Barclays

Your guide to expatriate banking services in Malaysia

Introduction

The Federation of Malaysia lies at the heart of South-east Asia. The official language is Malay, although English is widely used in commerce and industry and many other languages are also spoken, with the majority of bank staff speaking English.

The currency is the Malaysian ringgit (MYR).

Banks

Central bank

• Bank Negara Malaysia

Commercial banks in Malaysia

• Bank Islam Malaysia
• Bank Muamalat Malaysia
• CIMB Bank
• Malayan Banking (Maybank)
• Public Bank
• RHB Bank

Bank opening times

Typical banking hours in the major towns and cities are as follows:

• 9.30am to 4pm (Monday to Friday)
• 9.30am to 11.30am (Saturdays)

Authorised money changers in hotels are often open 24 hours a day, with money exchange bureaus also offering extended opening hours.

Banking services in Malaysia

Online banking is available in Malaysia, although not all banks provide online banking services, and providers of online banking may offer only limited services (e.g. viewing account balances and account-to-account transfers). The use of credit, debit and cash cards is common for payments in major towns and cities, although cash payments are still more popular than cards or cheques. Telephone banking is also available with certain account types - check with individual banks for a full list of services that they provide.

The main types of bank account in Malaysia

As well as a wide range of mortgages and loans, investment and insurance products, the core accounts offered to retail banking customers are:

• Current accounts - used for daily banking. Current accounts may include an ATM/debit card, a chequebook and credit card facility on request. They typically offer a low rate of interest, but provide easy access to account funds.
• Savings accounts - typically offer higher rates of interest than current accounts, but may have limited access to funds, with restrictions or interest penalties applied for making account withdrawals. Savings accounts may offer either fixed or variable rates of interest, and may be fixed for a period of time (e.g. one year)
• Deposit accounts - typically offer higher interest rates than savings accounts or current accounts, but access to funds may be limited or not available until the account maturity date. If you require regular access to funds, deposit accounts may not be suitable.

Offshore accounts may be available as well, and can be useful for long-term savings and for tax planning. You can hold offshore savings in various worldwide currencies, but always get independent advice before opening an offshore account.

Opening a bank account when you arrive in Malaysia

Both residents and non-residents of Malaysia are able to open bank accounts, subject to satisfying account requirements and conditions, although accounts for non-residents may initially offer lower limits to reduce a bank's exposure to an individual's debt. Applicants will be required to provide proof of identification, and may be required to provide evidence of either residency or employment status. Documentation, such as your passport, letter of employment, work visa, recent bank statements and a letter of reference from you current bank will help your application.

Opening a bank account before you arrive in Malaysia

It may be possible to open a bank account in Malaysia without being present at the bank. Contact the nearest branch of your chosen Malaysian bank for further information.

A flexible alternative to a local bank account in Malaysia is to open an international account, which can be opened before you relocate there. An account with Barclays International will give you access to a wide range of international banking services, including tax efficient offshore account options, online banking and a debit card in a choice of major currencies.

International accounts can be used by clients living or working in Malaysia, and also when travelling between international locations.

ATM and card facilities in Malaysia

The major international credit cards (MasterCard and Visa) are generally accepted in urban centres, as are cheques, with ATMs also widely available. Most major banks have ATMs that allow deposits and passbook updating to be carried out as well as cash withdrawals. The machines are designed to accept ringgit notes in a wide variety of denominations. There are also foreign currency changing machines, which can be convenient, but these are mostly located at the international airports.

Some smaller shops may try to apply surcharges on goods purchased with a credit card. In this case, ask to phone the credit card company to verify the charge. Cash payments are the preferred payment method in smaller towns and rural areas, and cash transactions may enable you to negotiate a price reduction.

Money transfers to and from Malaysia

Money transfer services are provided in most bank branches, with a range of specialist businesses money exchange and money transfer businesses in operation throughout Malaysia.

Currency regulations relating to the import and export of currencies can be subject to change. As of April 2010, the following limits apply:

• A resident and non-resident are permitted to carry into and out of Malaysia, ringgit notes not exceeding RM 1,000 per person (approximately £186 GBP).
• There is no limit for a resident and non-resident to bring in foreign currency notes and traveller's cheques to Malaysia but non-residents need to declare total amounts that exceed $10,000 USD (approximately £6,370 GBP).

Bank charges in Malaysia

Charges will vary from bank to bank across the range of services provided, although expect to pay a monthly charge for operating a current account.

Banking in Malaysia - other information

Malaysia ombudsman
There is no ombudsman in Malaysia. However, if you have any complaints or issues with a bank in Malaysia, contact the Financial Mediation Bureau. Details are at www.fmb.org.my.

More information on banking with Barclays International

For more information on opening an International Bank Account, speak to Barclays International by calling +44 (0)1624 684316†.

Alternatively, find out more about the overseas banking services that are available to expats living and working in Malaysia, by visiting Barclays International expat banking information site.