5 Best Low Risk Investments in Malaysia

Kali terakhir diperbaharui September 26, 2023 oleh Shafiq Wahab
5 Best Low Risk Investments in Malaysia

Apart from keeping your money in fixed deposits, investing in low-risk investment platforms is the best option you should consider. Everyone wants to make profitable investments, but not everyone is brave enough to take high investment risks due to fear of potential losses. This article will share five types of low-risk investments that you can try.

Safe Investments in Malaysia, 5 Low Risk Investments You Should Consider

You may have heard people say not to just keep money in the bank because your money will grow slowly. There is some truth to this statement. For example, if you save RM1,000 in a savings account for a year, you will find that your money does not grow quickly or significantly. Therefore, making investments is an alternative that you should consider.

If you make investments, you will receive returns or dividends. It is true that investing carries risks; there will be days when you profit and days when you lose. For this reason, many people are still afraid to start investing because most investments do not offer guaranteed returns, which can expose investors to potential losses. However, there are low risk investments that offer consistent returns in the form of dividends, bonuses, and more. The following are five low-risk investments that you can try:

1. Tabung Haji

The Tabung Haji investment aims to generate competitive returns with low risk. If you invest in Tabung Haji, you can receive annual returns in the form of dividends and bonuses. The percentage of dividends and bonuses depends on Tabung Haji’s financial performance in the current year. Therefore, you will find that the percentage of dividends and bonuses may vary each year.

Some years may see an increase in the percentage of dividends and bonuses, while others may experience a decrease, but the risk of loss is minimal. For your information, investing in Tabung Haji not only carries low risk, but also offers many other benefits. Investing in Tabung Haji allows you to have the opportunity and offers to perform Hajj. Here are some of the advantages of investing in Tabung Haji:

  • Shariah-compliant;
  • Providing for the guests of Allah (Hajj pilgrims);
  • Guaranteed by the government;
  • Exempted from taxes;
  • Fulfillment of zakat obligation;
  • No deposit limit.

Below is a list of Tabung Haji’s dividends and bonuses for the past 5 years from 2017 to 2021:

Year Tabung Haji Dividend + Bonus 
2017 4.5% + 1.75%
2018 1.25%
2019 3.05%
2020 3.10%
2021 3.10%

2. Amanah Saham Bumiputera (ASB) and Amanah Saham Malaysia (ASM)

Both ASB and ASM are unit trust funds managed by Amanah Saham Nasional Berhad. What is the difference between ASB and ASM? ASB is only open to bumiputera, while ASM is open to both bumiputera and non-bumiputera. There are many advantages when you invest in both ASB and ASM. Among them, your risk of facing losses is minimal. Not only that, you can also get consistent dividend returns every year.

In addition, you do not need to spend extra money to make an upfront payment to invest in both of these unit trust funds. For your information, other conventional unit trust funds charge a fee of up to five percent. What about the ASB dividend return in recent years? Let’s look at the dividend return performance of ASB and ASM:

Year ASB Dividend ASM Dividend
2017 7.25% 6.00%
2018 7.00% 6.25%
2019 5.50% 5.50%
2020 4.25% 4.25%
2021 5.00% 4.00%

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3. Bank Rakyat

In addition to ASB and Tabung Haji investments, you can also consider investing in the Bank Rakyat Cooperative Shares. With a high dividend return of around 13 to 16 percent per year to its members, this is the best low-risk investment option. If you become a shareholder, you also have the opportunity to enjoy high returns.

However, to invest in the Bank Rakyat Cooperative, you need to apply and applications are not open all the time. It also depends on quotas and availability. So, you need to be on standby and refer to the Bank Rakyat website or social media for the latest updates.

You may wonder how this cooperative bank investment works and how it can provide such high returns. Each member’s contribution is used as the cooperative company’s business capital through their shareholding. When the company earns any profit, members can enjoy the benefits of the business in the form of dividends. Here is a list of Bank Rakyat’s dividend returns in recent years:

Year Bank Rakyat Dividend
2017 16%
2018 13%
2019 14%
2020 13%
2021 13%
2022 15%

4. Money Market Fund

This is also a low-risk investment option that you can try. Unit trust or mutual fund invests in money market instruments and it can be short-term or long-term depending on your investment objectives. This fund also holds a fixed deposit from the bank. Since this fund invests in high-quality and quickly matured investments, the risk is very low.

Compared to fixed deposits, the return of Money Market Fund is slightly higher at around three percent per year. You can also withdraw your money at any time during the investment period without losing the interest that you have earned. This means that you will not be subjected to any form of penalty. Unlike fixed deposits, which cannot be withdrawn at any time, you may lose some or all of the interest if you withdraw before the end of the period.

For your information, the money market fund deals with various types of investments. Money Market Fund is very suitable, especially for new investors because of its low risk. You can invest your money market funds from banks such as Maybank, CIMB, RHB, Hong Leong Bank.

5. Takaful

Previously, you may have understood that Takaful means insurance or protection based on Islamic law only. Did you know that Takaful also provides investment plans? If you invest in Takaful, you not only make investments but also get protection. Every month, you need to make low contribution payments. At the same time, you also get protection and financial guarantee.

You do not need a lot of money to start investing with Takaful. What’s interesting is that you can choose to make payments either every month, every quarter, or once a year. If you are interested in making Takaful investments, you can refer to the following panel:

  • Zurich Takaful;
  • Takaful Ikhlas; 
  • Etiqa Takaful;
  • Takaful Malaysia.

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Best Investment in Malaysia: Which One Is Your Choice?

As an investor, you certainly want to make profitable investments. Based on the sharing of five low-risk investments in Malaysia, which one would you try? Once again, it is worth noting that although the types of investments mentioned in this article are low-risk investments, there is still a possibility of losses, albeit very small. Dividend and bonus returns are almost certain every year, but the percentage will vary. This way, the money you save can grow every year.

These low-risk investments are safe, but you should remember that the returns are not as high as those of high-risk investments. If you feel ready to make high-risk investments, you can try them at a later time. Hopefully, this article’s sharing is useful for those of you who want to try making these investments. Good luck!

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