Most people invest in ASB, but very few actually understand what’s happening behind the scenes.

They treat it like a safe place to park money: Put in cash → get dividends → repeat.

Now, there’s nothing wrong with that, but if you really want to “level-up” as an investor, you need to understand where your money is going to and how the returns are generated.

I sat down and read through the entire ASB 2025 annual report.

There are a few things in there that might change how you think about your money.

Fact 1: ASB invests in stocks (mostly)

A common misconception is that ASB is mostly “safe” assets.

In reality:

• 75.64% of the fund is invested in equities (ie. stocks)

• A large part of the remaining funds (13.75%) are in fixed income assets (ie. Government Bonds or Sukuk).

So yes, ASB is stable, but a big reason why it performs over time is because it’s exposed to the stock market.

2. ASB is HUGE

It isn’t just a fund; it’s a cornerstone of the Malaysian stock market.

• Fund Size: RM181 Billion

• Unitholders: 11.4 Million people

With the Bumi population estimated at 21.8 million for 2025, that means roughly 1 in 2 Bumiputeras in this country is an ASB investor. 

That is a massive level of trust and responsibility on the shoulders of the fund managers.

Fact 3: Maybank is the backbone of ASB

20.38% of the entire fund is invested in yellow bank. In fact, ASB has been the largest shareholder of Maybank for decades, owning a whopping 27.7% stake.

For every RM1,000 you put into ASB:

• ~RM200 goes into Maybank

• ~RM90 goes into SD Guthrie

• ~RM80 goes into Malaysian Government bonds

And so on.

Fact 4: When you're investing in ASB, you're mostly investing in the Malaysian stock market.

The top 20 holdings account for 62.25% of the fund.

Most of them are bluechip stocks listed on Bursa Malaysia.

Fact 5: ASB doesn’t really trade shares or buy low / sell high.

Rather, it generates profit by investing in dividend paying stocks.

You can see this with the “Nisbah Ganti Pusing Portfolio”.

A ratio of 1 = All investments in the portfolio changed over the year.

A lower number (ie. 2023: 0.21) means that the portfolio didn’t change much.

From 2023 to 2025, the ratio increased to 0.51.

This suggests that the fund managers were more active in 2025 compared to previous years.

They probably did this to manage global volatility and stabilize returns.

Fact 6: ASB’s management fees are EXTREMELY low.

For 2025, the expense ratio is only 0.09%, which means:

👉 For every RM1,000, the annual cost of managing it is only RM0.90.

This is exceptionally low compared to other UT funds, which charge between 1.00-1.50% per year.

(Bonus fact!) ASB dividends are calculated based on the lowest balance every month.

To be eligible for that month’s dividend, make sure to deposit by 1hb.

If after 1hb, wait.

Deposit the money into other places (TNG GO+, AEON Bank, etc.) to earn profit.

Check out ASB’s 2025 annual report here: https://cms.myasnb.com.my/uploads/Annual_Report_FYE_31122025_ASB_7909dd04c7.pdf

ASB is a great safety net, but to reach millionaire status, you need a strategy that goes beyond the basics.

On 9th May, I’m taking everything I’ve learned as a CFP to share with you my journey to RM1 mil.

You’ll learn:

• The Roadmap: A raw breakdown of my current holdings and the math I'm using to reach my first RM1 million.

• Risk Management: How I'm positioning my investments to stay resilient against inflation and subsidy rationalization.

• Buy vs. Avoid: The specific sectors I'm currently heavy on and the ones I am exiting.

See you at NU Sentral (only 10 seats left!): https://luma.com/bcmwws7c

Psst, send me a DM on WhatsApp and I’ll give you a 10% discount voucher for the event: https://wa.link/w45ywz

Lately, my DMs have been flooded with the same question: "Shinji, with fuel prices rising and the market shifting, how are you actually growing your money right now?"

I’ve realized that while social media is great for quick tips, it isn't the place for a technical deep-dive. Most people are chasing "hot stocks," but very few are building a system.

1. Never leave money dormant in your bank account.

When I receive my salary, I’ll transfer it to these digital banks to earn profit:

• AEON Bank (3.00% p.a.)

• RYT Bank (4.00% p.a. on first RM20k)

Doing nothing is a decision, and it’s expensive over the long run. 💸

You don’t need to follow the apps I use.

There are so many these days that allow you to grow your savings with little requirements.

For Bumis, the most obvious choice is ASB (for emergency funds).

For flexibility and PIDM protection, AEON Bank is good. 👌

Why “just saving” is not enough

A lot of people stop at ASB.

And don’t get me wrong, ASB is solid (~5–6% p.a.), but here’s the part most people don’t think about:

At ~5.5% returns, your money takes about 13 years to double.

That means:

• RM50k → RM100k (13 years)

• RM100k → RM200k (another 13 years)

That’s a very slow path to RM1 million. So, if your entire plan is:

You’re not wrong, but you’re also not optimising.

How I’m structuring my portfolio

Right now, I’m not betting on one thing. I’m building across multiple assets:

• Gold

• Bitcoin

• US ETFs

• Malaysian banks

The goal is simple: Push my overall portfolio towards ~8–10% average returns

Because at 10%:

• Your money doubles in ~7 years

• Not 13

That’s almost 6 years faster.

But there are RISKS. ⚠️

Take gold for example.

Unlike ASB (fixed price RM1/unit), gold prices can fluctuate wildly:

• 29 Jan: $5,600/Oz

• 23 Mar: $4,380/Oz (-22%)

• Today: $4,718/Oz

If you don’t know what you’re doing, there’s a real chance of you buying high and selling low.

The real problem

Most people don’t lose money because they chose the “wrong asset”.

They lose money because:

• They don’t know why they bought it

• They don’t know how much to allocate

• They don’t know when to hold or adjust

So everything becomes emotional.

How I handle these risks

I think long term. Not 5 years. Not 10 years.

But 20-30 years.

I’m still relatively young anyway (29 this year) and can afford the temporary downswings.

If you’ve read this far, you’re probably tired of "general tips" and want the actual blueprint.

What actually matters is the details behind all this — how much I’m allocating, what I’m buying more of, what I’m avoiding, and the mistakes that have actually cost me money over the past few years.

That’s not something I can fully break down in a newsletter.

So, on 9th May, I’m doing a 4-hr deep dive where I’ll walk through everything properly.

This isn’t a "Get-Rich-Quick" seminar.

As a CFP, I’m not here to sell you a dream. I’m here to show you the math. You’ll learn:

• My Holdings: Exactly what I’m buying and why.

• My Mistakes: The errors that have cost me tens of thousands, so you don’t repeat them.

• My 2026 Strategy: How I’m positioning myself against inflation and subsidy rationalization.

The "Insider’s Edge"

I’m not doing this alone. I’ve invited Azharuddin (@Azha_Investing), a former Head of Research and veteran Investment Analyst.

One of the most misunderstood ways to build passive income in Malaysia is through the banking sector.

Azharuddin is going to break down why banks like Maybank, Public Bank, and RHB are currently yielding up to ~6% p.a., and exactly which metrics you need to watch before you buy.

The Details

📅 Date: 9 May 2026 (Saturday)

⏰ Time: 2:00 PM – 6:00 PM

📍 Venue: Co-labs Coworking, KL Sentral (Nu Sentral)

• Early Bird (RM58): SOLD OUT 🔴 

• Standard Entry (RM68): AVAILABLE

• Pro Strategy Bundle (RM98): ONLY 3 SLOTS LEFT 🔥 

Secure Your Seat Here: https://luma.com/bcmwws7c

Note: Because this is an in-person session at Co-labs, we have limited seating (max. 60). Once the seats are gone, the registration will automatically close.

You’ll Also Walk Away With:

• My Portfolio Excel Template: The exact tool I use to track my path to RM1M.

• The 2026 Passive Income Guide: Azharuddin’s latest analysis on stable dividend stocks.

• The Full Session Replay & Slides: Even if you want to re-watch the technical parts later, we’ve got you covered.

If you’re serious about moving past "beginner" investing and want to know how to actually structure a portfolio, I’d love to see you there.

Secure Your Seat Here: https://luma.com/bcmwws7c

This newsletter is a summary of Naval Ravikant’s famous Tweetstorm on “How To Get Rich (Without Getting Lucky).

You can read it in the first few pages of his book here: https://navalmanack.s3.amazonaws.com/Eric-Jorgenson_The-Almanack-of-Naval-Ravikant_Final.pdf

Unlike many authors who made their money by selling books or courses, Naval built his wealth through his career, hard work, and by creating his own luck.

He doesn’t sell courses, and he shares all his ideas about wealth for free online.

Here are his philosophies, in simple terms:

Think of money as social credits. It’s the ability to occupy someone else’s time.

If I do my job right, if I create value for society, society says, “Oh, thank you. We owe you something in the future for the work you did in the past. Here’s a little IOU (I Owe You).” Let’s call that money.

Wealth is the thing you really want. It’s the assets that earn while you sleep. It’s the robots, factories, code, YouTube videos, podcast, and articles you wrote online that’s getting views.

Wealth is like a 24/7 system, serving people and generating income.

If you want to get rich, focus on building or owning assets:

• Invest in businesses

• Create content that helps others

• Build something that continues to work even when you’re not

If you’re always comparing your own success and failures with others, you’re going to get into a relative mindset.

• You’re always going to hate people who do better than you

• You’re always going to be jealous and envious.

• You’re always going to feel that you deserve more.

And whenever you try and do business with other people, they’ll sense those feelings in you and distance themselves. Humans are wired to know how someone else feels deep down.

Being “anti-rich” will literally prevent you from becoming wealthy, and that’s not only because of the people around you, but also because of your habits and viewpoints about money.

This is why you need to get out of the “I hate rich people” mindset. Understand that getting rich (and being a good person) can both be true at the same time.

Be optimistic. Be positive. Optimists actually do better in the long run.

They are fundamentally two huge games in life that people are playing:

1. The money game

2. The status game

Some people play the money game because they believe that it’s going to solve all their problems, which is not true. Money can only solve all your MONEY problems.

The rest — happiness, content, peace, anger, jealously — having more money doesn’t do anything to change them. It only amplifies who you already are.

This is where some people believe that they shouldn’t make money, so they attack the whole enterprise by saying, “Making money is evil. You shouldn’t do it.”

But they’re actually playing another game: The status game.

Status is a zero-sum game. It’s a very old game, and we’ve been playing it since we’re monkeys. It’s purely hierarchical and dependent on overthrowing whoever’s in power. Who’s number one? For number two to take over number one, number one has to move out of that slot.

For there to be a winner, there must be a loser.

Politics, sports, climbing the corporate ladder, and gambling are all examples of the status game.

And to win in this game, you have to put someone else down. That’s why I don’t like playing it. It will make you into an angry, combative person, where you’re always fighting to dethrone someone else.

If you’re paid for renting out your time — like waiters, cashiers, and even lawyers or doctors — you can make some money, but you’re not going to achieve financial freedom.

That’s because you…

Want to read the rest of the summary?

I shared them exclusively in our WhatsApp group of 550+ members:

What do Apple, Nvidia, Microsoft, Meta, and Google have in common?

• They are all brands of products you use every day

• It’s impossible to run away from them

• All of them belong to the US.

In fact, of the top 10 most valuable companies in the world, 8 of them are from America.

Source: CompaniesMarketCap

It’s no surprise that the US is the most productive economy in the world.

Their stock market is multiple times bigger than ours, their currency is stronger (although not as strong as the year before), and their companies dominate every major tech category you can think of.

My investing philosophy is simple: If I like the product, I’ll invest in the company.

• iPhones are from Apple

• The laptop that I used to write this article is from HP

• I find sources from Google

• I watch videos on YouTube (which is owned by Google)

And the list goes on.

This is one of the primary reasons why I chose to invest in the US — because I want exposure to companies that make products for everyday citizens.

There’s just one issue about this: There are so many products out there.

It wouldn’t be feasible for me to invest in ALL of these companies individually. Well I could, but it would be tiresome to manage.

“There must be a fund that invests in the entire US market” I thought…

Lo and behold, there is, and it’s called ETFs.

What ETFs actually are (and why I invest a lot in them).

Think of an Exchange Traded Fund as a basket of stocks that you can buy with a click.

Instead of choosing individual companies, you buy the whole basket.

This means that, rather than getting exposure from a single stock, you can get exposure to hundreds of stocks.

The most well-known ETFs include:

• Vanguard S&P500 ETF (VOO): Invests in the S&P 500 Index, representing 500 of the largest US companies.

• Vanguard Information Technology ETF (VGT): Measures the performance of stocks in the US tech sector.

• Invesco QQQ ETF (QQQ): Tracks the Nasdaq-100 Index, giving you exposure to the performance of the 100 largest non-financial companies listed on the Nasdaq.

These funds differ in their allocations, and their performances vary too.

For instance, the tech heavy VGT ETF has performed far better than VOO — mainly because it is heavily invested in the tech sector, which grew exponentially in the past decade.

That said, the long term trend generally follows the S&P500 index.

Green: VGT, Orange: QQQ, Blue: VOO, Candlesticks: S&P500 Index

With the chart in mind, here are the average yearly performances of the 3 ETFs in the past decade:

• VGT: 21.77% p.a. (+616.72%)

• QQQ: 19.18% p.a. (+478.06%)

• VOO: 12.80% p.a. (+233.55%)

In other words, for every US$1,000 you invest in these ETFs in 2016, they would right now be worth:

• VGT: $7,167.20

• QQQ: $5,780.60

• VOO: $3,335.50

^ As of 8 January 2026.

This growth is much more impressive compared to the options we’re familiar with (ie. ASB, ASM, cash apps, FDs, etc.), but of course, the risks are also much higher.

So, what are the risks?

1. Ringgit strength.

You’ll probably laugh when I say this, but there’s a chance of the ringgit strengthening against the US dollar over the next few decades. Although the chance small, it is still a risk you should consider.

Even though the ringgit has weakened (gradually) from RM3.50 to RM4.20 over the past 15 years, it doesn’t mean that things will stay this way.

For all we know:

• The US could mess up its policies, causing people to lose confidence in the dollar (it’s already happening btw).

• Malaysia could do extremely well economically over the next decade, ushering in an “age of prosperity”.

• And many other “unforeseen” things that we would think is impossible to happen today.

In 2025, the ringgit gained 10.15% versus the dollar, mainly because the US reduced interest rates and Malaysia’s strong economic fundamentals.

This heavily affected my profits from the US sector.

Even though the QQQ ETF has gained 52% since 2024, the real profit in ringgit is actually 33%. Sorry for clickbaiting you guys on the title of this article.

^ Chart of USDMYR: Since 2024, the dollar fell 11.66% against the ringgit.

2. Uncertainty of what Trump will say (or do)

• 2 April 2025: Trump announces tariffs on the rest of the world. Market panics and crashes.

• Mid-Apr 2025: Trump gives a 90-day pause for all countries except China.

• June 2025: Trump grants 90-day pause for China.

• Today: I don’t know what Trump said, but the market has bounced back and made a new all-time high.

3. Recessions

• The Dotcom Bubble

• The 1998 Asian Financial Crisis

• The 2008 Financial Crisis

• The Covid Pandemic

Crises are bound to happen. We just don’t know when and how bad.

In fact, we could be in a massive bubble right now, and you could be reading this article again a few months later, only to find out the market has tanked.

But one thing’s (almost) certain: The US market is resilient. It has proven time and time again to bounce back from major catastrophes, even recovering beyond its previous high point.

How I mitigate these risks: I invest long term.

Not 1 year. Not 5 years. But 10-20 years.

As long as the US continues to produce products that people need for their daily lives, I will stay true to my current thesis and continue investing no matter what happens in the short term.

Another way I mitigate risk is by diversifying. Members in the Telegram group know that I only allocate about 20-25% of my portfolio in the US.

Where I invest in ETFs

MooMoo, Rakuten, and M+ Global all offer the 3 ETFs I mentioned, but I’m using Rakuten because its fees are quite low if you buy between US$100 to US$500 — which is perfect for investing monthly.

View Rakuten Fees & Brokerage

Rakuten also allows you to buy fractional shares, meaning you don’t have to buy an entire unit of QQQ (currently priced at US$624) if you want to invest.

You can go as low as 0.01. But don’t do this because the fees will be much higher.

Other features and rewards

• RM30 US shares when you activate both Bursa & Foreign Trading accounts and complete a first BUY trade of RM1,000 or more in a single transaction

• RM50 US shares with cumulative trading of RM5,000 – RM9,999

• RM80 US shares with cumulative trading of RM10,000 – RM14,999

• RM100 US shares when cumulative trading exceeds RM15,000

If you’re interested to try out Rakuten, sign up with my referral code “THEFUTURIZTS” or click on this link:

More things you should know:

• Rakuten’s mobile app is not very good. I only use the desktop.

• You can buy US ETFs just like regular shares during market opening hours (9.30 pm - 4.00 am MYT).

If you’ve made it this far, it means you’re serious in improving your finances.

Everyday, 500+ Malaysians in our paid WhatsApp group receive:

✅ Updates on tax, EPF, savings & investing

✅ Clear comparisons on where to grow money

✅ No ads or sponsorships

Some of the topics may also appear on Instagram, and that’s intentional. Instagram is for summaries. WhatsApp is for more context and clarity.

DISCLAIMER: Investing in ETFs and stocks has its own risks as they are different from opening a deposit account with a financial institution. You should speak with a financial planner if you’re unsure of any investing decisions. ⚠️

Every year, LHDN releases Explanatory Notes on how tax reliefs work, including what you can and cannot claim.

It doesn’t answer every tax question out there, but many of the common mistakes and misunderstandings are already addressed in the document.

I’ve gone through the BE 2024 Explanatory Notes (the 2025 version isn’t out yet).

Here are 13 things you should know before filing your taxes in March.

1. The RM400 Tax Rebate Is Often Misunderstood

If your chargeable income does not exceed RM35,000, you are entitled to a RM400 tax rebate.

Key point: This applies to chargeable income, not gross income.

You can earn RM50,000 and still qualify for this rebate, if your tax reliefs legitimately reduce your chargeable income below that threshold.

In this example, after tax deductions (RM29,000) and rebate (RM400), the final tax is RM0.

2. Medical Expenses for Parents: Up to RM8,000

You can claim up to RM8,000 for medical expenses incurred on your parents, limited to:

• Medical treatment

• Dental treatment

• Complete medical examination (up to RM1,000)

• Special needs or carer expenses

Important conditions:

• Parents must be resident* in Malaysia

• Treatment must be provided in Malaysia

• Dental claims must be for treatment purposes, not cosmetic

*Non-Malaysian parents (e.g. PR, long-term pass holders) who are resident in Malaysia is claimable.

3. Education for Self: Up to RM7,000

Education relief for self is capped at RM7,000, covering:

• Courses up to tertiary level

• Degree, Master’s, or Doctorate programmes

• Upskilling / self-enhancement courses (cap of RM2,000)

Conditions:

• Institutions must be located in Malaysia

• Approved or recognised* by the Government or Minister of Finance

• Courses must fall within LHDN-recognised categories

*For unapproved courses, you can claim them under the lifestyle relief (RM2,500).

4. Serious Diseases: Up to RM10,000

Medical expenses for serious diseases affecting yourself, your spouse, or your child are deductible up to RM10,000.

Common illnesses do not qualify. ⚠️

Examples:

• Fever ❌

• Flu ❌

• Ankle sprain ❌

• Broken arm ❌

This relief is meant for major, long-term, life-altering medical conditions, such as:

• AIDS

• Parkinson’s disease

• Cancer

• Heart attack

• Liver disease

• Amputation of limbs

5. Dental Examination & Treatment: RM1,000

You may claim up to RM1,000 for dental examination or treatment for yourself, your spouse, or your child.

Important:

• This applies to treatment, not cosmetic procedures

• Any claim must be medically justified and properly documented

Clarification: Braces can be claimed only if it is for treatment purposes.

6. Medical Checkups, COVID Tests & Mental Health: RM1,000 Cap

These categories fall under one combined RM1,000 limit:

• Complete medical examination

• COVID-19 detection tests (including self-test kits)

• Mental health examination or consultation

Once this RM1,000 cap is fully used, no further claims can be made under this category, even if expenses exceed it.

According to LHDN’s explanatory notes, these 3 categories have a combined RM1k limit.

7. Lifestyle Relief: RM2,500

Lifestyle relief is capped at RM2,500 and applies to expenses for yourself, your spouse, or your child.

It includes:

• Books, journals, magazines, newspapers (physical or digital, non-illicit)

• Personal computer, smartphone, or tablet*

• Internet subscription

• Self-enhancement courses

*Only applies to these 3 gadgets. Smartwatches cannot be claimed.

For self-enhancement courses:

• The course does not need to be registered with any government body

• But it should encourage learning in areas such as hobbies, languages, religion, or personal skills

• Examples: Japanese language class, cooking class, photography class, udemy class

8. Sports Relief: RM1,000

Sports-related expenses are deductible up to RM1,000, but only if the sport is listed under the Sports Development Act 1997.

Eligible expenses include:

• Sports equipment

• Registration fees

• Gym membership or sports training fees

If a sport is not recognised under the Act, the related expenses are not deductible, regardless of popularity (ie. Pilates).

9. SSPN: RM8,000 (Net Deposit Only)

Deposits into Skim Simpanan Pendidikan Nasional (SSPN) are deductible up to RM8,000, but only on a net deposit basis.

Example (YA2025):

• Deposit: RM2,000

• Withdrawal: RM1,500

• Claimable amount: RM2,000 - RM1,500 = RM500

10. EPF & Life Insurance: RM7,000 Total

Relief for retirement and protection is capped at RM7,000, split as follows:

• RM4,000: Mandatory and/or voluntary EPF contributions

• RM3,000: Voluntary EPF and/or life insurance / family takaful

If you’re self-employed, you can voluntarily contribute up to RM7,000 and receive tax reliefs.

11. Private Retirement Scheme (PRS): RM3,000

PRS relief is capped at RM3,000 per individual.

• If both spouses have income, each may claim RM3,000 separately

• But under joint assessment, the total allowable relief remains RM3,000, not RM6,000

12. Education & Medical Insurance: RM4,000

You may claim up to RM4,000 for education and medical insurance premiums for:

• Yourself

• Your spouse

• Your children

For medical insurance:

• Policies may be standalone or riders

• If attached as a rider to life insurance, only the rider portion qualifies

13. New Reliefs Announced for YA2025

i) An additional RM2,500 relief has been announced for:

• EV charging facilities

• Domestic food waste composting machines

ii) First-Time Home Buyer Relief: Up to RM7,000

If you purchased your first residential property, interest relief is available:

• Property price ≤ RM500,000 → RM7,000 relief

• Property price RM500,001 to RM750,000 → RM2,500 relief

If this was helpful, I’ve actually compiled a 20-page PDF that goes deeper into personal tax reliefs.

It includes:

• Clear explanations on what you can / cannot claim

• Real examples and audit insights shared by a licensed tax agent

• Common mistakes people make (and how to avoid them)

• Practical tips on documentation, allowances, and what happens after you file

If you want a copy of the PDF, join our paid WhatsApp group!

Disclaimer: This newsletter is for education only and is not tax advice. The tax landscape changes quickly, and everyone’s situation is different. If you want personalised advice for your own tax filing, please reach out to a licensed tax agent for proper professional guidance before you file.

1. Medical Checkup*: RM1,000

2. Vaccination*: RM1,000

Tax deductible ones include:

• Varicella

• Influenza

• Rotavirus

• COVID-19

• Pneumococcal

• Meningococcal

• Human papillomavirus (HPV)

• Tetanus, diphtheria, and acellular pertussis (Tdap)

Source: https://belanjawan.mof.gov.my/pdf/belanjawan2026/ucapan/tax-measures.pdf

If you're going overseas in December (or early next year), please take your flu shot. It costs only RM50-RM80 and is tax deductible.

3. Dental Checkups*: RM1,000

*Applicable for self, spouse, or child.

Dental treatment and checkup (up to RM1,000) only applies to yourself, spouse, or child. You cannot claim this relief for your parents. To clarify: Dental treatment for parents and grandparents can be claimed under a different relief and is limited to RM1,000 (ie. Medical expenses for parents and grandparents).

Dental claims only apply to treatment and checkup (ie. scaling, tooth extraction, etc.).

Cosmetic purposes (ie. teeth restoration, replacement, crowning, root canal) are not eligible for relief.

4. Lifestyle: RM2,500

• Any reading material (physical or electronic) as long as it’s not banned.

• Personal computer, smartphone, or tablet (only applies to these 3 gadgets)

• Upskilling fees or self-enhancement courses

• Internet subscription (under your own name)

The courses for upskilling do not need to be registered with HRD Corp. You can claim relief on photography classes, crypto classes, and even cooking classes.

Source: https://www.yycadvisors.com/cryptocurrency-course-lifestyle-tax-relief-malaysia.html

To claim lifestyle relief for computer, you have to purchase a whole set in a single receipt. If you bought the monitor and keyboard separately, then they will not be eligible for relief.

Source: https://www.yycadvisors.com/claim-lifestyle-relief-for-computer-accessories.html#:~:text=Such%20as%20purchasing%20CPU%2C%20monitor,Wishing%20you%20plentiful%20tax%20savings

5. Sports (self, spouse, child, or parents): RM1,000

• Sports equipment* (shuttlecocks, golf balls, etc.)

• Registration fees for competition

• Entry/rental fees for sports facilities

• Gym membership fees

• Sports training fees

*Sports shoes and sports clothing are sports attire. They CANNOT be claimed. ⚠️

Pilates class is not eligible for claiming lifestyle relief because it is not a gym membership.

Source: https://www.yycadvisors.com/pilates-class-monthly-package.html

For sports training fees, it has to be conducted by a coach or sports club registered with the Commissioner of Sports or companies incorporated under the Companies Act 2016.

Source: https://www.yycadvisors.com/swimming-classes-for-children-claim-tax-relief.html

6. EPF Contributions: RM7,000

• First RM4,000: Voluntary or mandatory contributions

• Remaining RM3,000: Life insurance premiums and/or voluntary contributions

You will hit the RM4k mandatory contribution limit if your salary exceeds RM3,030. 👌

^ If your mandatory contribution is more than 4k it will just be maxed at 4k. You can voluntary contribute to EPF and that makes another 3k limit for voluntary contribution. Total 7k.

7. First time homebuyers: Up to RM7,000

• House price RM500,000 and below: RM7,000

• House price RM500,000-RM750,0000: RM5,000

Only applies to sale and purchase agreements between 1 Jan 2025 to 31 Dec 2027.

Other notable ones:

• PRS: RM3,000

• Medical Insurance: RM3,000 RM4,000*

• SSPN: RM8,000

• Education: RM7,000

• SOCSO: RM350

• Per unmarried child: RM2,000-RM8,000

*Medical insurance has been increased from RM3,000 to RM4,000 for YA2025.

View the Full List of Tax Reliefs Here: https://www.pwc.com/my/en/publications/mtb/personal-income-tax.html

Receipts how?

You don’t need to submit them when you file taxes next year.

But you must store them as proof (physical and/or digital) for up to 7 years.

If you don’t have them, you could get fined RM300 to RM10,000, imprisoned or both.

Should I buy things just for the tax relief?

No, because you’ll still be spending majority of your own money (ie. tax 10%, spend 90%). ⚠️

That said, PRS, EPF, SOCSO, and SSPN are exceptions, because they are your future money.

Got more questions? Then join our Free Tax Workshop on 6 Dec!

You’ll Learn: ​

✅ Key tax reliefs, rebates & deductions

​✅ What you can and cannot claim (and the common myths to avoid)

​✅ The documents you must keep — and how long to keep them

​✅ Common filing mistakes that lead to penalties or tax audits

​✅ What triggers LHDN red flags, investigations, or audits

And more!

RSVP here: https://luma.com/p449g2lp

In December 2024, EPF published a new retirement framework.

Aimed at giving Malaysians a comprehensive monthly expenditure guide, this framework outlines three recommended savings levels that individuals should aim to achieve by the age of 60.

RM1.3 million may sound like a huge amount of money today, but at just 2.50% inflation, that value will shrink by 46% in 25 years.

By 2050, it wouldn’t be surprising if EPF updates the recommended figures to something like:

• Basic – RM390,000 → RM720,000

• Adequate – RM650,000 → RM1.21 million

• Enhanced – RM1.3 million → RM2.41 million

^ All to account for inflation.

Depending solely on EPF is no longer a practical strategy.

That’s why it’s becoming more important than ever to invest proactively and aim for higher returns — not just for the sake of wealth, but for a more comfortable and secure retirement.

But that raises a common question: Where do I start? And how do I know how much risk I should take?

Understanding Risk and Time Horizon

Retirement planning typically starts with understanding your goals clearly. Most people make the mistake of lumping all their investments into one giant portfolio, regardless of what it is for.

To give you a better idea, imagine you’re planning to save up some money for a down payment for a car in the next 2 years.

Because the timeframe is so short, you shouldn’t be taking too much risk in the market.

Investing in Bitcoin, gold, stocks/ETFs or similar risky assets is considered a bad move, as these assets can and will go through downturns during some months or years.

The last thing you need is to be unable to afford your new car because the market moved against your favor.

The shorter your timeframe, the less risk you want to take

Conversely, if your investment horizon is 20 to 30 years, then taking on more risk makes sense.

While markets can and will decline over the short term, they generally recover and grow over time — rewarding those who stay invested through volatility.

Take Bitcoin as an example. During 2022–2023, it went through a brutal bear market, falling nearly 80% from $69,000 to $15,500.

Many new investors who lacked clear goals panicked and sold at the bottom — only to watch the asset rebound later and rally to $125,000.

So, to keep things simple:

• If your timeframe is short, take less risk (invest like a retiree).

• If your timeframe is long, you can afford to take more risk.

If you’re confused on when to buy or sell, ask yourself: what am I investing for?

How my retirement portfolio looks like

My portfolio is built to take as much risk with while still letting me sleep peacefully at night.

You don’t have to copy my exact allocations — and honestly, you shouldn’t, because everyone has different goals, risk tolerance, and aspirations.

The assets marked with exclamation points (!) are considered risky.

By sector:

• 30% in the US market

• 13% in the MY market (MAYBANK, PBBANK, INARI, & TIMECOM)

• 8% in the SG market

• 14% in Bitcoin

• 7% in Gold

• 1% in P2P Lending

• 27% in Fixed Income and EPF (including EPF i-invest, ASM3, TNG Save, etc.)

How I rebalance

Each asset in my portfolio has a cap — a maximum percentage I allow it to reach.

If any asset rallies and grows beyond that limit, I take profits and move the excess into a weaker-performing asset to maintain balance.

For example, gold made up around 5% of my portfolio in January 2025.

I’ve capped it at 8%, meaning if gold rallies and goes beyond that, I’ll trim it back down to 5%.

At the moment, even with gold’s impressive rally, it’s around 7% — near my limit but not high enough to trigger a rebalance yet.

Why I’m Still Investing in the US Market (Despite “De-Dollarization”)

The de-dollarization narrative has been floating around ever since Trump took office, and it seems like every other day, there’s someone saying that the dollar will collapse in the next few years.

I don’t believe that will happen, and here’s why:

• Out of the top 10 largest companies in the world, 8 are American.

• Most of us rely on US-based companies in our daily lives.

Think about it — Apple, Google, Microsoft. These names have shaped how we work, communicate, and live — often without us even realizing they’re all from the US.

Right now, I’m writing this newsletter on an HP laptop powered by Microsoft software, and chances are, you’re reading it on an iPhone.

Sure, the US dollar’s dominance is slowly fading. In the past few years, many central banks have started replacing dollar reserves with gold, which partly explains gold’s surge in recent years.

China’s gold reserves have increased by 20-30% since late 2022.

But that doesn’t mean the dollar will vanish anytime soon.

It may eventually lose its reserve currency status, but it will still exist for decades — perhaps even a century.

Look at the British Pound.

In the early 1900s, it made up over 90% of global currency reserves before being overtaken by the US dollar. Yet, the Pound is still around today and still widely used.

I’m investing in the US market through ETFs that track the S&P, Dow Jones, or Nasdaq.

My investing strategy is very passive and I do not stock pick.

Rather than trading a single stock and timing the market, I choose to buy the entire US market instead.

The logic is simple — how sure are you that a stock you bought will still exist in the next 20-30 years?

If you acquired Apple, are you certain that this company will still be the tech giant it is today in the near future? 🤔

Other brokers (MooMoo, Webull, and M+ Global) also support these ETFs.

Why I’m Not “All-In” on Bitcoin or Gold

Bitcoin and gold have both performed spectacularly over the past 1–2 years. So it’s fair to ask — why not just go all-in?

To quote Hann Liew, founder of Halogen Capital and advisor of The Futurizts:

I’m a big believer in non-sovereign assets like gold and Bitcoin, but I still hold traditional ones such as stocks, ETFs, and ASM.

Gold and Bitcoin serve as insurance within my portfolio to protect against poor government policies or currency mismanagement.

If governments suddenly make their currencies strong and stable stores of value again, gold and Bitcoin could lose their appeal. My portfolio would take a hit, but it would survive — because it’s diversified.

Now imagine the opposite: you’re 100% in gold or Bitcoin. How would you feel if that asset fell by 30%, 40%, or even 50%?

It has happened before, and it will happen again.

Placing all your eggs in one basket is like going all-in on a single bet.

Sure, you might win big. But if you lose, you lose everything.

That’s not a game I want to play with my retirement money.

I don’t need to be the best investor or the one who earns the highest returns every year. What I do need is a strategy that helps me sleep peacefully at night while still growing my wealth at a rate that beats EPF’s long-term average.

Because at the end of the day, investing isn’t about chasing the highest returns. It’s about staying invested long enough to let compounding do its work.

A portfolio that grows steadily, allows me to live comfortably, and keeps my emotions in check — that’s worth more than any quick short-term gains.

Thanks for reading till the end!

The contents of this newsletter are for educational and informational purposes only and should not be taken as financial advice. Always do your own research or consult a licensed financial advisor before making any investment decisions.

If you like simple, straightforward breakdowns of news, then you’ll love TheCoffeeBreak.

It’s a free newsletter that summarizes key Malaysian and global news in under 3 minutes.

I read it every morning.

Check it out here: https://thecoffeebreak.co/?ref=FTRZTS

This newsletter is a summary of the live discussion between Hann Liew and Sani Hamid.

We talked about:

• The historic performances of both gold and Bitcoin

• Why they’ve increased so much in price

• And the ultimate question everyone wants to know: whether it’s too late to invest.

Listen to the full replay on:

• Spotify: https://open.spotify.com/episode/3qzC47Gnzi86GIXLagYdis?si=XuCyAOMSQ72jo_xwgRWyKA

• Apple Podcast: https://podcasts.apple.com/my/podcast/the-futurizts-podcast/id1696260841?i=1000729214678

• YouTube: https://www.youtube.com/watch?v=2jap-ePddTI

Scroll down for the QNA summary.

Since 2024, the performance of gold has been astounding.

The asset is up over 82%. 1 gram of it (which is about the size of a simcard) is now worth RM510, and a kilo of that (about the size of a chocolate bar) could afford you a condo.

In the past month, gold has been unstoppable. It jumped 12.20% and analysts believe that this uptrend may just continue.

Bitcoin, often dubbed as gold 2.0, has also been on an uptrend.

Though it has retraced in the past couple of weeks, its performance since 2024 is actually more impressive than gold – up 164%.

As of 29 September, 1 BTC is currently $112,000, which coincidentally, could also afford you a condo, albeit a slightly cheaper one.

Q1: Why are we seeing such a sudden jump for gold this month? And what happened to gold in the past 1-2 years?

Hann: In the short term, I think it’s driven by concerns around the US dollar.

If you look at the charts, gold is up 45% this year—and a lot of that is due to gold rallying, but some of it is due to the US dollar weakening.

In other words, gold has gone up in US dollar terms (+10%).

The DXY chart, a measure of the dollar’s strength, has declined by 10% since the start of the year

A key reason why this is happening: clear policy pivot from the Federal Reserve — they are talking about cutting interest rates when growth in the US is still healthy.

Inflation is still quite high (2.9% as of August). If the central bank is doing their job well, they wouldn’t be cutting rates, because there’s currently no reason to. Rate cuts depreciate the dollar in the short term.

For the longer term impact (since 2022), gold prices rose because governments are starting to diversify into gold. The reason for this is simple:

Imagine you hold majority of your money in US dollars, kept in US banks.

And today, you decided to support Palestine (or anything that is against the interest of the US government).

The government freezes your assets to punish you.

This was exactly what happened to Russia in 2022, when Putin decided to invade Ukraine.

The US and its allies froze nearly $300 billion of Russia’s foreign exchange reserves in an effort to deter the war.

Since then, some officials have proposed seizing the money and using it to defend and rebuild Ukraine.

Who would want to hold such an asset if the next day, the US can confiscate all of it because they’re unhappy?

China in the past 10 months has bought gold — they own so much gold now that they’ve tipped global gold reserves above treasury reserves.

While other countries are aggressively accumulating gold, Malaysia’s reserves has been stagnant.

Q2: Bitcoin has also been on a strong uptrend, but its movement is diverging away from gold recently. Why is this happening?

For gold, things are clear in the short term — it’s the markets reacting to the Federal Reserve’s moves. They’re cutting rates even when they should be holding or even increasing them. This depreciates the dollar.

For bitcoin however, there are many other forces in play:

• Long term adoption (think about the internet adoption in the 1990s)

• Speculative activity (there are far more traders in the market compared to gold)

What we’ve seen in the last 3-4 weeks is a breakdown of leveraged positions. Bullish traders believe that the asset will continue going up and they use leverage to maximize their profits — lots of greed and speculation.

Any slight retracement downwards could easily liquidate their active positions, forcing them to sell their BTC and push prices down further.

Q3: How much gold do you own in your portfolio? And what is the recommended percentage?

Hann: I have a little of both in my retirement portfolio for all the reasons discussed earlier.

If the US dollar loses dominance, or if government currencies can’t be trusted (because of endless printing), gold and Bitcoin helps hedge against inflation.

I keep a few percent in gold, with 2–3 times more exposure in Bitcoin. But combined, they don’t exceed 10–15% of my portfolio.

Remember: gold and Bitcoin don’t generate cash flows. They are simply expressions of a view in your portfolio. Stocks, banks, and bonds are usually tied to a single currency, which is subject to that country’s risks.

For example, in Turkey or Argentina, stock markets rose 500–600%. But because the local currencies collapsed, investors still lost money.

This is why gold and Bitcoin are good hedges.

Recommendation: Somewhere around 5% gold and 5% Bitcoin is a solid allocation.

Sani: My portfolio is the opposite of Hann’s — I hold 2–3 times more gold than Bitcoin. But both together are still under 10–15%.

I believe gold still has much more upside. The US may eventually revalue its gold reserves. The government holds around 287 million ounces of gold, currently valued at $42/oz. If revalued to today’s price ($3,750/oz), it would instantly add hundreds of billions to their balance sheet.

The only question is when. And when they do, I believe they’ll also use some of that to buy Bitcoin, giving up the dollar’s sole status as a reserve.

Q4: Why not go all-in BTC and or gold?

Hann: While I strongly believe in non-sovereign assets, I still hold traditional ones like stocks and bonds. Gold and Bitcoin are there in case governments around the world behave badly.

If you go all in, ask yourself: what if you’re wrong?

If governments suddenly make their currencies great stores of wealth, gold and Bitcoin could lose their appeal. My portfolio would still be okay, because it’s diversified.

Sani: Always sort out your retirement first. Build a balanced portfolio. Only after that should you use the extra money for high-risk, high-reward bets.

Q5: What’s the best approach to invest right now?

Hann: Fix a specific percentage for each asset within your portfolio, for example:

• 10% gold

• 10% Bitcoin

• 30% US stocks

• 30% MY stocks

• 20% EPF

Once you’ve done this, plan your future allocations according to what your portfolio needs. If you aim to have 10% in gold but currently have 0%, then you should get some exposure, no matter what the current price is.

And you don’t have to readjust your portfolio to your target overnight — that’s daunting to do. You can give yourself 3-6 months to do so and gradually rebalance whichever asset that’s stronger to whichever that’s weaker.

When the market rallies and BTC or Gold becomes overweight within your portfolio, then rebalance it back down to your target percentage.

Sani: I’m actually in gold miners for maximum leverage and diversification. You can buy it through ETFs.

And the reason why I have this view is because it gives you very good upside — if gold goes up by 10%, miners ETFs will typically go up by 2-3x, which is 20-30%.

How this works: whenever gold prices go up, whatever the miners have (ie. the stock of gold above ground), gets revalued.

For every ounce that they sell, the cost of production is $1,500-1,800/ounce. Using the current price of gold $3,750, they can easily make $1,500-2,200/ounce. And that’s only in ounces.

The margins increase because the costs don’t go up as fast. Mining has become extremely profitable recently.

Where to buy gold or Bitcoin?

Shinji: There are many options these days.

For gold:

• Versa Gold - Convenient but charges yearly fees

• Public Gold - Very high spread (10% difference)

• Maybank Gold - High spread (3.9% difference)

• TNG e-Mas - Decent spread but not Shariah

• Bursa Gold Dinar - Good spread but many fees

For Bitcoin (regulated exchanges):

• Luno

• Hata

I’m currently using Versa Gold (referral code: THEFUTURIZTS) and Luno (referral code: SSZXGK).

But if you want to hold it yourself (ie. physical or cold wallet), then you have to understand the risks.

1 KG of gold is currently RM510,000. Having even 1 of these could easily make you a target. I remember there’s a famous policitian who had 7-8 chocolate bar sized gold bars in his house, and it still wasn’t very safe.

Thanks for reading till the end!

I get it, your time is valuable and you hate sifting through the web for information. So let us do the work for you.

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The Psychology Of Money by Morgan Housel is widely considered as one of the most influential financial books of our age.

Rather than talking about raw numbers and formulas, the book focuses on habits and personality, arguing that most of our money decisions are driven by the stories we hear, not facts.

The book is over 253 pages long, and the audio summary, listed on YouTube, is about 1 hour and 43 minutes.

Full book: https://hostnezt.com/cssfiles/general/the-psychology-of-money-by-morgan-housel.pdf

While I didn’t finish the entire book, I listened to the audiobook summary a few times and found it very helpful. Unfortunately, it has been removed on YouTube.

This won’t help you get rich quick, but will teach you something more powerful: How to building a lasting relationship with money.

Allow me to share a few things I learned from the first ten chapters.

Chapter 1: No One’s Crazy.

Have you ever looked at the way someone spends money and thought, what are they thinking?

How could they:

• Earn RM2k salary and still buy a Honda Civic

• Buy lottery tickets every week

• Spend their entire RM6,000 income without saving a single cent?

It seems crazy, right?

But here’s the thing. They’re not crazy.

In their world, based on their life experiences, what they’re doing probably feels like the smartest move they’re making right now.

Once you understand this, you’ll stop judging others and look to your own financial habits.

The truth is, people don’t make decisions based on facts, they make them based on:

• Feelings

• Experiences

• And the world they grew up in.

Here’s an example. Imagine two kids born in a different time.

Michael (the first kid) was born into a rich family, where his dad’s monthly paycheck was 2-3x the annual income of average Malaysians. He lives in a 5,000 sq ft mansion, drives a Tesla at 23, and has 7 different credit cards.

Samantha (the next kid) was brought up during a recession, where her childhood was filled with whispers of their home getting repossessed by the bank, their parents struggling to put food on the table, and dad working multiple jobs just to send her to college.

Fast forward 20 years. Do you think these two people will:

• See money in the same way?

• View risk in the same way?

• Invest in the same way?

Of course not. They lived through completely different realities.

The first kid grew up from abundance and is probably more driven to take bold risks, while the second learned to protect every ringgit in her bank.

So, it’s no surprise that a money habit may seem smart to one, but completely insane to the other.

Because here’s a another hard truth Morgan tells us: You can read all the finance books in the world, but if you’ve never felt the panic of not having enough to pay rent, then you’ll never fully understand what money stress feels like.

Takeaway of Chapter 1:

No one’s crazy. We’re all just telling ourselves different stories about money, based on our surroundings and how we were brought up.

These stories come from experience, not logic.

Everyone’s financial decision makes sense to them, even if it doesn’t make sense to others.

So the next time you see someone making a “bad” financial decision, instead of asking: “Why are they so irresponsible?”, try asking: “What stories are they telling themselves?”

And when you make a mistake, rather kicking yourself in the foot, ask yourself: “What story was I believing at that time?”

Chapter 2: Luck And Risk.

Picture this.

Two people with the exact same drive and talent. They both had visionary ideas of changing the world and worked tirelessly.

One becomes a billionaire, while the other files for bankruptcy.

Why? What makes one person’s decision seem brilliant, while the other a huge mistake?

Here’s something that people hate to admit: success is never just a skill, and failure is never just a mistake.

There are two invisible forces always at work: Luck and Risk, which have a much bigger influence in our success and failure.

A powerful example of this truth comes from outside the world of money. In the book, When Breath Becomes Air, neurosurgeon Paul Kalanithi spent years training for one of the most demanding careers imaginable. 

He had:

• intellect

• work ethic

• and the compassion to become one of the best in his field.

By all measures, he was on the path to a remarkable life.

And then, at just 36, he was diagnosed with stage IV lung cancer.

Paul was a remarkable neurosurgeon, but life dealt him cancer.

Paul’s world crashed upside down almost overnight. The man who had spent his life studying how to save others now had to save himself.

No amount of discipline or brilliance could change what luck—or in this case, unluck—dealt him.

Paul poured what little time he had left into writing When Breath Becomes Air, a diary about facing death and searching for meaning in life.

But he never got to finish the final chapter.

The book was published after his death, with his wife Lucy writing the ending.

It’s one of the most moving reminders that the world is inherently unfair.

Paul’s book is one of the most heart moving non-fiction autobiography I’ve read.

Takeaway of Chapter 2:

You can do everything right, yet still fail because of a small (or big) misfortune.

Skill and hard work matter, but they’re never always the full story.

This is the same with money.

We love to believe that success comes purely from smart decisions and hustle. But luck and risk are always in the background, quietly shaping outcomes in ways we can’t fully control.

Chapter 3: Never Enough

Bernie Madoff is remembered as the man behind the largest Ponzi scheme in history. But what many forget is that before the fraud, he was already one of the most successful men on Wall Street.

Madoff founded his investment firm in 1960, and for decades, it was completely legitimate. He was a pioneer in electronic trading, chaired the NASDAQ stock exchange, and built enormous wealth for himself and his family. By the 1980s, he was already rich, respected, and admired in financial circles.

And yet, that wasn’t enough.

At some point, Madoff…

Want to read the rest of Chapter 3 and the full summary of the book?

I’ve shared them exclusively in our paid WhatsApp group:

I know it’s still a bit too early to talk about taxes, but blink once and December will be here.

For YA2025, the tax reliefs have been expanded to include:

• Dental treatment

• Sports relief for parents

• Additional relief for first time homebuyers.

I compiled a list of the notable reliefs that you shouldn’t miss and the most common questions asked. Feel free to share it among your friends and family!

1) Medical Checkups*: RM1,000

2) Vaccination*: RM1,000

3) Dental Checkups & Treatment*: RM1,000

*Applicable to self, spouse, child, or parents.

4) Lifestyle: RM2,500

• Any reading material (physical or electronic) as long as it’s not banned.

• Personal computer, smartphone, or tablet (only applies to these 3 gadgets)

• Upskilling fees or self-enhancement courses

• Internet subscription (under your own name)

5) Sports (self, spouse, child, or parents): RM1,000

• Sports equipment* (shuttlecocks, golf balls, etc.)

• Registration fees for competition

• Entry/rental fees for sports facilities

• Gym membership fees

• Sports training fees

*Sports shoes and sports clothing are sports attire. They CANNOT be claimed. ⚠️

6) EPF Contributions: RM7,000

• First RM4,000: Voluntary or mandatory contributions

• Remaining RM3,000: Life insurance premiums and/or voluntary contributions

You will hit the RM4k mandatory contribution limit if your salary exceeds RM3,030. 👌

7) First time homebuyers: Up to RM7,000

• House price RM500,000 and below: RM7,000

• House price RM500,000-RM750,0000: RM5,000

Only applies to sale and purchase agreements between 1 Jan 2025 to 31 Dec 2027.

8) PRS: RM3,000

9) Medical Insurance: RM3,000 RM4,000*

*Medical insurance has been increased from RM3,000 to RM4,000 for YA2025.

10) SSPN: RM8,000

11) Education: RM7,000

12) SOCSO: RM350

13) Per unmarried child: RM2,000-RM8,000

View the full list of tax reliefs here.

How to store receipts? Do I need to submit them when I file for tax?

You don’t need to submit them when you file taxes next year, but you must store them as proof for up to 7 years.

If you don’t have them, you could get fined RM300 to RM10,000, imprisoned or both.

Store them carefully by printing a physical copy or scanning them into your computer.

Should I buy things just for the tax relief?

No, because you’ll still be spending majority of your own money (ie. tax 10%, spend 90%). ⚠️

That said, PRS, EPF, SOCSO, and SSPN are exceptions, because they are your future money.

If I bought something out of Malaysia that falls in the tax relief bracket, can I claim it?

Yes, you can claim, but you need to convert the amount to MYR.

You can get the exchange rate from BNM's website.

Source: https://www.yycadvisors.com/claim-lifestyle-relief-purchase-laptop-in-overseas-for-child.html

Is there a specific requirement for dental claims?

Dental claims only apply to treatment and checkup (ie. scaling, tooth extraction, etc.).

Cosmetic purposes (ie. teeth restoration, replacement, crowning, root canal) are not eligible for relief.

Source: https://www.yycadvisors.com/expense-for-parents-dental-x-ray.html

If I already claimed medical expenses from the insurance company, can I still claim tax relief?

No. You cannot claim anymore because you did not pay the expenses on your own.

Source: https://www.yycadvisors.com/if-medical-expenses-claimed-from-insurance-still-can-claim-tax-relief.html

SSPN RM8,000 is per household, not per person, correct?

Yes. Starting YA 2025, only one parent can claim the tax relief for SSPN, up to RM8,000, even if both parents deposit into their accounts.

Source: https://www.yycadvisors.com/SSPN-account-for-children.html

Are Pilates and ClassPass eligible for sports relief?

For Pilates, no, because it is not listed in the Sports Development Act 1997: https://www.yycadvisors.com/pilates-class-monthly-package.html

But for ClassPasses, it depends.

Hannah Yeoh said that the payment for sports training and classes are eligible for tax relief up to RM1,000, but it must be conducted by a coach, club, or company registered with the sports commissioner.

So, as long as your sport is listed in the Sports Development Act 1997 and the training is conducted by a registered individual, you can claim them.

For swimming, can I claim goggles for tax relief?

Yes, but only goggles are eligible for claiming lifestyle relief under sports equipment.

Swimming suit and swimming cap are not eligible.

Source: https://www.yycadvisors.com/lifestyle-relief-for-swimming-suit-cap-goggles.html

Can I claim Udemy courses for upskilling?

According to PWC's tax relief list, yes, you can claim udemy courses under lifestyle (up to RM2,500), because it applies to "fees for any other upskilling or self-enhancement courses".

What is the difference between tax relief and tax rebate?

Tax Relief = Lowers your taxable income (you get taxed on a smaller amount).

Tax Rebate = Direct deduction from your tax bill (you pay less, or even get a refund).

To claim tax relief for computer, do I have to purchase a whole set (ie. CPU, monitor, mouse & keyboard)?

Yes, you have to purchase the whole set to be considered as purchasing a computer, then only it can qualify for lifestyle relief.

Purchasing a keyboard on its own is not eligible for relief.

Source: https://www.yycadvisors.com/claim-lifestyle-relief-for-computer-accessories.html

If I registered for running sports like marathon, can I claim under sports relief?

If the organiser is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997, then the registration fee will be eligible for lifestyle tax relief.

Source: https://www.yycadvisors.com/lifestyle-relief-for-marathon-registration-fee.html

Does postpaid plan fall under internet subscription?

If the telco plan subscription only includes mobile data service, then yes, it is eligible for lifestyle relief.

But if it includes mobile data service and talk time, then it is not eligible for lifestyle relief because it is not purely an internet subscription anymore.

Source: https://www.yycadvisors.com/telco-plan-lifestyle-relief.html#:~:text=A%3A%20If%20the%20telco%20plan,purely%20an%20internet%20subscription%20anymore.

I went to a psychiatrist for mental health examination. Can I claim tax relief on the expenses incurred?

Yes, you are eligible to claim tax relief of up to RM1,000 for mental health examinations or consultations provided by a psychiatrist, registered clinical psychologist, or registered counsellor.

Source: https://www.yycadvisors.com/tax-relief-for-mental-health-examination.html

Can I claim tax relief for purchasing a dental floss or an electric toothbrush?

No, you are not eligible to claim tax relief for the above purchases.

However, you are eligible to claim tax relief for expenses incurred for dental examinations and treatments from dental practitioners registered with the Malaysian Dental Council.

Source: https://www.yycadvisors.com/dental-water-flosser-and-electric-toothbrush.html

If I have paid gym entrance fee for each visit instead of a monthly fee, is the entrance fee eligible to claim tax relief?

Yes, you may claim it under the additional lifestyle tax relief up to RM1,000 as this is a payment of entrance fees to sports facility.

Source: https://www.yycadvisors.com/gym-entrance-fee-lifestyle-tax-relief-malaysia.html

Click here for the full list of QNAs (use CTRL + F to find your questions): https://www.yycadvisors.com/tax-knowledge-english.html

Thanks for reading!

Disclaimer: The information shared in this newsletter is for general reference only. While I strive to provide accurate and updated details, there may be errors or changes in official policies. Please double-check with official government sources or consult a qualified tax professional before making any decisions.

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Everyone has a different way of managing their money.

So it’s difficult for me to tell you a “one size fits all” budget that is guaranteed to make you money, because I don’t know your:

• age

• life goals

• personality

• retirement target

• wants and needs

You may say “I want RM3 million to retire” or “I need a landed property and I’ll be happy,” while some may say “I just want to have enough money everyday without worrying about putting food on the table.”

Each person’s goals and aspirations are very different, so a budget that works well for me, may not work for you.

Therefore, it’s important to take whatever I’m sharing within this article with a grain of salt and figure out your own best way to budget your money.

One big tip to make sure that your budget secures your future is by setting a specific percentage of your income to set aside (ie. 10%, 20% or more) during the start of the month.

The rest, is entirely up to you on how you want to allocate it.

The 50-30-20 Budgeting Rule as a starting point.

This rule is simple and covers all the fundamentals. It allows you to save for the future while living in the moment:

• 50% of income for needs

• 30% for wants

• 20% for savings

I used to follow this budgeting technique with a passion, but as months passed, I found this method quite rigid because you’d have to clearly define your wants and needs, which isn’t always straightforward.

For instance, when shopping for groceries, salmon could be considered as a want, but what about other stuff like beef or butter?

Usually, beef is much more expensive compared to chicken — and if groceries are a need, do you just stick to the cheapest?

Also, when it comes to butter, is it “right” to treat yourself to a higher quality butter or should you just buy the cheapest?

This is where the 50-30-20 rule gets quite confusing, and rightfully so, because everyone’s wants and needs cannot be clearly segregated. It’s a thin line — some things may be a necessity to you, while a want to others.

Because of this, I just save 15-20% of my pay and spend the rest.

When my salary comes in, I immediately send part of it to a place I won’t see to generate profit (ie. cash apps, ASB/ASM).

Any remainder during the end of the month gets carried forward to the next month, and I repeat the same process.

Several guidelines I follow on spending on specific categories

1) Transport - not more than 20% of my income.

There is a general rule of thumb saying that your monthly car instalments should not exceed 20% of your pay.

I take this a step further and ensure that this entire category, which covers fuel, toll, parking, maintenance, car insurance, etc., remains below 20% of my income.

Very often, owning a car is not only about paying the monthly instalments.

For the car loan tenure, I would typically choose a 7 year tenure — to balance between paying too much monthly instalment and interest.

2) Housing and utilities - not more than 30% of my income.

The general rule of thumb states that your rent/mortgage should not exceed 30% of your salary.

Again, I take this a step further by making sure that all my housing needs (ie. electricity, wifi, etc.) are below 30% of my income.

I’m currently renting a 715 sq ft apartment at RM1,500 per month and use the PEWWA checklist to include other necessities:

• P arking (RM120)

• E lectricity (RM280-300)

• W ifi (RM105)

• W ater (RM10)

• A ircond servicing (RM20)

Including these 5 things, the total monthly cost of my housing adds up to RM2,035. I round it up to RM2,100 just to have a comfortable buffer.

3) Use savings pots to save towards a goal and control your spending.

One method that I use to control my spending is through Savings Pots in digital banks.

I create a new pot every month and store most of the month’s spending there, only withdrawing a fixed sum every week.

When my card doesn’t go through, that’s a signal that I’ve spent too much for the week.

To control things even further, I only withdraw RM250-300 at once from my savings pots.

So, if there’s a transaction more than this value, it will prompt me to think twice.

If I really need it, I would have to withdraw the additional sum from that month’s savings pot.

To me, this method removes the need to keep track of every single cent you spend.

You also won’t see the “full sum” in your main account, which some people may be tempted to splurge.

All four digital banks (AEON Bank, GXBank, Rize, and Boost) support savings pots, but GX and AEON are the most user-friendly.

But what if the app that supports savings pots offers very low earnings (ie. GXBank 2% pa)?

In that case, I only store a small sum there, but for other digital banks (Rize, AEON, Boost), their profit rate is 3-3.08% pa (which is ok lah).

For context, I would sacrifice 0.50-1% profit to use an app with lower earnings but still supports savings pots.

It helps me organize my short term savings better, rather than lumping everything into one giant sum and remembering how much is for what.

Thanks for reading till the end!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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“Tax the rich,” the Rakyat says.

After the SST expansion in June, which saw more everyday items like salmon, avocados, imported fruits, and yogurt being taxed, many Malaysians hoped the government would shift focus to taxing the wealthy, to ease the load on regular folks. But that didn’t quite happen.

The SST expansion is just one part of the government’s broader effort to reform Malaysia’s tax system under the MADANI framework. Other changes include removing diesel subsidies, introducing the Low Value Goods Tax (LVGT) for online purchases, and proposing to cut petrol subsidies for the top 15% of income earners.

These moves, while important for long-term fiscal stability, have caused public frustration — especially after the government recently scrapped plans for the long-awaited luxury tax.

Initially tabled by Anwar himself in 2023, the tax was meant to slap a 5-10% charge on cars above RM200,000, watches over RM20,000, jewelry beyond RM10,000, and other non-essential high-end goods.

It was scheduled to take effect on 1 May 2024 and expected to raise RM700 million annually.

However, after multiple delays, the government has decided to drop the idea completely.

Their reasoning? The expanded SST already taxes luxury goods, just not under the "luxury" label. Depending on how the item is classified, it still gets hit with a 5–10% tax.

The government also cited practical challenges. Setting up a new tax system is complicated, and applying both SST and a luxury tax could mean some goods are taxed twice, which would be unfair and confusing.

Needless to say, the decision was not taken lightly by citizens.

Many Malaysians took to social media, voicing anger that the administration is protecting the rich. Some accused the government of recycling ideas from previous administrations and ignoring public frustration.

Businesses, on the other hand, breathed a sigh of relief.

The luxury tax faced strong opposition from industry players, especially those in the jewelry and luxury retail sectors. Concerns included a low pricing threshold (the price point at which the tax would kick in) that could hurt local businesses and SMEs.

There were also fears that the tax could discourage high-value consumer spending and deter foreign tourists, particularly those drawn to Malaysia for luxury shopping.

But here’s something that the administration did not tell you: it’s tough to tax the rich.

Unlike the average person, wealthy individuals can move their money around easily. Capital (ie. wealth, savings, and investments) is highly mobile. This isn’t just a Malaysian issue; it’s a global one.

Let’s say we place high taxes on luxury goods. Tourists might just stop coming to Malaysia and spend their money elsewhere like Singapore, Thailand, or Dubai. That’s a big loss for our local economy.

On the other hand, it’s a lot harder for everyday people to move. We still need to buy groceries, pay utility bills, and go to work. That’s why it’s “easier” to tax the average citizen, because we don’t have the same flexibility.

Taxing the rich also comes with longer-term risks:

• It may reduce investment and entrepreneurship, which affects job creation and economic growth.

• Wealthy individuals could end up being taxed multiple times through different policies, lowering their real returns and pushing them to invest abroad.

• Countries are in constant competition to attract and keep wealthy people and investors. If the tax rate is too high, capital will simply leave — and it’s not easy to bring back.

That’s the harsh reality of capitalism.

So, what does this mean for you?

You won't see a separate "luxury tax" at checkout, but expect slightly higher prices on premium goods due to adjusted SST.

Tourists and high-end shoppers may not be discouraged by a separate tax line but should expect slightly higher prices on select goods.

Something else you need to know: TNB’s new pricing scheme allows you to save 5-7% on your electricity bills.

The Time of Use (ToU) pricing scheme is part of TNB’s tariff restructuring.

By opting in, you’ll receive lower rates during off-peak hours, but slightly higher rates during peak hours. For public holidays and weekends, you’ll be charged at off-peak rates, so there’s 48 hours to take advantage of lower rates.

Currently, most domestic users are charged under the General Tariff Rate

Knowing this pricing scheme, you can adjust your habits to reduce your bills:

• On aircond only after 10 pm

• Wash clothes after 10 pm (or before going to work in the morning)

• Prep meals during weekends or at night

• Charge your EV vehicles after 10 pm

The whole idea is to shift high electricity consumption to off-peak hours (10 pm - 2 pm).

How much can I possibly save?

Assuming your electricity usage is 500 kWh, you can save up to 7% on your bills by using electricity off-peak.

For the maximum savings, you’ll have to use 90% during off-peak hours.

Calculated using TNB’s tariff calculator. Does not include rebates and incentives.

How do I apply for this scheme?

Head over to TNB’s website and download the ToU tariff form.

Fill in the details and prepare a copy of your myKad, then email them to tnbtou@tnb.com.my

THINGS TO NOTE BEFORE SWITCHING ⚠️

• There’s a one-off Stamp Duty charge of RM10. It will be reflected in the following month’s bill.

• You’ll need to have a smart meter installed. Login to the TNB portal to see your account type.

• Use the TNB Tariff Calculator to figure out how much you can save. Only switch if it’s cheaper.

If you’re not home for most of the day, you may as well switch to the new pricing scheme because most of your electricity usage will be at night (off-peak) anyway.

Thanks for reading till the end!

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IN 1971, Richard Nixon, the then president of the United States, ended the dollar’s convertibility to gold.

He outlined three main goals:

• Lowering the unemployment rate

• Stemming the rise in inflation

• Protecting the US dollar from international money speculators

Little did he know, this move would seed the beginning of an era of inflation that nobody has ever seen.

Before 1971, the value of the US dollar was tied to gold at a fixed rate of $35 per ounce.

This system was established under the Bretton Woods Agreement of 1944, which aimed to create a stable international monetary system after World War II.

Under this design, other countries would peg their currencies to the US dollar, while the dollar itself was backed by gold.

This meant that foreign governments could exchange dollars for gold at any time, which gave the dollar strong credibility as the world’s reserve currency.

Now, over 50 years after Nixon ended the dollar’s convertibility, gold has shot up by more than 9,500%, showing the true extent of the currency’s devaluation.

With gold now priced at around $3,300 per ounce, the US dollar has effectively depreciated by about 8.5% per year when measured against gold.

This is a far cry from the “official inflation” figures that governments like to report. And for Malaysia, the situation is either just as bad or even worse when it comes to the ringgit.

Of course, measuring inflation using gold isn’t entirely fair, because gold itself can fluctuate. But it gives a much clearer picture of how much currencies have truly lost value against hard assets over the years.

This is exactly why I invest in both Bitcoin and gold — to protect my portfolio from “stupid” governments that keep printing money and devaluing their currencies.

My strategy for Bitcoin and Gold

At any given time, I aim to keep at least 15–20% of my retirement portfolio in Bitcoin and gold.

Right now, my exact allocation is 14% in Bitcoin (BTC) and 6% in gold. I try to maintain these percentages over time by:

• Converting gains into other assets whenever I become overexposed (for example, if Bitcoin exceeds 20%).

• Buying more Bitcoin or gold whenever the allocation drops below my target range.

This is how my retirement portfolio looks like, including EPF

This strategy ensures that I’m not too fazed by overall market movements and focus on my target allocations.

You can follow a similar approach by:

• Fixing a percentage for each asset in your portfolio (for example, 20% US stocks, 15% Malaysian stocks, 10% Bitcoin, etc.).

• Gradually adjusting your portfolio to match those target allocations over time.

• Rebalancing whenever necessary to avoid overexposure or underexposure to a particular asset.

Therefore, if you’ve done a piechart of your portfolio and found that 70-80% of it is in EPF, that’s a signal that you’re overexposed in “safe” assets, and should be focusing on risky ones (ie. BTC, Gold, stocks and ETFs).

How about Dollar Cost Averaging (DCA)?

DCA is still the best strategy if you’re just beginning to dip your toes into both assets and if you don’t have much capital to commit.

In fact, I regularly DCA into US ETFs (specifically QQQ) and aim to increase it to ~25% of my portfolio. Only then, will I start to regularly buy Bitcoin and gold.

But Bitcoin and gold are at all time highs now…

Let’s say you’re the unluckiest Bitcoin investor over the past 5 years.

Regardless of all the advice out there about DCA or consistent financial habits, you only buy Bitcoin at its highest price every single year.

Even with such terrible timing, if you had simply held onto your Bitcoin, you would have more than doubled your capital in these 5 years.

If even the unluckiest investor can still make a 2x profit, it says a lot about how pointless it is to try timing the market perfectly.

So stop speculating, and start allocating.

Where and how to invest in BTC and gold?

I’m using Luno to invest in Bitcoin.

• Start from RM1

• Regulated by the Securities Commission

• Shariah-compliant (Bitcoin)

• Deposit instantly using TNG e-Wallet or banking methods

• Withdraw in 2-3 business days

For gold, I’m using Versa Gold.

• Shariah compliant

• Relatively low fees (0.33% per year)

• Start from RM100

• Backed by physical gold (min. 95% of the fund)

Versa Gold is not the option with the lowest fees, but because I’m already a regular user of Versa, it’s very convenient for me to switch my funds (from Versa Cash to Versa Gold) in the app.

Thanks for reading till the end!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

Thanks for reading till the end!

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Last Monday (July 7), Donald Trump announced a 25% tariff on all Malaysian products entering the US, effective August 1.

The letter, detailing to PM Anwar, sought to escalate the Malaysia-US trade relations, which Trump previously agreed to lower Malaysia’s tariffs down to a baseline of 10% while exempting semiconductors.

The reason for the “new” tariffs, according to Trump, is to “eliminate the Trade Deficit disparity” the US has with Malaysia.

At the same time, Trump threatened Malaysia not to retaliate, saying that “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge.”

In the same week, Bank Negara Malaysia (BNM) lowered the Overnight Policy Rate (OPR) by 0.25%, citing “continued expansion in global growth, supported by sustained consumer spending and to some extent, front-loading activities.”

Despite solid growth, BNM wants to cushion Malaysia from global trade slowdown (Trump tariffs) and geopolitical uncertainty (Ukraine and Middle East).

Rate cuts benefit borrowers because loans become cheaper. If you have a home loan, your bank will likely reduce the monthly repayments soon.

A RM500k housing loan might see a reduction of RM60–150, depending on loan terms.

On Sunday, I invited Investment Analyst Azharuddin to breakdown Trump’s tariffs, BNM’s rate cut, and his current stock watchlist.

Listen to the replay on:

• Spotify: https://open.spotify.com/episode/3UKMflVe89pL4LUX3FuVDV?si=QfF7cltLQRyvcGTRsnN47g

• YouTube: https://www.youtube.com/watch?v=dTCaL3krkTM

• Apple Podcast: https://podcasts.apple.com/my/podcast/the-futurizts-podcast/id1696260841?i=1000717270982

Scroll down for a summary of the session.

Q1: What are tariffs? And what does Trump aim to do with them?

Tariffs are basically taxes on goods that are brought into a country. You can think of them like an “import duty,” used to protect local businesses by making foreign products more expensive.

In Malaysia, for example, we place heavy tariffs on imported cars. These include excise duty, import duty, and sales tax. The amount depends on whether the car is fully built (CBU) or assembled locally (CKD).

Now, what Trump is doing with tariffs is quite unusual. He’s applying them across the board—whether you’re a close ally or a rival of the US, you're still hit by the tariffs.

From his point of view, the global trade system is unfair. He believes countries like China and Japan are benefiting too much by constantly selling goods to the US, which has led to a big trade deficit for America.

Over the years, many US companies have moved their factories overseas to save on labor costs. Take iPhones for example, their parts are sourced globally, and assembly happens in China, India, and Vietnam.

Trump wants to reverse that. His goal is to bring manufacturing jobs back to the US, boost local production, and “Make America Wealthy Again.” He’s using tariffs as a way to punish countries he believes are “taking advantage” of the US.

Q2: What impact will Trump’s tariffs have on the Malaysian economy and stock market?

We won’t see the full impact right away. The 25% tariffs are set to take effect on August 1, so the real effects will start showing after that.

Right now, the US is our third-largest trading partner, making up about 11% of Malaysia’s total exports. Out of that 11%, around 60% are electronic products—mainly semiconductors. So if the US doesn’t exempt this category, it could be a major hit to our tech sector.

In fact, the Penang Semiconductor Association has warned that the industry can’t survive with such high tariffs.

That said, Malaysia has done a good job in recent years to diversify our exports. We’ve started trading more with our ASEAN neighbors like Indonesia and Thailand, which helps reduce our reliance on the US.

As for the stock market, it often moves independently from the real economy. Look at the US. Their market is hitting all-time highs even with these tariffs in play.

The US market is currently at an all-time high.

In Malaysia, although the main index hasn’t fully recovered, some individual stocks have reached new highs.

So, from an investor's perspective, it seems like the market is saying, "Let’s move on." Many believe the US might end up softening the tariff rate anyway, and countries like Malaysia will adjust.

Q3: How does your current stock list look?

Right now, I’m focusing on sectors that aren’t too exposed to global risks like banks, consumer staples, defensive stocks, commodities, and plantations. These are more stable and less likely to be affected by Trump’s tariffs.

When it comes to stock-picking, stick with what you know. I’ve worked in the banking sector for years as an investment analyst, so I’m naturally confident in looking at balance sheets and analyzing stocks.

Take Maybank, for instance. It’s proven itself through multiple crises and still paid 5–7% dividends annually over the last 10 years, regardless of how the broader market performed.

Maybank dividend history

Trump’s tariffs aren’t expected to hit the local banking sector too hard because Malaysia’s economy is still relatively strong. That’s also why Bank Negara decided to cut the OPR—to support growth and keep inflation under control.

It’s also worth noting that about 60% of our GDP comes from the services sector, which is mostly driven by domestic activity. That adds another layer of stability.

In uncertain times, it makes sense to stick with giants like Maybank because they have a strong balance sheet and long track record of consistency.

Another stock I really like is Spritzer. I bought into it 1–2 years ago, and the growth has been amazing. I think they’ve done a great job positioning themselves as a premium brand, and you can see it in the numbers. Their sales have soared.

One reason for that is today’s younger consumers are more open to supporting local brands that innovate and adapt. That’s why Spritzer stands out.

These are the kinds of companies you want to hold long term—local, growing, and not too affected by global drama.

Spritzer’s share price has more than doubled in the past 2 years.

But for firms that have stuck to their old ways (ie. Nestle, Berjaya Food Starbucks), the opposite becomes true for them. NESTLE and BJFOOD are currently on a downtrading wave because consumers have opted for other cheaper alternatives.

For Starbucks, the boycott wave is long over, but I think that they’re still in quite a bit of denial. The reality is that there are so many more cheaper coffee chains (ie. ZUS, Gigi) that provide the same (or better) quality with an affordable price.

NESTLE and BJFOOD are on a downtrend because of consumers opting for cheaper alternatives.

Another gem I like is Innoprise, a platation stock. They pay dividends four times a year, with a yield of >8%. That’s higher than what you’d get from ASB or EPF. For a dividend investor, that’s hard to beat.

Innoprise dividend history

Q4: What’s one important thing that stock investors should know about?

Ask yourself: why do I want to invest in stocks? Can I take the risks? Will I panic-sell when markets are volatile?

For me, choosing the stock market is easy because:

• I’ve worked in the stock market for decades

• Whenever there’s a crisis or black swan event (ie. Covid, inflation surge, US rate hikes, Iran-Israel war, Trump’s tariffs), stocks will dip initially, sure, but they always comeback, because companies will always find ways to adapt and improve their profitability.

I actually love market crashes so much because there are so many things to buy at a discount. This is the approach that you should have.

But it all starts with learning. Understand what the stock market really is. Know the difference between a stock and the actual company. Study what intrinsic value means.

Take the time to build your own investing approach. And when you believe in a stock, hold on to it unless something changes fundamentally. Don’t let short-term noise shake your confidence.

If you want to learn more about stocks, understand balance sheets, and avoid fake tips or hype, join Azha’s talk on 26 July!​

✅ Learn A 7-Step Method to Pick Stocks Like Analysts – Without using fancy tools or paid apps.

​✅ Analyze Real Bursa Companies – Maybank, CIMB, Gamuda, and more.

​✅ Read Financial Statements with Confidence – Know what defines a successful company and what doesn't.

​✅ Avoid Common Traps – Overhyped stocks (ie. SERBADK), weak industries (ie. TOPGLOV), and risky balance sheets.

​✅ Build Your Own Stocklist – Leave with an actual list of stocks you’ve analyzed.

​💡 Bonus: High-Dividend Strategy – RHB, Innoprise, Kerjaya Prospek, and others.

Event link: https://lu.ma/6l9725r2

Speaker profile: Azharuddin is a seasoned capital markets professional with over two decades of experience across the financial and corporate sectors. He has spent a significant part of his career as Head of Research, where he led both equity and macroeconomic research teams in several prominent investment banks. In this role, he provided in-depth market insights, guided institutional investment strategies, and regularly briefed top fund managers, government-linked investment companies (GLICs), and multinational clients.

DISCLAIMER: The thoughts shared in the session are solely that of the speaker and should not be considered as financial advice. This summary does not fully encapsulate the things shared by Azha.

On April 2, Donald Trump shocked the world by announcing sweeping tariffs on nearly every country.

He claimed that foreign nations have “looted, pillaged, raped, and plundered” America for too long. According to him, these steep tariffs would “make America wealthy again” by bringing back industrialization.

The main argument? The U.S. has a large trade deficit with other nations, and he wanted to narrow the gap.

Malaysia was slapped with a 24% reciprocal tariff by the White House. While that sounds high, it’s actually lower than what a few of our neighbors received — Vietnam (46%), Cambodia (49%), Thailand (36%).

Markets didn’t take it well. The S&P 500 dropped by 14.11% in the week following the announcement. Panic spread, with many predicting a US recession that could drag down the rest of the world.

The S&P plunged 14.11% in the wake of Trump’s announced tariffs

Many news sources citing economists and analysts predict a recession for the US

But just 8 days later, Trump granted a 90-day pause for most countries (except China), saying he was open to negotiating.

Markets bounced back slightly.

Then, about two weeks later, Trump also granted a 90-day pause for China, effectively reversing most of the major tariffs he had just announced. What followed was a strong rally, and the S&P fully recovered its earlier losses.

The S&P breached a new all time high this week.

Now, the 90-day freeze is set to expire on July 9, and uncertainty is back.

The Trump administration is trying to revamp global trade, but it’s unclear where things are heading.

Economists warn that if the original April 2 tariffs return in full, it could bring back inflation, hurt smaller businesses, and spark another market crash.

In the meantime, Trump has made new trade deals with countries like China, the UK, and Vietnam. But the details of other agreements are still unclear.

Trump said on Friday that the US would start informing countries what tariffs they’ll face. He also confirmed he doesn’t plan to extend the July 9 deadline.

So why is the market at an all-time high?

More tariffs could definitely spark another wave of volatility, but here’s the thing: investors are getting used to the drama.

This is “tariff fatigue”.

Most don’t believe Trump will follow through on his threats. They expect more delays, more negotiation, more kicking the can down the road.

Basically, markets think Trump is bluffing.

“I should’ve gone all in on April 2.”

Sure. But how would you have known he’d reverse course and grant a 90-day pause? The man says and tweets whatever pops into his head.

In fact, on April 10, he doubled down on the China tariffs, claiming they showed a “lack of respect.”

Things could have gone very differently if he hadn’t paused the tariffs. The market might have kept falling, possibly to pre-COVID levels.

It’s all guesswork. No one can predict markets with 100% certainty.

But if there’s one thing history tells us — it’s this:

Regardless of the crises, the US market has recovered from all of the shocks.

So, how do you deal with the uncertainty?

By dollar cost averaging.

This is what I’ve been doing since the tariffs were first announced.

Since April, I spread my US investments across 6-12 months, DCA-ing monthly

Instead of stock picking, I invest in Exchange Traded Funds (ETFs) that track the S&P 500, which represents the performance of the top 500 U.S. companies.

My thinking is this: Why have one company working for you when you can have 100 or even 500 of the most productive companies working to generate your returns?

There are many ETFs that track the S&P, and you can buy/sell them just like how you acquire a regular stock during trading hours.

Some popular ones include:

• VOO (Vanguard S&P 500): Tracks the S&P 500, giving exposure to 500 of the largest US companies—ideal for broad, stable growth.

• VTI (Total U.S. Market): Covers the entire US stock market, including large, mid, and small-cap companies, offering diversification across all sectors.

• QQQ (Top 100 tech): Tracks the Nasdaq-100, focused on the 100 largest non-financial companies. Mostly tech-heavy, offering strong growth but higher volatility.

• VGT (Tech-focused): Targets US tech companies, including software, hardware, and IT services. Ideal for investors bullish on long-term tech innovation.

I’ve been holding QQQ and VGT for over a year, and it’s been one of my best financial decisions so far.

QQQ (+32.98% profit) and VGT (+20.18%)

But there are risks.

A weakening dollar could eat into your returns, so it doesn’t make sense to go all-in on the US market.

We don’t know if the strong uptrend will continue, especially as the world gradually shifts away from the dollar.

Since January, the dollar has declined by 5.47%

What platforms can I use to invest in ETFs?

You can use regulated brokers like M+ Global, MooMoo, Rakuten, and Webull.

All of them offer access to ETFs and other global assets. Their fees are pretty similar (except for M+ Global), so if you already have one, there’s not much reason to switch, unless you’re eyeing their welcome rewards.

I personally use Rakuten and prefer sticking to one platform. Managing multiple apps is too much of a hassle to me.

If you’re new and haven’t signed up yet, feel free to use my referral code: https://www.rakutentrade.my/device/accountopening?referralcode=43fabDSZMG&mode=web

^ You’ll get RM10 in Rakuten Points to offset your brokerage fees.

That’s all for this week’s newsletter!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

Thanks for reading till the end!

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I conducted an AMA session on Instagram on Sunday.

Over 50 people tuned in live, and we had some solid back-and-forth conversations on a wide range of topics: Trump’s tariffs, medical cards, gold & Bitcoin, financial habits, and more.

This newsletter sums up a few of the key questions that came up during the session, but it barely scratches the surface of everything we covered.

As always, I highly recommend watching or listening to the replay:

• YouTube: https://www.youtube.com/watch?v=tfBnfBWa87k

• Spotify: https://open.spotify.com/episode/64wBUsQXrXcxNCaWJGOwe5?si=BP81oq_mQXOjJPq74vJb3Q

• Apple Podcast: https://podcasts.apple.com/my/podcast/the-futurizts-podcast/id1696260841?i=1000715145059

Q1: If you had to choose between Bank Stocks or REITs, which would you prefer?

Bank stocks, without a doubt.

They have a strong track record of paying dividends and are often seen as more “stable” compared to other stocks. To clarify, this doesn’t mean they’re risk-free—bank stocks can still fall—but their drops are usually not as steep as others.

Banks tend to do well when the economy is strong, and fall when there’s a downturn or recession. Unlike growth stocks that aim for big returns or defensive stocks that stay steady, banks usually move in a slow upward trend, bouncing between highs and lows over time.

Maybank has oscillated between RM7 to RM11 in the past decade.

Banks are also extremely consistent in paying dividends.

Take Maybank as an example. Over the past 10 years, its dividend yield has stayed between 5% to 7% per year—even during the COVID-19 crisis, it stayed above 5%.

Even during the covid pandemic, Maybank managed to maintain its payout above 5%

Fund fact: Four of EPF’s top five local stock holdings belong to banks—Maybank, Public Bank, CIMB, and RHB.

Q2: What is one Financial Habit that has made you who you are today?

For me, it’s the habit of “paying myself first and last.”

I know it sounds cliché—everyone talks about it—but that’s because it really works.

By setting money aside at the start of the month, you give yourself more options. You’ll gradually build an emergency fund, and eventually have enough to start investing and growing your money.

So, if you find it hard to save, try this next month:

• As soon as you get paid, transfer 10–20% (or any amount you’re comfortable with) into a separate bank account or cash app.

• Then, at the end of the month, carry forward whatever’s left to the next month.

That’s it—just repeat. I like to think that I earn 10-20% less and budget my expenses accordingly. Many people do it the other way around, which could be why some struggle to save.

This method works well especially if you tend to spend what you see. And over time, those savings will add up more than you expect.

Pay yourself first, then carry forward any leftovers to the next month.

Q3: How much equities (ie. stocks) should I allocate in my portfolio if I’m 28 years old?

A simple way to figure it out is by using the Rule of 100. You take 100 and deduct it with your age—that’s the percentage of risky assets (ie. stocks, crypto, etc.) that you should allocate for your retirement.

Since you’re 28, your portfolio should be about 70% invested in risky assets such as:

• Gold

• Bitcoin

• US Stocks & ETFs

• Malaysian Stocks

• Aggressive Unit Trusts

This is to ensure that you’ll generate a healthy return (9-11% pa), which is crucial for a more comfortable retirement.

The exact breakdown doesn’t matter as much. What’s more important is to start investing early so you can grow your money over time.

Q4: Gold and Bitcoin are at all-time highs. Still a good opportunity to buy?

Gold and BTC are rallying due to several reasons:

• Geopolitical tensions have never been this high. At least for our era.

• Central banks have reduced interest rates. This makes borrowing cheaper, causing more money to flow in the economy.

• Lost of confidence in the dollar. Looking at how Trump played the world with its tariffs and interjected itself between the Israel-Iran war, investors are beginning to doubt the capability of the US government to lead.

• China, France, Russia, and India are aggressively accumulating gold. This is perhaps the most important factor to gold’s rally.

It’s ALWAYS a good time to buy if you’re underexposed.

Hann (the advisor of The Futurizts) has frequently told people this: stop speculating, start allocating.

Rather than waiting for prices to drop, you should be asking yourself how much you plan to allocate in these assets and begin investing as soon as possible.

Here’s an example:

Imagine you’re the unluckiest Bitcoin investor. 

In the past 6 years, you bought at the highest price each year.

• Dec 2020 - $28,900 (You bought RM1,000)

• Nov 2021 - $67,500 (You bought RM1,000)

...and so on.

Your total capital over these years is RM6,000.

If you held onto the asset, you would’ve doubled your capital in those 6 years (+107%), which works out to a compounded annual return of 31.83%.

If even the worst investor can make a profit, it explains a lot about attempting to time the market for the best opportunity to buy.

Q5: How much is too much to pay for medical cards?

I’ll be using myself as a reference.

For a 28 y/o male, you really shouldn’t be paying more than RM150-200 per month. Generali, FWD, Kaotim, and eTiqa medical cards (subscribed online) cost between RM50-120, and their coverage can go above RM1 million, cashless.

Kaotim Medikad (RM50-75/month for a 28 y/o)

• RM1.1 mil annual limit

• RM200 room and board

• Cashless admission

• No lifetime limit

Link: https://medikad.kaotim.my/getquote

Etiqa OneMedical (RM80-90/month for a 28 y/o)

• RM150,000 annual coverage

• RM360 for room and board

• Cashless admission

• No deductibles

Link: https://edp.etiqa.com/edp/life/onemedical/insurance/quotation

FWD i-Med (RM60-70/month for a 28 y/o)

• RM90,000 annual coverage

• RM250 room and board

• Cashless admission

• No deductibles

Link: https://www.fwd.com.my/en/medical-insurance-takaful/i-med/

AXA Affin SmartCare Optimum Plus (RM80-90/month for a 30 y/o)

• RM1.1 million annual coverage

• RM180 room and board

• Cashless admission

• No deductibles

Link: https://www.generali.com.my/medical-health/smartcare-optimum-plus

^ I am not sponsored by any of the providers above.

Very often, insurance becomes more expensive because of the “add-ons” that you’ve subscribed to, most notably “Investment Linked Plans.”

In most cases, these plans don’t keep up with inflation, so you’re effectively paying for an investment product that loses you money overtime.

Hann puts this perfectly: Buy insurance for protection. Not investment. You don’t use a refrigerator to cool down your house.

Q6: How are you dealing with the SST increase? Everything will increase right?

Not everything will increase—but many things will. A better way to put it: items affected by the SST hike will see an increase.

Here’s a glimpse of what’s being taxed under the new SST rules:

• Premium fish like salmon and tuna

• Preserved meats (beef balls, ham, etc.)

• Shellfish (scallops, oysters, octopus)

• Imported fruits (except apples and oranges)

• Yogurt

• Premium salts

(Not the full list)

Also, SST covers service tax—which now affects commercial rentals above RM1 million/year. This means many shoplots in malls will likely raise prices to offset the 8% service tax.

How I’m dealing with the SST hike:

Substitute where possible: I’m cutting back on imported items and buying more local produce. It’s not the time to be overly picky.

Stock up in advance: Like how Americans stocked up before Trump’s tariffs—I’m building up inventory of frozen or shelf-stable goods (like salmon or premium meats) before prices go up. Of course, this doesn’t apply to perishables like fresh fruits or veggies.

Budget a little extra: I’m adding a 3–5% buffer to my monthly spending. This helps me absorb price increases without stress—and saves me from being caught off guard.

Thanks for reading till the end!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

Watch or listen to the full session:

YouTube: https://www.youtube.com/watch?v=tfBnfBWa87k

Spotify: https://open.spotify.com/episode/64wBUsQXrXcxNCaWJGOwe5?si=BP81oq_mQXOjJPq74vJb3Q

Apple Podcast: https://podcasts.apple.com/my/podcast/the-futurizts-podcast/id1696260841?i=1000715145059

Learned something? Then join our WhatsApp group for more!

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On Monday (June 9), the government announced the revision on SST to boost revenue and strengthen the country’s finances.

To ensure that the majority of citizens remain unaffected, the administration has promised that essential goods and services will not be taxed.

But the SST document, which is over 222-pages and contains thousands of items, paints quite a different picture.

View the full document

ALL Imported Fruits Will Be Taxed

Many people were shocked when they realized that imported fruits (even those that are produced locally) will be hit with the Sales Tax.

For a better idea, Malaysia imports A LOT of fruits, including apples, oranges, starfruit, ciku, lemons, rambutans, jackfruit, longans, and papayas. These will all be taxed, as long as they are imported.

All imported fruits (whether essential or not), will be taxed.

This doesn’t even touch the more absurd things which the administration claims as non-essentials, such as:

• Salt

• Yogurt and buttermilk

• Preserved meat (ham, beef balls, luncheon meat)

🎙️ What I Discussed With Hann Liew

On Sunday, I invited Hann Liew, founder of RinggitPlus and Halogen Capital, to break down the SST changes and how we can cope with price increases.

Listen to the full replay on:

Spotify: https://open.spotify.com/episode/0rHPNDYnFavIppjZrfgkDi?si=gjheFwlRRPCp2z1E3gdL9g

Apple Podcast: https://podcasts.apple.com/my/podcast/the-futurizts-podcast/id1696260841?i=1000713183409

YouTube: https://youtu.be/8Z6qpeuQgCA

Scroll down for a summary of the discussion.

Q1: What do you think about the SST Increase? Do you share the same frustration as the rakyat?

I think we shouldn’t be too shocked by the length of the list. This is part of a harmonized quote which most countries use globally. It is quite long by default.

Actually, many of these items were already taxed before. But because SST isn’t multi-staged like GST, we don’t see it clearly. We’ve had a similar experience in the previous years, dating all the way back to 2010, except for Najib’s GST era.

What I find a bit shocking is the breadth of the non-exempted goods. Last year, when the government proposed budget 2025, their promise was to only tax premium imported items (ie. Salmon, Avocado, Blueberries).

But as we know now, the list of items that will be taxed is quite extensive, and it is also very questionable for them to tax ALL imported fruits, when Malaysia is known to consume very little fruits and vegetables.

Switching to local fruits sounds easy, but almost 100% of apples and oranges are imported. Many people can’t easily remove these from their diet.

This just shows the lack of communication between the Ministry of Health and the Ministry of Finance.

The Health Ministry’s Morbidity Survey shows that Malaysians consume inadequate fruits and veggies.

I think this is what the Rakyat is mainly frustrated about. And if you’re running a business, you may be even more on edge because the SST order was gazetted on Monday (Jun 9) and will be implemented on July 1.

There is not enough time given for businesses to adapt and change their systems, which will likely force them to absorb a lot of the initial cost.

Q2: Price hikes are inevitable. But how soon will we see them? Are businesses already pricing in the increase?

I don’t think price hikes will happen in these couple of weeks, but expect changes after July 1.

If you’re a business importing fruits, you’ll see a tax imposed by the custom which you have to pay.

Then these businesses will either have to absorb the cost or pass it down to customers—which they’re likely to do both, because imposing a sudden 5-10% hike may be a big shock to consumers.

That’s only on the imported side.

If you’re a local business owner, you may raise prices as well, because there was already a demand for your goods before the tax increase, and now with the hike, there is more demand for your business.

So even businesses who are not subjected to sales tax MAY raise prices as well, which will impact inflation.

Q3: The tax on luxury goods has been postponed until further notice. Why is the government not prioritizing this and taxing low value goods instead?

There are two difficulties to high value goods tax:

• You can’t go above what you’re already charging (10%). You have to pass a new law and draft a new order.

• Bigger problem: capital (ie. money and wealth) is much more mobile than people. This is not a unique problem to Malaysia.

Rich people can move their money elsewhere very easily. Take a look at tourists for example. If you impose a hefty tax on luxury goods, you’ll start impacting tourism revenue very heavily, without getting much returns.

To put it bluntly, it’s a lot of friction for us to leave our home country, so it’s “easier” for the government to impose a tax on us.

It’s much harder to tax the wealthy people, because their capital is very mobile. They can just move it elsewhere.

Q4: How can we cope with the price increases? How should we adjust our budgets?

A few things you can consider:

• Substitution: It’s time to stop buying too much imported stuff and start supporting local vendors. We can’t be picky when prices are going up. Switch from apples and oranges to guavas and bananas.

• Build up your inventory: Like what the Americans did before Trump imposed tariffs, you can stash up your home with imported items that are expected to go up. Obviously, the exceptions are fruits and vegetables because their shelf life is short. But for other things (ie. salmon, certain meat and seafood) which can be frozen or have a long shelf life, you can start to stock up.

• Calculate your potential increase: Don’t get caught off guard on price increase. Add in a little buffer for your monthly budgets (about 3-5%) so you can adjust to price hikes. Save a little more.

Remember, you can’t control what the government does, but you can certainly control your own money.

Q5: What’s one piece of advice you would give every Malaysian right now to protect themselves financially?

The most important thing is that you’ve got to be a consumer who’s aware of prices around you.

Have a sense of what you’re paying now and what you’re paying in the future.

Only by doing so, will you be able to plan the right path on how to adjust your budgets.

Sure, it’s alright every now and then to get frustrated with the government and fight against them for change, but at the same time, make sure you’re prepared for any price increases so you won’t get caught off guard.

This summary does not fully encapsulate the thoughts shared by Hann Liew.

I highly recommend you to listen to the full replay.

About the speaker: Hann Liew is a personal finance expert with over a decade of experience in the financial industry. Previously the CEO of RinggitPlus, he is qualified as a licensed financial planner (CFP) and a chartered financial analyst (CFA), and has helped tens of thousands of Malaysians on their path toward financial literacy. Hann is currently the founder of Halogen Capital, the world's first Shariah-compliant crypto fund that provides institutional exposure to Bitcoin.

My Budgeting Strategy

I used to follow the 50-30-20 Rule to manage my salary. While it’s easy to understand, I found it a bit hard to stick to every month.

To follow the rule, I had to clearly separate my needs from wants, which often made things more confusing than expected.

These days, I keep things simpler by saving and investing 10–20% of my salary, then using the rest however I want—whether it’s for daily needs or personal treats.

At the start of each month, when my salary comes in, I’ll send 10–20% to:

• Versa, Rize, or ASM to top up my emergency funds, or

• Rakuten, Versa, or Luno for investments (if my emergency funds are already enough).

Why I Use Versa, Rize, and ASM for Emergency Funds

As a rule of thumb, it’s good to have at least 6 months’ worth of income saved in a place that is:

• Flexible: You can deposit or withdraw within 2–3 days

• Beats inflation: Earns more than 3% per year

• Low-risk: Won’t lose value even if the market crashes

The three apps I use check all these boxes. Among them, ASM offers the best returns, averaging 4–5% per year.

However, ASM units are limited and hard to get. That’s why I also use Versa and Rize as backup options.

If you’re a Bumi, you could keep part of your emergency fund in ASB, which gives 5–6% annually. But I wouldn’t store all my emergency money there because ASB/ASM only let you withdraw RM2,000 online per month.

For bigger amounts, you’ll need to go to an ASNB branch, which isn’t helpful if you're in an urgent situation.

As such, I keep some funds in Rize (a digital bank protected by PIDM), so I can cash out instantly during an emergency.

30-40% of my salary goes to AEON Bank.

I use the pink bank as my main spending account — for bills, groceries, dining, entertainment, etc.

Dubbed as Malaysia’s first Islamic Digital Bank, AEON Bank allows you to earn up to 3.00% pa with interest compounded daily and paid at the end of each month.

To be clear, the balance in your main account will earn 0.88% pa, while savings pots will earn 3.00% pa.

You can create up to 20 savings pots with different goals, and the money can be deposited/withdrawn instantly.

These savings pots are vital for my monthly budget, as they help me stay organized about where my money goes. I’d rather use an app with slightly lower returns but supports multiple savings pots, than one with high returns that lumps all my money into a single pool.

AEON Bank Savings Pots (Left), Rize Savings Pots (Right)

Apart from that, AEON Bank also gives you 1 AEON Point for every RM1 spent using their debit card. These points can be redeemed for cash (1,000 points = RM5), which means you’re getting 0.50% cashback—the highest among all five digital banks right now.

Of all digital banks, AEON Bank is my favourite for daily spending

KAF Digital Bank – Not Recommended (For Now)

KAF is a new digital bank that offers 5.00% per year on the first RM2,000. However, the rate changes every week.

Based on user reviews, the app experience isn’t great, so I’m avoiding it for now.

KAF reviews are quite bad

Another 30-40% of my pay goes to TNG GO+

TNG GO+ is one of the most stable cash apps I’ve used. Its earnings rate has stayed consistent for the past 2–3 years.

Recently, they also increased the deposit limit from RM9,500 to RM20,000, which allows you to put in more and earn more.

Since the funds can be withdrawn instantly, GO+ is also my second main spending account after AEON Bank.

One thing I love is that GO+ works seamlessly with the TNG eWallet. Deposits and withdrawals are instant, and it won’t affect your eWallet payments at all.

I earned RM564 from GO+ over the past 2.5 years.

GXBank – My Pick for Overseas Spending

Though the purple bank has recently reduced its earnings rate from 3% pa to 2% pa, it is still my top option for travel because of its 1% cashback on foreign spending.

You’ll receive the cashback instantly, and there’s no minimum spend or cap for the rewards.

I compared four travel cards (Wise, GXBank, AEON Bank, TNG Visa) during my trip to Kyoto and Osaka in March, and GXBank turned out to be the clear winner.

GXBank’s fee waiver has been extended to 6 Nov

My investing strategy

I follow the "Rule of 100" to decide how much of my retirement portfolio should be in risky assets:

Since I’m currently 28, my portfolio should be about 70% invested in risky assets such as:

• Gold – via Versa Gold

• Bitcoin – via Luno

• US Stocks & ETFs – via Rakuten

• Malaysian Stocks – via Rakuten

• Aggressive Unit Trusts – via EPF i-Invest

The exact breakdown doesn’t matter as much. What’s more important is to start investing early so you can grow your money over time.

Learn more about how I’m investing in:

• Bitcoin & Gold: https://thefuturizts.beehiiv.com/p/rm1000

• The US market: https://thefuturizts.beehiiv.com/p/start-investing-us-market-f0d7

• Malaysian Bank stocks: https://thefuturizts.beehiiv.com/p/still-invest-malaysian-banks

• Unit Trusts: https://thefuturizts.beehiiv.com/p/thinking-withdrawing-account-3-invest-elsewhere

That’s all for this week’s newsletter! I hope you learned something.

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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By now, you should have seen (or at least heard of) EPF’s new retirement targets.

In December, they introduced a savings framework that quietly raised the retirement age from 55 to 60.

Called the Retirement Income Adequacy (RIA) framework, it aims to give Malaysians a monthly spending guide and help them plan for a more secure retirement.

The framework is split into three tiers, based on the figures from the Belanjawanku Guide.

EPF also published the savings required to hit each of these targets.

TLDR: If you’re 30, your EPF balance should fall into one of these categories:

• Basic: RM38,000

• Adequate: RM47,500

• Enhanced: RM85,400

View the full list of age groups here.

But how difficult is it to achieve these targets? And how much should you contribute every month?

Let’s say:

• You start working at 24

• Earn RM2,500 per month

• Save RM400 per month and invest in EPF

You’ll hit RM1.3 million if by 60, even if you don’t receive any salary increments or bonuses.

Your total capital during these 36 years would be RM432,000, while the remaining RM929,817.32 is interest earned.

In other words, your capital would have more than tripled—every ringgit you contributed over the years compounded to RM3.

As for EPF’s other targets:

• RM650,000 -> RM477 per month (can be achieved with RM2k salary)

• RM390,000 -> RM286 per month (can be achieved with RM1.2k salary)

^ Assuming you start at 24, don’t save, no inflation, no salary increment, and EPF pays 5.50% per year.

What if I’m older?

You can refer to three tables I’ve prepared.

The first table shows the average EPF savings by age group as of December 2024. If your savings and contributions fall within (or above) this range, you’re on track to hit—or even exceed—RM1.3 million by age 60, even without salary increments.

Table 1: Monthly contributions to hit RM1.3 mil for each age group

The second table shows the average salary needed to reach EPF’s targets. The numbers may look high because I didn’t include manual savings (like your own investments), salary increases, or bonuses.

So, if your current salary is already within this range, you’ll definitely exceed RM1.3 million by 60.

Table 2: Salary to hit RM1.3 million without any savings, salary increment, bonuses and inflation.

The third table assumes you save 10% of your salary every month and invest it into EPF.

These salary estimates are much more realistic and about 50–60% lower than those in the second table.

Keep in mind, the numbers in tables (1) and (2) are average salary estimates. So don’t worry if your current pay is below them. Salary growth and bonuses over time will help you reach and even surpass the RM1.3 million mark.

Table 3: Salary to hit RM1.3 million by saving 10%, without salary increment, bonuses and inflation.

But what will RM1.3 mil be worth in 25 years?

With just 2.5% inflation per year, RM1.3 million today will grow to RM2.41 million in 25 years.

That’s the amount you might need to retire comfortably in the future. Don’t be surprised if EPF updates its targets to reflect this.

But as long as you’re getting a 3–5% salary increment each year, you’ll stay ahead of inflation—and likely surpass all of EPF’s savings goals.

What if RM1.3 million is not enough for me?

You can use the Rule of 25 to work out your “magic number” for retirement. But keep in mind — most people aged 60 to 80 don’t actually need that much money. By then, they’ve usually paid off their debts and no longer have big responsibilities.

Think about your grandparents. How much do they really spend each month?

Say you want RM10,000 per month during retirement, your target amount should be:

To reach this amount, you can:

• Save and invest aggressively

• Increase your income (so your EPF contributions go up)

Or do a combination of both.

Watch How I’m Currently Investing for Retirement here.

Use the compound interest calculator and inflation calculator to simulate different scenarios.

Thanks for reading! I hope you learned something.

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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Who doesn’t want to afford an iPhone for RM170 a month?

After all, it feels like such a “small” commitment, and you’ll get a brand new phone to symbolize your upgraded status in society.

Before you know it, it’s not just the phone. It’s a new handbag, a watch, some shoes, and the latest outfit too.

And just like that, you’ve walked straight into the Buy Now Pay Later (BNPL) debt trap — juggling 4 to 5 different instalments, with no savings left at the end of the month.

BNPL is growing at a rapid pace and can become a major problem if not monitored.

From 2023 to 2024, the total transaction value for BNPL doubled from RM6.3 billion to RM12 billion.

96.7% of the market share belonged to Shopee (53.9%), Atome (32.9%), and Grab (9.9%).

There are currently 5.1 million active BNPL users.

7 in 10 of them fall into the B40 group and use this as their only source of personal financing.

The majority are young working adults, aged 21-35 years. At the rate things are going, BNPL usage will double again to 10 million users by 2026.

Why is BNPL so addictive?

Convenience

There are no background checks, no income checks. Everything is done online, and you don’t even need money upfront. Just a few clicks and you're approved. For instance, Shopee’s SPayLater requires you to only have a valid myKad and be aged between 18-65 years old.

Shopee’s SPayLater only checks for 3 things for you to be eligible

Consumerism culture

We’re constantly told to buy things we can’t really afford, because more consumption means more business for companies. Social media glamorizes material items — big houses, luxury cars, designer bags — as symbols of success.

Fashion and tech companies push new trends and products every year, selling minor upgrades as must-haves. All these warp our idea of what’s affordable and what we “need.”

Manipulative marketing

BNPL companies say things like, “Own this iPhone for only RM170/month” or “You deserve the finer things. Get it NOW!” These messages make us think our wants should be fulfilled instantly.

The Temporal Discount (ie. splitting bills into multiple payments across time) makes people feel that the goods are cheaper, but that’s not the case. You’re still paying the same amount, but now you’re sacrificing your future to pay for it.

Low income

Malaysia’s median salary is currently RM2,602 per month. With inflation spiking during Covid and the prices of everything going through the roof, it has become more difficult for the current generation to afford anything upfront for cash.

The existence of BNPL allows us to access cheap credit and buy things we don’t have money for. With no background checks, many low income earners use this as their only source of personal financing, with majority of their transactions being of low value, ranging from RM70-90.

This means that they are using BNPL to acquire daily items like food, entertainment, and household stuff.

BNPL is more dangerous than credit cards

By splitting the payments to months or even years, BNPL highly encourages you to spend on things you cannot afford.

This is completely DIFFERENT from buying things upfront with cash or a credit card, as you’ll feel the PAIN in your wallet instantly (or during the end of the month).

Managing one BNPL transaction might feel harmless, but juggling 4–5 at once can quickly drain your savings and affect your ability to afford daily needs.

While credit cards also carry the risk of overspending, the presence of interest tends to make people more cautious with their spending.

Most credit cards offer a 21-day grace period to pay off your full statement. If you don’t, interest starts accumulating daily — usually between 15% to 18% annually.

But BNPL works differently. Instead of interest, you’re charged a flat penalty for each missed payment.

Take Atome, for example — they charge RM23–RM30 for every missed instalment. That might not seem like much, but if your monthly instalment is just RM100, that’s a 23%–30% penalty — much higher than the interest you'd pay on a credit card.

Does this mean that all DEBTS are bad?

Not at all. Debts can be good if you know how to use them. Hann has created a two-step checklist for you to determine if you should take on debt:

• Check 1
  Are you buying an asset? Does this help you generate wealth and/or grow your personal knowledge? Examples include: education, home loan, work equipment, car for transport.

• Check 2
  Is the rate below 5% pa? With EPF paying 5.50-6.00% pa and cash apps/FDs giving 3.00-4.00% pa, any debt above 5% is considered BAD. You would need to invest with significantly higher returns to beat this rate.

Therefore:

• Using credit card for long term borrowing (12-18% pa) is BAD, even if it’s for buying an asset.

• Taking a loan to go for holiday trips is BAD, even when the interest rates are low.

• Using BNPL to buy a new handbag is BAD, even when there’s ZERO interest.

Basically, debts that are used for consumption rather than asset purchases are considered BAD.

But if you still want to use BNPL, here’s how you avoid overspending

• Save up enough to buy the item for cash

• Place the money somewhere that can give you steady returns and flexibility

This way, you’ll earn some profit without worrying about affordability.

That’s all for this week’s newsletter!

DISCLAIMER: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice. The opinions of this newsletter are solely that of the publisher.

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