Top 5 Low-Risk Investments in Malaysia You Should Check Out!

Key Points

  1. Amanah Saham Bumiputera (ASB)
  2. Bonds
  3. Exchange-Traded Fund (ETF)
  4. Fixed Deposit (FD)
  5. Real Estate Investment Trust (REIT)

When it comes to investing, different levels of risk come with varying types of investment opportunities. Some people are more comfortable with low-risk investments, while others are willing to take on more risk for the potential of a higher return. Low-risk investments are popular in Malaysia because while the returns on these investments may be modest, they offer a degree of stability that is appealing to many investors. But of course, there’s always a bit of risk involved in any investment, but some are riskier than others.

Here are five top options in Malaysia if you’re looking for a safe place to park your money.

Note: This list is organised in alphabetical order and not based on the level of risk.

1. Amanah Saham Bumiputera (ASB)


Amanah Saham Bumiputera (ASB) is a unit trust managed by Permodalan Nasional Berhad (PNB). It was established in 1989 to help Bumiputera investors accumulate savings for long-term purposes. ASB has a diversified portfolio of assets, including shares, bonds, and money market instruments. The fund is open to all Bumiputera aged 18 and above. ASB units can be bought through licensed banks and agents and online via the PNB website.

ASB is a popular investment choice for many Malaysians due to its attractive returns, although a decline in distribution rates has been evident these past few years. In addition, ASB units can be sold back to PNB at any time, giving investors the flexibility to cash out their investment when needed. ASB is an attractive choice for investors looking for a long-term investment vehicle with good returns and low costs.

2. Bonds

(source: Investopedia)

Another low-risk investment option in Malaysia is bonds. Bonds are a type of investment that individuals or organisations can make. The government typically issues them to raise money for specific projects. In exchange for the investment, the bond issuer promises to pay back the original amount of money, plus interest, over a set period. Bonds typically have one-year or longer maturities, and bonds with longer maturities generally offer higher interest rates than those with shorter maturities.

While bonds are generally considered a safe investment because they offer the potential for stability and predictable income, they come with some risk. For example, if interest rates rise after you purchase a bond, the market value of your bond will fall, and you may lose money if you sell it before maturity. For these reasons, it’s essential to consider your investment objectives before investing in bonds carefully.

Nevertheless, bonds can be an essential part of a diversified investment portfolio.

3. Exchange-Traded Fund (ETF)

Exchange-traded funds (ETFs) are investment funds holding a basket of securities, such as stocks, bonds, or commodities. Unlike traditional mutual funds, they are traded on stock exchanges. They can also be bought and sold like any other stock throughout the day on an exchange, allowing investors to take advantage of market fluctuations. This flexibility makes them a popular choice for investors who want more control over their portfolios.

ETFs are typically managed by professionals and seek to track the performance of a particular index. They tend to have lower costs than traditional mutual funds and are more tax-efficient, making them an attractive option for cost-conscious investors. Whether you’re just starting to invest or are a seasoned pro, ETFs can be a great addition to your portfolio as they are a convenient way to access a diversified portfolio of assets in a single investment.

If you’re considering investing in ETFs, it’s essential to research and choose a fund that fits your investment objectives. ETFs can be riskier than traditional investments, so it’s vital to understand how they work before you invest.

4. Fixed Deposit (FD)

Fixed deposit (FD), also known as term deposit, is one of Malaysia’s most popular low-risk investments. This is because they offer guaranteed returns and are backed by the Malaysian government. It is an investment account where you agree to keep your money in the account for a fixed period, usually between one and five years. FD accounts can be opened with as little as RM1,000, making them an accessible option for many investors.

It also offers customers the benefit of earning a higher interest rate. It is fixed for the entire tenure irrespective of changes in the market condition, so you know exactly how much you’ll make. Additionally, your money is PIDM insured, so you can rest assured it’s safe.

However, one downside is that you won’t be able to access your money during the fixed term, so it’s essential to ensure you won’t need it before opening an FD. If under certain circumstances, you need to make partial withdrawals from your FD account before the maturity date, it is still possible, but penalty charges might be incurred.

A fixed deposit could be a good option if you’re looking for a safe place to park your cash and earn some interest.

5. Real Estate Investment Trust (REIT)

REITs may be a good option if you’re looking for an income-producing investment. Real estate investment trusts, or REITs, are a particular type of investment vehicle allowing investors to pool their money and purchase all properties, from residential and commercial to industrial and retail. It is an increasingly popular way for individuals to invest in property without considering the total purchase price. REITs offer advantages over direct real estate ownership, including diversification, professional management, and liquidity.

In addition, by law, REITs must pay out at least 90% of their taxable income to shareholders in the form of dividends. This makes them an attractive choice for income-seeking investors as we’re talking 4% to 8% dividends compared to regular stocks. You can also gain profit from them through capital appreciation. However, REITs can also be volatile, and their share prices may fluctuate in response to changes in the real estate market.

Of course, like most long-term investments, you’ll need to be patient and invest your money over a long period to see significant gains. So, REITs may be worth considering if you’re considering investing in properties but don’t have the capital to buy them outright.


So, what’s the best low-risk investment for you? It depends on your circumstances and goals. There is no such thing as a one-size-fits-all approach when it comes to investing – what works for one person may not be the best strategy for another, and what may be a low-risk investment for one person may be too risky for another.

When it comes to investment, there is no such thing as a guaranteed return. No matter what investment you’re considering, some element of risk is involved. However, by understanding your investment style and researching the different investments available, you can make an informed decision about where to put your hard-earned cash. We hope this article has given you a good starting point to begin your research, and be sure to do your due diligence when researching potential investments.

Related: Investment 101: How Should I Start Investing? | Top 5 High-Risk Investments in Malaysia You Should Check Out!

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