30th October 2025 - 7 min read
Market swings and rising costs have made 2025 a challenging year for Malaysian investors. Bursa Malaysia experienced significant volatility in early 2025, with analysts predicting continued market fluctuations through mid-year. Meanwhile, consumer prices have been climbing, with inflation reaching 1.3% in August 2025, driven by increases in insurance, food, and service costs. As a result, many Malaysians are looking for ways to generate a steady income without taking excessive risks.
Income investing offers a practical solution. Rather than relying solely on capital gains, investors can build portfolios that deliver regular monthly distributions while maintaining growth potential. Think of it as creating an investment paycheck—one that arrives consistently regardless of market conditions.
Malaysian inflation stood at 1.8% in 2024, which may seem modest compared to other countries, but even small annual increases compound over time. Money sitting in regular savings accounts loses purchasing power each year. A consistent passive income stream from investments helps counteract this erosion while providing predictable cash flow for daily expenses or reinvestment opportunities.
Eastspring’s suite of income funds addresses this need directly. These funds are designed to deliver monthly passive income distributions while targeting growth potential through active portfolio management. Distribution rates across the suite range from 4.25% to 6.0%* per annum, though rates fluctuate based on market conditions and fund performance.
*Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. Distribution payouts can be made out of (a) income; or (b) net capital gains; or (c) capital of the fund or a combination of any of (a) and/or (b) and/or (c).
What separates these funds from typical high-yield investments is their dual focus: regular payouts and capital appreciation. Investors aren’t forced to sacrifice long-term growth for short-term income. The active management approach focuses on selecting quality assets that can deliver stable returns through various market cycles.
Research by S&P Dow Jones Indices consistently shows that companies maintaining or growing their dividends tend to outperform on a risk-adjusted basis over longer periods. Dividend-paying assets typically represent established companies with proven business models and stable cash flows. This stability becomes particularly valuable during uncertain times.
Eastspring’s investment team actively monitors market conditions and adjusts portfolio allocations to navigate volatility. Professional oversight works to protect capital while targeting consistent monthly distributions.
The Eastspring MY Income suite offers four distinct options, each designed for specific investor profiles and market exposures.
Eastspring Investments Equity Income Fund focuses on Malaysian companies with strong dividend histories. The fund invests in established local businesses known for consistent payouts. This option suits investors who want exposure to Malaysian equities with a track record of rewarding shareholders.
Eastspring Investments Bond Fund targets Malaysian fixed-income securities, including higher-yielding bonds. Fixed income typically offers more stability than equities, making this option attractive for investors prioritising consistent income over aggressive growth.
Eastspring Investments Dana al-Islah provides Shariah-compliant exposure through sukuk and equities meeting Islamic investment principles. Those who seek halal investment options can access a monthly income while staying aligned with their values.
Eastspring Investments Asia Select Income Fund combines Malaysian bonds with equity exposure to China and India. This provides geographical diversification across Asia’s growth markets while maintaining a fixed income foundation. Investors who believe Asian markets will outperform over the coming years can access that growth story alongside regular income.
Companies that pay dividends regularly demonstrate financial health and management confidence. When a company commits to paying shareholders, it signals stable operations and disciplined capital allocation. These businesses typically weather market downturns better than companies focused purely on growth.
For Malaysian investors, dividend income provides a buffer against inflation. Quality dividend-paying investments can deliver superior returns while preserving capital’s purchasing power.
The monthly distribution schedule across these funds also provides flexibility. Income can cover living expenses, be reinvested to compound returns, or be redirected as financial situations change.
Eastspring Investments operates as a subsidiary of Prudential plc, bringing international investment expertise to the Malaysian market. The team combines global research capabilities with a deep understanding of local market dynamics. This dual perspective helps identify opportunities while managing risks specific to Asian markets.
Active fund management means the investment team continuously evaluates holdings and adjusts positions based on changing market conditions. Investors aren’t locked into static portfolios that might underperform during volatile periods. The managers work to optimise returns and protect capital through ongoing analysis and decisions.
Creating a monthly income stream from investments doesn’t require massive capital or complex strategies. Eastspring’s income funds offer an accessible entry point for Malaysians seeking regular distributions alongside growth potential.
The choice among the four funds depends on individual risk tolerance, investment timeline, and personal preferences around Shariah compliance or geographical exposure. Some investors split capital across multiple funds to diversify both income sources and market exposures.
To explore these funds in detail, including risks, fees, current distribution rates, portfolio holdings, and performance history, visit the Eastspring Income Fund Landing Page.
This article is brought to you by Eastspring Investments Berhad.
Disclaimer:
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The information provided herein is not intended for general circulation but for discussion purposes only. It does not take into account the specific investment objectives, financial situations or particular needs of any particular person. This does not constitute an offer, solicitation, or recommendation to buy or sell or subscribe for any security or financial instrument or to enter into any transaction or to participate in any particular trading or investment strategy. Information contained herein should not be relied upon when making investment decisions. You are advised to consider the risks as well as fees, charges and expenses involved before investing. You should seek independent legal or tax advice before making any investment decisions. Investments are subject to investment risks, including the possible loss of the principal amount invested. Value of the investments and the income, if any, may fall or rise.
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Any reference to any specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same. Eastspring Investments Berhad does not guarantee that all risks associated to the transactions mentioned herein have been identified, nor does it provide advice as to whether you should enter into any such transaction. The contents hereof may not be reproduced or disseminated in whole or in part without Eastspring Investments Berhad’s written consent.
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For more information, please visit https://www.eastspring.com/my.
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