About the Video
Here’s my take on why I will NOT invest in Bursa Malaysia, or just any investment product denominated in Malaysian Ringgit (MYR).
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ https://www.interactivebrokers.com/mk...
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⬇️ Timestamps:
0:00 → Prologue
1:16 → Underperformance against S&P 500 Index
4:33 → Lacklustre growth of KLCI stocks
8:16 → MYR depreciation against USD
10:40 → Other supporting reasons
11:34 → Conclusion
Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. However, It would not be a surprise to discover that many investors buy it for the sake of just investing, and they would have never explored better alternatives outside of the country.
In contrast to Malaysia’s Kuala Lumpur Composite Index (KLCI) which have returned a measly 40% over the past 30 years, the U.S. S&P 500 Index have returned a whopping 1,000% in the same period, making the Kuala Lumpur Stock Exchange (KLSE) pale in comparison.
Here are the three main reasons why I would not invest in Malaysia – Underperformance against the S&P 500 Index, lacklustre growth of KLCI stocks, and the constant currency depreciation of the Malaysian Ringgit (MYR) against the United States Dollar (USD).
To add on to that, there are more negative factors & occurrences that solidifies my choice of not investing in Malaysia, such as the lack of political stability (Sheraton Move, 1MDB scandal), the lack of stable fiscal policies, the incompetency to react to crisis appropriately, the ever-increasing national debt, the exposure towards world oil price volatility, the unwillingness of local unicorns (such as Grab and Carsome) to list in the local public market, and etc. Even our neighbouring country, Singapore is ranked #2 in the world in terms of ease of doing business, whereas Malaysia is ranked #24 in the same category.
As a concerned citizen of Malaysia, I can only do so much. If I were to let my emotions take over, that would mean I have to grow my wealth in the lacklustre local equity market. Nope, not gonna happen. I will just invest in the US market while the clowns do what they want here.
Money does not care about your race, your age, your gender, your patriotism, your beliefs or whatever that is – because money is very simple, it is just another form of value, and whether you like it or not, its value will decrease over time due to inflation.
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