Are you looking for ways to earn passive income in Malaysia?
Passive income expert Aisha Preece from Outandbeyond is going to share 12 different ways for you to earn from, passively!
Have you always wondered how the rich get richer?
Having a high salary at a prestigious job helps, but the way they grow their wealth is with passive income. They take the term “make money while you sleep” to another level.
Passive income allows you to earn money both when you are awake or asleep, the funds roll into your account automatically.
However, the common misconception about passive income is that you do not have to do any work at all to earn the money.
Establishing a passive revenue stream, on the other hand, takes a lot of work and time to get started.
12 Passive Income In Malaysia Streams
1. Shopee Affiliate
2. Low-Risk Investments
3. Medium-Risk Investments
4. High-Risk Investments
5. Sell Etsy Templates
6. Rental Income
7. Cashback
8. Laundromat Business
9. REITs
10. Car Advertisement
11. Create A Course
12. Start A Blog
Related Posts:
- 27 Best Side Income Ideas In Malaysia
- What Are The Risks & Returns On Gold Investments?
- 4 Rules To Achieve Financial Success
- 3 Simple Steps To Manage Your Money Every Month
12 Passive Income In Malaysia Streams
1. Shopee Affiliate
Affiliate marketing has been among the best ways to earn a stream of passive income for years now.
Affiliate marketing is a process of earning money when you become an affiliate for a business.
You will be offered a custom link or code for you to give out and whenever someone makes a purchase with that code or link, you will earn a certain percentage.
No Malaysia is a stranger to Shopee with packages arriving on our doorstep every other day. How about earning passive income from it?
Head on over to the Shopee affiliate website and sign up for an account.
Once that is done, you will have a customized link and when someone clicks on your link and purchases any product, Shopee will pay you a commission.
You can earn up to 9.1% with this program and the minimum payout is only RM50.
Video creator, Farah Annisha has shared her journey on Tiktok on how she managed to earn up to RM18,000 a month from this affiliate program!
| Pros | Cons |
| You are not responsible for the more difficult responsibilities, such as setting up a Shopee store and selling any goods. | Affiliate marketing is a commission-based operation, so if you can’t make a sale, you won’t be paid. |
| There are no fees to sign up for this program, a great deal for anyone who is just starting out. |
Here are some excellent resources to get started on affiliate marketing :
- 39 Best Affiliate Programs For Beginners Without A Website
- 27 Best Personal Finance Affiliate Programs
- 15 Best Affiliate Programs For Food Bloggers
- 31 Best Affiliate Programs For Travel Bloggers
- 10 Easy Steps To Affiliate Marketing On Pinterest
2. Low-Risk Investments
Low-risk investments such as EPF and ASB are among the popular passive income ideas in Malaysia.
Seek any financial guru in Malaysia and you will be asked to contribute to these two funds.
So what are low-risk investments and how will they generate passive income?
Low-risk investments are investment options that will not place your funds at stake for high losses.
With low-risk investments, you can expect stable and low returns and this is comforting for investors who can’t stand volatile price movements.
However, keep your expectations at bay as the returns earned from low-risk investments are not substantial.
| Pros | Cons |
| You can have reduced anxiety and stress over low-risk investments because the volatility is mitigated. | Low dividends compared to higher-risk investments. |
| Steady yearly dividends. |
The options below are great for generating passive income in Malaysia but please conduct your research before buying into any one of these options.
Here are some resources to guide you:
- EPF Self Contribution: Everything You Need to Know
- Beginner’s Guide To Amanah Saham Bumiputera (ASB)
- How-to: Invest in Bonds
3. Medium-Risk Investments
Medium-risk investors are investors who are likely to be open to taking on some risk in exchange for the prospect of longer-term, better investment returns.
While you should try to keep the value of your investments stable, some movement is inevitable, especially in the near term.
Some examples of medium-risk investments are index funds, gold, and the S&P 500.
| Pros | Cons |
| Assurance that the price would increase gradually over time | A managed fund has the ability to outperform the market, but an index fund does not. |
| Investors pay fewer fees with index funds than with non-index funds. | Suitable for investors who have a long-term investment horizon. |
| Steady yearly dividends. |
Here are some guides to help you out:
- How to Invest in the S&P 500
- How To Buy An S&P 500 Index Fund
- Gold Malaysia: Here’s Your Guide to Gold Investment 101!
If you are interested in taking the first step to start budgeting before diving into investments, here are a few articles that you may find useful:
- Advantages And Disadvantages Of Budgeting (+FREE PDF)
- What Is The Purpose Of A Budget? [ Reason #8 Will Surprise You]
- Dave Ramsey Budget Percentages [2022 Update]
Photo by Tech Daily on Unsplash
4. High-Risk Investments
High-risk investments are volatile investments that can result in high losses. Some examples of high-risk investments are equity stocks and cryptocurrencies.
You often hear people talking about these passive income investments in Malaysia.
However, you need to be aware that before deciding to invest in them, adequate research is needed to ensure you can stomach the volatility that comes with it.
High-risk investments are known to have high returns, but people often forget to mention the fact that it is indeed risky!
Here are some articles to guide you:
- Understanding high-risk investments
- High-Risk Investments (Definition, Examples) – WallStreetMojo
- Does taking high risk lead to higher investment returns?
| Pros | Cons |
| Higher investment returns | A higher risk of losing your money. |
| Offers a diversified portfolio |
5. Sell Etsy Templates
Did you know you can make money selling Etsy templates in Malaysia?
Dr. Anys Adhilah is living proof of that.
A full-time doctor and a part-time content creator, she shares how she creates Etsy templates on Canva and generates a steady stream of passive income!
| Pros | Cons |
| You only need to create a template once. | High competition. |
| Everything is digitalized, so no hard copy of the templates needs to be stored or shipped to clients. |
Here are some guides that will be useful for you:
- Selling Printables On Etsy: An Epic Guide To Make You Passive Income 2022
- How To Start Selling Prints On Etsy [And Make LOTS Of Money!]
- The Best Etsy Printables Course On The Market In 2022!
Photo by Pixasquare on Unsplash
6. Rental Income
Earning a rental income as a form of passive income is often if not the first thought that pops into the head of every Malaysian.
Rental income is when you, as the property owner, lease out your property to your tenants for a specified time and amount agreed by both parties.
As the owner, you will then be paid a sum every monthly or bi-weekly depending on the arrangement.
Here are some resources to read if you are considering earning passive income from rental properties:
- The Complete Guide To Property Investment In Malaysia
- Property Investment in Malaysia: 5 Major Types & How to Earn from Them
| Pros | Cons |
| Rental income can easily be a steady cash flow that brings you a fixed amount monthly. | Finding reliable tenants may be hard. |
| The value of a property tends to appreciate over time so you can sell it off for a sizeable amount | There are maintenance fees, taxes, and service fees, among others to be paid by the owner. |
7. Cashback
Does the idea of earning money while you spend sound too good to be true?
With an app like Shopback, you can do just that.
You can collect anywhere from 1% to 6% per transaction spending on the company on this platform.
All you have to do is wait for the confirmation period before you can cash out the money.
These cashback applications are not only for online purchases
Additionally, you may top off your cell credit, pay bills, and even order takeout.
| Pros | Cons |
| Convenient. You can access the app at any time provided there is a stable internet connection. | Long waiting period to receive your money. |
| Low returns. |
Photo by Bianca Jordan on Unsplash
8. Laundromat Business
Starting a laundromat business is an unpopular method that can bring in a lucrative passive income, though it will require a substantial initial investment.
Let’s face it, no one likes to do laundry.
Everyone commonly puts this chore off due to the time it takes to wash, dry, and fold clothes, and seek laundromats for the sake of convenience.
The number of self-service laundromats has increased dramatically in Malaysia, so much so, that is not enough manpower to operate the store.
Don’t you think this is a lucrative business?
In Malaysia, the return on investment of a laundromat can go up to 20% in a year! Here are some guides to get you started:
- How To Start A Coin-Operated Laundry
- How To Open A Laundrette With No Money
- A Beginner’s Guide To Starting A Coin-Operated Laundry Business
| Pros | Cons |
| No large workforce is required as it is a self-service laundromat. | High initial investment |
| Customers pay before using the machine, which reduces the expense and time associated with laborious accounting duties. | Long business hours. |
9. REITs
REITs stand for real estate investment trusts.
REITS are a form of investment that allows investors to invest in property without physically owning the property.
When investing in REITs, you get to own real estate without having to fork out the initial sum to purchase a property or spend the time to manage one.
Investors get paid when REITs earn income.
If you are interested, here is a The Complete Guide to REITs in Malaysia – Dividend Magic.
For additional guides, check out REIT Pulse, the site dedicated to Malaysia and Singapore REITs.
| Pros | Cons |
| A great investment diversification with good potential returns. | Only suitable as a long-term investment. |
| Invests in tangible assets that can appreciate over time. | Sensitive to changing interest rates. |
10. Car Advertisement
Have you thought of advertising with your car?
It may sound absurd but there are advertising companies that will pay you to promote a business or brand on your car.
However it is a bit like a moving billboard, you get paid for renting out the space on your car and the company gets exposure!
MyBump Media is a leading crowd advertising platform that allows you to earn an income with its Brand Ambassador program.
To sign up, you will need to prepare these documents:
- Malaysian identification card (IC)
- Malaysian driver’s license
- Car insurance cover note
- A clear picture of the back of your car
According to AdEasy, you can earn an income of a minimum of RM 4,754.10 for the advertisement.
| Pros | Cons |
| You can be productive while earning an income. You may be sending your children to school and at the same time earning money with vehicle advertisements. | You can’t escape from the advertisement, it follows you wherever your car goes. |
| There is typically only an upfront one-time cost. |
Need more ideas? Here are 8 Easy Ways To Make Money With Your Car.
11. Create A Course
Do you consider yourself an expert in a particular topic?
Do you think there is a potential for others to pay for the knowledge you have mastered?
Creating an online course might be the answer to your question of how to make passive income in Malaysia.
Imposter syndrome may dawn on you because it definitely did for me. I asked myself if I had enough knowledge to actually create a course and the big question was –
Will people buy it?
I am here to tell you to just do it anyway. These are some of the courses that I created:
You can transform your abilities to speak 6 different languages, or your talent in making the best kuih lapis into multiple courses and earn money out of it.
The best bit about online courses is that you have to make them once and anyone can buy them at any time, securing a passive income for you.
Here are some resources to get you started:
- 10 Steps To Creating A Wildly Successful Online Course
- How to Create an Online Course by Yourself in 9 Easy Steps
- How to Create an Online Course: The Official Udemy Course
| Pros | Cons |
| Rather than working on things that are allocated to you, you have the freedom to create something on the topic you love. | Without a proper marketing strategy, you may not sell your courses. |
| Low startup cost. | You must understand how to produce courses that are both effective and results-oriented. |
12. Start A Blog
Starting a blog is another great means for you to earn a passive income because the potential is endless. There is no cap on how much you can earn with blogging regardless of where you live be it Malaysia or Korea.
I started a blog with no clue of how much I could earn.
Fast forward 4 years later, I am happy to report that my monthly income from blogging is USD 5 figures.
If I can do it, so can you because I have zero experience with tech, anything tech related makes me want to puke but I managed to set up a blog.
If you are interested in knowing the exact steps I took on How To Get Paid For Blogging On WordPress, read this article.
The common ways you can make money through blogging are:
- Display advertising
- Affiliate marketing
- Sponsorships
- Creating digital products
Here are some additional resources to help you out:
- How To Start A Blog
- 29 Best Blogging Courses For Beginners [2022 Edition!]
- 27 Top Paid Bloggers Plus Income Reports! (2022 Update)
- How Long Does It Take To Make Money Blogging?
- How To Make Money As a Travel Blogger
Bear in mind that with this option, you will not see results immediately after setting up a blog.
Earning a passive income from a blog takes lots of time and effort but the outcome is a rewarding one.
| Pros | Cons |
| Unlimited income potential when your blog ranks on Google. | It is a time-consuming business and most people give up before seeing it through. |
| You can work from anywhere and at any time with blogging. | It can get technical and requires patience to learn. |
FAQs On Passive Income In Malaysia
What Is Passive Income?
Passive income is income generated for NOT actively doing a task or work.To understand what passive income is, you will need to know what is active income.
Active income vs passive income is one of the search terms that are often keyed in, in a search engine, especially if you are new to the world of personal finance.
Active income is the income generated as a result of actively doing something like your day job where you have to perform a set of tasks throughout the day and then you earn an income at the end of the month.
Passive income on the other hand is the income generated for NOT actively doing a task.
Granted, in order to earn a passive income, you may have to do some active work in the beginning but the idea of earning a passive income is when you do not have to do the recurring work to ensure an income.
For example, say you purchase a property.
So in the beginning, you will have to put in active work to save up for the house, purchase the house, and make some renovations.
You now decide to rent the house to some tenants and you no longer have to put in the active work to earn money to purchase the house again.
You simply have to wait for the rental income to roll in every month or week, depending on your agreement.
“Make money while you sleep” is a phrase you’ve undoubtedly heard before. That is the most compelling reason for people to obtain passive income.
Why Is Passive Income Important?
- Financial Security
- Freedom Of Time
- Reduces Stress And Anxiety
- Location Independence
- Freedom To Pursue Passion Projects
Why does everyone preach about it and why is passive income important?
1. Financial Security
The entire idea of passive income is to ensure income flows while you are not actively doing anything, meaning it can give you the financial security you need.
The freedom to focus on generating wealth instead of merely sustaining your existing standard of living brings financial perspective and speeds up the completion of your financial goals.
When you know you have funds deposited into your account every month without having actively worked for each cent, you are on your way to financial security.
2. Freedom Of Time
Not being tied to any one job to earn money gives you the freedom of time to do anything you want, at any time.
We have been told multiple times that time is undoubtedly one of our most important assets because the time that is lost will not be regained, unlike money.
With passive income, you will have the flexibility to spend time doing activities you enjoy rather than sitting in front of a desk from 9 to 5.
3. Reduces Stress And Anxiety
Nothing is more stressful than the frustration that comes with not being able to pay your bills and expenses.
It generates worry, dread, and a general sense of hopelessness about the future.
Like a hawk soaring above its target before going in for the kill, self-doubt looms over your head. It harms your emotional, bodily, and overall well-being.
Any concerns can be alleviated with passive income.
You do not have to worry about being laid off because you know you have supplementary income that can cover your expenses which will lead to a better state of mind.
With a clearer mind, you may even be motivated to find other sources of passive income!
4. Location Independence
A steady stream of income will give you the ability to pack your bags and hit the road while working!
Many folks spend too many hours commuting on the road trying to get to their office.
Precious hours and energy is wasted trying to chase and beat the traffic.
In my case, as I am writing this article, I am also planning to bike through Vietnam for 3 weeks. Only because I have enough passive income that is generated through my blog.
When you have sufficient passive income streams, you will no longer have to be in this mess because you can choose to work from anywhere and at any time.
5. Freedom To Pursue Projects
Now that your monthly bills are covered through passive income, why not start working on the passion project that has burned a hole in your head?
You do not have to be bound to the never-ending cycle of bills and debts with passive income because you are free of worry about paying your bills!
How To Create & Get Passive Income In Malaysia With No Money?
- Sell Etsy Templates
- Start A Blog
- Create Digital Products
For any of you with a low budget, you might wonder how to create & get passive income in Malaysia with no money?
Maybe you are a student or recently unemployed seeking ways to make online passive income in Malaysia.
Some people even give up their 9 to 5 work in favor of a passive one since having the option to generate an earning is an amazing thing to do.
When you first start, especially if you do not have high initial investments, you could be unclear about where and how to start.
There are many passive income ideas in Malaysia, and certainly, you can get started without any money upfront, these are some options.
1. Sell Etsy Templates
If you open up Tiktok and search Etsy templates Malaysia, you will find never-ending resources from Malaysians showing you how to earn a passive income with this method.
No, you do not have to be a creative whizz to do so!
When it comes to printables, you can make anywhere from USD50 – USD1000 a month, and these guides below can help you get started.
- 6 Steps to Sell Canva Templates on Etsy
- How to Create Canva Templates To Sell For Passive Income
- How to sell Canva Templates on Etsy to make Passive Income
- Selling Printables On Etsy: An Epic Guide To Make You Passive Income 2022
- The Best Etsy Printables Course On The Market In 2022!
- How To Start Selling Prints On Etsy [And Make LOTS Of Money!]
2. Start A Blog
You may be skeptical about starting a blog but think about it, when you search for something on Google, a blog is where you will find an answer.
A blog or website, however you want to call it, can generate income much higher than you have imagined.
You may ask if it is worth starting a blog. The answer depends on your motive behind them.
If your objectives are to earn never-ending passive income and you are willing to put in the hard work to set up and put out the contents needed, then yes.
If your site has a sizable enough following, you may monetise it and earn money from blogging via display advertising, affiliate marketing, etc.
It’s crucial to not anticipate financial success right away, but blogging has the potential to make you quite wealthy.
Look at a recent article that lists 27 Top Paid Bloggers Plus Income Reports to gain some inspiration.
Now that you are inspired, check this article on How To Make Money From WordPress.
3. Create Digital Products
Another way to monetize your skills is via the sale of digital products.
Digital products can be in the form of courses, tutorials, e-books, etc. The future is in digital goods and with everything being digitized, selling digital goods has a lot of advantages.
The reason digital goods are a popular choice to earn passive income is that you will most likely only need to create a product once.
Upload them to the platform of your choice and you will be compensated every time a purchase is done.
To get started, read these resources:
- 6 Profitable Digital Products To Sell (+ How To Start) (2023)
- 8 Digital Products That Make At Least $100/Day
- 8 Canva Digital Product Ideas To Sell Online
Is It Important To Learn How To Earn Passive Income In Malaysia?
To be honest, regardless of where you are from, earning passive income is important.
You would not have to face the commitments and responsibilities that come with active income.
The process could take some time at first, but after it is finished, you will be able to make money over time.
Passive income seems more alluring, no?
You may make additional money while you sleep, work out, or travel overseas because it is a constant activity that will increase your revenue over time.
What Is The Most Profitable Passive Income?
- Rental properties
Start a blog - Sell printables
- Start investing
- Sell online courses
Here is a list for all of you who are wondering what is the most profitable passive income.
1. Rental Properties
One of the greatest passive income strategies is owning rental property.
If you don’t want to deal with tenant inspections and owner responsibilities, you may use realty managers to make this a passive revenue approach.
Property managers are undoubtedly an additional cost, but they also relieve you of a lot of work.
2. Buy A Blog
You might be able to purchase an existing blog that is making money rather than creating one from zero. You can outsource the work to writers and virtual assistants to generate an income passively.
3. Sell Printables
All you would need is a platform like Canva to start selling printables online.
You can list your products online on a platform like Etsy, implement a proper marketing strategy and you can start earning from one of the best ideas on passive income in Malaysia.
4. Start Investing
Be it high or low-risk investments, investing is often in the top ten ways of generating passive income for a reason.
When investing for passive income, take a while to do a deep dive into the company or type of investment you want to get into.
Even though you could study the historical patterns of the company to ‘predict’ the future returns, you have to be okay with the risk you are taking.
5. Sell Online Courses
You can make and offer a course on anything, whether you have mad makeup skills, are a brilliant pet-sitter, or can channel Marie Kondo with your organizing skills!
One of the finest methods for earning passive money is to sell courses because of the limitless income potential.
How Can I Make 1000 Passive Income In A Month?
Here are 3 ways you can make 1000 passive income in a month based on the examples given above.
1. Sell Digital Products
Say you are an educator and would like to create an online course on a subject. There are three ways to go about this, either sell on your website, social media, or via a third-party platform.
Now if you are selling it on your own platform, the advantage is that you retain 100% of the profits but if you are selling it via a third-party platform, you may be subjected to pay a fee for every sale depending on the platform you use.
So, to make 1000 from selling the product through your own site, your pricing would be around the $50 – $100 mark. The number of courses you sell will depend on the pricing and the quantity sold.
Here is a simple calculation:
Product price = $100
Product price = $50 $50 x 20 = $1000 |
2. Rental Income
Through a service like Airbnb, you may rent out a room in your residence. If you have additional room in your home and don’t mind guests, this is a terrific alternative.
Additionally, if you frequently travel for either work or pleasure, you can even think about renting out your entire house. Depending on the area and where you reside, the cost of renting a room might range from $50 to $250 each night.
Here is a simple calculation:
Room price = $200 |
3. Sell Etsy Templates
Ana Colak Fustin, the founder of ByRecruiters, managed to earn $30,000 a year selling templates on Etsy.
You can achieve the same over time!
Selling templates depends on the type of template you are designing, your target market, and the place in which you are promoting a business.
For this example, say you would like to sell resume templates on Etsy.
In terms of marketing, you would want to promote your products on job hunting platforms like LinkedIn and social media to appeal to those seeking a job.
The best part about this is that you only need to create the templates once for the income to come rolling.
Here is a simple calculation:
Template price = $20 |
Conclusion
Earning passive income in Malaysia is not an impossible feat.
Passive income is a fantastic method to diversify your income and establish significant financial stability.
However, I made it clear that passive income is not a get-rich-quick program where you do not need to put any effort into building momentum.
Although producing passive income requires labor, especially in the beginning, the potential long-term rewards make the effort worthwhile.