Assets and Opportunities

Long-term, fixed-rate bonds issued by the Government of Malaysia to finance developmental projects. They feature semi-annual coupon payments and principal repayment upon maturity.

Introduced in December 2006, Callable MGS allow the government to redeem the bonds early with five business days' notice. Both MGS types are issued via competitive auctions by Bank Negara Malaysia.

MGS bonds are exempted from withholding tax and have no capital gains tax.

Source: Bank Negara Malaysia

Long-term, non-interest-bearing securities based on Islamic principles, issued to fund developmental projects. Like Malaysian Government Securities (MGS), MGII are issued via competitive auctions by Bank Negara Malaysia.

MGII is a debt instrument which is a direct obligation of the Government, similar to its conventional counterpart, MGS.

MGII bonds are exempted from withholding tax and have no capital gains tax.

Source: Bank Negara Malaysia

Short-term securities issued weekly by the Government of Malaysia to raise working capital. Sold at a discount through competitive auctions facilitated by Bank Negara Malaysia, they are actively traded in the secondary market based on yield.

Auctions for MTB occur the day before the issue date, usually on Thursdays, with results announced the next day. Bidders with the most competitive yield are successful.

MTB are exempted from withholding tax and have no capital gains tax.

Source: Bank Negara Malaysia

Short-term securities issued by the Government of Malaysia based on Islamic principles. Auctions occur one day before the issue date, with successful bidders determined by the most competitive yield. Both conventional and Islamic institutions can buy and trade MITB.

It is actively traded on the secondary market and adheres to the Bai ad-Dayn (debt trading) principle.

MITB are exempted from withholding tax and have no capital gains tax.

Source: Bank Negara Malaysia

Shares are financial securities that represents ownership in a business. Also known as stock, shares include:

In Malaysia, publicly traded shares are issued and listed on Bursa Malaysia. There are 3 markets through which Bursa Malaysia operates: the Main Market, the ACE (Alternative Capital Exchange) Market and the LEAP (Leading Entrepreneur Accelerated Platform) Market.

Financial instruments issued by a company that grant holders the right, but not the obligation, to subscribe for new ordinary shares at a predetermined price within a specified timeframe. If the holder does not use their right to buy new shares before the expiry date, the warrants become worthless.

Company warrants are listed in Bursa Malaysia and their tickers' are marked with the alphabet "W".

Warrants issued by brokers or financial institutions grant holders the right, but not obligation, to buy or sell an underlying asset like shares, ETFs, indices, or commodities at a fixed price in the future.

Structured warrants are listed in Bursa Malaysia and their tickers' are marked with the alphabet "C". There are three types, including:

An open-ended investment vehicle designed to track the performance of a specific underlying asset, such as an index, commodity, or other suitable security. ETFs offer a cost-effective alternative to directly purchasing the individual underlying securities. ETFs are traded like stocks on Bursa Malaysia.

Real estate is crucial in investment portfolios. Traditionally, investors accessed it through property stocks or physical properties. REITs enable investment in commercial real estate affordably. They provide stable income and attractive distribution yields.

There are 14 Conventional and 5 Islamic REITS in Malaysia with a total market capitalisation of RM 44.3 Billion as of June 2024 (Source: Bursa Malaysia)

REITs are traded on the main stock exchange of Bursa Malaysia.

Derivatives manage market exposure based on assets like commodities, interest rates, indices, or stocks. Derivatives are typically used for hedging risks.

There are two types, including: