What If You Got Paid Every Time a Song Is Played? Here’s How Malaysians Are Turning Music Into Money in 2025
Imagine this: every time someone hits play on Spotify, streams a YouTube music video, or listens to the radio, you get paid. Sounds like something only record labels or global celebrities could access, right?
Wrong. In 2025, thanks to new global platforms and Malaysia’s tax-friendly rules, even everyday Malaysians can invest in music royalties and earn real, passive income, from as low as RM21.
What Is Music Royalty Investing?
Music royalties are recurring payments made to rights holders when a song is played or used commercially. That includes:
- Streaming platforms like Spotify and Apple Music
- YouTube and TikTok
- Radio stations and TV commercials
- Retail stores and restaurants
Investing in music royalties means buying a slice of the earnings from these plays. It’s like owning digital rental property, but instead of tenants, your “property” is a song.
Why Malaysians Are Turning to Music Royalties
- Passive income for years, even decades
- 5% to 20%+ annual returns from real catalogs
- Not affected by stock market crashes
- Low capital entry (as low as RM21)
- Tax-exempt until 2036 under Malaysia’s foreign income rule
In 2024 alone, Spotify paid out over RM47 billion to global music rights holders. And now, you can be one of them.
Top Music Royalty Platforms for Malaysians (2025)
| Platform | Min Investment | Realistic Return | Malaysian Access | Type |
|---|---|---|---|---|
| ANote Music | €5 (~RM21) | 10%+ historical avg | Yes | Fractional music shares |
| Bolero | USD10 (~RM47) | 7.5%–20% APY | Yes (via Transak) | Decentralized catalog |
| SongVest | USD30+ (~RM126) | 5%–12% | Yes | SEC-backed SongShares |
| Royalty Exchange | USD5,000+ (~RM21k+) | 13%+ avg (some 100%+) | Yes | Full catalog rights |
These platforms let you buy a share of a song’s future royalties, and earn money every time it’s streamed or licensed.
Music Royalties vs Traditional Malaysian Investments
| Asset Class | Annual Return (2025) | Capital Needed | Liquidity | Risk Profile |
| Music Royalties | 7.5%–20% | RM21+ | Moderate | Medium |
| Fixed Deposits | 2.5%–4.1% | RM500+ | High | Very Low |
| Malaysian Stocks | –3.4% (10-year avg) | RM100+ | High | High |
| Property | 4.5%–6% yield | RM500,000+ | Very Low | High (capital + time) |
| Cryptocurrency | 20% gain / 41% drop | RM100+ | Very High | Very High |
Music royalties offer a new income stream that isn’t tied to volatile markets or economic cycles.
How Malaysians Can Start with RM500 to RM10,000
Step 1: Choose the Right Platform
- Use ANote Music or Bolero for low entry.
- Avoid Royalty Exchange if you’re starting below RM10k.
Step 2: Set Up a Wise Multi-Currency Account
- Convert MYR to EUR or USD
- Use Wise account to fund international platforms and receive payouts
Step 3: Complete KYC Requirements
- Upload passport & proof of address
- For US platforms, submit W-8BEN form to avoid double taxation
Step 4: Buy Your First Royalties
- Choose catalogs with proven earning history (TV, evergreen genres, etc.)
- Spread your money across several tracks to manage risk
Step 5: Collect Royalties & Withdraw
- Payouts come monthly or quarterly
- Transfer back to your Malaysian bank account using Wise
Step 6: Declare to LHDN
- Declare under “statutory royalty income”
- As of 2025, individual foreign-sourced income is tax-exempt until 2036 if taxed at source
Malaysian Case Study: How Ali Earned RM1,200 in Passive Royalties
Ali, a 32-year-old IT exec in KL, invested RM5,000 across 8 music shares on ANote Music. He chose older evergreen tracks and seasonal catalogs. Over 12 months, he earned roughly €240 (RM1,200) in royalties, fully tax-exempt. He reinvests 30% of his income into new songs and now aims to grow his royalty income to RM300/month.
Hidden Risks You Should Know
- Currency volatility: Weakening Ringgit can increase entry cost
- Music lifespan: Most songs peak in early years, then stabilize
- Platform risk: Ensure you choose platforms with strong security & payouts
- Liquidity: Selling your share isn’t instant, unless there’s a secondary market
- Artist decisions: Re-recordings or controversies can affect value
Final Thoughts: Should You Jump In?
If you’re tired of low FD returns and losing money in the stock market, music royalties offer a new way to build passive income, one that’s global, tax-efficient, and accessible to Malaysians with as little as RM21.
It’s not just for musicians anymore. It’s for smart, early investors.
Whether you love Ed Sheeran or old-school jazz, now’s the time to turn music into money.
Explore more financial hacks, side income guides, and passive income ideas at RinggitWise.my
Disclaimer: This article is for informational purposes only. Always conduct your own due diligence or consult a licensed advisor before investing.
