One of the areas in which a foreign investor may choose to invest in Malaysia is the stock market. Most foreigners in Malaysia do so through the use of exchange-traded funds (ETFs). ETFs provide diversification because it is easy to buy and sell them on international stock exchanges.
Real estate is also a very lucrative investment area in Malaysia. The real estate market in Malaysia has been going through a period of much growth. This has in turn made real estate investment a common form of investment for foreign investors. However, foreign investors in this area must be wary of several risks. The Malaysian government’s attempts to reduce the cost of housing in Malaysia has sometimes led to a property glut. There are also relatively few publicly traded real estate trusts from which investors may select.
Malaysia’s abundant natural resources such as wood, natural gas, palm oil, and rubber have also created opportunities for investment. This is with regards to having close to 60% of Malaysia’s land being covered by forest.
However, some areas have fewer opportunities for foreigners who plan to invest because the government restricts investment in branches of production which it considers to be necessary for national development, such as the automobile industry. Foreigners also have limited access to investment in industries such as professional services and financial services.
As an investor yourself, do take into account the above considerations before making your move.