Where to invest during Covid-19
2020 has come and gone, however, the global pandemic has yet to end its tenure. With the literal shifts in the global economy and the volatile swing, it has caused in all markets, more and more people have turned to alternative income modules.
The Straits Times reported an increase in the number of people moving into trading and investing, many turning to major stock markets independently, rather than going through a broker. In banking, there was an increased number of regular banking customers looking to move into full investment portfolios alongside their savings plans. The term ‘passive income’ took on a new meaning.
Now we have another article about the different types of investment options we have here in Malaysia, touching lightly on some global markets as well. However, right now we’re going to talk about some opportunities that have boomed since we were hit with a global pandemic.
Property Investments
Here in Malaysia, as soon as the RMCO ended, there was a huge boom in the property industry. As part of the Short-Term Economic Recovery Plan (PENJANA) by the Malaysian government, a Home Ownership Campaign (HOC) was reintroduced. Its primary purpose was to stimulate the purchase of property and the sale of unsold properties.
It was a call to all long term investors in Malaysia. From developers to the national bank prices we’re slashed left and right to allow for more people to purchase homes. HOC offered larger bank loan to smaller incomes with less interest. So if you are a long term investor with the cash to spare, now is a good time for you to take advantage of this programme.
Property like the saying goes, ‘never depreciates’.
However, if you are in fact a short term investor, the property may not be the best place for you to invest your time or money, especially if this pandemic lifestyle continues.
Retail Investments
Thankfully, there is a myriad of investment options available for us globally and here in Malaysia. This is the time to diversify your portfolio and take a look at other avenues of investment. Channel News Asia reported that Rakuten Trade saw more than 11,000 new accounts activated during the MCO period.
The retail investor boom was later compounded by the global demand for healthcare products. On that note, the retail stock market took a little bit of a slide in early 2020, but the world quickly adapted with businesses going online. Retail stocks are a consumer discretionary sector of investments. Which is typically the ‘nice’ to have items rather than the ‘need’ items. However, now that line is a bit blurred, with the increase in e-commerce operations.
As e-commerce becomes more popular, many retailers are seeing their sales grow, some reaching global audiences. This diversified sector offers a little more stability now, which means it’s definitely an option for new investors to explore.
SME Digital Financing and Investments
With the world moving online, it was clear that the pandemic would be a catalyst for the digitalisation of government services, shopping, education and entertainment (we’re talking about sports here). This is our new normal. Online shopping was taken to a whole new level, schools are now online, for all ages and financial services have increased their reach and presence by moving banking capabilities almost completely online.
With the help of the Malaysian National Bank (Bank Negara) and new policies by the Securities Commission of Malaysia, there have been major advancements in the sector of digital finance.
While online investing is not new, but this new platform service of Digital Investments are now taking centre stage. SME digital financing and investments are when people invest in other people. Effectively by-passing a bank, this is where you or I, dedicate a small sum of our own money to a business. Our incentive is to get back our loaned dollars with an interest.
There are many platforms here in Malaysia that offer this service to SMEs in Malaysia, digital investments here deal exclusively from people to SMEs only. It is one of the greater industries that help raise the local economy quickly. Here at Funding Societies, our philosophy is to help grow Malaysian SMEs and this 2021 we have an even greater goal to do that.
SME Digital Investments are often higher in risk but offer higher returns as well, plus a greater sense of gratification, sometimes. It is also a single user investment option, where anyone can do it. You won’t need a broker or have to learn rocket science. All you need is an account and RM100 to start. Really simple.
We hope you’ve found this article helpful, for more on SME Digital Investments, check out our Website or, just keep reading our blog. Cheers!
Sources:
Sue-Ann Tan, The Strait Times
Deloitte, Penjana Short Term Economic Recovery Plan
Vincent Tan, Channel News Asia
Tan Choe Choe, The Edge Markets
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