KUALA LUMPUR: Malaysian youth are showing growing interest in securing their financial future through investing.
However, despite this rising curiosity, many first-time and younger investors continue to face significant barriers to entering the capital market.
For CGS International Securities Malaysia Sdn Bhd, tackling these challenges goes beyond providing access – it is about driving long-term value through inclusive financial empowerment.
According to CGS International deputy CEO Khairi Shahrin Arief Baki, three key barriers persist – the perception that investing is only for the wealthy or highly educated, low disposable income among youth juggling loans and living costs, and a lack of platforms designed with younger, tech-savvy users in mind.
“CGS International quantifies these challenges through behavioural data and engagement metrics. Since launching our user-centric UP App, we’ve seen a sharp rise in account openings from those aged 18 to 35, along with higher participation at universities, career fairs and investment expos – especially in beginner-friendly products,” Khairi told SunBiz.
He cited a 2022 Securities Commission Malaysia survey that reaffirmed a common concern among young Malaysians: they want to invest but feel discouraged by the high cost of entry.
The requirement to buy a minimum board lot of 100 shares makes blue-chip stocks on indices such as the FBM KLCI and the FBM Emas inaccessible to many. As of July 9, share prices for companies such as Mr DIY, Axiata and Nestle ranged from RM1.67 to over RM78 per share.
This has led many retail investors to turn to penny stocks – those priced under 50 sen – as a more affordable entry point, particularly during periods of market volatility.
“At CGS Malaysia, we’ve identified affordability, limited financial literacy and competing financial priorities as key hurdles,” Khairi said.
“Many young people believe investing requires large sums, don’t know how or where to begin, and are focused on debt repayment or emergency savings due to the rising cost of living.”
According to Bursa Malaysia’s Malaysian Retail Investor Insights 2023, retail investors allocate just 8.4% of their income to investments.
While the 18–34 age group accounts for 28% of active retail investors, they contribute only 14% of total retail traded value, underscoring the gap between interest and participation.
To address this, CGS International launched a six-month student ambassador programme with local universities and the Annual Asean Investment Challenge, which uses gamification to build financial literacy and investor confidence.
On April 8, the firm introduced fractional share trading on Bursa Malaysia via the UP App, allowing Malaysians to invest in top FBM KLCI stocks from as little as RM1.
“We frequently hear from students and fresh graduates who say, ‘I want to invest, but I don’t know how’. Our data supports this – 83% of new UP App users had little to no prior experience and were unfamiliar with basic terms like dividend yield or dollar-cost averaging,” Khairi said.
“This reflects the need for the industry to simplify and demystify investing.”
As part of its onboarding process, the app asks users about their investment goals – capital growth, income, short-term gains or long-term stability – to provide tailored support based on their risk appetite.
Through tools such as fractional trading, CGS aims to offer both access and education, helping users gain real exposure with minimal risk and build capability over time.
Looking ahead, Khairi said CGS International is optimistic about the continued growth of retail investing in Malaysia, driven by digital adoption, improved financial awareness and increased comfort with small-scale investing.
“But it’s not just about growing account numbers. We’re committed to nurturing a generation of confident, informed investors. Soon, users will be able to invest fractionally in US tech giants and blue-chip stocks through the UP App, with a simple onboarding process including US regulatory checks like the W-8BEN form.”
He added that a syariah-compliant version of the app is in development and is expected to launch next year.
“This will offer faith-aligned investment options and support Malaysia’s leadership in Islamic finance, in line with the Madani government’s inclusivity goals. At the same time, initiatives like the Asean Investment Challenge continue to serve as a vital talent pipeline by introducing students to investing early,” Khairi said.
“By combining education with accessible technology, we’re working to close the financial literacy gap and empower Malaysians to become long-term investors,” he added.