Investing in Malaysian Stocks (Bursa Malaysia)

To buy shares on Bursa Malaysia you need two things: a trading account with a licensed broker, and a securities account that records what you own. Opening one usually takes these steps.

1. Pick a licensed broker. Options range from online-first platforms (Rakuten Trade, moomoo MY, M+ Global) to bank-backed brokers (Maybank, Public Invest, CGS, CIMB). Confirm the broker is licensed by checking the Securities Commission Malaysia (SC) list, and check the SC Investor Alert List to avoid unlicensed operators.
2. Open the account. You will need your MyKad (or passport), a bank account for funding, and sometimes proof of address. Online brokers approve accounts in a day or two; bank brokers may take longer.
3. Choose the account structure. A direct CDS account holds shares in your own name at Bursa Depository. A nominee account holds them under the broker's nominee company. More on this below.
4. Fund the account and place your first order. Shares trade in board lots of 100, so the smallest normal buy is 100 shares of one company.

Start with an amount you can leave invested for years. There is no need to rush a large sum in on day one. A small first trade teaches you the mechanics: order types, settlement, and the fees that show up on your contract note.

Two account structures exist in Malaysia, and knowing which one you have matters for your shareholder rights.

A direct CDS account holds shares in your own name at Bursa Depository. You appear on the shareholder register, receive the annual report directly, and can attend the AGM and vote. Bank-backed brokers such as Maybank, Public Invest, CGS and CIMB offer this. A one-time CDS account fee of around RM10 applies when opening, as of 2026.

A nominee account holds shares under the broker's nominee company, on your behalf. Rakuten Trade, moomoo MY and M+ Global use this model. It is quicker to open and the broker handles corporate actions (dividends, rights issues, bonus shares) for you. The trade-off is that your name is not on the register, so direct AGM access and voting go through the broker.

Neither is better for everyone. Nominee suits hands-off investors who want low fees and simplicity. Direct CDS suits those who want their name on the register and full shareholder rights.

Brokerage is set by each broker, not by Bursa, and it is the largest and most variable part of a trade's cost. Online-first brokers charge far less than traditional bank brokers.

All figures are as of 2026 and change often. moomoo's promo length and post-promo pricing in particular shift frequently, and traditional bank-broker minimums move too. Confirm the current rate on each broker's own fee page before you commit: rakutentrade.my/fees, moomoo.com/my/pricing, mplusonline.com/pricing and the bank sites.

For small, regular investing, the low flat or percentage fees of online-first brokers usually win. For large trades or if you value direct CDS and a remisier's help, a bank broker can make sense despite the higher rate.

Bursa Malaysia is the country's stock exchange, regulated by the SC. It also runs Bursa Depository, which operates the CDS that records share ownership.

The benchmark index is the FBM KLCI, which tracks the 30 largest companies by market capitalisation on the Main Market. These are the household names: banks, telcos, utilities and plantations. When the news says the market rose or fell, it usually means the KLCI. The index gives you a quick read on large-cap sentiment, though it does not capture the mid and small caps where much of the movement happens.

Bursa has different market segments. The Main Market hosts established companies. The ACE Market and LEAP Market list smaller and earlier-stage firms, which carry more risk.

Shares trade in board lots of 100 units. One lot equals 100 shares, so if a stock trades at RM3.00, one lot costs RM300 before fees. You can buy odd lots (fewer than 100 shares) through some brokers, but odd-lot liquidity is thin and the pricing is often worse, so most beginners stick to whole lots.

Trading hours run in a morning and an afternoon session on weekdays, with pre-opening and closing auction phases. Orders settle on a T+2 basis, meaning the cash and shares change hands two market days after the trade.

A trade's cost is more than the brokerage. Three charges apply, and every one of them hits both the buy and the sell, so plan for a round trip.

Worked example. Buy RM3,000 of shares through a broker charging 0.10% (min RM8):

• Brokerage: RM8 (the minimum bites)
• Clearing fee: RM0.90
• Stamp duty: RM3
• Total buy cost: about RM11.90, or roughly 0.40%

Sell the same RM3,000 later and you pay the full set again. The stock needs to rise by close to 1% just to cover a quick round trip at this size. On a RM30,000 trade the percentage cost falls sharply because the fixed minimums matter less. This is why small, frequent trading is expensive and patient, larger positions are cheaper per ringgit.

Malaysia uses a single-tier dividend system. The company pays corporate tax on its profits, and the dividends it then pays to shareholders are generally tax-exempt in your hands. For most retail investors, dividends from Malaysian listed companies arrive without further income tax.

From Year of Assessment 2025, a new 2% dividend tax applies, but narrowly. It hits an individual's chargeable dividend income only on the portion above RM100,000 in a year. The first RM100,000 is not taxed under this measure, and only the excess is taxed at 2%. It is self-assessed and declared when you file your personal income tax. It applies to resident and non-resident individuals.

Most retail investors never reach the RM100,000 threshold, so the 2% tax does not touch them. Do not confuse it with a tax on all dividends.

LHDN clarified (statement dated 25 March 2026) that several payouts sit outside the 2% tax and do not count towards the RM100,000 threshold:

• EPF (KWSP) dividends
• ASNB / Amanah Saham distributions
• LTAT and unit trust fund distributions
• Foreign-sourced dividends, and dividends from pioneer-status or reinvestment-allowance companies, tax-exempt shipping, co-operatives, closed-end funds and Labuan entities

The interaction with mixed income and the apportionment formula can get technical. If your dividend income is large, get advice from a tax agent rather than relying on rules of thumb.

For individuals, gains on the disposal of listed shares are generally not subject to capital gains tax in Malaysia. Profits from buying and selling shares on Bursa are usually treated as capital, not income, so they are not taxed, unless you trade so actively and systematically that LHDN treats it as a business.

That last point matters for very frequent traders. If your activity looks like a trade or business (high volume, short holding periods, borrowed capital, a business-like pattern), the profits can be assessed as income. For an ordinary buy-and-hold retail investor, this is rarely an issue.

A capital gains tax on unlisted shares (and certain foreign capital assets) applies from 2024, but it targets companies and entities, not ordinary retail sales of listed shares. It is a separate regime from your Bursa trading and does not hit the shares you buy and sell on the open market.

So the common belief that selling your Bursa shares at a profit triggers a tax bill is, for most individuals, wrong. What you do pay on every sale is the brokerage, the 0.03% clearing fee and the 0.10% stamp duty covered earlier. Keep your contract notes and dividend vouchers anyway. They are useful records for your own tracking and for your tax filing if your dividend income is large enough to engage the 2% measure.

Where you put your money shapes your risk far more than which broker you use.

Blue chips are the large, established companies, many of them KLCI constituents: the big banks, telcos, utilities and plantations. They are steadier, more liquid, and pay dividends fairly reliably. They also move slowly, so you will not double your money in a month. For a beginner building a first portfolio, blue chips are the calmer starting point.

Small caps and penny stocks trade at low prices and small market values, often on the ACE Market. They can rise fast, which is the attraction, and fall just as fast. They are more volatile, less liquid, and more prone to pump-and-dump schemes where a stock is hyped up and then dumped on latecomers.

A common approach is to anchor a portfolio in a handful of blue chips or a broad index-linked instrument, then add small caps only with money you can afford to lose and after you have done real homework on the company. Chasing a penny stock because it is trending on social media is how many beginners lose money early.

A few errors show up again and again for new Bursa investors. Most are avoidable.

• Trading in tiny amounts. Fixed minimum brokerage plus clearing fee and stamp duty make small trades expensive as a percentage. Both the buy and the sell are charged, so a quick round trip needs a meaningful price move just to break even. Build up positions instead of dabbling.
• Confusing the 2% dividend tax with a tax on all dividends. It only bites individuals whose dividend income exceeds RM100,000 a year, and only on the excess. Most retail investors are unaffected, and EPF, ASNB, LTAT and unit trust distributions are excluded entirely.
• Assuming SST applies to share brokerage. Ordinary Bursa shares are SST-exempt. The 8% SST from 1 October 2025 applies to REITs, ETFs, warrants and similar instruments, not ordinary shares.
• Not knowing whether your account is direct CDS or nominee. Check which one you hold, because it decides your shareholder rights and who manages corporate actions.
• Buying odd lots by accident. Board lots are 100 shares. Odd-lot liquidity is thin and pricing can be worse.
• Chasing penny stocks for quick gains. They are volatile, illiquid and prone to pump-and-dump.
• Believing listed-share gains are taxed. For individuals they generally are not. The 2024 capital gains tax targets unlisted shares and certain foreign assets, mainly for companies.

Shares can lose value, and a listed company can perform poorly or, in the worst case, fail. There is no guaranteed return and no deposit-insurance safety net for share prices. Treat money you invest as money you can leave untouched for years and can afford to see fall in the short term.

Key risks to keep in mind:

• Market risk. The whole market can drop on economic or global news, dragging even good companies down.
• Company risk. A single stock can fall on weak results, debt or governance problems. Diversifying across several companies and sectors softens this.
• Liquidity risk. Small caps can be hard to sell at a fair price when you want out.
• Scam risk. Unlicensed platforms, fake brokers and get-rich-quick investment schemes are common.

Protect yourself. Before dealing with any platform, confirm it is licensed by the Securities Commission Malaysia (SC) and check the SC Investor Alert List for known unlicensed operators and scams. Be sceptical of any scheme promising fixed high returns, pressure to act fast, or profits that only exist on a dashboard you cannot withdraw from.

Regulators to know: the SC licenses intermediaries and regulates the market, Bursa Malaysia runs the exchange and Bursa Depository, Bank Negara Malaysia is the central bank, and LHDN administers tax. This guide is general education. For advice specific to your situation, speak to a licensed financial planner or a tax agent.