affected. Even though it’s not directly linked to your finances, how you feel can heavily influence your spending habits. You might be tempted to go on a shopping spree to numb the sting of losing your job. But before you do, I urge you to take a step back and process your emotions first. Layoffs usually happen when companies need to cut costs due to various reasons beyond our control. In other words, it’s not your fault, you’re not incapable, and it’s definitely not a reflection of your work performance. So, take a week or two to properly grieve your job loss—preferably without the retail therapy. 2. Review Your Finances The next step requires you to take a good, hard look at your finances. Try to get an estimate of how long you can sustain yourself without an income and figure out ways to cut corners to reduce your monthly expenses. You’ll want to prioritize your spending to cover essentials like housing, food, and healthcare, and consider postponing or eliminating non-essential expenses like entertainment subscriptions. Depending on your industry and your tenure, it’s important to make sure you receive everything that's rightfully yours. Find out what is included in your severance package. Remember to submit your claims for any work-related expenses, like money for travel or parking fees. 3. Get Some Alternatives Income Streams In the midst of your job search, it’s a good idea to come up with alternative income streams to help you along the way. Consider taking up some part-time work, or leveraging your professional skills through freelancing on platforms like Upwork or Fiverr .  Go through your old stuff and sell items you no longer need. You’ll be surprised at what people are willing to buy. You can market your preloved clothes, shoes, and collectibles at thrift stores or through websites like Mudah.my or Carousell , which make selling second-hand goods convenient and accessible. Additionally, you could even turn your passions into profit. For instance, you could sell handmade goods online, offer cooking classes, or sell your photos on stock photography sites. 4. Build Your Budget During your period of unemployment, you’ll have to stretch every ringgit you’ve got, so be sure to buckle down on your monthly expenditure and cut back wherever possible. Use a budgeting app  to help you keep track of your spending.  It’s important to practice restraint when purchasing non-essentials, as unnecessary expenses can really break your budget. If you have emergency funds set aside, this is probably the time to dip into it. Generally it’s recommended to have at least three to six months worth of living expenses set aside for a rainy day.  5. Reduce Your Debt Moving on to debt, try to pay off any outstanding loans or credit card balances to avoid accruing high interest rates. Try to pay what you can afford towards your credit card, as credit card interest can add up due to compounding interest. Focus on keeping your balance low. Keep in mind that extra charges are added when you miss payments, but you can minimize this by paying at least the minimum amount every month. If there are any outstanding loans that you need help with, contact your bank early to inform them about your financial difficulties. Explain your situation to them so they can work with you on a viable solution. Banking institution typically consider requests and restructure loans to accommodate borrowers within reason. Remember to back up your requests by providing your bank with supporting documents as proof of your financial situation.  [Read more on how to pay off your debts here .] Bonus Tip: Try to Apply for Financial Aid Depending on the nature of your job loss , check if you are eligible for unemployment benefits ( EIS ). EIS  is a programme that was set up to offer financial aid to employees who lost their source of income, to help ease the process of job search by providing financial assistance until a new job is found.  If you’re eligible, you must submit your application within 60 days of your unemployment. If you haven’t already, register at the EIS Portal  or a SOCSO office near you (prepare the required documents, such as your NRIC, termination letter, payslips, and bank account information). Alternatively, you can contact customer service at  1300-22-800 for further assistance. They can guide you on the eligibility criteria and which benefits you qualify for. The sooner you reach out, the sooner you can get the support you need.  Conclusion Facing a layoff is undoubtedly one of the most challenging experiences in one's professional life. However, you can mitigate the impact by taking control of your finances to maintain stability during this transition. Remember that getting laid off is not a reflection of your worth or capabilities; it’s simply a temporary setback. Use this time to reassess your career goals, reskill or upskill yourself, and explore new opportunities. Financial preparedness is more than just surviving; it's about setting yourself up to thrive in the long run. By staying calm, you can turn this challenging situation into a stepping stone for better opportunities. Keep pushing forward, and you will find your way to a new and rewarding chapter in your professional journey. All the best! 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.