After a tough year for equity and bond investors in 2022, investment opportunities are starting to emerge with markets beyond the US looking more and more compelling. Asia is a diverse region with many different economies, of which each market is in its economic cycle. This means that selectivity in terms of markets and sectors is key.

In particular, we believe three main factors are steering the Asia Pacific (APAC) investment markets in 2023:

• China’s reopening and potential growth;
• Recessionary risks in developed markets; and
• US dollar strength moderates.

Service-Driven Recovery To Support Growth As Mainland China Reopens

Early indications are that mobility and economic activity have started to rapidly normalise following the easing of Covid restrictions in mainland China. For instance, we have already seen a strong uptick in travel activities within and from mainland China. The return of holidaymakers is expected to bring about positive knock-on effects to various sectors around the region, with companies from the hotel, casino, airlines, as well as consumer discretionary retail industries set to benefit. The release of pent-up demand may also appear in the form of “revenge spending” and the impact may funnel to property companies that own shopping malls.   

In contrast with much of the world, inflation is not a concern for mainland China. The headline rate was 1.8% year-on-year in December 2022, below the 3% target rate. Low inflationary pressure has given the People’s Bank of China the room to cut its policy rate and the loan prime rate over the past year.

Separately, since the fourth quarter of 2022, government authorities have started to lend support to the domestic real estate market with an aim to encourage healthy development within the sector. Besides rolling out measures to ensure a timely delivery of presold homes, different governmental bodies have introduced coordinated policies to expand financing channels for stressed private property developers to ease their financial pressure.

Since the economic outlook for mainland China has clearly improved, its service-driven recovery could drive GDP growth of 6.2% in 2023 and 4.5% in 2024. With China’s sheer size, stronger economic activity may mechanistically lift the overall GDP in Asia, and the overall growth globally (forecasted at 1.9%. for 2023).

Recessionary Risk In Developed Markets Could Mean Opportunities For Asia

Although our latest forecast has pointed to a less pessimistic outlook, uncertainties over growth and inflation in the US and other developed markets persist.

We continue to believe that the US is heading towards a recession in the second half of 2023 due to tighter monetary policy, even though the degree will not be as grim as previously thought. While we expect the US Federal Reserve (Fed) to continue its rate hiking cycle in 2023, the pace would be more moderate for rates to reach a trough of 3.25% by mid-2024.

After a prolonged period of strong execution, underlying US margins are now at record levels. As negative operating leverage kicks in, companies may feel pressure on their earnings, which may lead the Asia Pacific investment markets to outperform.

Elsewhere, in the UK, a recession is also still on the cards as higher inflation and interest rates, along with austere fiscal policy, dampen the outlook. We expect its economy to see an outright contraction of 0.8% in 2023. Potential risks include high energy costs, labour shortages and disruption to supply chains. Meanwhile, the eurozone economy is likely to be largely stagnant, although it is expected to avoid recession because the relief on household incomes and inflation should fall back more quickly within the year.

Yet, it is not all bad news. Historically, the best opportunities for equities have occurred in the midst of recessions. From a valuation perspective, Asian equities are currently outshining its peers in the West. Improved market sentiment, as well as China’s economic recovery are also likely going to lend support to the markets regionally. These factors combined have led us to hold a more positive view towards Asian investments.

Asian Currencies To Find More Stable Footing As USD Softens

Given the importance of the dollar for global investments, it is important to also look at where the currency is heading. The US dollar has reached its peak and divergence in global central bank policy is likely to put pressure on the currency to depreciate further.

Although there are signs that both headline and core inflation in the US is on a downward trend, its domestic labour market is still tight, which supports restrictive monetary policy for longer. If the Fed shifts to a less aggressive tightening pace and pivots to a pause, there could be some softening in the US dollar. In turn, Asian currencies will be able to find a more stable footing and therefore provide a more favourable environment for Asian bonds, especially those in the local currency space.

The Reserve Bank of Australia raised borrowing costs to a 10-year high in February 2023 and New Zealand’s central bank. On the other hand, the Bank of Korea may be one of the first central banks in APAC to halt its hiking cycle.

For APAC markets that are still in a phase of raising interest rates, it would favour investors to select sectors with a positive correlation to bond yields, such as banks and, in some cases, selected consumer names.

A Flexible Investment Approach Remains Key In Times Of Regime Shift

We are entering a new regime in policy and market behaviour after a 40-year cycle of deflation. With risks associated with the recession, geopolitics, inflationary pressure and the global energy crisis continuing to add to macroeconomic uncertainty, investors will need to change how they value assets, find investment opportunities, and manage risks.

To navigate through market uncertainty, we believe holding safe haven assets such as US Treasuries and cash can help cushion any potential volatility, whilst alternative assets like gold can act as a diversifier.

Nonetheless, taking a flexible approach that accounts for growth and income should help investors build a more resilient portfolio that can shield them from potential headwinds.

By Chloe Shea, Investment Director, Multi-Asset, Schroders

In March 2020, the world was shocked by the spread of the coronavirus or COVID-19 outbreak. Curfews and movement controls have been enforced; all business activities are temporarily suspended to stop the spread of the pandemic. The outbreak of COVID-19 not only impacted the entire world’s economy, which was not inadequately prepared for this pandemic but also affected the two most prominent economic powers, China and the United States.  

The curfew and the closure of some industries from operating face-to-face activities, especially tourism, services, education, and business during the COVID-19 pandemic, have encouraged the development of the new norm, which is the transition from conventional to digital platforms. It is common to know that today, various activities can be carried out online and have become part of life among communities worldwide.

The use of online transactions as a means of payment is now widely accepted, and the number of businesses using them continues growing daily like a mushroom after rain. This results from the users spending more time at home than normal. This is one of the biggest threats to users and may have contributed to a rise in cybercrime cases. One of the most significant cybercrime issues is online scams or fraud.

Online Scams In Malaysia

According to a report from the Royal Malaysian Police (PDRM), between 2020 and May 2022, 68% of fraud cases involving RM5.2 billion were online scams. The Securities Commission Malaysia (SC) reported that there are still several high-profile cases of online scams, such as the iPay88 and AirAsia intrusions.

In addition, the country was also shocked by the leak of 22.5 million personal data of Malaysians through the myIDENTITI platform. These cyber scam activities became more prevalent as more payment services were offered online for users’ convenience. The more services offered online, the harder it will be for the authorities to monitor and monitor every transaction that is executed.

These online scams cases have hit record highs in the past two years since the COVID-19 pandemic hit the world. Coupled with the unstable economic situation, most companies suffered in sustaining their business during the Movement Control Order (MCO) period, which eventually forced them to shut down their business and lay off their employees or both.

The unemployment rate makes individuals more vulnerable, and they will tend to choose fraudulent online activities as an easy way to earn money to continue their daily lives.

How Online Scams Are Associated With The Economic Recession?

In a financial crisis, society will experience financial stress and look for opportunities to generate income, thus solving their financial problems. Among those most affected by the crisis are those with low incomes living in urban areas. Their life was sufficient enough. Plus, their monthly commitments, such as rent, car instalments, and others, will cause their lives to be squeezed.

The situation is worsening for couples with a child aged from two months to a year, as many expenses are required, draining a large portion of their income from purchasing diapers and baby milk. Child expenses also vary according to their age and level of growth. Expenses become increasingly demanding as the child grows older and vice versa.

Faced with all these kinds of commitments, parents do not have any savings for their children, let alone for themselves. Looking at these loopholes, scammers will take advantage of this situation by offering non-existent opportunities such as investment opportunities, job opportunities, or a government grant that promises lucrative results in a short period.

During the economic downturn, scammers create fake job-seeking websites and send soliciting emails promising high wages while working from home. But in reality, the work and opportunities offered do not exist but require a down payment in advance or sometimes an advance payment to “book or bid” for this job opportunity.

Due to monthly commitments and family responsibilities towards their spouses and children, the victims sometimes do not think long enough and lose their money to the scammer because they had to pay a down payment in advance to confirm they would get this job opportunity.

During this time, the spread of fraud, false and fake information will likely increase as scammers see this as a golden opportunity to take advantage of those struggling financially. Fraud schemes such as Ponzi, fake investment opportunities, and pyramid schemes will become more prevalent.

In these challenging circumstances, the affected group categories (urban poor) will act and become aggressive. Due to the rampant online scams, any attempt to distribute survey questionnaires via Whatsapp usually receives a low response rate.

Plus, any attempt to obtain information using Google Forms will be seen as something negative and a form of exploitation from the viewpoint of those already poor. (with the exception that their closest friends distribute the questionnaire survey form or they have been informed in advance of this)

In short, the world economy’s recession and online scams cases can be attributed in several ways. The economic downturn has exposed the public, especially those facing the financial crisis, get some exposure to various types of fraudulent schemes.

It is essential to remain vigilant and take security measures to protect yourself, your spouse, close family, and relatives from being exposed to online scams tactics, especially during this economic downturn.

*Malay Version of this article was published in Warta Oriental entitled “Penipuan Atas Talian Tidak Mengenal Masa Rehat: Senantiasa Kekal Bersiap-siaga Sewaktu Kemelesetan Ekonomi”. Retrieved from, https://wartaoriental.com/2023/03/20/penipuan-atas-talian-tidak-kenal-masa-rehat-kekal-siap-siaga-sewaktu-kemelesetan-ekonomi/

*This article does not reflect the stance and policies of the institutions involved. It is the author’s opinion, research, and experience while engaged in fieldwork.

About the Author

Renugah Rengasamy. Head of Information Technology (IT) Division at the Social Institute of Malaysia

Rashid Ating. Researcher at the Institute of Advanced Studies (IAS), University of Malaya (UM), Kuala Lumpur, Malaysia

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• Sudahkah Anda Bersedia Untuk Bersara? Berapa Yang Anda Perlukan?
• Pendidikan Celik Kewangan Dalam Peperiksaan PISA: Pendedahan Awal Mengenai Pendidikan Kewangan Dalam Kalangan Rakyat Malaysia Berumur 15 Tahun

The Global ESG Monitor (GEM), a research initiative that examines ESG transparency in non-financial reporting of the largest companies in the world, revealed that Malaysian companies used internationally recognised frameworks, standards, and strategic tools in their Environmental, Social and Governance (ESG) reporting but lacked the appropriate content and level of detail needed for optimal transparency, thus ranking in the midfield amongst global and regional peers.

The GEM 2022 analysed the transparency of non-financial ESG data of 625 ESG reports from 350 companies listed on 10 of the world’s largest stock market indices on four (4) continents. The ranking is based on the degree of transparency in reporting on ESG strategy, materiality, and disclosure of indicators and not their overall performance on such metrics. The GEM Malaysia Regional Report 2022 marks the first time Malaysia was included in the benchmarking report, assessing the 30 companies listed on the FTSE Bursa Malaysia KLCI (FBMKLCI).

“Malaysia’s FBMKLCI inclusion in GEM 2022 reflects the country’s commitment to transparency and sustainable business practices. With an average score of 54 out of 100 points, the Malaysian index ranks joint fifth place alongside the Dow Jones among the ten indices surveyed. This positions the FBMKLCI ahead of the S&P 50 USA (53 points), ASX 50 (53 points), WIG 20 (51 points), and BET 20 (41 points). Above FBMKLCI rank S&P Asia (56 points), Hang Seng (57 points), EUROSTOXX (66 points) and DAX (68 points),” said Michael Diegelmann, Co-founder of the GEM.

“The FBMKLCI’s ranking showcases progress in sustainability, but also highlights the need for deeper, more detailed ESG reporting in Malaysia,” he added. 

The Report’s findings were revealed today at a thought leadership event, ‘Sustainability Perspectives’, hosted by Perspective Strategies, the Malaysian Regional Partner of the Global ESG Monitor. The event featured insightful discussions led by speakers Michael Diegelmann and Ariane Hofstetter, both co-founders of the GEM, Dr. Nurmazilah Mahzan, Member of IFRS Foundation Integrated Reporting and Connectivity Council (IRCC), and Ir. Dr. Mohd Fadzil Bin Mohd Siam, Head of Corporate Strategy & Sustainability, Tenaga Nasional Berhad (TNB), which topped the leader board of Malaysia’s FBMKLCI companies with the highest transparency score. The discussion highlighted areas where the index is already performing well, identified opportunities for improvement, discussed ESG transparency issues in Malaysia, and showcased best practices in ESG reporting.

“We are delighted to bring together corporate leaders who are committed to sustainability and communications. The event was made possible by our sponsor, U Mobile Sdn Bhd (U Mobile) and partner, bzBee Consult. We believe this is just the first step as we strive towards highlighting the importance of ESG Transparency in sustainability reporting. The premise is that Sustainability and ESG do not work without transparency,” said Andy See, Managing Director of Perspective Strategies, the Global ESG Monitor’s Regional Partner.

The transparency scores of the top 10 FBMKLCI companies based on the Global ESG Monitor are:

Note: The criteria for measuring transparency in the Global ESG Monitor are based on six (6) interdependent dimensions, balance, comparability, accuracy, timeliness, reliability and relevance.

Other key findings of the Global ESG Monitor Malaysia Regional Report include:

• The FBMKLCI demonstrates a commitment to international frameworks, with 90% of companies referencing the Sustainable Development Goals (SDGs), 87% following the Global Reporting Initiative (GRI), and 67% aligning with the Task Force on Climate-Related Financial Disclosures (TCFD).
• The Malaysian Code on Corporate Governance (2021) specifies that there should be at least 30% “women directors” on the boards of Malaysian companies. FBMKLCI is already in a good position in this respect, as mixed boards have already been identified for 80% of the companies surveyed.
• In the reports themselves, however, the companies are more cautious in this respect: only 77% report the total percentage of their employees by gender. The descriptions in the FBMKLCI are also rather restrained when it comes to the topic of age split (67%) or ethnicity (43%).
• Significant transparency gaps exist in Environment, Social, and Governance (ESG) reporting, with scores of 55%, 39%, and 54% in each respective category.
• The top performing companies namely Tenaga Nasional Berhad and Press Metal Aluminium Holdings Berhad tied for first place at 72 points.
• A lack of detail in reporting has resulted in a poor overall ESG transparency score. For example, 90% of Malaysian companies report that a materiality analysis was completed but only 20% provide background information on the year of data collection and how the data was collected. In addition, 67% of companies list their stakeholders but only 37% provide information on how the stakeholders were determined.

Ariane Hofstetter, the GEM’s Co-Founder and Head of Research added, “While Malaysian companies excel in adhering to international frameworks, it’s crucial they provide more comprehensive information on environmental, social, and governance aspects to truly embrace sustainability.”

“We must realise that the transparency of our ESG reporting is critical to inform and engage stakeholders. After all, sustainability reporting has been mandatory for all Malaysian public-listed companies since 2016. Whilst there are still many hurdles for Malaysian companies to overcome when it comes to transparency, overall, this is good news for investors and other stakeholders as we are moving towards the right direction,” concluded Andy See, Managing Director of Perspective Strategies.

Click here to download the Inaugural Global ESG Monitor Malaysia Regional Report 2022 that was unveiled at Sustainability Perspectives earlier today.

About Perspective Strategies

Perspective Strategies is a strategic communications and issues management firm with services in public affairs, brand communications and stakeholder engagement. The firm’s expertise is built on years of experience of working in a comprehensive range of industries and businesses. Perspective’s team has strong credentials in corporate reputation, investor relations, brand and marketing communications, as well as communication capabilities building for clients. In line with the current shift towards Sustainability and ESG, the firm established the Strategy and Sustainability Practice to deepen its knowledge and expertise in this core area. Perspective Strategies is the exclusive Malaysia Regional Partner of the Global ESG Monitor (GEM).

About the Global ESG Monitor

The Global ESG Monitor (GEM) is a unique research initiative to examine transparency in non-financial reporting of the largest companies in the world.​ The GEM monitors, analyses and reports on the transparency of non-financial ESG reporting using the GEM ASSAY™, a proprietary research tool adapted annually in response to evolving conditions and developments.

The operationalisation of transparency underlying the GEM ASSAY™ is based on the relevant guidelines of Global Reporting Initiative (GRI), ISO Standard 26000, World Economic Forum (WEF) and Accountability.

The Global ESG Monitor is headquartered in Wiesbaden (Frankfurt), Germany with partner offices in Washington, DC; Melbourne, Australia; Kuala Lumpur, Malaysia; Hong Kong, China; Warsaw, Poland and Bucharest, Romania.

For more information on the Global ESG Monitor 2022 Transparency Report, visit www.globalesgmonitor.com

People who invest their wealth expect, on average, to retire 3 years earlier than non-investors, a survey by global market research firm YouGov commissioned by private market exchange ADDX has found. The retirement expectation gap is more pronounced in the case of investors with allocations to private market assets, who expect to retire 9 years earlier than non-investors. The survey covered both Europe and Asia[i].

According to the poll, the average expected retirement age is 62.1 among non-investors and 59.2 among investors. For those who invest in the private markets, the average expected retirement age is lower still, at 53.5.

In total, just 19% of people who do not invest expect to retire before the age of 60, compared to 31% of people who invest. For people who invest in private market assets[ii], this figure goes up to 47%. 

Significant gender gap in investment behaviour

Globally, 29% of respondents do not invest. The gender gap is significant, with nearly 4 in 10 women (37%) saying they do not invest, compared with just 2 in 10 men (21%) who said the same.

The gender gap translates into a difference between the retirement expectations of men and women – with 76% of women expecting to retire after the age of 60, compared with 68% of men. The gender retirement age gap exists in both Europe and Asia. On average, women expect to retire at 61.1, compared to 59 for men.

The survey also found that men who invest tend to adopt a “do-it-yourself” style of investing, as compared to women. Some 81% of men said they invest entirely or mostly on their own, compared with 64% of women who said the same.

Women and men also value different sources of investment advice. Women tend to value investment advice from financial advisors and family members (51% and 39% respectively, versus 41% and 29% for men), while men are slightly more likely to value advice from online forums and social media (22% and 15% respectively, versus 19% and 12% for women).

By age group, the share of non-investors was also higher among Generation Z[iii] (32%), Baby Boomers[iv] (38%) and respondents from London (48%). By contrast, only 13% of respondents from Hong Kong are non-investors.

Regional findings: Asian investors look for safer options

The survey uncovered regional differences in investment instruments. Investors from Asia[v] expressed a preference for fixed deposits, with about 1 in 2 perceiving the asset class as a core component of their investment portfolio. Nearly half of respondents from Singapore (46%) and Hong Kong (47%) said they would choose fixed deposits as one of their top three investments.

Respondents from Hong Kong also leant heavily toward stocks, with 60% choosing that option as one of their top three investments.

In contrast, investors from Europe[vi] preferred a more balanced allocation across asset classes. For London investors, interest was consistent across fixed deposits (28% included this option in their top three investments), stocks (30%), bonds and fixed income (27%), as well as funds (21%).

Investors in Frankfurt were slightly more keen to take part in funds, with 40% of respondents indicating it as a top three investment choice. Another 24% of German respondents chose fixed deposits, 35% chose stocks, while 19% chose bonds and fixed income products.

Of the regions covered in the survey, Singapore respondents were the most future-oriented. Asked what they would do if they unexpectedly inherited US$100,000, 39% of Singapore respondents said would set aside 90% to 100% of the sum to invest, compared with 22% in Hong Kong, 33% in Frankfurt and 32% in London.

ADDX CEO Oi-Yee Choo said: “Not investing has serious consequences. It reduces your buying power and lifestyle options. In the long run, it might also mean you have little choice but to extend your working life in order to adequately fund your retirement. Women are less likely to invest than men, and that has a negative impact on their ability to retire earlier, should they want to. Early retirement is also topic of growing interest, especially among the younger generation[vii] – and increasingly, retirement is being defined as achieving financial freedom and independence, rather than just ‘stopping work’. The implications of this YouGov-ADDX survey are clear: young or old, women or men, every individual and household needs to think about channelling some of their savings into investments, so that they can secure their well-being in the long term.”

She added: “Almost a third of global respondents (29%) said they do not invest. That means we still have a way to go in our education efforts. We believe investing should be a level playing field, and eventually, investors should get full access to any and every asset class – including private market investments. By access, we don’t just mean the ability to subscribe to investments, but also the knowledge to understand how such assets can play a role in portfolio diversification and wealth creation.”

SURVEY METHODOLOGY

This survey has been conducted using an online interview administered to members of the YouGov PLC panel individuals from Singapore, United Kingdom (London), Hong Kong, and Germany (Frankfurt) who have agreed to take part in surveys. Emails are sent to panelists selected at random from the base sample. The email invites them to take part in a survey and provides a generic survey link. Once a panel member clicks on the link, they are sent to the survey that they are most required for, according to the sample definition and quotas. (The sample definition could be “Singapore adult population” or a subset such as “Singapore adult females”). Invitations to surveys do not expire and respondents can be sent to any available survey. The responding sample is weighted to the profile of the sample definition to provide a representative reporting sample. The profile is normally derived from census data or, if not available from the census, from industry accepted data.

YouGov PLC makes every effort to provide representative information. All results are based on a sample and are therefore subject to statistical errors normally associated with sample-based information.

For further information about the results of this survey, please contact YouGov PLC (+44)(0)207 012 6231 or email realtime@yougov.com quoting the survey details.

All figures, unless otherwise stated, are from YouGov PLC. The total sample size was 1019 adults, consisting of (SG): n=257, (UK – London): n=257, (HK): n=253, (DE – Frankfurt): n=252. Fieldwork was undertaken in Q4 2022, between 1-9 November 2022. The survey was carried out online.

ABOUT ADDX

ADDX is a global private market exchange headquartered in Singapore. Using blockchain and smart contract technology, ADDX reduces manual interventions in the issuance, custody and distribution of private market products. The resulting efficiency from the use of digital securities allows the platform to fractionalise investments in a scalable and commercially viable manner, reducing minimum investment sizes and thereby widening investor access to the private markets. To date, ADDX has listed more than 50 deals on its platform involving blue-chip names such as Hamilton Lane, Partners Group, Investcorp, Singtel, UOB, CGS-CIMB, as well as Temasek-owned entities Mapletree, Azalea, SeaTown and Fullerton Fund Management. Asset classes available on ADDX include private equity, hedge funds, venture capital, private credit, real estate, debt and structured products.

The full-service capital market platform has raised a total of US$140 million in funding since its inception in 2017, including US$50 million in its Series A round in January 2021 and US$58 million in the first tranche of its Pre-Series B round in May 2022. Its shareholders[viii] include Singapore Exchange (SGX), the Stock Exchange of Thailand (SET), Temasek subsidiary Heliconia Capital, the Development Bank of Japan (DBJ), UOB, Hamilton Lane, Tokai Tokyo Financial Holdings and Hanwha Asset Management.

ADDX currently serves individual accredited investors from 39 countries spanning Asia Pacific, Europe and the Americas (except the US). ADDX also serves wealth managers and corporate investors through its institutional service, ADDX Advantage. For more information, visit ADDX.co or www.linkedin.com/company/addxco.

[i] Individuals surveyed were from Singapore, United Kingdom (London), Hong Kong, and Germany (Frankfurt). For more information, see “Methodology” subsection.

[ii] Participants were asked what share of an unexpected inheritance of US$100,000 they would spend right away versus invest for the future, and, bearing in mind the sum to be invested for the future, how they would allocate their investments across asset classes.  This finding refers to those who said they would allocate funds to private market investments.

[iii] Defined as those born between 1997 and 2009, inclusive of both years

[iv] Defined as those born between 1946 and 1964, inclusive of both years

[v] Singapore and Hong Kong

[vi] Germany and the United Kingdom

[vii] See: https://www.cnbc.com/2022/06/28/millennials-want-to-retire-at-59-heres-how-to-retire-early.html

[viii] Shareholders of ICHX Tech Pte Ltd, the parent company of ADDX.

Real estate investment trusts (REITs) are an increasingly popular investment vehicle that allows investors to invest in a diversified portfolio of real estate assets. REITs are structured as trusts, with the income generated from the underlying properties being passed on to the investors as dividends.

This article will look at 3 reasons why you need to invest in REITs in Malaysia. Investing in REITs can provide investors with a steady income stream and exposure to the real estate market without the need to purchase and manage real estate properties themselves.

Why You Need To Invest In REITs#1 Diversification Portfolio

One of the main advantages of investing in Malaysia’s REITs is that it provides investors with a diversified portfolio of real estate assets. REITs invest in various real estate properties, including office buildings, shopping malls, and residential properties. This provides investors with exposure to a range of different real estate markets and helps to reduce the risk of investing in a single property or asset class.

Read: High-Rise Properties Near Lush Greenery Achieve High Capital Growth in H1 2022

Why You Need To Invest In REITs#2 Stable And Predictable

Another advantage of investing in Malaysia’s REITs is that they offer a stable and predictable source of income. REITs must distribute at least 90% of their taxable income to their shareholders as dividends. This means investors can expect regular dividend payments from their REIT investments.

Additionally, because REITs are typically invested in income-producing properties, such as rental properties or commercial buildings, the income generated from these properties can provide a steady income stream for investors.

Why You Need To Invest In REITs#3 Cost-Efficient

Investing in Malaysia’s REITs is also a cost-effective way to invest in real estate. REITs are traded on stock exchanges, just like stocks, which makes them easy to buy and sell. Additionally, because REITs are passively managed, they typically have lower management fees than actively managed funds.

This means that investors can benefit from the expertise of real estate professionals without having to pay high fees.

Read: Is Malaysia Property Still Worth To Invest In?

Examples Of Malaysia’s REIT

Malaysia’s growing and diverse real estate market provides investors various REIT options. Some of the REITs listed on Bursa Malaysia, Malaysia’s stock exchange, include:-

1. Sunway REIT, which owns a portfolio of properties including retail, office, hospitality and healthcare assets;
2. Axis REIT, which specializes in industrial and logistics properties; and
3. KLCC REIT, which owns properties such as the iconic Petronas Twin Towers.

Investing in Malaysia’s REITs also exposes investors to a fast-growing economy. Malaysia is one of the fastest-growing economies in Southeast Asia, with a GDP growth rate of 4.3% in 2019. The country has a well-developed infrastructure, a skilled workforce, and a growing middle class, which makes it an attractive destination for foreign investment.

In addition to exposing investors to diverse real estate assets, Malaysia’s REITs are also highly liquid. REITs are traded on stock exchanges, meaning they can be bought and sold quickly and easily. Additionally, because REITs are typically invested in income-producing properties, they are less volatile than other investments, such as individual stocks.

In conclusion, investing in Malaysia’s REITs can provide investors with a diversified portfolio of real estate assets, a stable source of income, and exposure to a fast-growing economy. REITs are also cost-effective, highly liquid, and easy to invest in. Now that you know why you need to invest in REITs, as with any other investment, it is important to conduct thorough research and seek professional advice before investing in Malaysia’s REITs or any other investment vehicle.

Read: 8 Categories of Real Estate Invesment Trusts (REITs) in Malaysia