Can Expats in Malaysia Invest in ASB, EPF, or Unit Trusts? What the Rules Actually Say

Expats living in Malaysia face a clear split: some of the country’s most popular savings schemes are closed to non-citizens by design, while others are now open or even mandatory. The short answer is that ASB is off-limits to all non-Bumiputera investors including expats, EPF became mandatory for most foreign workers from October 2025, and licensed unit trusts are broadly accessible regardless of citizenship.

This guide unpacks the rules for each scheme, explains what ASNB’s non-Bumiputera-accessible funds actually are, and points you toward the realistic investment options available on a work permit or permanent residency.

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ASB and the ASNB fund universe

What is ASB and why can expats not invest?

Amanah Saham Bumiputera (ASB) and its sibling ASB 2 are fixed-price unit trust funds managed by Permodalan Nasional Berhad (PNB) through ASNB. They are restricted by the fund prospectus to Malaysian citizens who are Bumiputera. This is a statutory eligibility condition, not a policy that changes frequently.

Being a permanent resident does not help here. Even non-Bumiputera Malaysian citizens cannot hold ASB units in their own name. The restriction is ethnic and citizenship-based simultaneously.

ASNB funds that non-Bumiputera and some foreigners can access

ASNB manages more than a dozen funds. A subset uses a variable-price (market-linked) structure and is open to a wider pool of investors. As of 2025, the following access rules apply:

Fund	Bumiputera	Non-Bumiputera Malaysian	Foreigners / Expats
ASB (fixed price)	Yes	No	No
ASB 2 (fixed price)	Yes	No	No
ASM (Amanah Saham Malaysia, variable)	Yes	Yes	No
ASM 2 Wawasan (variable)	Yes	Yes	No
ASM 3 (variable)	No	Yes (adults and minors)	No
AISB (Islamic, variable)	Yes	No	No

The key point: no ASNB fund is open to foreign nationals, including holders of Employment Passes, Professional Visit Passes, or MM2H visas. ASNB requires a valid MyKad (Malaysian national identity card) for registration. A passport alone does not qualify.

If you hold permanent residency (MyPR), you still hold a foreign passport and do not have a MyKad; ASNB does not accept MyPR holders for the variable funds either. If you later naturalise as a Malaysian citizen and obtain a MyKad, you become eligible for the non-Bumiputera variable funds.

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EPF: the big change from October 2025

Mandatory contributions for non-Malaysians

Effective 1 October 2025, EPF (Kumpulan Wang Simpanan Pekerja, KWSP) extended mandatory contribution coverage to all non-Malaysian citizen employees working in Malaysia. This is a significant policy shift from the previous opt-in arrangement.

The following pass types are now covered under mandatory EPF contribution (KWSP, 2025):

• Visitor’s Pass (Temporary Employment) for foreign workers
• Employment Pass
• Professional Visit Pass
• Student Pass (if employed)
• Residence Pass
• Long-Term Social Visit Pass

Foreign domestic helpers are explicitly excluded from this mandate.

Contribution rates for non-Malaysians

The mandatory rate for non-Malaysian employees and their employers is 2% each of monthly wages. This is lower than the Malaysian citizen rate, which ranges from 11% (employee) to 12 to 13% (employer depending on age and salary bracket).

Party	Malaysian citizen (below age 60)	Non-Malaysian employee (from Oct 2025)
Employee contribution	11%	2%
Employer contribution	12% to 13%	2%

Automatic registration was introduced simultaneously. Non-Malaysian employees on Employment Passes or Visitor’s Passes are enrolled by their employers without needing to visit an EPF office.

Can you withdraw your EPF savings when you leave Malaysia?

Yes. Non-Malaysian members who permanently leave Malaysia, renounce Malaysian PR, or reach age 55 may apply for a full withdrawal of their EPF savings. This is called the Non-Malaysian Citizen Withdrawal and is processed through myEPF or at an EPF branch. You do not forfeit contributions when you eventually relocate.

Voluntary EPF contributions before October 2025

Prior to the October 2025 mandate, non-Malaysians could contribute to EPF voluntarily. The rules allowed opt-in at the agreed employer-employee rate. If you were already voluntarily contributing, your account simply transitions to mandatory status under the new framework.

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Unit trusts: the most accessible route for expats

What the Securities Commission permits

Unit trust funds authorised by the Securities Commission (SC) Malaysia are the most open investment vehicle for foreign residents. The SC’s Guidelines on Unit Trust Funds do not impose a citizenship requirement on retail investors. A licensed unit trust management company may set its own eligibility rules, but many accept foreign investors with a valid passport and a Malaysian bank account.

In practice, to buy SC-authorised unit trusts in Malaysia you typically need:

1. A valid passport or identity document
2. A Malaysian bank account (for online transactions via FPX)
3. A completed Know Your Customer (KYC) form through a licensed distributor

Platforms such as licensed fund supermarkets and bank-based fund platforms (operated by licensed entities under the SC) allow non-citizen account holders who already have a Malaysian bank account to invest in hundreds of equity, bond, and mixed-asset funds.

What types of unit trust funds are available?

Category	Example	Typical access for expats
Equity funds (local)	Bursa Malaysia-focused growth funds	Yes, via licensed distributor
Equity funds (regional/global)	Asia Pacific or global equity	Yes
Bond / sukuk funds	Government securities, corporate sukuk	Yes
Money market funds	Short-duration liquid funds	Yes
Islamic / syariah funds	Syariah-compliant across all classes	Yes
ASNB variable funds	ASM, ASM 2 Wawasan	No (Malaysian MyKad required)

Practical note on platforms

Several online platforms that distribute unit trusts in Malaysia require MyKad for full onboarding. If a platform rejects your passport, that is a platform-level policy, not an SC regulatory bar. Try an alternative licensed distributor or approach a bank where you already hold an account.

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Other investment options worth knowing

Bursa Malaysia equities. Foreign investors can open a Central Depository System (CDS) account through a licensed broker and buy shares or ETFs listed on Bursa Malaysia. There is no citizenship restriction. Capital gains on shares are not subject to capital gains tax for individuals as of 2025 (though a specific Capital Gains Tax on unlisted shares was introduced in March 2024 for companies, not individual investors in listed securities).

Fixed deposits and savings accounts. Bank Negara Malaysia does not restrict foreign residents from opening savings or fixed deposit accounts. Interest rates are determined by individual banks and prevailing Overnight Policy Rate conditions.

Private Retirement Scheme (PRS). PRS funds are regulated by the SC and offered by approved PRS providers. There is no statutory citizenship restriction, though individual providers may have onboarding requirements. PRS does not carry the same tax relief benefits for non-tax-residents.

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Summary comparison

Scheme	Open to expats?	Notes
ASB / ASB 2	No	Bumiputera Malaysian citizens only
ASNB variable funds (ASM, ASM 3)	No	Malaysian MyKad required
EPF (from Oct 2025)	Mandatory for most	2%+2% rate; full withdrawal on departure
SC-licensed unit trusts	Generally yes	Need Malaysian bank account and passport KYC
Bursa Malaysia listed shares / ETFs	Yes	Via licensed broker with CDS account
Fixed deposits	Yes	Standard bank account required
Private Retirement Scheme (PRS)	Generally yes	SC-regulated; check individual provider

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Key takeaways

• ASB is categorically closed to all non-Bumiputera investors, foreign or otherwise. There is no workaround.
• ASNB’s variable-price funds (ASM, ASM 2 Wawasan, ASM 3) are also closed to foreign nationals; a Malaysian MyKad is required for registration.
• EPF became mandatory for most non-Malaysian employees from 1 October 2025 at a 2% employee and 2% employer rate. Contributions can be withdrawn in full when you leave Malaysia permanently.
• SC-licensed unit trust funds are broadly accessible to expats through licensed distributors, as long as you have a Malaysian bank account and can complete KYC.
• Listed shares on Bursa Malaysia and fixed deposits carry no citizenship restrictions.

For more on how Malaysian investment accounts and savings schemes fit together, see Investing basics in Malaysia and our guide on buying shares on Bursa Malaysia.

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Frequently asked questions

Can I invest in ASB if I hold permanent residency (MyPR)?

No. ASNB requires a MyKad, which is issued only to Malaysian citizens. Permanent resident holders carry a MyPR card but retain a foreign passport and are not eligible for any ASNB fund, including the non-Bumiputera variable funds.

I have an Employment Pass and my HR says I must join EPF from October 2025. Is that correct?

Yes. Since 1 October 2025, EPF contributions at 2% each from employee and employer are mandatory for Employment Pass holders. Your employer is required to register you and remit contributions by the 15th of each month.

Can I invest in unit trusts online without visiting a bank?

Many licensed online platforms allow account opening with a passport and do not require a physical visit, provided you can fund the account via FPX from a Malaysian bank account. Platform policies vary; if one rejects your passport as identification, try a different SC-licensed distributor.

What happens to my EPF savings if I leave Malaysia before retirement?

You can apply for a full withdrawal under the Non-Malaysian Citizen Withdrawal category once you permanently depart Malaysia. You do not need to wait until age 55. Withdrawals can be processed through myEPF online or at an EPF branch. (Source: KWSP, 2025)

Are there any tax implications for expats investing in Malaysian unit trusts?

Unit trust distributions in Malaysia are generally paid net of withholding tax at source for funds that hold Malaysian securities. As a non-tax-resident (typically someone present in Malaysia for fewer than 182 days in a calendar year), you should check your home country’s tax treaty with Malaysia. Consult a tax adviser for your specific situation; the LHDN (Inland Revenue Board) website at hasil.gov.my provides treaty information.