Property Hunter Magazine September Issue 2014 | Page 54

/// East Malaysia Property News

You’re Never Too Young to Invest, Say the Experts
“In a low-interest rate environment, savings
accounts grow slower than inflation which means
you are losing money instead of growing it,” he
said, noting that investing successfully had little to
do with good luck but more with following clear
guidelines.
“We believe that an informed investor is a
protected investor.
“According to the World Bank, Malaysia is ranked
fourth in terms of investor protection.”
He said investors should understand their rights
and responsibilities as well as the products and
profile of the companies they choose to invest in.
In view of this, the SC recently launched
InvestSmart — a comprehensive investment
literacy campaign to enable more confident and
informed retail participation in the capital market.
Khairul said the campaign was aimed at reaching
out to the investment-ready population and to
shift awareness of saving to investing.

Only 10 per cent of total retail investors on the
stock market are aged 18 to 30. This reflects the
apprehension among young adults regarding
investing, according to Bursa Malaysia.
This is despite the existence of 237 capital market
intermediary firms supported by 9,531 licensed
representatives as reported last year. It is a
shame as investing would help young adults grow
their money.
A lack of general financial literacy and the
complexity of investment products make for a
generation indifferent towards investing.
Fatin Syafira Ahmad Zulkifli, 24, believes working
young adults, especially those who have just
started their first full-time jobs, think that
investing is only for those who are financially
independent.
“They also feel they do not earn enough to put
away some money every month for invest ments.
“Many fresh graduates are also burdened with
student loan debts.
“I started investing only after six months into my
first job and I chose to invest in Amanah Saham
Bumiputera because I was told that it is the least
risky option,” the business developer admitted,
adding that she would only start considering
other types of investments, such as properties,
when she is more financially stable.
However Ahmad Farid Sainuri, 25, who delved
into investment when he was 18, saw the

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significance of “compounding”, which is a concept
of generating earnings from previous earnings.
“I learned earlier that the longer I let my
investment compound, the bigger the profit
margin I will enjoy later.
“Also, by being in the market earlier than most of
my peers, I found that I could benefit from market
price fluctuations.
“Warren Buffet did not start investing in stocks
when he was 11 for nothing.”
Ahmad Farid, who is also a part-time unit trust
consultant, said financial standing should not
influence whether or not one should invest, as
long as one had a firm target on what he or she
wanted to achieve.
Securities Commission deputy general manager
Khairul Ridzwan Abdul Kuddus said it was
important to “pay yourself first” before paying bills
and other loans.
“Pay yourself means putting aside an amount
of money for your future,” he said, adding that
young people should not rely on Employees
Provident Fund accounts for their retirement as
even the social security institution had come out
to say that EPF savings may not take the account
holders far into their retirement age.

“It is also to promote an inquisitive attitude
among investors who may be lured by promises
of high return of investment,” he said, adding that
people who were easily persuaded may fall prey
to illegal schemes.
SC chairman Datuk Ranjit Ajit Singh said they
wanted to start a conversation about the capital
market with young adults.
“We realise that young potential investors prefer
bite-sized information on-the-go.
“This is why we are raising our investor
empowerment efforts to a whole new level,” Ranjit
said, adding that by leveraging on digital and
social media, InvestSmart would provide reliable
and independent information and investment
tools to the public.
The campaign has introduced an InvestSmart
website, a Facebook page, a starter kit and
a mobile application as well as events such
as Investor Weekend, seminars and training
programmes.
The mobile application by the same name is
developed to share meaningful, relevant and
timely information on licensed capital market
products and intermediaries whenever needed.

Khairul advised the younger generation to start
investing as early as possible as it was the best
tool against inflation and it might help maintain
their current lifestyle in the long run.

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