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Jan 29

GeneApp Investment For Foreigners in Malaysia

Foreign Direct Investment, otherwise known as FDI, has always been been welcomed by the Malaysian government from day one of Malaysia's formation as a nation.

Historically, FDI has been played out as a vital component to Malaysia's economic development and has become the forefront of investment opportunities in Malaysia for foreigners globally.

Unsurprisingly, with an increased liberalization of the Malaysian economy and a steady influx of FDI over the course of the last 50 years, Malaysia has become a destination of high growth industries with plenty of room for economic development.

What does this mean to you? Well, it shows that Malaysia is a prime candidate for high-quality investments that are secure and with a stable rate of capital growth and dividend yield!

Benefits of investments in Malaysia for foreigners

As one of Southeast Asia's most-developed economies, Malaysia's marketplace is an attractive target for foreign investments as it implements fairly open and transparent investment policies, from high levels of economic competitiveness, direct incentives for foreign investors to a developed infrastructure that is supportive of economic investments,

Malaysia is also located in the fast-growing Asia-Pacific region within Southeast Asia and is home to many critical natural resources including oil and gas, rare earth elements and timber. Over the past 50 years, it has transformed itself from a low-income nation into a progressive state with a high level of domestic consumption driven by high per capita income and low unemployment.

These reasons are why Malaysia has a track record of being one of the best-performing economies in the region of Southeast Asia. This also includes many other benefits that will positively impact individual shareholders such as yourself.

This includes:

1. A friendly direct foreign-ownership structure that is non-restrictive

2. The ability for foreigners to own freehold properties without incurring costly inheritance taxes

3. A relatively low level of real property gain tax as compared to similarly developed countries

4. A low entry point for the initial level of foreign investment into the market itself

Types of investments in Malaysia for Foreigners

1. Cash investments

These include fixed-interest savings accounts or term deposits. While they provide most investors with low returns, they're also protected from being exposed to economic risks and are usually guaranteed in performance.

2. Growth investment

On the other hand, growth investments include the likes of shares on the Malaysian stock market, and are favored by savvy investors with confidence in assessing the risk of current market conditions over the medium to long term. These also include the likes of commercial properties or REITs as a form of investment for higher returns.

These, however, are not guaranteed in performance and do take on considerable market risks.

3. Defensive investments

Fixed asset investments tend to be more consistent in generating income and a stable yield over medium to long terms. These are considered a low-risk and low-returns form of investments.

4. Fixed assets

Fixed assets include the likes of government-linked bonds as a method of generating returns. These are considered safe and require little to no monitoring as they are generally considered slow-moving and safe forms of investments.

Risks of investments in Malaysia

All investments, however, carry risks - and Malaysia is no exception. Foreign investors should be aware of bureaucratic and regulatory burdens that might be detrimental to your investment strategy.

Malaysia's Increasing rise in labor costs have also eroded the price competitiveness when it comes to foreign investment in Malaysia - though this has been a similar pattern to most Southeast Asian nations relying upon China as a leading trade partner.

Furthermore, the political climate from Malaysia's regional, racial and religious communities might bring political uncertainty, and at times also put the country's financial stability at risk.

Protect, diversify and grow your investment with Gene

If you’re a foreigner in Malaysia looking to diversify your investment, Gene offers a financial plan that can multiply your wealth, manage and increase your digital assets. You can also earn a daily income and convert your earnings to invest in property and jewellery.

Keen to invest with us?

Contact us at 011 6939 2180 or email your queries to [email protected]