Starting a Malaysian Dividend Portfolio: A Strategic Step Toward Retirement in Johor

-

As someone who has spent years building an investment portfolio in Singapore, I finally made an important financial move to open a Malaysian investment account with FSMOne Malaysia.  Starting in the second quarter of 2026, I plan to begin a new investment journey focused on Malaysian dividend stocks.  This decision is not just about diversification, it is also about currency strategy, retirement planning, and income stability.


Why I Am Investing in Malaysia Instead of US Market

Retirement Plans in Johor Bahru

Although I currently work and invest in Singapore, I am Malaysian and intend to retire in Johor Bahru in the future.  As such, my retirement expenses will likely be denominated in Malaysian Ringgit (MYR) and building a dividend investment portfolio that generates MYR income makes perfect sense.  Instead of the need to constantly converting Singapore Dollars (SGD) to MYR and inevitably worry about the foreign exchange rate, I can rely on dividends paid by Malaysian companies to fund my lifestyle.  This removes a major uncertainty of exchange rate in retirement planning.


Creating a Natural Currency Hedge

Starting a Malaysian dividend portfolio also creates a natural hedge between the SGD and MYR.  There are two possible currency scenarios in future.

1)     If the MYR strengthens against SGD in the future, the value of my Malaysian investments rises in relative terms, helping protect my purchasing power in Malaysia.

2)     If the MYR weakens again, my Singapore dividend income in SGD becomes a larger sum with higher purchasing power when converted to MYR.

This means that my Singapore portfolio protects against a weak MYR while my Malaysian portfolio protects against a strong MYR.  By owning assets in both currencies, I diversify my retirement income risk.


I got ChatGPT to generate a dividend portfolio for me, with an initial investment capital of MYR 10K.  The following is what I got: 

1)     Malayan Banking Berhad (MBB): MYR 2.5K

2)     Public Bank Berhad (PBB): MYR 2.0K

3)     CIMB Group Holdings Berhad (CIMB): MYR 2.0K

4)     Tenaga Nasional Berhad (TNB): MYR 1.5K

5)     Sunway Real Estate Investment Trust (SUNREIT): MYR 2.0K

Basically, all the recommended stock picks and allocations were roughly in line with what I would like to include in my portfolio.  This sample portfolio is estimated average dividend yield of about 5.2%, giving about MYR 520 per year for a start.  While the income is small today, this portfolio forms the foundation of a much larger future income stream.


Why These Companies

Malaysian Banking Giants

Banks remain the backbone of many Malaysian dividend portfolios.

1)     MBB is Malaysia’s largest bank with strong ASEAN exposure.

2)     CIMB has a growing regional banking presence.

3)     PBB is known for conservative management and stable profitability.

These banks have long histories of consistent dividend payouts.


Defensive Utility Income

TNB is Malaysia’s national electricity provider.  Utilities typically have predictable cash flow, regulated pricing and stable demand.  This makes Tenaga a defensive anchor within the portfolio.


Balanced REIT Exposure

SUNREIT provides exposure to a diversified portfolio of retail malls, hospitals, offices and hotels, backed by strong Sunway Group ecosystem.  It is equivalent to buying CapitaLand Integrated Commercial Trust, CapitaLand Ascott Trust and ParkwayLife REIT all in one.


Long-Term Vision for This Portfolio

This MYR 10K investment is only the starting point.  Over time, the strategy is to continue adding capital periodically from my rental income in Johor, reinvest dividends to compound the portfolio slowly, and gradually increase exposure to quality dividend companies and REITs

If the portfolio eventually grows to MYR 500K, a 5% yield could generate MYR 25K per year or roughly MYR 2K per month.  That level of income, coupled with dividends from SG portfolio, could meaningfully support retirement living costs in Johor.


Starting a Malaysian dividend portfolio represents a strategic shift in my investment journey.  Most Malaysians working in Singapore naturally accumulate assets in Singapore dollars, like myself.  While that is beneficial during our working years, retirement in Malaysia requires a different financial structure, especially when I do not know what the future holds for the exchange rate between SGD and MYR.  By investing in Malaysian companies and REITs today, I am preparing for a future where my expenses are in MYR, my income streams come from multiple markets and hence my retirement portfolios and income generated are protected against currency fluctuations.  Whether my portfolio will be the same as the one recommended by ChatGPT remains to be seen, but probably similar.  Barista FIRE, here I come...!

Comments

Post a Comment

Popular posts from this blog

How Does "Earning" SGD 250 A Day Sound To You?

-
Image
This is a relatively short post, and I just want to share my personal thoughts (to myself) and record it down as a constant reminder to myself in my dividend investing journey. This post is inspired by a conversation in the Dividend Investing Telegram Group.  How will one feel financially if one day, an investor is paid SGD 250 daily, rain or shine, not through active income, but through dividends?  Sounds too good to be true?  Maybe.  But let me churn the numbers to see if it is achievable. To Achieve SGD 250 Per Day: Annual Dividends required = SGD 250 * 365 days = SGD 91,250 Assuming 5% Dividend Yield, Portfolio Value Required = SGD 91,250 / 0.05 = SGD 1.825M As shown above, the capital required is quite massive (for me), and its not easy to achieve, especially when one is just earning a median income in Singapore.  However, dividend investing is never a one hit wonder nor a "get-rich-quick" scheme.  It is a journey, a lengthy, but in my personal opinion...
Read more

Lessons Learnt About Dividend Investing After Joining Telegram Discussion Group

-
Image
When I first joined a Telegram discussion group focused on dividend investing, I was looking for an environment with like-minded investors where insights, strategies, and real-world experiences are widely shared from fellow investors.  While I had a basic understanding of dividend investing, engaging in discussions with very much more experienced individuals exposed me to deeper perspectives and valuable lessons that are shaping my investment philosophy. Through my participation, I have come to embrace three key principles:  1)     The importance of staying invested rather than frequently trading; 2)     Managing portfolio allocation wisely to mitigate risks;  3)     Maintaining a calm and patient mindset while enjoying the rewards of dividends.  These lessons have helped me refine my investment approach and reinforce my confidence as a dividend investor. 1)      Do Not Buy and Sell Shares Frequently: Time...
Read more

A New Addition Into My Dividend Portfolio: HRNetGroup

-
Image
Earlier this year, I made two new additions to my dividend portfolio, namely Riverstone and Kimly, as part of my ongoing effort to diversify my income stream with consistent dividend payers.  Recently, I am adding a new name to that list: HRNet Group (SGX: CHZ). This decision came after careful thought, and more importantly, as a tactical reallocation of funds.  I recently did a partial divestment of Singapore Technologies Engineering (STE), a strong blue-chip stock that I still like and hold.  However, with its share price shooting up significantly this year, the allocation based on market value to STE is growing too large for my comfort, and the dividend yield has already compressed to below 2.4% at one point, which no longer justifies a full position for someone like me who prioritizes dividend yield as part of my Barista FIRE journey. Why I Sold Part of STE I did not sell out of STE completely.  It remains a core holding in my portfolio, and still the largest ...
Read more