Why many Malaysians never make the leap from saving to investing

Many Malaysians remain hesitant to move from saving to investing, and that hesitation is rooted in uncertainty rather than a lack of access to investment products, said YTL Power International executive director Hann Yeoh.

"A very small proportion of people actually understand investments or dare to even look at them," he told FMT.

Yeoh said many first-time investors are unsure which products suit their financial goals and risk appetite, and often find the process intimidating without professional guidance.

Some assume investing is only for the wealthy, he said, while others worry about making mistakes because they do not fully understand how investment products work.

"It can be quite intimidating when you're on your own and wondering, 'How do I do this?'" he said.

Rather than encouraging people to take on large risks from the outset, Yeoh said the focus should be on helping first-time investors start small, learn how investment products work and build confidence over time.

He said Ryt Bank uses artificial intelligence and technology to democratise investing in much the same way it had done for banking.

The bank recently introduced Ryt Invest, a digital investment platform designed to make investing more accessible and easier to understand, particularly for first-time investors.

Developed in partnership with Opus Asset Management, which has more than RM10 billion in assets under management and 25 years of investment experience, Ryt Invest provides access to professionally managed investment solutions through a digital banking app.

One of the key barriers the platform seeks to address is the perception that investing requires a large upfront commitment.

"We wanted to make the entry point low and understandable so that people can start investing from as little as RM1. That way, it doesn't become intimidating and is easy for people to give investing a try," he said.

Ryt Invest offers three options. SavePlus is a shariah-compliant option focused on investment-grade bonds for users seeking lower risk; Income offers diversified exposure across asset classes for those pursuing potentially higher long-term returns; and Gold provides exposure to one of the world's most widely recognised store-of-value assets.

Yeoh said education plays an equally important role. Ryt Bank has integrated Ryt AI into the customer experience, allowing users to ask about investment options, key features and risk levels, and to access educational information.

"With Ryt AI, users can ask questions such as, 'What's the difference between the Ryt Invest investment options?' or 'Tell me more about the Ryt Invest Income Fund'," he said, adding that it explains information in a simple, conversational way.

He stressed that investment decisions and fund management remain under the oversight of professional fund managers, with AI serving only as an educational tool and not making decisions on users' behalf.

"The biggest advice is just to get started in the smallest way possible, and then learn about it. It's quite an exciting journey, but the most important thing is to get started," he said.