ON Bursa Malaysia, 23% of active trading accounts belong to millennials. As at end-September 2019, they were responsible for 47% of total new accounts opened and the number is continuing to grow. Clearly, they see the value in investing.
The growing millennial market
According to Lim Chia Wei, executive director of Malacca Securities, this is due to the exposure to financial education and knowledge readily available on the internet, coupled with the rise of online stock trading. “Being a technology-savvy generation, they utilise advanced charting tools and are open to exploring new ways of trading, such as ‘robo’ advisory, ‘algo’-trading and ‘copy’-trading. It suits their digital mindset.”
A new generation of investors
Millennial Firdaus Ismail, an executive with a KL-based transportation development company, once considered Ponzi-type schemes, forex trading, get-rich-quick schemes and multi-level marketing, but couldn’t trust any of them.
Firdaus began trading on Bursa Malaysia with very little knowledge, but learned on-the-go through Bursa Malaysia’s online platform, Bursa Marketplace, and has grown into a savvy investor. He says, “Young people like myself should invest on Bursa Malaysia. It is regulated, transparent and ensures fair pricing practices. It’s an easy and powerful way to grow and accumulate your wealth.”
Bursa Malaysia, the digital marketplace
Millennials value security, information, and convenience. That’s why Bursa Marketplace was launched in 2014 – a first-of-its-kind, unique and user-friendly virtual marketplace. Bursa Marketplace aims to “put the market in the pockets” of all Malaysians. It provides access to comprehensive, objective and accurate market information, innovative products and other trading ideas to help any kind of investor grow wealth and improve financial literacy.
Empowering next-gen investors
In collaboration with the Financial Youth Intelligence (FYI), the Bursa Young Investors Club (BYIC) was created as a social platform to help increase investment awareness and knowledge through personal development programmes spanning leadership, entrepreneurship and finance.
There are 26 clubs established across Malaysia, offering programmes such as leadership bootcamps, investment workshops, webinars and a BYIC stock simulation game.
Bursa Malaysia also presented the Shariah Trader Challenge and the Inter Varsity Stock Challenge – a virtual stock trading game – to generate interest and educate millennials and students in the ways of responsible investing. Nineteen-year-olds Lee Chi-Wing, Sam Jun Kit, Tan Guan Yi and Yong Yoon Voon of the Inter Varsity Stock Challenge’s winning team beat more than 700 competing teams to capture the “Highest Overall Portfolio Value”. The RM30,000 prize money provided them a great start to stock investing. “We think the stock challenge is a golden chance to learn the behaviour of the stock market, which contributes to our goal of financial freedom.”
Don’t be the millennial who doesn’t invest
All you need is the right tools. That is what you’ll find on Bursa Malaysia, no matter what your experience level is, or how much money you have.
There are exchange traded funds (ETFs) – flexible, transparent and with a low cost-of-entry, it offers wide exposure to stocks, bonds or commodities. Or try real estate investment trusts (REITs) – to invest in property with no mortgage borrowings while still being able to gain from high-quality properties. There are also the regular shares and derivatives you can invest in – after you learn the basics.
Bursa Malaysia, where the young find more opportunities to grow
History shows that long-term investing in the stock market almost always outperforms traditional financial tools like fixed deposits. If you’re young, time and technology are on your side – use it well.
Bursa Malaysia will be launching a first-of-its-kind “Mirror, Learn and Trade” (MLT) platform later this month on Bursa Marketplace, which offers investors a first-hand opportunity to learn how licensed investment advisers manage and strategise a stock portfolio. The platform will adopt a social media look-and-feel for ease of use and great user experience. With the introduction of MLT, Malaysians especially millennials can build the confidence and knowledge that will guide them to successfully participate in the stock market.
Bursa Malaysia believes in educating younger generations of Malaysians. For the young and digitally savvy, make investing your lifestyle now. It may be a long journey, but it is one that will most certainly be rewarding.
Find out more about various investment products on www.bursamarketplace.com.
Part of a series of articles by Bursa Malaysia to educate, develop and empower everyday investors.
