How to Become a Millionaire in Malaysia: Top Investment Strategies

Becoming a millionaire in Malaysia is no longer just a distant dream — it’s a realistic goal for many. According to the Knight Frank Wealth Report 2025, Malaysia had around 85,126 HNWI (individuals with net assets of over USD 1 million) in 2022. This number is forecasted to double to 164,839 by 2027, making Malaysia one of the fastest-growing millionaire markets in Southeast Asia.

Malaysia’s top 1% wealth threshold remains relatively low at USD485,000 (approximately RM2.1 million) compared to countries like Singapore (USD3.5 million) and Switzerland (USD6.6 million). This suggests that achieving millionaire status in Malaysia is statistically more accessible.

There are many paths to becoming a millionaire. Some achieve it through building successful businesses, some by climbing high-paying corporate careers, and a few through fortunate inheritances. 

However, for most people today — especially young professionals and working adults — smart investing remains the most practical and reliable path to seven-figure wealth. Investing consistently, leveraging the power of compounding, and making strategic financial decisions allow individuals to grow their wealth steadily without needing extraordinary luck or resources.

The power of compound interest

Compound interest means you earn returns not just on what you invest, but also on the returns you’ve already earned. Over time, this snowballs — and your wealth can grow far beyond what you contributed.

Using EPF as an example, with investment returns typically ranging around 6% a year, compound growth is one of the strongest tools you have to build real wealth. 

Let’s see what happens if you invest consistently over time. Starting with RM 10,000. Here’s how just RM1,000 a month can grow, depending on how long you stay invested:

Table 1: how your monthly investment grows (RM 1,000 every month at 6% return)

The numbers tell a clear story. 10 years of investing gets you RM 176,078. But stay invested for 30 years, and you’re looking at an impressive RM 1 million — without changing your monthly amount.

Push it to 40 years, and your portfolio could grow up to RM 2 million! That’s the power of giving your money time to compound.

Now, what if you’re able to invest a little more each month? Let’s look at how different monthly amounts can change your outcome:

Table 2: how your monthly investment grows (30 years at 6% return)

Investing RM500 a month gets you close to half a million after 30 years. Double that to RM1,000 a month, and you’re already in millionaire territory.

With RM1,500 or RM2,000 a month, your future portfolio grows even bigger — showing that both time and the amount you invest matter.

Why starting early matters more than finding perfect returns

A lot of people delay investing because they’re waiting for the “right time” or the “perfect investment.” But the truth is, starting early beats everything else.

If you wait 10 years before starting:

• You’ll have about half as much wealth at retirement.
• You’ll need to invest double every month just to catch up.

Even small amounts, started early, can grow into serious wealth. Consistency is far more important than trying to chase the next big thing.

It’s not about getting rich overnight. It’s about planting the seed today — and letting compound interest take care of the heavy lifting over the years.

Growing your income

Growing your income is one of the most powerful ways to speed up your path to RM1 million. While investment returns help, boosting your earnings gives you more fuel to invest — and compound over time.

Here’s how you can actively work on growing your income:

1. Upskill in high-demand fields

Malaysia’s economy is shifting fast toward high-value sectors. According to the Hays Malaysia Salary Guide 2025, industries expected to see the highest salary growth between 2025–2030 include:

Malaysia’s focus on becoming a digital and sustainability hub by 2030 is directly driving these trends.

And if you're looking to pivot your career, these are the highest-paying roles based on 2025 benchmarks:

Demand is especially strong for candidates with experience in AI integration, cybersecurity strategy, and data analytics.

To command higher pay, these are the top technical and soft skills you need to focus on:

Technical skills:

• Cloud engineering (AWS, Azure certification)
• Cybersecurity (CISSP, CEH certifications)
• Data science and machine learning (Python, TensorFlow, Power BI)
• ESG reporting and sustainability finance
• Automation and DevOps practices

Soft skills:

• Adaptability to change (highest-ranked by Malaysian employers)
• Communication and interpersonal skills
• Problem solving and critical thinking
• Continuous learning and upskilling mindset

Employers in Malaysia overwhelmingly rank "adaptability" and "communication" as the most crucial attributes in 2025.

2. Start a freelancing work

Freelancing has become one of the fastest-growing income channels in Malaysia. You can now offer your services to businesses worldwide without leaving your home.

Top freelance platforms

• Fiverr (good for smaller gigs; fast setup)
• Upwork (larger projects, professional services)
• Freelancer.com (project bidding system)

You can sign up for free, create a profile highlighting your skills, and start taking on projects almost immediately.

Top freelance skills in demand

If you want to freelance and build a strong second income, it helps to know what clients are actually paying for today.

According to Fiverr’s latest Business Trends Index, these are the top five freelance skills in demand globally in 2025:

3. Start your own website or blog

One of the most accessible ways to build an additional income stream today is by starting your own website or blog. Unlike traditional businesses, a blog has low upfront costs and multiple ways to monetize your traffic over time.

Programmatic ads

Most blogs generate income through programmatic ads, where advertisers pay based on your traffic volume. The key metric is RPM (Revenue per 1,000 page views), and it varies based on geography and niche:

Sites with Tier 1 traffic (US, UK, Australia) can achieve 3–5x higher RPMs compared to emerging market audiences. Blogs combining display and video ads (such as in-stream video) report 28% higher retention rates, which indirectly boosts revenue.

Affiliate marketing

Affiliate marketing is another major revenue engine, accounting for around 16% of global e-commerce sales. Bloggers earn commissions by recommending products or services and placing affiliate links within their content.

Key performance metrics:

4. Write and publish an ebook

If you enjoy writing or have expertise in a topic, publishing an ebook is an excellent side income stream.

You don’t need a publisher. You can self-publish easily using platforms like:

• Amazon Kindle Direct Publishing (KDP)
• Google Play Books

Here’s how to get started step-by-step:

1. Pick a topic that people are searching for — practical guides, niche hobbies, or personal finance topics often do well. Use tools like Google Trends, SEMRush, or simply explore popular searches on Shopee and Amazon to spot trending interests. 

2. Outline your ebook structure — think of it like planning chapters in advance, so when you write, you’re not staring at a blank page — you’re just filling in sections you already know you’ll cover.

3. Use AI writing tools to speed up your writing — like ChatGPT for brainstorming ideas, Grammarly to polish your grammar, and Rytr to help expand short points into detailed paragraphs. AI won't replace your voice, but it makes it faster to organise and polish your ideas.

4. Edit and format your ebook — self-edit carefully or hire a freelancer from platforms like Fiverr (editing typically costs RM100–RM300 depending on length). Format your ebook properly into PDF or use Amazon KDP’s free templates to ensure your book looks professional and easy to read on any device.

6. Create an attractive cover — free tools like Canva offer templates you can easily customise, or you can hire a freelance designer on Fiverr for RM50–RM100. A professional-looking cover can dramatically improve click-through and download rates.

7. Publish and set your pricing — upload your ebook onto platforms like Amazon KDP (where ebooks priced between USD2.99–USD9.99 qualify for 70% royalties). Follow each platform’s easy upload process — it usually takes just 1–2 days for your ebook to go live.

8. Promote your ebook smartly — promote your ebook through social media, WhatsApp groups, email newsletters, or even small RM50–RM100 Facebook ad campaigns targeting readers interested in your niche. Reviews, word-of-mouth, and consistent promotion are key to building traction over time.

Allocate your income for investment

Once your income starts growing, the next critical step is to allocate it wisely for investments. It’s not just about earning more — it’s about making sure the right portion of your money is consistently working for you.

Start with the goal in mind

If your goal is to build RM1 million, the numbers are simple. Assuming an average annual return of 6%, you would need to invest around RM1,000 per month for 30 years to hit that milestone. 

Start earlier, and you can invest even less. Delay by 5–10 years, and you would need to double or even triple your monthly investment.

The earlier and more aggressively you invest, the more time you allow compounding to do the heavy lifting.

Increase your investment as your salary grows

Instead of keeping the same monthly amount, adjust your investment upwards whenever your salary increases. For instance, if you are earning RM5,000, you could start by allocating RM1,000 (20%) into investments. When your salary increases to RM7,000, raise your investment contribution to RM2,100 (30%).

This way, you keep pace with your growing income, accelerating your wealth building instead of falling into the trap of lifestyle inflation.

Automate your investing

Setting up an automated transfer into your investment account ensures you consistently stay on track. Platforms like StashAway allow you to automate monthly contributions into diversified portfolios, ETFs, or direct stocks. The best strategy is to invest immediately after payday, so the money never sits idle or gets spent.

Invest bonuses and side income immediately

Instead of spending year-end bonuses, freelance income, or unexpected windfalls, channel them straight into your investments. For example, investing a RM10,000 bonus at 6% can grow into about RM18,000 after 10 years without doing anything more. Regularly investing your freelance income — even RM2,000 a month — could add over RM460,000 to your wealth in 20 years.

Small, consistent boosts like these can shave years off your journey to RM1 million.

Investment strategies to grow into RM1 million 

Reaching RM1 million isn’t just about putting money aside — it’s about putting it to work smartly. Most financial experts agree: the best way to grow wealth is to balance steady, reliable returns with a portion of higher-risk, higher-reward investments. Let’s look at some of the investment options that you can explore today:

1. Real estate investment trusts (REITs)

Real Estate Investment Trusts (REITs) are a powerful tool for building wealth steadily over time. Instead of buying a physical property, you invest in a professionally managed portfolio of real estate assets like shopping malls, offices, hotels, warehouses, and hospitals. 

REITs offer two types of returns:

• Dividend payouts, typically yielding between 5% to 7% per year
• Capital appreciation, as property values and rental income grow over time

How to invest in reits

You can buy Malaysian REITs easily through a CDS account and trading account with any licensed broker. REITs are listed on Bursa Malaysia and can be traded like stocks, giving you flexibility to add or reduce your investment over time.

There are a total of 19 REITs listed on Bursa Malaysia, including the likes of some of the more well known names like IGB, Pavilion, Sunway, and KLCC.

What to consider before investing

When selecting REITs, look at:

• Distribution yield: Higher yields mean better passive income potential
• Property quality: Prime assets in strong locations are more resilient
• Management track record: Experienced managers drive better returns
• Financial strength: Low debt levels reduce risk during downturns

REITs carry moderate risk — prices can fluctuate with the property market and economic conditions. However, because of their steady rental income and professional management, they are a valuable core holding for a long-term wealth-building portfolio.

Read more: A Beginner’s Guide to Real Estate Investment Trusts in Malaysia

2. Unit trust funds

Unit trusts are collective investment schemes that pool money from many investors to invest in a diversified portfolio of assets like stocks, bonds, money market instruments, and property. 

Each investor holds units proportional to their contribution, and returns are based on the performance of the underlying assets.

Unit trusts are professionally managed by licensed fund managers and regulated by the Securities Commission Malaysia, providing retail investors with access to a broad range of asset classes without needing large capital outlay.

How to invest in unit trusts

Investors can access unit trusts through banks, licensed financial advisors, online platforms like FSMOne.

The process typically involves opening an investment account, selecting funds based on your risk appetite and investment goals, and starting with a minimum investment—usually from RM1,000.

Investments can be made either through lump-sum contributions or regular savings plans (e.g., monthly investments of RM100–RM500). Many platforms also allow automatic reinvestment of dividends to maximize compounding.

What to invest in

The unit trust market offers different types of funds to suit various strategies:

• Equity funds: Invest primarily in Malaysian or international stocks; higher risk, higher potential returns.
• Fixed income funds: Focus on bonds and government securities; offer more stable but lower returns.
• Balanced funds: Mix of equities and fixed income for moderate risk exposure.
• Money market funds: Short-term investments with low volatility, suitable for capital preservation.
• Syariah-compliant funds: Investments aligned with Islamic principles, excluding industries like gambling or alcohol.
• Sector-specific or thematic funds: Target specific industries like technology, healthcare, or sustainable investments.

Selection should be based on your risk profile, time horizon, and return expectations. Equity and balanced funds are common choices for investors aiming for long-term capital growth.

Pro tip: Do your due diligence on the actual returns by checking out the annualised returns (most funds’ returns are displayed in the form of total returns after 3, 5, 10 years), and also factor in fees to calculate the actual returns. 

Typical fees for unit trusts

Unit trusts in Malaysia charge several fees that impact net returns:

• Sales charge (initial fee): Up to 5% of the investment amount, though promotional offers can lower this.
• Annual management fee: Ranges between 1% and 2% of the fund’s total net asset value (NAV), charged yearly.
• Trustee fee: Around 0.02%–0.08% per annum, paid to the appointed trustee for safeguarding the fund’s assets.
• Switching fee: Applies if investors switch between funds under the same provider, typically RM25–RM50 or a small percentage fee.
• Exit or redemption fee: Some funds charge a fee if units are redeemed within a certain period (e.g., within the first 3–6 months).

Read more: Complete Guide to Unit Trust Investments in Malaysia

3. Exchange traded funds (ETFs)

Exchange-Traded Funds (ETFs) are investment funds that are listed and traded on stock exchanges, allowing investors to gain exposure to a diversified portfolio of assets like stocks, bonds, commodities, or indices through a single trade. 

In Malaysia, ETFs listed on Bursa Malaysia offer access to local and global markets, while international brokers provide options for overseas ETFs, including popular funds tracking the S&P 500, Nasdaq-100, and gold prices.

How to invest in etfs

You can buy local ETFs through any stock broker that offers access to Bursa Malaysia. 

To invest in global ETFs like Vanguard S&P 500 (VOO) or Invesco QQQ (QQQ), you can open an international brokerage account with platforms like Moomoo, Webull, or other SEC-approved brokers.

Alternatively, if you want an easier way to invest in ETFs without needing to research and compare every option, StashAway offers two simple solutions. 

• General Investing, StashAway automatically builds and manages a globally diversified ETF portfolio tailored to your risk level, so you can stay invested without the hassle of selecting individual ETFs. 
• If you prefer more flexibility, Flexible Portfolios let you choose the asset classes you want — like S&P 500, global equities, or bonds — and StashAway will streamline the ETF selection for you, picking the most efficient options for each asset. 

Either way, you get a smarter, simpler way to invest in ETFs without second-guessing every decision.

What to invest in

The ETF universe is broad and offers exposure to multiple asset classes:

• Equity ETFs: Track stock indices like the FTSE Bursa Malaysia KLCI, S&P 500, Nasdaq-100, and more.
• Bond ETFs: Invest in government or corporate bonds, providing income and stability.
• Commodity ETFs: Track commodities like gold and oil, e.g., TradePlus Shariah Gold Tracker (GOLDETF).
• Sector and thematic ETFs: Focus on specific sectors like technology, healthcare, or real estate.
• Shariah-compliant ETFs: Offer halal investment options based on Islamic finance principles.

Read more: Complete guide to exchange traded funds (ETFs) in Malaysia

4. Money market funds

Money Market Funds (MMFs) are low-risk investment funds that invest in short-term, high-quality instruments such as Treasury bills, commercial papers, repurchase agreements, certificates of deposit, and short-term bonds. 

Their primary goal is capital preservation while offering better returns than traditional savings accounts, typically around 2% to 4% annually depending on prevailing interest rates. 

MMFs are highly liquid, allowing investors to access their money almost anytime, making them ideal for short-term savings, emergency funds, or as a cash buffer within a diversified investment portfolio.

How to invest in MMFs

You can invest in MMFs through different channels:

• Fund management companies (FMCs) and banks, offering both conventional and Shariah-compliant MMFs.
• Online fund supermarkets like FSMOne and iFAST, where you can easily compare funds and invest with low minimum amounts.
• Robo-advisors like StashAway Simple™, offering automated money market funds portfolio with 3.6% p.a. projected yields.
• Financial advisors or unit trust consultants, if you prefer guided investment selections (note that advisory fees and commissions may apply).

What to invest in

There is a wide range of MMFs available depending on your preference for conventional or Shariah-compliant options. Top examples include:

• Public Money Market Fund (Public Mutual)
• United Islamic Cash Management Fund (UOB)
• Maybank Retail Money Market-i Fund (Maybank Asset Management)
• StashAway Simple™ for a diversified, low fees (0.15%) option. 

Fees for MMFs can go up to 0.75% per year (typically around 0.5%), depending on the fund manager.

Read more: Complete Guide to Money Market Funds in Malaysia

5. Stocks and equities

While stock investing is popular among Malaysians — with 39% of retail investors prioritizing stocks over ASB, unit trusts, and fixed deposits — it’s crucial to understand where the real growth has been.

Historically, the S&P 500 (tracking the top 500 US companies) has delivered 8% annual returns over the past decade, significantly outperforming Bursa Malaysia’s FBM KLCI, which recorded -4.2% annual returns over the same period (as of 25 Apr 2025)

This stark difference shows why diversifying into US markets offers stronger potential for wealth building compared to staying solely within the Malaysian market.

Types of stocks

When aiming to build long-term wealth, focusing on blue-chip stocks with dividends is one of the most reliable strategies despite having so many options to choose from:

• Common stocks: Most widely held, with voting rights and potential dividends.
• Preferred stocks: No voting rights but higher dividend priority.
• Growth stocks: Companies expected to grow quickly but may not pay dividends.
• Income stocks: Companies offering consistent dividend payouts.
• Value stocks: Underpriced companies with strong fundamentals.
• Blue-chip stocks: Large, stable companies like Maybank, Public Bank, and CIMB in Malaysia — known for steady performance, resilience during downturns, and consistent dividend payouts.

Blue-chip dividend stocks combine growth with stability. Dividends provide a source of passive income even during volatile markets, while their strong balance sheets and market leadership make them less vulnerable to downturns. 

Some of the top blue-chip dividend stocks in Malaysia include:

* as of 25 Apr 2025

Where to buy stocks

You can buy Malaysia and US stocks through local bank brokerages or regulated online trading platforms. 

Bank brokerages are easier to link with your bank account and offer direct T+2 settlement, but they usually charge higher fees. Online platforms, on the other hand, often have lower fees and better trading tools, though funding might take an extra step. We have prepared an in-depth guide on the full list of brokerages and trading platforms to help you make decisions on the best platforms to pursue.  

Read more: Beginner’s guide to stock investment in Malaysia

6. Gold and precious metals

Gold has proven to be a reliable store of value for centuries, especially during inflation, currency devaluation, and market volatility. As of April 2025, gold has surged 41% year-over-year, reaching around US$3,300 per ounce, driven by persistent inflation concerns and global economic uncertainties.

Historically, gold has delivered an average return of 6–8% per year over the past 20 years, often outperforming cash and bonds during crises. As a traditional safe haven gold can protect your portfolio and preserve wealth when financial markets turn volatile.

How to invest in gold in malaysia

• Physical gold: Buy gold bars or coins from Maybank, Public Gold, or reputable jewelry stores. Best for tangible ownership but requires secure storage.
• Gold-related stocks: Invest in gold miners and jewelers like Poh Kong and Tomei, which can offer leveraged exposure to gold prices but carry higher business risks.
• Gold ETFs: Invest in gold without physical storage hassle. You can buy the TradePlus Shariah Gold Tracker in Malaysia or invest globally through ETFs like the SPDR Gold Trust ETF via StashAway Flexible Portfolios, with low fees and simplified selection.
• Gold investment accounts: Open digital gold accounts with banks like Maybank, Public Bank, or CIMB, allowing easy buying and selling of gold by the gram.

Key factors affecting gold prices

Gold prices are influenced by inflation trends, U.S. dollar strength, central bank policies, interest rates, geopolitical risks, and shifts in global supply-demand dynamics. 

Gold tends to perform best when confidence in fiat currencies weakens or when markets face heightened volatility.

Mistakes to avoid when investing

Building wealth isn’t just about making the right moves — it’s also about avoiding costly mistakes. Here are some of the most common pitfalls to watch out for:

1. Trusting brands without doing research: Just because an investment comes from a well-known name doesn’t mean it’s right for you. Always review historical returns and understand the risks.
2. Chasing high returns: Prioritizing not losing money over chasing trends often leads to better long-term outcomes.
3. Believing in "risk-free" investments: Every investment carries some risk. Be cautious of anything that sounds too good to be true.
4. Following the crowd: Buying when everyone is hyped and selling when panic sets in usually leads to losses. Stick to a disciplined plan.
5. Skipping your own due diligence: Always research the investment or, if using an advisor, vet their credentials thoroughly.
6. Lack of diversification: Concentrating your money in one asset, sector, or geography can expose you to unnecessary risks. Spread your investments wisely.
7. Holding too much cash: With inflation, idle cash loses value over time. Consider low-risk alternatives like T-bills, bonds, or money market funds.
8. Ignoring risk adjustment as you age: Your risk tolerance should change with life stages — more aggressive when young, more conservative as you near retirement.
9. Blindly following gurus: Entertainment isn’t investment advice. Always think critically and validate information before acting.
10. Letting investing control your life: Money is a tool, not the goal. Stay balanced and don't let market swings cause unnecessary stress.