Estimated reading time: 11 minutes
Did you know? On 19 December 2025, PNB announced a 5.75 sen per unit income distribution, good news for around 11.4 million ASB holders nationwide. And the good news doesn’t stop there. Analysts are also expecting EPF dividends of around 6% for 2025, which for EPF contributors could enjoy extra income without having to do anything at all.
So how do ASB and EPF consistently deliver returns that beat fixed deposits, which usually only pay 2-3%?
The answer is actually quite simple. Your money isn’t just sitting around. It’s being invested – mainly in the stock market and other financial assets.
The moment people hear “stock market”, some already feel scared. So instead, most Malaysians still stick to:
- Property
- Fixed deposits
- ASB
Source: Statista
Compare that to the US, where about 27% of Americans actively invest in the stock market as part of their long-term financial planning. In Malaysia, stocks are only ranked ninth in terms of how well people understand investment instruments.
So if people in more advanced economies are growing their wealth through stocks, why aren’t we doing the same? And more importantly, what exactly is the stock market, and how does it work in Malaysia to grow your money?
That’s what we’ll dive in next.
TABLE OF CONTENTS
What is the stock market?
Think of the stock market like a giant digital pasar (market). But instead of buying vegetables or fish, people are buying and selling ‘slices’ of companies.
Let me explain this with a simple example.
Imagine I run a small coffee shop called Ziet Coffee. I started it using my own savings, worked hard, and slowly grew the business. But after a while, I hit a point where growth becomes slow. If I want to open more outlets, buy better machines, or hire more staff, I’ll obviously need more money.
One option is to apply for a bank loan. However,
- Banks often see small businesses as high risk.
- Even if approved, interest rates can range from 8% to 18%, which can be costly for a growing business.
This is where the stock market comes in.
Instead of borrowing from a bank, I can list Ziet Coffee on the stock exchange and invite the public to invest in my business. People who believe in the brand can put their money in and in return, they receive shares, which means they own a small part of the company.
So instead of owing money to one bank, I’m sharing ownership with many investors who want the business to grow, just like I do.
Of course, this is a simplified example. In reality, the stock market connects businesses with investors, ranging from individuals like you and me to large institutions. Beyond funding, listed companies also benefit from the networks and expertise of institutional investors.
Now, from an investor’s point of view, how do you actually make money from stocks?
There are two main ways you make money from stocks:
1. Capital gains
- You make money when you sell your shares at a higher price than what you paid.
- Example:
- Buy 100 Maybank shares at RM9.
- Sell at RM11.
- Profit = RM2 x 100 = RM200.
2. Dividends
- Dividends are like a bonus paid by the company when it makes money.
- You get paid based on how many shares you own.
- Example:
- Own 100 Maybank shares.
- Dividend paid = 30 sen per share.
- Dividend received = RM30.
- Example:
- You receive this regardless of share price movement.
- In Malaysia, dividends are generally tax-free (already taxed at company level). You keep 100%.
What is Bursa Malaysia?
So how does stock investing actually work in Malaysia?
It starts with Bursa Malaysia, our local stock exchange. This is where investors buy and sell shares of listed companies. You can think of it like a pasar, where buyers and sellers meet, except instead of ikan and sayur, what’s being traded are company shares. Unlike a pasar, Bursa Malaysia is tightly regulated by the Securities Commission Malaysia to ensure trading is fair and transparent.
To start investing, you’ll need a Central Depository System (CDS) account. It’s basically like a savings account, but for shares instead of cash. Malaysians aged 18 and above can open one with a valid IC and bank account, usually with a small one-time fee and no minimum deposit.
If that feels a bit troublesome, there’s an easier way. You can open an account directly with a licensed broker like Webull Malaysia, which handles everything for you and lets you trade through their app.
Through Webull, you can invest in companies you already recognise, from Maybank, Tenaga Nasional Berhad, Sunway, CelcomDigi, and Telekom Malaysia. Even newer companies that were listed recently such as Oriental Kopi, 99 Speedmart and Eco-Shop, all at low fees of RM2.50 or 0.05% per trade. There’s also an ongoing promotion where new users can receive free NVIDIA shares worth RM200 with just RM1,000 deposit and maintain it for 60 days.
This brings us back to ASB and EPF.
A large portion of EPF and ASB’s portfolio is invested right here in Malaysia’s stock market, in stable, cash-generating companies you interact with every day. That’s how they’re able to generate consistent returns over time.
And here’s something many Malaysians don’t realise: there’s nothing stopping you from doing the same.
Instead of relying solely on EPF or ASB to invest on your behalf, you can build your own portfolio, even using the same companies they invest in. The difference is, your money stays liquid, and you’re not locked in until retirement.
Global Market – US
Source: Visual Capitalist
Beyond Malaysia, you can also diversify your investments overseas. With Webull, you can trade stocks in the US, Hong Kong, and China, all from one platform.
For most investors, the US market is usually the first choice. It’s the world’s largest capital market and the one most closely watched by investors globally. You’ve probably heard of the New York Stock Exchange and NASDAQ. These two exchanges are among the most influential in the world.
Even if you’ve never bought a “US stock,” you interact with them every day:
- Apple: That iPhone in your pocket.
- Meta: Your daily scroll on Instagram or Facebook.
- Alphabet: Every Google search or YouTube video you watch.
Instead of just being a consumer, you can be an owner. Webull makes this accessible with fractional shares, allowing you to start investing with as little as USD 1 (less than RM 5). More importantly there’s also no commission and no platform fee for up to one year. New users enjoy this for 365 days from account activation, while existing users can enjoy it until the end of 2026.
Global Market – Hong Kong and China
While the US often takes centre stage, it’s not the only market that matters. As global money flows east, China plays an increasingly important role in the world’s capital markets.
China’s stock market works a little differently. Instead of one single market, it’s mainly split into two parts: Hong Kong stocks and China A-shares.
The Hong Kong Stock Exchange has long served as China’s financial gateway to the world. Many major Chinese companies list there because it’s easily accessible to global investors, including Malaysians. Companies like Meituan, Xiaomi, and Pop Mart are traded in Hong Kong, making it one of the simplest ways to gain exposure to China.
Then there are China A-shares, which refer to companies listed on mainland China’s own exchanges, mainly the Shanghai Stock Exchange and the Shenzhen Stock Exchange. These shares are traded in Chinese yuan and were traditionally meant for local investors. They often represent businesses closely tied to China’s domestic economy, such as Bank of China and Ping An Insurance.
Over the years, access to these markets has gradually opened up. With Webull, you can trade China-related markets at fees as low as 0.03% of trade value, with no platform fee. In simple terms, it allows you to explore global investing without your fees eating into your returns, making it much easier to get started.
Money Market Fund – Moneybull (Cash Management Product)
If you’re not quite ready to jump straight into stocks, there’s another option worth considering. This is where a cash management product like Moneybull on Webull can be a good place to start. And what is even better, the underlying funds are managed by famous fund managers like Aham Asset Management.
Instead of letting your cash sit idle in a savings account while you wait for the right opportunity, you can park it here first. Your money continues to earn returns of up to 6% p.a.* for 45 days and for amounts up to RM50,000. Your funds are always available as instant buying power for MY stock trading and can be redeemed anytime.
Then, when you feel ready to invest, whether in Malaysian stocks, US stocks, or China markets, your money is already there. No extra steps, no delays, just deploy it when you’re comfortable.
In my opinion, this makes easing into investing a lot simpler.
Final Thought
Investing doesn’t have to be complicated, and it doesn’t have to start with big amounts. Whether you choose to begin with Malaysian stocks, explore global markets, or simply park your cash in a money market fund while you learn, the key is to start at your own pace.
What matters most is understanding where your money goes and making it work for you, instead of letting it sit idle. With the right tools and a regulated platform, investing can be a practical and accessible part of your long-term financial journey.
If you’re exploring platforms to start your investing journey, Webull is one option you can look into.
If you prefer a video version of this article, I have made a video covering the exact same thing – do check it out here! Thanks for reading!
Disclaimer: This content is sponsored by Webull. This advertisement has not been reviewed by the SC. All views expressed in this video are the independent opinions of Ziet, which are not necessarily shared by Webull Securities (Malaysia) Sdn Bhd (“Webull Securities”). No content shall be considered financial advice or recommendation. Webull Securities links are included in this post, through which referrals are made and Ziet may receive certain commissions. Please contact Webull Securities for more information.
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