Why Invest in the Malaysia Stock Exchange?

High risk or low risk – whatever your tolerance there are fewer better places to invest your money than the stock market. 

But if you’re a savvy investor, you may have already invested in your native stock market – but what about investments abroad?

Have you ever given any thought to an international market, like the Malaysian market? Investing in a foreign market doesn’t have to be difficult, and there can be real benefits to investing in one.

Why invest in Malaysia stock exchanges?

Here’s why you need to take a closer look at Malaysia’s stock market.

Diversify Your Trading Portfolio

Investing in different types of stock markets is one way of diversifying. Diversifying minimizes risk and ensures a better financial future for you and your family.

By investing in an international stock market like Malaysia’s you can access investment vehicles that may not be available in your native market. In the event one market or sector of the market suffers a downturn, you can better weather the storm. Investing in a foreign market doesn’t have to be difficult, and there can be real benefits to investing in one.

Good Performing Economy

The Bursa Malaysia, the country’s stock exchange, has almost 1,000 listed companies. Its range of investments includes offshore and Islamic assets, Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), and Exchange Traded Bonds and Sukuk (ETBS).

Previously it was known as the KLSE (Kuala Lumpur Stock Exchange) due to its location in the nation’s capital. 

Like any market, there are potential risks. But overall, the Malaysian market has consistently been strong. You can see its historical performance for yourself on the World Bank’s site.

Friendly Taxation

A major benefit of investing in the Malaysian market is zero tax on capital gains. 

You read that right – Malaysia has no tax on capital gains. Capital gains are an increase in your stock’s value. Normally these are “realized” or taxed when you sell your stocks. 

Of course, your local country’s tax laws may differ, so consult with a local tax expert. But at the very least, you won’t owe taxes to the Malaysian government. 

As for dividends, Malaysia has a single-tier system of taxation. The company that pays dividends will pay the tax prior to distributing it to its shareholders. That means that you personally will not have to pay taxes on dividends. 

Overall, Malaysia is a very tax-friendly country for investing.

Easily Accessible

Finally, a great reason to invest in Malaysia is how easily accessible it is. Online sites like www.monexsecurities.com.au have made it easy to expand your portfolio and invest in multiple international markets. It doesn’t have to be confusing, especially when sites like this offer customer support and analytic tools.

Invest in Malaysia Stock Exchanges Today

Investing in some Malaysia stock exchanges is an affordable way to diversify your investments. You can get your foot in a foreign market and broaden your portfolio by investing in different stock exchanges around the world. That means that you personally will not have to pay taxes on dividends. 

For more information on finance and investing, check out other articles on our site.