This Week at a Glance…

i) EPF dividends are expected to hit 5.4-5.7% for 2023.

The retirement fund recorded a 33% increase in investment income for the first 9 months of 2023, from RM36.04 billion to RM47.86 billion.

ii) Bursa Malaysia offers 16 types of ETFs that you can invest just like a regular stock.

Some ETFs are Shariah-compliant and track assets such as gold and the US market.

iii) Luno adds TnG reload feature for account deposits.

The funds will be immediately reflected in your Luno account, which you can use to purchase crypto. However, instant withdrawals are still unavailable.

Scroll down to read the details.

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Earn RM28 in welcome rewards by registering an account with GXBank

In case you missed it, GXBank (Grab’s new banking app) is running a reward campaign to encourage new users to sign up.

The app is a savings account that allows users to earn up to 3.0% pa daily interest, similar to Rize or TnG, but lacking important features such as DuitNow QR transfer.

That said, you’ll receive an RM20 cashback if you successfully register for an account and deposit your first RM100.

You’ll also earn an additional RM8 if you switch your existing DuitNow ID to GXBank.

There are no lock-in periods or minimum balance requirements, so you can withdraw the rewards along with your principal instantly.

Yup, that’s RM28 earned in just 3 minutes.

EPF’s records 33% increase in investment income in 9M 2023

The Employees Provident Fund (EPF) posted a 33% jump in investment income for the first 9 months of 2023, to RM47.86 billion from RM36.04 billion the same period last year.

For the 3rd quarter (Q3 2023), the total investment income rose to RM14.67 billion, which was RM2.38 billion higher compared to the corresponding period in 2022.

A large portion of this income (63%) came from equities, while the remaining was generated by fixed income (32%), real estate (2%), and money market instruments (3%).

As of September, EPF’s investment assets stood at RM1.092 trillion, almost a 1% increase from June’s figure of RM1.082 trillion.

37.7% of the assets were invested overseas, but, despite the lower weightage compared to domestic investments, overseas assets generated RM6.55 billion (or 45%) of the total investment income recorded in Q3.

What does this all mean for EPF’s 2023 payout?

Barring any sudden conflicts that will disrupt global stability, RinggitPlus founder Hann Liew said that EPF’s dividend should range 5.4-5.7% this year.

6.3 million EPF members have less than RM10,000 in their accounts.

The finance ministry recently revealed that the retirement savings of Malaysians have fallen to a critical level.

As of September, 6.3 million members, or 48% under the age of 55, have less than RM10,000 in their accounts.

The ministry said that this figure rose from 4.7 million members (37%) in April 2020, before the government began approving special withdrawals for Covid-19.

With RM10,000, retirees will only have RM41.67 per month to spend on necessities for the next 20 years.

This paints a dire picture for Malaysia’s retiring population, especially when our life expectancies are forecast to hit 80 within the near future.

My EPF balance is low. How can I increase my savings?

1. Contribute any amount, no matter how small to your EPF account every month. Voluntary contributions are eligible for tax reliefs, up to RM4,000 every year.

2. Prioritize learning how to increase your income, whether its through side-hustling or upskilling.

3. Budget your expenses using the 50/30/20 rule, or any rule for that matter, as long as it gives your finances some structure.

4. Pay off high interest debts first. Consult AKPK if you’re struggling to manage your loans.

Did you know you can invest in ETFs through the Bursa market?

There are 16 types of ETFs that you can invest regularly just like a stock. Top ones include:

1) Gold (GOLDETF)

Shariah compliant index fund that tracks the performance of gold.

YTD performance: +16.14%

2) Dow Jones US Titans 50 (METFUS50)

Closely mirrors the performance of the top 50 largest companies in the US, accordance to Shariah principles.

YTD performance: +28.37%

3) China Tracker (CHINAETF-MYR)

Listed in MYR, gives access to China listed companies in the consumption and service industry. Also Shariah compliant.

YTD performance: -3.38%

View the full list of ETFs offered by Bursa here.

How can I invest?

All you need to do is to search for the ETF’s ticker in your CDS account.

Note that the fee structures will differ depending on your broker.

To add on to that, Bursa is offering cash incentives to participants who have fulfilled a certain trading volume.

Buy crypto using TnG e-Wallet in Luno

The recent Bitcoin rally, which saw BTC rose 40% in less than 2 months, has undoubtedly attracted interest of some back into the crypto market.

To make investing seamless for everyone, Malaysia’s largest crypto exchange, Luno, is now accepting TnG transfers for account deposits.

The funds will be immediately reflected in your account and you can use them to buy crypto instantly.

• Min Deposit: RM10

• Max Deposit: RM5,000 (Pro user), RM20,000 (Premium user)

• Deposits below RM100 will incur an RM1 fee.

You must transfer funds from your own TnG e-wallet account, otherwise the transaction will be rejected.

As for withdrawals, Luno has yet to add an instant withdrawal feature or the option to cash out to TnG.

IMPORTANT: If you’re new to Luno, never buy or sell crypto on the homepage.

You will be charged a 2% fee, which will quickly add up if you invest frequently.

Instead, tap on the top right of your homepage and select “Exchange”.

Then tap on “Buy” and select “Market” to purchase crypto instantly.

The fees incurred will be over 3 times less, at 0.6%.

You can also set a "Limit" order, which will allow you to buy crypto at your desired price, also at a much lower fee.

If you're interested to invest in crypto but have yet to register for a Luno account, you can use my referral code.

You’ll get RM50.00 for your first purchase of RM250 or above, which is a 20% return on your investment!

Note that this one-time reward will only apply if the purchase is from the homepage (2% fee).

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.