SushiFan

I was looking on the Forum whether my question had already been discussed but could not find it. So I hope that I'm not repeating a topic which was already covered.

My plan is to get my MM2H visa and then move to Penang (I already found lots of great advice on the Forum about these steps. Many thanks!). It is my intention to live there permanently, unless I'm away on holiday. As a next step would I like to transfer some of my savings to a local (meaning: Malaysian) bank in Penang, to have it closer by and easier to reach than savings which are in some far away country. My understanding thus far is that Malaysian banks are willing to have me as a customer, with a normal account for paying the bills and for a savings account.

What I would like to have is an account where I can invest some of my savings in mutual funds and/or ETFs. It is not my intention to start stock trading or investing in individual companies. Are there Malaysian banks which have such accounts available for people living in Malaysia on an MM2H visa?
I read in another thread about taxes that capital gains on stocks on the Bursa Malaysia are taxed (are considered income), but gains on foreign stock exchanges are not. So for tax purposes would it probably be better to invest in mutual funds and/or ETFs which are listed on a foreign stock exchange. I'm not sure, but this could complicate things a bit.

Any pointers, hints or tips would be appreciated.

InVinoVeritas

The issue is where will the fund management take place and the profits be generated. If this is in Malaysia, then you will be taxable on them. If they are outside Malaysia and later remitted to Malaysia, you will not be. I believe simple interest on an account held in Malaysia is not taxable to you.

NeonHippy

Hi SushiFan welcome to the forum,
I seem to be a few steps ahead of you and this is a subject that has been really vexing me for the last couple of months as we prepare to leave England. If you can make a few more posts (BB or IVV can advise how many are needed) I will PM you with some of my thoughts on the subject and how we plan to invest our savings. My views will of course be very UK centric in terms of tax and investment strategies.

winston_1

The way the Ringgit has been falling the last few weeks I would not be transferring my savings there at the moment.

bakedbean

Well it doesn't have to be in Ringgits. We hold several deposits in foreign currencies. Interest is tax free still.

bakedbean

Hi Sushi Fan and welcome to the forum

You will need to do 3 posts before the PM function kicks in.

SushiFan

Thank you BB for your kind help (in reaching the three posts).

SushiFan

Yes, this drop in the Ringgit is surely helping me in the 150,000 MYR deposit I will have to pay. Transferring any savings is a thing of the future though.

SushiFan

Thank you NeonHippy, for offering to share your thoughts about this topic. I will surely send you a PM.

NeonHippy

Hi SushiFan, I have sent you a reply by pm. Hope you find it useful.

SushiFan

Thank you! I found your message.

Fenella

A complete finance numpty here! You say you wouldn't transfer money to Malaysia because of the the falling ringit. Surely this is a good time to transfer when you're getting more for (in my case) the Euro, unless of course you think the Malaysian economy is going to completely collapse?

I ask because we've been waiting for the ringit to depreciate in order to make a transfer. Now I'm not so sure

bakedbean

I like your thinking, Fenella. Yes I think that is true. I guess the problem is that none of us have crystal balls and, even though retired or some may be almost retired, there's still a lot of years to go for some of us. Life may change. Lots of things may change.

You may think you will stay in Malaysia forever, but who knows what is around the corner

So probably good to not keep all eggs (currencies) in one basket in case you move again.

JC3

Hi Fenella,

I'm with Winston on this one.

Let's say you exchanged £100 on August 1st - you'd have got about 596 ringgit. Wait a month and you'd have got 661 ringgit. 11% more.

How long to make 11% in a UK building society? 5 years or more!

If the ringgit continues to tank over the next few weeks it could well be worth hanging on tight to your Sterling, and only exchanging what you need when you need it, maybe you’ll make another 11%.

Polishing my very tarnished crystal ball I see RM7+ to the £1 before year end, and oil below $40 a barrel. It's already down 60% since June last year.

There' not much good news for Malaysia at present IMHO, and no rush to buy ringgit just yet.

JC3

winston_1

Interestingly yesterday it was 6.6 to the £, this morning 6.5, now 6.47 at 12:30 UK time. Wonder if it has bottomed out.