3 Main Types of Car Insurance Coverage (And What They Actually Cover)

  • By CompareHero.my
  • September 28, 2020

In Malaysia, there are 3 types of car insurance coverage, namely first party, second party, and third party. How do these car insurance policies stack up? Read more to find out the pros and cons before you decide to purchase.



Take a stone and throw it in a car park full of drivers. Chances are, you’ll hit one who doesn’t know what their exact insurance policy covers.

If you don’t know what is insurance coverage, it’s basically a contract between you and the insurance company that provides you with financial protection against physical damage or bodily injury. This protection will only be applicable for traffic or vehicle-related incidents, and comes at a premium which must be paid annually.

It’s completely mandatory for all drivers in Malaysia to get a valid car insurance policy. Without that, you won’t be able to renew your road tax through the Road Transport Department (JPJ). And without your road tax, you won’t be allowed to drive on Malaysian roads legally. If you get caught without a valid road tax, Section 14(4) of the Road Transport Act (RTA) 1987 would leave you with a fine of up to RM3,000.

Legally, you’ll be breaking the Road Transport Act 1987 and you can be fined up to RM1,000 and/or spend up to three years behind bars. As we mentioned previously, there’s a RM3,000 fine if you’re caught driving without a valid road tax. Since you can’t renew your road tax without first renewing your car insurance, you’ll likely end up with both fines.

But that’s just the legal part of things. The other headache would come with the repairs. You will obviously have to fork out your own money to cover the costs of the damages to the other party (if you’re in the wrong) and yourself. You may or may not also have to pay for treatments for bodily injuries.

Not having a valid car insurance policy will eventually bite you back where it hurts (your wallet), so always make sure that your policy is up-to-date.

So… what does car insurance cover in Malaysia?

It all depends on the type of car insurance coverage you sign up for. There are three main types of car insurance in Malaysia: third party; third party, fire, and theft (a.k.a. second party), and comprehensive.

If you’re confused over these wordings, here’s a quick overview of how insurance companies term them:

  • First party → you, the driver
  • Second party → the insurance company
  • Third party → everyone else


To know what your car insurance covers, you need to first check which one of the three types your policy falls under. Do note that the table below is  by no means an exhaustive list. Insurers may or may not add and subtract benefits to your coverage, so it’s best to double check your policy for a more accurate picture.

PolicyWhat it coversWhat it does not cover
Third party
  • Third-party bodily injury to a passenger or a person in another car
  • Damage to another person’s car
  • Damage to another person’s property
  • Injury or death to you and your passenger
  • Medical expenses for your own injuries
  • Legal fees for your own injuries
  • Your car’s damages in an accident you caused
  • Your car is stolen, damaged or destroyed by fire
  • Your personal belongings are damaged
  • Your windscreen is damaged
Third party, fire, and theft (a.k.a. Second party)

Same as above:

  • Third-party bodily injury to a passenger or a person in another car
  • Damage to another person’s car
  • Damage to another person’s property


But also includes:

  • Your car has been stolen
  • Your car is damaged by attempted theft (for example, broken door locks, windows or stolen audio and accessories.
  • Your car is damaged due to fire
  • Medical expenses for your own injuries
  • Legal fees for your own injuries
  • Injury or death to you and your passenger
  • Your car’s damages in an accident you caused
  • Your personal belongings are damaged
  • Your windscreen is damaged
Comprehensive (a.k.a. first party)

Same as above:

  • Third-party bodily injury to a passenger or a person in another car
  • Damage to another person’s car
  • Damage to another person’s property
  • Your car has been stolen
  • Your car is damaged by attempted theft (for example, broken door locks, windows or stolen audio and accessories.
  • Your car is damaged due to fire


But also includes:

  • Damage to your vehicle due to accident
  • Injury or death to you and your passenger
  • Your personal belongings are damaged
  • Your windscreen is damaged

In addition to above, most comprehensive policies also come with a free tow truck service, depending on how far your vehicle is from the nearest panel workshop. Some also provide you with a 24-hour roadside assistance service, so you’ll always have help if you’re stranded in the wee hours of the morning.

Read also: Car Motor Insurance Guide: What Is The Best Car Insurance In Malaysia?

And what damage does car insurance not cover in Malaysia?

On top of the table we’ve shown you, these are some of the most popular damages where insurance companies don’t typically cover – even in a typical comprehensive policy:

  • Damage to the windscreen
  • Damages to fancy car accessories (e.g. LED lights, massive subwoofers)
  • Damage to properties (e.g. homes, gates, shops)
  • Damage from flood, windstorm, landslide, and other natural disasters
  • Damages due to malicious damage or riot, strike, and civil commotions (because technically the policies are meant to cover accidents from driving)
  • Compensation for loss of use


So, yes, if your ex-partner got mad at you and decided to wreck your car, you unfortunately will not be able to claim for that. However, there are various add-ons that you can include in your policy. They obviously come with a higher premium, so speak to your agent to see what your options are.

Read also: Guide To Auto Insurance Claim Process In Malaysia

Driving has its risks, so be prepared for anything that comes your way

It’s better safe than sorry when it comes to driving, especially since you’re not the only person at risk – you will also be putting everyone else at risk, too. Nobody likes forking out money for insurance, but your wallet will thank you if and when you get into trouble on the road.

Without insurance, you will have to foot the bill on your own. While certain damages don’t cost much, some can go up to tens of thousands – not a sum you would gladly pay.

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6 Best Credit Cards For Malaysian Gen Zs

  • By CompareHero.my
  • September 25, 2020

Are you one of the generation Zs who are planning to get the first credit card, but not sure which one is suitable for you? In this article, we listed down 6 best credit cards that can give you great benefits and rewards.



Just as millennials start finding their first grey hair on their heads, there’s a new generation taking centre stage: generation Z. And if you’re reading this article, it probably means you’re part of it!

As you enter the workforce, you may be relatively new and unfamiliar to the different financial products available in the market. You probably have almost all the main e-wallets readily available on your phone, debiting through your savings account or depending on your parents’ credit card to top-up your wallet.

So as you navigate through adulthood, you may want to consider getting your first credit card. Before we list down the most ideal ones for you, here are some really important things to know first:

4 things you need to know before getting your first credit card

1. There are different types of credit cards.
And by that, we don’t mean different cards from different banks. By that, we mean that the reward systems of these cards are different.

Some of the popular types include:

  • cashback (where you literally get a certain percentage of cash back for spending)
  • rewards (where you collect points as you spend and exchange them for stuff later)
  • airmiles (still very much like a rewards card, but has more benefits for frequent flyers such as exclusive lounge access and air mile points)


To choose the right card for yourself, you want to look for one that best suits your lifestyle preferences.

Read also: Quiz: What’s Your Credit Card Type?

2. You may not get approved, and that’s for one very ironic reason.
Before deciding to approve your credit card application, banks would first check your credit score. What’s that, you ask? Very simply, it is a number between 300-850 which represents your creditworthiness and how likely you are to repay debt. These are the three most important digits of your life.

If your score is low, it indicates that you’re probably a bad paymaster and raise red flags for banks. If your score is high, it tells banks that you’re a responsible and safe candidate to lend money to.

If you don’t currently have a history of borrowing money, you’ll come up with no credit score at all. This makes it impossible for banks to read you and approve your application. It’s a chicken-and-egg situation, and a very ironic one too!

While this doesn’t always resort to getting your application rejected, you can always increase your chances of getting approved by applying for a credit card in the bank with your savings account. You would already have a record with them, and they will be able to see how healthy your savings are.

Read also: Ultimate Guide To Credit Scores

3. You need a minimum annual salary of RM24,000 
No money, no honey. But in this case, no credit card!

Banks will never offer you financial help if you don’t have what it takes to repay your owing, which is why you’ll need to have at least an annual salary of RM24,000 in order to get your first card.

This needs to be substantiated with payslips from 3 consecutive months – and don’t even think about trying to forge documents, as doing so can get you in some serious trouble.

4. You should always pay your bills in full to avoid getting charged interest.
Credit cards get a bad rep because of its notoriously high interest rate (from 15% p.a.). This is one of the reasons why so many people end up in serious debt, as these rates are compounded over time.

To avoid this, just remember to pay your bills on time. But that’s not all – instead of paying just the minimum fee (which will save you a late fee), you should also pay your bill in full, as you will be charged an additional interest for the debt that you carry over.

6 best credit cards for Gen Zs in Malaysia in 2020

Being a fresh graduate or entry-level executive, it’s important that you choose cards that are suitable for you. Look for cards that have low salary requirements and waived annual fees, as this will let you enjoy the flexibility of owning a credit card at minimal costs.

Here are six that we love:

1. Maybank 2 Gold Credit Card


Great if you’re:
An existing Maybank user who wants to keep everything on one app and one bank.

Plus points about this card: 

  • Almost minimal entry salary requirement of RM2,500
  • RM0 annual fee that’s waived for life
  • Get two cards at once (cashback and rewards)
  • 5X TreatsPoints for all spend on American Express Reserve card, locally and overseas
  • 1X TreatsPoints for Visa/Mastercard® spend
  • 5% Cashback for American Express Card spend
  • Up to 50% savings at all SPG Hotels & Resorts in Malaysia

2. CIMB e Credit Card


Perfect if you’re:
A digitally-savvy spender who does a lot of transactions online.

Plus points about this card:

  • Low entry salary requirement of RM2,000
  • RM100 annual fee, but waived for the first year and with subsequent total annual spend of RM12,000
  • 12x bonus points with featured partners
  • 10x bonus points with non-featured partners
  • 5x bonus points for online and auto-billing transactions
  • 1x bonus points with in-store contact-less and other transactions

3. Maybank Grab Credit Card


Perfect if you’re:
A heavy Grab user who loves using GrabPay and collecting points.

Plus points about this card: 

  • Mid-to-low salary requirement of RM3,000
  • No annual fee
  • Welcome gift of 1,000 GrabRewards Points (GRP) will be awarded upon activation.
  • Welcome gift of 5 X RM5 GrabRide voucher and 5 X RM5 GrabFood voucher will be awarded upon a minimum accumulative spend of RM300 in the Grab application within 45 days from the date the card is approved.
  • 5 GrabRewards Points will be rewarded for every 1 Ringgit Malaysia spent on Grab & GrabPay (including GRAB e-wallet reloads).
  • 2 GrabRewards Points will be rewarded for every 1 Ringgit Malaysia spent overseas/cross border/e-commerce transaction.
  • 1 GrabRewards Points will be rewarded for every 3 Ringgit Malaysia spent locally on eligible transactions.
  • Grab Platinum Tier status for 6 months upon card activation
  • Lifetime Annual Fee Waiver

4. OCBC Great Eastern Credit Card


Perfect if you’re:
Looking to protect yourself with added insurance coverage.

Plus points about this card: 

  • Low entry salary requirement of RM2,000
  • RM0 annual fee that’s waived for life
  • Complimentary RM100,000 insurance coverage on death or total and permanent disability for principal cardmember (First Year)
  • Enjoy 12 months’ Auto-IPP for Great Eastern / Overseas Assurance Corporation for insurance premium of RM2,200 and above via Auto Debit

5. Citi Simplicity+ Credit Card


Perfect if you’re:
All about the things that are aesthetically pleasing!

Plus points about this card: 

  • Low entry salary requirement of RM2,000
  • RM0 annual fee that’s waived for life
  • Get 10% interest back on purchases and cash advances every month when you pay at least the minimum monthly due amount on-time
  • Rebate earned will automatically be credited in your upcoming statement
  • No capping on rebates so your savings can really add up

6. Public Bank-Petron Credit Card


Perfect if you’re:
An everyday driver who would appreciate petrol rewards and accident protection.

Plus points about this card: 

  • Low entry salary requirement of RM2,000
  • RM0 annual fee that’s waived for life
  • 5% Cashback for RM800 min. monthly Petron spend
  • 3% Cashback for >RM500 to RM800 on Petron spend
  • 2% Cashback for >RM200 to RM500 on Petron spend
  • 1% Cashback for >RM100 to RM200 on Petron spend
  • 0.5% for less than RM100 on Petron spend
  • Unlimited Cash Megabonus of 0.1% on other local and overseas retail purchases
  • Up to RM20,000 in Personal Accident Insurance

Curious to see more? Compare all credit cards here.

A simple guide on how to apply for your first credit card 

Once you compare and choose the right credit card for yourself, it’s now time to actually apply for it. 

1. Where to apply
You can apply for one in many ways, such as going directly to the bank, going to their website, or using comparison sites like CompareHero.my.

2. How to apply 
Applying is simple. You will only need to fill up a form and provide some official documents for banks to vet through your application. This would typically include: 

  • Photocopy of identity card (front and back)
  • Latest EPF statement OR;
  • Latest full set BE & tax payment receipt OR;
  • Latest EA (last two years to include bonus) OR;
  • Latest salary slip


3. Sit back and wait for a response
 
It usually takes one to two months for the bank to process your credit card application. A complete credit card application will include the required documents including a copy of your identity card, income statements and also Employee Provident Fund (EPF) statements. If you don’t hear back, you can always call your bank (or CompareHero.my if you’re applying through us!). 

We hope this helps you in your journey into adulthood. For more advice, these may help you: 

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Apakah Maksud Pengkelasan Pendapatan B40, M40 dan T20?

  • By CompareHero.my
  • September 24, 2020
Berdasarkan kaji selidik Pendapatan Isi Rumah dan Kemudahan Asas (HIS/BA) Jabatan Perangkaan (DOSM) tahun 2019 yang dijalankan sebanyak dua kali setiap lima tahun, pendapatan rakyat Malaysia boleh diklasifikasikan kepada 3 kumpulan iaitu T20, B40 dan M40. Kumpulan ini boleh berubah bergantung kepada pendapatan individu ataupun isi rumah. Ini juga merupakan satu indikasi pertumbahan ekonomi di Malaysia. Berkaitan: Bajet 2020: Ringkasan Pembentangan Belanjawan Secara Langsung pada 11 Oct 2019

Konsep dan istilah yang digunakan di sini diringkaskan sebagai:

  • ISI RUMAH: Seseorang atau sekumpulan orang (berkaitan atau tidak berkaitan) yang biasanya hidup bersama di tempat tinggal dan membuat peruntukan (perbelajaan) untuk keperluan makanan dan lain-lain keperluan bersama. Pada tahun 2019, saiz purata isi rumah Malaysia ialah 3.9 orang.
  • PENERIMA PENDAPATAN: Ahli isi rumah yang menerima pendapatan dalam tempoh masa rujukan kajian, serta dengan sekurang-kurangnya satu penerima pendapatan. Pada 2016 dan 2019, purata penerima pendapatan di Malaysia adalah 1.8 orang.
  • PENDAPATAN ISI RUMAH: Pendapatan keseluruhan yang diperoleh oleh ahli isi rumah, sama ada secara tunai atau jenis, dan boleh dirujuk sebagai pendapatan kasar. Pada tahun 2019, purata pendapatan bulanan di Malaysia ialah RM7,901.
  • PENDAPATAN ISI RUMAH PENENGAH: Adalah pendapatan “pertengahan” dalam pelbagai pendapatan isi rumah, diatur dari rendah ke tinggi. Sebagai contoh, di Taman Bintang, terdapat lima pendapatan isi rumah iaitu RM5,000, RM10,000, RM15,000, RM20,000, dan RM25,000; Pendapatan isi rumah median ialah RM15,000. penengahan digunakan kerana ia lebih tepat daripada nombor purata.
  • PENDAPATAN PURATA ISI RUMAH : Adalah nombor pendapatan “purata” di mana semua pendapatan isi rumah ditambah dan dibahagikan dengan bilangan isi rumah.

Apa yang dimaksudkan dengan Kumpulan Pendapatan B40, M40 dan T20?

B40, M40 dan T20 merupakan kelas pendapatan isi rumah di Malaysia. Apa maksud B40?
  • B40 atau bottom 40% merupakan kumpulan berpendapatan rendah. Pendapatan untuk isi rumah kelas ini ialah sebanyak RM4,850.
Apa maksud M40?
  • M40 atau middle 40% merupakan kumpulan berpendapatan sederhana dan isi rumah kelas ini ialah sebanyak RM4,851 sehingga RM10,970.
Apa Maksud T20?
  • T20 atau top 20% merupakan kumpulan berpendapatan tertinggi dan pendapatan untuk isi rumah kelas ini ialah melebihi RM10,971 sebulan.
Perlu diingat bahawa definisi kumpulan pendapatan ini tidaklah tetap. Isitilah B40, M40 dan T20 sebenarnya mewakili peratus populasi negara bagi 40% Terbawah, 40% Tengah dan 20% Teratas, masing-masing. Nilai ini mungkin naik atau turun dari tahun ke tahun, bergantung kepada penyata Keluaran Dalam Negara Kasar (KDNK). Itulah sebabnya, mengapa pendapatan isi rumah median digunakan sebagai penentu. Berikut merupakan contoh perbezaan pendapatan median isi rumah untuk T20, M40, dan B40 pada tahun 2019 dan 2016:

Pendapatan median terkini untuk T20, M40 dan B40

Pendapatan Median Isi Rumah
Golongan Pendapatan Median Pendapatan 2019 (RM) Median Pendapatan 2016 (RM)
T20 15,021 13,148
M40 7,093 6,275
B40 3,166 3,000
Berikut pula ialah had pendapatan isi rumah untuk T20, M40, dan B40 pada tahun 2019 dan 2016:
Had Pendapatan Isi Rumah
Golongan Pendapatan Had Pendapatan 2019 (RM) Had Pendapatan 2016 (RM)
T20 > 10,959 > 9,619
M40 4,850 – 10,959 4,360 – 9,619
B40 < 4,850 < 4,360
Walaupun pendapatan setiap kumpulan telah meningkat sejak tiga tahun kebelakangan ini, namun faktor yang perlu dipertimbangkan juga ialah  kos sara hidup yang semakin meningkat disebabkan oleh inflasi and kadar pertumbuhan gaji yang perlahan. Secara tepat, jika kita mengambil kira inflasi (3.5%, 2.1%, 2.09% dan 4.1% masing-masing pada 2014, 2015, 2016 dan separuh pertama tahun 2017) nilai ringgit mungkin telah pun menurun. Menurut Laporan Kaji Selidik Pendapatan dan Gaji 2019 dari Jabatan Statistik, purata pendapatan bulanan pekerja, telah meningkat daripada RM3,045 pada tahun 2016 kepada RM3,495 untuk tahun 2019. Walaubagaimanapun, pertumbuhan pendapatan yang optimistik ini hanya boleh dirujuk kepada mereka yang bekerja di Kuala Lumpur atau sekurang-kurangnya berhampiran, sementara negeri-negeri yang lain, masih menghadapi cabaran untuk mencapai tahap pendapatan yang sama. Untuk menjelaskan situasi ini lebih baik, gambar rajah di bawah menunjukkan tahap pendapatan media bagi setiap negeri dan anda boleh melihat sekiranya anda dan keluarga anda berada di atas atau di bawah tahap median ini.

klasifikasi-pendapatan-di-malaysia-t20-m40-dan-b40 Sumber: Jabatan Perangkaan Malaysia

Pendapatan Median Isi Rumah
Negeri Median Pendapatan 2019 (RM) Median Pendapatan 2016 (RM)
W.P. Kuala Lumpur 10,549 9,073
W.P. Putrajaya 9,983 8,275
Selangor 8,210 7,225
W.P. Labuan 6,726 5,928
Johor 6,427 5,652
Melaka 6,054 5,588
Pulau Pinang 6,169 5,409
Terengganu 5,545 4,694
Negeri Sembilan 5,055 4,579
Perlis 4,594 4,204
Sarawak 4,544 4,163
Sabah 4,235 4,110
Perak 4,273 4,006
Pahang 4,440 3,979
Kedah 5,522 3,811
Kelantan 3,563 3,079
Perbezaan pendapatan antara setiap negeri sangat agak ketara berdasarkan data diatas. Pendapatan T20 yang diperolehi di negeri Kelantan, Perlis dan Pahang, boleh dibandingkan gaji golongan M20 yang diperolehi di Kuala Lumpur. Menurut laporan yang disediakan oleh Jabatan Perangkaan Malaysia mengenai Keluaran Dalam Negeri Kasar (KDNK), tujuh negeri telah melepasi paras nasional sebanyak 4.3% untuk tahun 2019. Selangor mencapai peningkatan sebanyak 6.7% sementara Wilayah Persekutuan sebanyak 6%. Selain tiga negeri tersebut, Kelantan juga meningkat kepada 5.3%, Wilayah Persekutuan Labuan sebanyak 5.2%, Negeri Sembilan 5.1%, Kedah 4.6% dan Perlis 4.6%. Selain dari Kuala Lumpur, Selangor dan Putrajaya; tahap median pendapatan di negeri yang lain menunujukkan median pendapatan isi rumah ini tidak melebihi tahap pendapatan median untuk kumpulan M40 di Malaysia. Ini bermakna masih terdapat jurang perbezaan yang perlu ditutupi bagi mempertingkatkan pendapat di kawasan bandar dan luar bandar juga. Namun begitu, didapati kedua-dua buah negeri iaitu Terengganu dan Perak mencatatkan tahap pendapatan median yang memuaskan sejak tahun 2014, kemungkinan besar ini disebabkan oleh peningkatan dalam sektor pelancongan. Untuk memberi gambaran yang jelas kepada anda, kami juga mengenalpasti 10 daerah yang teratas di negara Malaysia mencatatkan pendapatan median tertinggi pada 2019. Walau bagaimanapun, ini bukannya bermaksud anda mungkin mendapat keputusan yang sama sekiranya anda pindah ke kawasan-kawasan tersebut. Daerah yang mencatatkan pendapatan isi rumah median yang tertinggi pada 2019
10 Daerah yang Mempunyai Median Pendapatan Tertinggi
Daerah Median Pendapatan 2019 (RM)
Petaling, Selangor 8,993
Sepang, Selangor 8,937
Gombak, Selangor 8,501
Hulu Langat, Selangor 8,361
Klang, Selangor 7,888
Kulai, Johor 7,536
Bintulu, Sarawak 7,380
Johor Bahru, Johor 7,342
Kuala Langat, Selangor 6,950
Timur Laut, Pulau Pinang 6,902
Setelah anda mengetahui mengenai pendapatan median di negeri dan daerah lain, anda dinasihatkan untuk mengetahui kedudukan posisi kewangan anda, sama ada ia adalah lebih baik atau leih buruk di bandingkan dengan rakyat Malaysia di sini. Membuat keputusan kewangan bukannya perkara yang senang, jadi jangan lupa untuk membaca blog kami untuk informasi terkini. Lihat juga: 6 Bantuan Kerajaan di Malaysia Yang Tidak Diketahui Rama
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#DigitalCareers: Freelancing In The New Normal – How Is It Different? 6 Freelancers Share Their Stories With Us

  • By CompareHero.my
  • September 23, 2020

COVID-19 has caused many freelancers in Malaysia to adapt to the new normal, but how affected are they by the pandemic? We interviewed 6 freelancers on their experiences and stories, read more to find out.


The COVID-19 pandemic has dismantled the global job market, resulting in a record number of layoffs, pay cuts, and unemployment, as employers are forced to trim their budgets as part of sweeping cutting cost measures.  

Regardless, one industry that has seemed to ride out the storm is the freelance industry. Despite the International Labour Organization reporting that there was a 14% drop in global working hours – equivalent of 400 million full-time jobs – in the second quarter of 2020, crowdsourcing marketplace Freelancer reported that job openings increased over 25% during the April to June quarter of 2020. 

According to Freelancer, the pandemic has led to a huge demand in number crunchers, e-commerce and computer game projects seekers. Freelance work for mathematicians (up 99.6%), statisticians (75%) and other jobs directly connected to the pandemic, particularly saw the biggest increases.

The hike, the report states, is in tandem with increase in tracking and tracing of coronavirus cases, hospitalizations, mortality rates, tests conducted and more, as well as the impacts of the pandemic. 

But is that scenario really a reflection of the reality in Malaysia? 

To get a better sense of what’s happening on the ground, we spoke to several local freelancers about their work, the impact of the pandemic on their jobs, and asked them to share several tips when it comes to freelancing. 

Oh and if you’re wondering, our definition of a freelancer is someone who provides services like writing, designing, performance etc by the hour, day, job, etc., compared to working on a regular salary basis for one employer.

A seasoned writer, content strategist and authority marketer, 46

Little did Chee Seng know that leaving his full-time job as an advertising copywriter more than two decades ago, and becoming a freelancer – despite not having that many connections or experience – would lead him to where he is today: a full-time freelancer with a rich career spanning more than two decades. 

“It was very difficult (at first). The toughest interview I had was when an interviewer said to me: ‘I got a 15-year copywriting person out there, who has won awards, with a wife and a child to feed – so why should I hire you, who only has one and a half experience? ” he recalls. “Because I spent so little time in the industry, and didn’t have experience in a major agency, I didn’t get to build up the network, connections and a good portfolio of work to help boost my reputation. So it was actually very difficult for a number of years.”

Without significant experience and connections, Chee Seng found himself in a very difficult situation: at the bottom of the freelance barrel, forcing him to constantly hustle, and that meant he couldn’t be picky with jobs.

“If you understand the advertising industry at the time, there was sort of a pecking order, so you had the agencies, and agencies that did jobs for printers, and the bottom of that pecking order was probably the printers because that’s where the final products would come out. So I was taking jobs from printers at that time, who are notoriously cut throat; that was me for about 10-15 years.”

But all that hard work would eventually pay off. Chee Seng’s big break came in 2012, when he landed a part-time job at a prestigious international digital media company, despite that year being, simultaneously, the lowest point of his career. 

“I really thought I was going to lose everything. My wife and I, we just prayed that something good was going to happen – and thank God something did happen – someone introduced me to Yahoo Malaysia. I was hired to be a part-timer there, and that job really carried a lot of weight because a lot of doors started to open after that. Though I did well there, Yahoo Malaysia, unfortunately, would soon close down. But the name itself helped open a lot of doors so I am very fortunate.” 

Today, he continues to come up with creative ideas of different formats like design, advertising, marketing, publications, digital and PR, for brands, C-suites, and senior government officials. His work can be seen on his own platform, and others like Cilisos and Coconuts KL. His stories on Cilisos have done particularly well in terms of engagement, with one article reaching 44K shares.  

How did COVID-19 affect your work? 

Luckily for Chee Seng, the pandemic has not affected his assignments or retainer contracts. “I am very fortunate in a sense that my existing clients have kept me on board. So I’m really fortunate and thankful for that, even though their work has dropped,” he said. “But thank god, recently, work is picking up again on their part.”

He also feels that this economic crisis is different compared to past ones, in a sense that his work may not completely disappear but channeled differently than before. 

“Whenever there’s downtime (crisis), the first budget to be cut is the comms budget. But this round, it’s different – certain portions of comms didn’t get cut. Media got cut, traditional advertising got cut, but digital really came up. Everybody is looking for a digital writer etc. So I think there was a compensating factor. And I am fortunate because I have digital experience. In fact, for me, I was even almost as busy as before COVID-19 because a lot of the work was digital work.”

In terms of the actual work, Chee Seng said he noticed that most of his work is now being done digitally and that extensive remote working has somewhat blurred the lines of working hours. 

“I’m quite used to working from home for 30+ years, because I’ve been doing that, but now we lost a sense of where the cut off point is,” he said. “When video conferencing becomes more available, the time gets a little blurred.” 

Tips for other freelancers:

1. Improve your workflow: learn to research and write faster
For Chee Seng, the gold standard is to get it right the first time. Being more meticulous and consistently producing quality work, he said, can build one’s reputation as a dependable worker with clients. 

“I learned to be more merciless with myself as a writer. I am my worst editor and my harshest critic. When the product goes to the client, it has very little word length to clear so the servicing time is less,” he said. 

“My aim is to always get it right the first time. Even if I didn’t hit it right the first time – at least if I get 90% right the first time, I only have 10% left to handle before it’s done.” 

2. Always have a financial backup
“If you were like me last time – no connections and no jobs in the pipeline – that was really difficult so I struggled for many years. So either have financial security or a line of jobs waiting for you,” he said. 

3. Personal branding is key
Rather than just showcasing your own work, personal branding, Chee Seng said, has evolved into something that is more personal in nature. 

“Everybody has skills, work and experience – so what makes you different? The only differentiating factor is you. So it’s really about showcasing the way you work and think and your personality,” he said. “You can’t corner the whole market. Be authentic when you put yourself out there in the market that will attract a certain group of people.”

4. If it’s to your advantage to do free work, take it up!
“Not everything is valued by money,” he said. “There are values that money can’t buy like exposure for example. It’s a real thing. If I write for a large brand name for free, but they allow me to put my name on it – that’s the kind of branding that I can’t buy. And that’s what I did for the first book that I wrote, it was supposed to be by a ghostwriter, but because the pay was really low, I said ‘never mind, but I want my name on the cover. So if there’s an opportunity that pays very little but benefits you, I say go for it.”

5. Always be curious, always grow
Sharing his experience, Chee Seng said, taking a chance on new, but foreign, challenges could work to your advantage, especially if you pick up new skills or knowledge that could help you on your next career move. 

“When I joined Yahoo, I had zero digital knowledge but I was willing to learn, and they were willing to take a chance on me. When I went into PR, I had no experience, but they were willing to take a chance on me and, again within branding – I only have a little background on it – but I’m willing to take a chance on myself. I am always trying to differentiate myself and take extra challenges,” he said. “The moment you say you’re an expert, that’s when you stop growing.”

Related: How To Survive As A Freelancer In Malaysia

An independent visual journalist who specialises in news and current affairs, 34

Joshua Paul’s job takes him almost anywhere: Taiwan, Thailand, Sri Lanka, Singapore and many more. Beyond his passion for journalism, and telling great stories, what drives him and his freelance career is, as he puts it, is his love for freedom and his dislike of being stuck in the office. “I’m pursuing my dreams, and more importantly, I like doing news,” he said. 

Flick through Joshua Paul’s professional website and you’ll see a large body of impressive visual storytelling that exude real, strong emotions. 

An established independent visual journalist with eight years of experience, he specialises in documentary and EFP (electronic field production) camerawork with an interest in social issues, international and local conflicts, and refugee migration. 

He started his career in 2011 as a freelancer before joining the international news agency Associated Press (AP) as a photojournalist in 2014, covering major events like Malaysian Airline MH370 and MH17 tragedies. He also focused on daily news pieces, documentaries and feature stories. 

Today, his work has been published by international news agencies around the world including TIME, Forbes, New York Times, International New York Times, The Guardian, Washington Post and The Telegraph to name a few.

Paul picks up most of his clients, averaging around 50 clients yearly, from networking and getting recommended jobs. “I don’t use a specific platform. I mostly call around networks,” he said.

How did COVID-19 affect your work? 

“Really bad – I don’t get to travel,” he said. “I cover Southeast Asia, so I don’t get to travel and I can’t go for shoots and stuff.”

To cope with the situation, Paul has been coordinating his shoots remotely from Malaysia by working with a local crew from another country. “Recently. I did one for a client in Bangkok, and I coordinated the crew from Malaysia – I let them know what kind of footage we are looking for, doing interviews. Basically you have to guide a group of people to produce. Telling them these are the shots you are looking for.”

He also believes the situation will remain the way it is for freelancers such as himself for sometime, and would only bounce back after there is a vaccine. “There is nothing much I can do (besides coordinating from Malaysia), and there’s not much work I can do. This year I’ve only had six or seven projects. It’s bad but it is what it is. But the good thing is, I did save up for the bad times.” 

Tips for other freelancers:

1. Save up for a rainy day – make sure your financing planning is tip top!
“I started freelancing without any financial support from my parents, so when I started, it was really a risk and a gamble. The first couple of years was tough because you had to pay for rent and all of that, but I believe you really should follow your passion and what you love to do,” he said. 

“I somehow predicted it (that COVID-19 would get this bad), so I started saving months ahead, he said. “It’s just that none of us expected it to be this long. My tip for anyone who wants to do freelancing is financial planning because there’s a lot of ups and downs, and you have to predict that and plan and adapt.” 

2. Know your niche, and be attuned to the market demands 
Other than just financial planning, Paul said, personal branding is also equally important because your work and knowing what you’re good at would be your selling point.

He also emphasised the importance of keeping up with changing market demands by constantly knowing what clients and the audience are looking for. “Years ago there wasn’t Facebook or Twitter, but today, everybody wants one-minute videos because people don’t have that much time to watch long videos anymore,” he said.  

Former financial journalist and producer and presenter

Kathleen Tan was hustling as a financial journalist for around eight years before she decided to become a full-time freelance writer in 2015. 

The transition, she said, came after she got married, as she wanted a more flexible schedule in order to be with her family more often. “I also believed that as a freelance writer, I could work from anywhere, and would not need to commute and be stuck in an office for long hours everyday. I could also pursue the topics and areas of my interest,” she said. 

Like most other freelancers we spoke to, sourcing for work and clients have always been, one of the biggest challenges they face. But Tan said she’s blessed to have secured most of her clients through word of mouth, friends, as well as former bosses and employers who were familiar with her portfolio of work. “Often, they were familiar and confident with the quality of my work, and would seek me out when they needed a writer for extra work that their current teams could not accommodate,” she said. 

She’s also tried searching for work online via freelance groups on Facebook, and listed her details on online writer directories or freelancing portals such as Upwork. Interestingly, she said, though she’s met a couple of prospective clients through digital means, the ones that work out were always by word of mouth. “As a Christian, I believe God has been good in granting me divine favour with people!” she said. “How do I find out about these resources? Google! I just started from scratch honestly. With the Internet at our fingertips, nothing is impossible really.” 

Tan currently works with four different companies in various capacities – a mix of project-based work or ad hoc one-off articles. She’s also found herself in two polarising situations as a freelancer because of the flexible working schedule: sometimes there is a “drought” season where she has to constantly look for work and proposals get rejected. Other times, she finds herself juggling multiple deadlines for several clients in the same week. 

“I try to have a mix of retainer-type project work that takes a longer time to complete and faster turnaround articles so that it is more financially viable and practically speaking, I constantly have work to do,” she said. 

She believes she can earn more than a salaried job through freelancing, but it requires a lot of dedication or in other words, time. “As a freelancer, time is your biggest commodity – the more time you devote to work, the more money you can potentially make. This doesn’t apply to a salaried worker who gets a fixed income every month.”

How did COVID-19 affect your work? 

“When MCO was first implemented, I got affected adversely in two ways – my child was stuck with me 24/7 (so I could not work as much as I wanted to) and my clients were not able to pay me for completed work as their offices were not operating. One of my clients in the education sector could not operate and I had zero work from them – normally I would get a number of article requests,” Tan said. 

On the flipside, when CMCO was announced, she noticed some of her clients were more keen to market their products and services again, which needed her services. “Businesses began operating again and I was able to resume my work as well (a lot of my work is corporate communications or marketing communications related),” she said. 

Tan believes the demand for freelancing could be affected in a few ways – on one hand, clients could be outsourcing more work if it is cheaper than hiring new staff, but at the same time, clients with shrinking budgets would likely not outsource work, meaning less work for freelancers. 

“The advantage of freelancers is that companies don’t have to pay them fixed salaries and offer them employee benefits – they also save on overheads.They are like contract workers, easily dispensable, and can be hired as and when they are needed,” she said. “Some freelancers also offer specialised skills and experience that employers either cannot find in fresh hires or are unwilling to spend on in hiring experienced full-time employees.”

Like other freelancers, Tan has seen more phone and email interviews, as well as video call meetings with clients. “Less work to some extent with certain clients, but more work in others, depending on how companies are affected. The demand for certain kinds of writing has changed,” she said. 

To cope with these changes, Tan has had to be more creative with her approach, and has had to work harder to pitch to new and existing clients. 

Tips for other freelancers:

1. Price higher because clients may tend to lowball you!
“One piece of good advice I got from a more experienced freelance writer was to always price higher than the price you want because Malaysian clients always haggle for lower prices!” she said. 

“However that being said, you better be sure you can deliver the goods if your price is at a premium! I make it a point to never overpromise and underdeliver in my work so I honestly communicate with the client what I am capable of and what I am not, to give them an accurate picture and to manage expectations,” she added. 

2. Let your work speak for itself
A true believer in the notion that ‘hard work will pay off’, many of Tan’s first few clients were her ex-editors who knew her work ethic and quality and wanted her to write for them even when she no longer worked in their companies. 

“I always work hard and give my best as I believe good quality work will speak for itself – I find this to be true in my case,” she said. 

3. Be professional 
“Clients appreciate professionalism and ethics. Be a good person – give clients the benefit of the doubt, be gracious and extend goodwill – you never know when you yourself will need these in return,” she said. “And don’t be afraid to push yourself and try something new – the beauty of freelancing is that you are able to explore different areas and test new waters all the time.”

4. Know how to manage yourself
Tan said one way to become better at freelancing is to keep a routine and schedule as it helps, productivity-wise. This could also mean having a dedicated workspace. 

“When you are focused, you can get work done faster in fewer hours than endless non-productive days. Set small achievable daily goals if the overall workload seems overwhelming,” she said. 

Related: 8 Side Jobs for Malaysians to Earn Extra Money During CMCO

Pursuing Masters while freelancing on the side, 24

Though he’s only still in his early 20s, Nazmi Azrymi already has a somewhat extensive freelancing career, having started in 2016 while still in college. 

A jack of all trades, he currently freelancers in language and writing-related services, including proof editing, translating, resume writing and designing as well as content and copywriting. 

He is currently freelancing full-time, on top of pursuing his masters at a local university, while also taking slightly-longer contractual jobs to build his presence in the industry. “I’m currently also working with an esports company to be their news translator until November. It’s not determined yet whether I will make this a permanent/full-time thing, but for the time being, it is my main source of income.”

Nazmi cut his tooth in the freelance industry by assisting his friend, who was a freelancer himself. “He was the one outsourcing his jobs to me whenever he didn’t have the time to complete it by himself. From there, I began to take note of how he looked for clients and projects,” he said. 

Offering language-related services as a freelancer while studying came with the perk of being at the right place at the right time: on campus. 

“Up until today, I was able to promote my services among friends and acquaintances who would need my help regarding their academic assignments,” he said. “I also utilised social media like Facebook, Twitter and Instagram to post about my services and rates. From there, and word-of-mouth, I was able to get multiple gigs.”

The same can be said for his content and copywriting. It started with the help of a freelancer friend, who outsourced her job to him and was how he built his experience. 

“Once I’ve gained enough, then only I went to a bigger platform: LinkedIn. Upon including ‘Freelance Writer’ in my bio, I received several queries regarding the services. My first major writing job was to write articles for an e-magazine that covers aspects of Malaysian airports.”

How did COVID-19 affect your work? 

“Considering that my niche is within university campuses, the demands for my services are not too dry. However, for my services that go beyond campuses, I saw a reluctance from clients to pay more than the reasonable rates,” he said. “It became harder to get replies from prospective clients after they’ve read my invoice. Abandoned chats and emails became a norm for me as well.”

However, Nazmi said, he has seen an increase in demand for certain industries like advertising, e-commerce, scientific writings etc., but the competition makes it tough to secure assignments.

“Honestly, it is almost impossible to be the first one to hit “I’m interested” on the Facebook reply section or Tweet replies. If you lagged a few minutes then it’s game over for you.”

Nazmi said he notices that heavily hit industries like aviation, tourism, food, retails, among others, resort to hiring freelancers to make up for the bulk of work that can’t be completed by their own employees, but still, these gigs don’t pay that well either. 

“Certain industries, on the other hand, are experiencing good growth like the current gig I’m in, the esports industry; it saw some significant shift. People are getting more and more invested in console and mobile games so the demand is there,” he said. 

In an effort to scale his business and to create more visibility and credibility, Nazmi decided to register his services under a company at The Companies Commission of Malaysia (SSM). “I also teamed up with a friend of mine to create a service portfolio and we designed our own site/page. Seeing how e-commerce is becoming bigger, we felt it was important to take that same path (i.e. going digital) to further gain traction,” he said. 

Tips for other freelancers:

1. Be sure to document your work 
“This is important if you want to establish credibility. Get testimonies, feedback, and ask clients to spread news about you,” he said. “Doing this could help build your reputation as a freelancer.”

2. Research the market rate of your service
Knowing your worth and what you can bring to the table would help you figure out where you stand in the market, Nazmi said. “Moderate your rates so that it will not be too low or too high,” he said. 

3. Register your service on SSM and do bookkeeping!
“If you’re a student, you can get exemption from the yearly fee for the first year,” he said, in reference to registering your service as a company. “Bookkeeping (your income, expenses, clients’ database) are important because you need to observe any kind of pattern in your ventures in freelancing.

4. Never be afraid to ask help from peers or to reject gigs
By being connected to fellow freelancers, Nazmi said, you may get morale support and the possibility of getting more work if they decide to outsource their work to other freelancers. 

It sounds counterintuitive, but Nazmi feels that it’s equally important to know how to say no to gigs that may end up being a burden to you. 

“As a freelancer, you are what makes your work valuable. So, if you take too many jobs outside your capabilities, you may end up feeling overwhelmed and this could disrupt the quality of your work,” he said. “This will not reflect well on the eyes of your clients who may have paid a lot to acquire your services. So, know your limitations and do not be afraid to acknowledge it.”

5. Try new things and expand your niche by acquiring more skills 
“If you are a graphic designer, explore more styles. If you are a writer, explore more niches. Create your own mock writings and those can be part of your portfolio,” he said. 

“If you’re a freelance digital marketer, try newer digital marketing tools. Also, make sure to familiarize yourself with tools or aspects significant to your expertise and the industry. For example, as a writer, I am currently mastering Search-Engine-Optimization (SEO) as a lot of clients now want writers who are adept at this.”

6. Don’t be complacent because the industry is evolving and so should you
“Even as a proofreader for academic papers, you have to keep updated with the latest APA format or the current regulations in academia, for example, the usage of first-person ‘I’ in theses.”

Former magazine writer who is currently freelancing full-time, 31

Divine intervention played a significant role in Tan Xi Voon’s journey to pursuing a full-time freelancing career. She decided to pursue freelancing full-time for spiritual reasons. 

“My God told me so, I’m a Christian. To cut the long story short, two years ago when I was considering a career change, I prayed to God for His direction. And full-time freelancing was where He pointed me to. So, I took the leap,” she said. 

On top freelancing, she also currently works on a part-time basis with some of the clients, giving her some permanence. “I mainly freelance in copywriting. Some other areas that I also dabble in as a freelancer include social media management, photography and translation. I have been freelancing for quite a number of years but have only started doing it full-time since about 2 years ago.”

Though she has never actively sought out any freelance gigs, opportunities for Voon have continuously been available since she decided to take a leap in faith, to pursue freelancing full-time. 

“When God told me to go freelance full-time, it came with a specific set of directions: to not attempt to look for any freelance opportunities on my own but to fully trust in His provision. My initial plan to mass-mail my resume to agencies and companies, and to set up a LinkedIn profile were all scraped,” she said. 

“And, true to His promise, God shows up and blesses me in abundance. Freelance opportunities have come knocking on my door ever since until this day. Most of my clients, if not all, know me through word-of-mouth. And I have to mention that my past experience as a magazine writer/editor has likely given me an edge,” she added. 

How did COVID-19 affect your work? 

The demand for assignments, Voon said, for her, has grown pretty significantly. Because of the lockdown, she said, many brands and companies were – and still are – seeking to transition online, with copywriting and social media-related services the most sought after.

“Personally, things have not changed much for me. Most of my clients and I have been communicating online or over the phone pre-Covid, anyway,” she said. 

Tips for other freelancers:

1. Communication is key
“My no.1 rule is to always ask the client for a brief and/or samples (of articles, visuals, etc.) before I take on a project. Communicating ideas verbally is not enough because what we envision in our mind might be quite different from what the clients envision in theirs,” she said.

Putting the brief down on paper, she said, gives clarity and ensures all parties are on the same page for that project. “It will also reduce the number of revisions required, which makes the process more efficient,” she said. “Having said that, some clients may come to the table without having a slice of idea about what they want.”

2. Sometimes, the freelancer may have to take the driver’s seat
“Some clients may not necessarily know what they are looking for,” she said. “So it’s always good to do some homework beforehand so that you are prepared to lead your clients by asking them the right questions and offering them suggestions,” she said.

3. Never forget to document everything!
“Again, verbally agreeing on the rate/pricing of your service is not enough,” she said. “Put it on black and white and make sure you get your quotation signed.”

4. Keep up with the latest trends
Just like any other regular job or career, she said, freelancers too, should brush up their skill set with the latest technology. Doing so helps ensure you remain competitive with the market. 

“Read widely and keep yourself abreast of the trends and knowledge related to your field,” she said. 

5. Create healthy boundaries 
“While freelancing promises certain flexibility, many times it also means you may be required to work over weekends or at some ungodly hours,” she said. For the sake of your own mental and physical health, Voon said, it is important to learn how to create healthy boundaries.

A work-at-home super mom, 36

Freelancing since 2009, Susanna Khoo opted to freelance on a full-time basis, specialising in editorial projects involving either writing or editing, since 2015.

Similar to other freelancers we spoke to, she secured most of her freelance gigs either through friends and family, or ex-colleagues. 

“Besides those avenues, I sometimes get opportunities through LinkedIn. Those are usually complete strangers who are not even in my existing network. But this doesn’t happen that often,” she said. 

Her number of clients varies: she currently has one retainer or an ongoing client that she constantly does work for since 2015. Her other assignments are usually one-off projects, and on average, she has two clients at any one time. 

“But it’s really sporadic and hard to pinpoint to a certain number of clients or workload every week/month. I don’t really actively advance my career much at this stage of my life,” she said. “I’m not really aggressive about sourcing for jobs as my aim is primarily to be available to my kids so I only take up work whenever I’m able to. Nevertheless, I keep this freelance arrangement going as I’d still like to keep my career alive and to supplement family income as much as I can.”

How did COVID-19 affect your work?

“For my existing client, I found that they have changed the scope of work they assign to me. They give me less tasks and it’s more sporadic compared to before where they gave me a steady stream of work to do every month,” she said. 

She attributes these changes to two reasons: the clients themselves have had to evolve their business, in turn, possibly needing to cut down on expenses spent on hiring external parties. 

“On the other hand, I do feel there is an increase in demand for freelancers in some areas. Because I have gotten some inquiries from LinkedIn, out of which some did actually hire me for short term projects,” she said. 

“The only time it was particularly eerie and somewhat worrying in terms of work prospects was when the MCO was first enacted. But a month after MCO was in place, I felt that business had picked up again, albeit in a very gradual manner,” she added. I have gotten paid less (from my existing client). In a sense, worrying about the prospects of work did make me anxious in some ways and consequently, I did take on a role that paid way below my ideal rate.”

In terms of meeting clients, though Khoo has gone out to meet clients and work related contacts since CMCO started, she does only upon their request in order to be more conservative in this area. “I did not want to expose my family to unnecessary COVID-19. I have really young kids.”  

The only benefit that she could see from the lockdown, she said, perhaps, was that since everyone else was forced to work at home too, it might have made some companies or individuals a little more open minded towards working with freelancers who operate remotely. “So maybe you could say this situation might turn out to be in my favour moving forward,” she asid. 

To cope with the negative effects of the pandemic, Khoo said she tries to take on whatever work that she can and not be picky about the nature of the work. 

“But having said that, I usually practice this in the way I do my freelance work, even in the absence of COVID-19,” she said. “I am also trying to diversify my work. For example, I am looking into ways to retrain myself in IT skills as I was an IT graduate and worked as a programmer for a season (prior to becoming a writer).

Tips for other freelancers:

1. Just start somewhere
If you’re just starting out, It’s very likely not going to be a perfect scenario on your first freelance gig, she said, but just take it in your stride and give it your best shot. “Things will improve eventually. Don’t be too hard on yourself,” she said. 

2. Keep an open mind and don’t be too picky 
Sometimes, being open to lower offers may not necessarily work against you, she said. Taking up such roles or jobs might expand your capabilities or give you an invaluable experience that you will treasure later on. 

“Most of us have preferences on the type of work we’d like to do or the remuneration rate that we think we deserve. There will be times that you’ll come across something you don’t expect, or a work opportunity that doesn’t seem to be of much value (for example, in terms of the pay). But don’t turn it down straight away. Hear out the potential client and give it some thought,” she said.  

3. Decide on how you will set your rates and try to stick to what you have decided 
This is crucial, Khoo said, because every freelancer should be happy with what they earn. “In the Malaysian market, there will always be someone out there who is going to berate you for the rates you charge,” she said. “So do your research and be thorough and all that in determining your rate, but don’t be afraid to be firm about what you are comfortable charging your clients. 

If the potential client can’t agree to a given rate, Khoo said, be polite, but decline to work with them if it’s a must. 

4. Do your work with excellence
“No matter how big or small the task or who the client is, I believe we should always give our best. It affects our overall reputation and earns the respect of others,” she said. 

Interested in freelancing – what should you know?

The effects of COVID-19 vary according to each freelancer’s industry, experience and background. So it’s hard to say if the industry has been badly affected or just partially. 

Either way, a common trend we found among freelancers is that most clients are going digital requiring freelancers to be able to produce more and more material for that particular platform. 

Now may not be a bad time to enter the freelancing market, especially as companies are looking to ramp up their digital presence, but as always with most things that you pursue, know what you’re getting into. 

We also advise you to check these items off your list before going into freelance

  • Identify your skills and hone it
  • Looking for jobs isn’t easy so pitch if you must!
  • Build a strong portfolio and make it visible everywhere
  • Be open to negotiating your freelance rate but know your worth
  • Manage your work and time, create a dedicated work space if you must
  • Follow up on the payment
  • Know how to save up for a rainy day (read: COVID-19)
  • Personal branding and networking is important

We hope you found this piece insightful and interesting! 

Also read: #DigitalCareers: Achieving Work-Life Balance in the New Normal

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8 Financial Planning Tips For Malaysian Gen Zs

  • By CompareHero.my
  • September 22, 2020

Financial advice for Gen Z? Adulting can be a challenge, especially when you have financial commitments. It is important for you to stay afloat financially and learn how to manage your finances well. Here are 8 tips that will help you.



If you’re reading this, chances are you’re part of Generation Z. (If you didn’t know, Generation Z refers to those born between 1995 and 2010, and are true digital natives that grew up with the internet… and probably a camera shoved at your face right from your birth.)

Now, at this point you’re still new to the workforce or to adulthood, which could mean that you haven’t gotten your first house, you’re still considering your first car, you may not even have a credit card yet. Where do you start? How do you start?

Take it from someone who has gone through adulting: it is overwhelming, but not impossible. Here’s a rundown of some financial planning tips that you can use to help you in your present and future. 

1. The three most important digits of your life is your credit score. 

You’d be surprised to know that many adults don’t actually know what a credit score is. So, what’s a credit score anyway? Very simply, it is a number between 300-850 which represents your creditworthiness and how likely you are to repay debt. These are the three most important digits of your life. 

If your score is low, it indicates that you’re probably a bad paymaster and raise red flags for banks. If your score is high, it tells banks that you’re a responsible and safe candidate to lend money to. 

There are five factors that affect your score: 

  • The number of credit facilities and the amount owed to the banks
  • Whether you pay your loans on time or have missed payments in the past
  • Your credit history length
  • Types of secured and unsecured credit you hold – secured (home, car loans) vs unsecured credit (credit cards, personal loans)
  • If you have been approved for new credit facilities recently


Not to scare you, but some companies and even future in-laws use this to check up on a potential hire or potential match for their kids! 

Read also: Ultimate Guide To Credit Scores

2. Never, ever, spend above your means. 

We’re sure you’ve been told this multiple times, but this advice doesn’t get old no matter how many decades one lives through. 

While there are some things that should be invested in – like a good laptop and phone that you can rely on for your day-to-day stuff – there are others that can wait. If you can’t pay for that fancy new sneakers in cash, then save up until you can actually do so. (But pay with your credit card so you can get the rewards, and make sure you pay off the charge immediately.) 

Read also: 10 Ingenious Money Tips From Malaysian Dads

3. Credit cards are not evil – it all depends on how you manage it. 

Credit cards have a bad rep of getting people into massive debt. But the truth is that credit cards can actually be quite good for you – there are so many rewards that you can reap, so it just makes more sense to spend with a credit card. 

(If you’re already spending on your day-to-day stuff, might as well get rewarded for it, right?)

So what really matters is that you pay your bills on time, and that you clear off your debt in full. Each time you carry forward your debt, you get charged the notoriously high credit card interest. (It goes from 15% and all the way up to 18% per annum!) 

4. Don’t delay paying your other debt, such as your PTPTN. 

Don’t borrow if you don’t plan to repay. If you have existing debt, such as your PTPTN (education debt), you should always make it a priority to make your monthly repayments on time. If you ignore your debt, you’ll eventually get penalised. 

Failure to make your monthly PTPTN repayments can bar you from leaving the country! While it may seem like a non-issue at the moment, this blacklist can eventually become a huge inconvenience to you in the future. 

If you use your credit card, be sure to pay off what you borrow before your due date (typically a few weeks after your statement date). Never only pay the minimum amount. Always pay in full, so you won’t get charged an interest on leftover debt. When that happens, it’s easy for your debt to snowball and in no time you’d have lost control of your finances. 

5. Save for your retirement! 

Did you know that as you enter the workforce, you automatically start your retirement fund? You may find something called ‘EPF’ in your monthly payslip, which stands for Employees Provident Fund. A percentage of your monthly salary goes into your EPF so that your golden days will be secured. You definitely don’t want to be broke when you’re too old to work! 

While there is an automated deduction system, you can also top-up your account on your own. The interest rate for EPF is generally quite attractive (although 2019 didn’t yield the best rate at 5.45% for conventional and 5% for Shariah accounts). Keeping your money there can help it grow. 

6. Get an insurance policy as young as possible. 

If you’re privileged enough to be able-bodied and energetic, that’s great! But with a life expectancy spanning several more decades, you should always be prepared for the worst. 

Public healthcare may be close to free in Malaysia, but that comes at the expense of attention and service. Private healthcare is expensive, which is why health insurance can help you cover most, if not all, of the costs. 

The younger you are, the cheaper your premium (the price you have to pay)… so it’s best to start looking for one and get protected as early as possible. 

Other insurance policies you may want to consider include life insurance (which benefits your beneficiaries if you pass on), lifestyle insurance (which protects your gadgets, bags, and other stuff related to your lifestyle), and travel insurance (ad-hoc when you travel). 

Do note that car insurance is compulsory if you own a car in Malaysia. 

7. Start investing, but do your research first 

If there’s one thing old cikus will tell you, is that you should invest as early as possible. There are many different types of investments, invest ranging from high risks high returns (e.g. stocks, cryptocurrency) and low risks low returns (e.g. fixed deposits, securities).

We’re not a trading or investment site, so we’d recommend you do your own research on the right investments for you. In the meantime, we’ve written a few articles where we spoke to experts about investing in this pandemic: 

8. Your emergency fund is NOT your personal savings fund. 

We’re sure you’ve heard this saying – save for rainy days! 

While you should definitely build your own personal savings, have a separate goal for your emergency fund. It would be healthy to have a buffer that will last you for at least six months if you were to lose your income unexpectedly. 

Not every bank has an option to separate your saving goals, so if necessary, you could always consider opening another savings account in a separate bank to build your emergency stash. 

BONUS: Most importantly, compare, compare, and compare even more before you commit to anything! 

Once you commit to something big, it may be hard to undo without repercussions. That’s precisely why you should always compare before you sign up for anything! 

As you move on with life, you’ll start to notice that a lot of people will try to sell you all sorts of stuff. That’s because you’re at a phase where you’re not the most informed, and at the same time, it’s also when you’ll start looking for all sorts of financial facilities to help you in your adulting journey. 

Before you commit to one, take the time to compare everything. When it comes to credit cards and personal loans, you can always compare between different banks and lenders on CompareHero so that you’ll be confident in the choices you make! 

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