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Malaysian Currency

OCBC Bank in Kuala Lumpur
Photo by James Ong

The Malaysian currency is the ringgit, informally known as the dollar (the M$ symbol can be seen on older notes) and abbreviated RM or MYR, is divided into 100 sen. There are coins of 1, 5, 10, 20, and 50 sen (RM1 coins ceased to be legal tender in December 2005) as well as bills of RM1, 2, 5, 10, 50 and 100. The RM2 note is becoming rare and is usually in bad condition as new notes have ceased to be issued. 1 sen and 5 sen coins are mainly given as change in large establishments and supermarkets. Peddlers and street vendors might be reluctant to accept them.

Between 1997 and 2005, the exchange rate to the US dollar was fixed at RM3.8 to 1, which due to the comparative strength of the Malaysian economy made Malaysian products quite cheap overseas. In July 2005 the exchange rate was put under a managed float, following the lead of China's RMB. Due to the people's confidence in the ringgit's stability, foreign currencies are not generally accepted. The major exception is Singapore dollars, which are accepted by KTMB and toll roads, but at a highly unfavorable 1:1 exchange rate (an anomaly dating back to when the ringgit was interchangeable with the Singapore dollar, prior to the 1970s).

Banks and airports are not the best places to exchange money if it is not urgent. Licensed money changers in major shopping malls often have the best rates - be sure to say the amount you wish to exchange and ask for the 'best quote' as rates displayed on the board are often negotiable.

ATMs are widely available in cities, but do stock up on cash if heading out into the smaller islands or the jungle. Credit cards can be used in most shops, restaurants and hotels, although skimming can be a problem in dodgier outlets.

Banking

Banks in Malaysia, especially those in major towns and cities, have staff who are trained to handle international transactions. For any enquiries and transactions, get a number, sit down and wait for your turn to be served (There is no need to queue while you wait in air-conditioned comfort!).

Banks are opened Monday to Friday from 9.30am to 4pm and selected banks are opened on Saturday from 9.30am to 11.30am except on the first and third Saturdays of each month. In the states of Kedah, Kelantan and Terengganu, they are open Saturday to Wednesday from 9.30am to 4pm and Thursday from 9.30am to 11.30am.