Banking and financial services in Malaysia: Major banks: Maybank, CIMB, Public Bank, RHB. Central bank: Bank Negara Malaysia. Currency: Malaysian Ringgit (MYR). Opening a bank account requires identification. Online and mobile banking widely available. ATMs accept international cards. Credit card use prevalent. Financial advisory services available. Regulatory body: Securities Commission Malaysia. Islamic banking widely practiced.
Major banks: Maybank, CIMB, Public Bank, RHB.
Malaysia boasts several major banks that play a pivotal role in the country's financial landscape. Leading the charge is Maybank, the nation's largest bank by total assets and market capitalization, which offers a range of retail and investment banking services throughout Malaysia, Singapore, and Indonesia. Close on its heels is the CIMB Group, the second largest in Malaysia, widely recognized for its comprehensive services in consumer, commercial, investment, and Islamic banking. CIMB's influence extends across ASEAN countries and into key global financial hubs, contributing to the economic fabric of the region. Public Bank holds the position as the third largest bank, marked by its expansive branch network and respected status in markets such as Hong Kong, China, and various Southeast Asian nations. Rounding out this impressive lineup is RHB Bank, which ranks as the fourth largest fully integrated financial services group in Malaysia, with a strategic focus on consumer, commercial, and Islamic banking services across Malaysia and its growing footprint in ASEAN and beyond.
Central bank: Bank Negara Malaysia.
Bank Negara Malaysia (BNM), established on 26 January 1959, serves as the central bank of Malaysia, overseeing the issuance of currency, acting as the banker and advisor to the government, and regulating the country's financial institutions, credit system, and monetary policy. It plays a crucial role in promoting monetary stability, financial stability, and a progressive and inclusive financial system. Additionally, BNM is engaged in international initiatives such as Project Nexus for cross-border payments, highlighting its significant influence beyond national borders.
Currency: Malaysian Ringgit (MYR).
The Malaysian Ringgit (MYR) is the currency of Malaysia, abbreviated as RM and coded as MYR. It is a free-floating currency, issued in denominations of 1, 5, 10, 20, 50, and 100 ringgits, and is made up of 100 sen. For more detailed information about the Malaysian Ringgit, including its history and current exchange rates, you can visit the comprehensive resource available on Investopedia.
Opening a bank account requires identification.
To open a bank account in Malaysia, you need identification such as MyKad, MyPR, or a passport, along with contact details. Non-residents also require additional documents like work permits, visas, and a reference from a local contact. For more details on the process, you can visit the Statrys Blog which provides a comprehensive guide to setting up a bank account in Malaysia.
Online and mobile banking widely available.
Online and mobile banking are widely available in Malaysia, allowing users to manage their accounts, pay bills, transfer funds, and access various financial services conveniently from their homes or on the go through apps and online platforms offered by banks such as OCBC Malaysia. Bank of China and HSBC Malaysia also provide similar services.
ATMs accept international cards.
ATMs in Malaysia widely accept international cards, including MasterCard (Cirrus and Maestro) and Visa (Plus) cards. It is advisable to check for the card network's logo on the ATM and inform your home bank of your travel dates to avoid transaction issues and additional fees. For more detailed information on this topic, you can visit the Wise Blog.
Credit card use prevalent.
Credit card use in Malaysia is highly prevalent, with credit and charge cards accounting for 60.7% of the overall card payment value in 2023. This surge is driven by a developing payment infrastructure, rising consumer spending, and government initiatives to promote cashless transactions. According to a data firm featured on The Star, the transaction value of credit cards is projected to grow significantly, reaching RM230.5 billion in 2024 and RM301.3 billion by 2028. This reflects a compound annual growth rate of 6.9% between 2024 and 2028, highlighting the growing reliance on cashless payment methods in the country.
Financial advisory services available.
Financial advisory services in Malaysia are comprehensive and tailored to individual needs, offering personal financial advisory, Islamic wealth advisory, corporate financial advisory, and private wealth advisory, with a focus on the 5 Pillars of Wealth: protection, maintenance, accumulation, enhancement, and distribution. One of the key resources available is the Financial Planner In Malaysia, where individuals can connect with experts through platforms such as InvestSmart's #FinPlan4U event, SmartFinance.my, and the Mula app. These services include budgeting, saving, retirement planning, and Islamic financial planning, with options for free consultations and specialized advice.
Regulatory body: Securities Commission Malaysia.
The Securities Commission Malaysia (SC) is a self-funded statutory body established on 1 March 1993, responsible for regulating and developing the Malaysian capital market. The SC's regulatory functions include rule-making, enforcing regulations, supervising capital market activities, licensing and supervising market participants, and ensuring compliance with the Capital Markets and Services Act 2007, among other securities laws.
Islamic banking widely practiced.
Islamic banking in Malaysia is widely practiced, with the country being the third largest Islamic banking market globally. Malaysian Islamic banks, such as Bank Muamalat and Bank Islam, operate under Shariah principles, prohibiting interest and haram investments, and have seen significant growth, with total assets reaching approximately one trillion Malaysian ringgit in 2023.