For many businesses in APAC, Malaysia is among the top choices for global expansion due to the country’s extensive network of free trade agreements and strong government support. Not just that, the country’s strategic location also provides easy access to the ASEAN markets. It’s a supply chain gem.
On a more granular level, Malaysia also has a strong financial system, which allows foreign businesses to transact between parent companies and subsidiaries alike, with ease. And in the core of this system is the country’s local currency, the Malaysian Ringgit, or MYR.
Let’s dive into the nitty gritty of making global transactions to and from Malaysia for international businesses.
What are exotic currencies and why the Malaysian Ringgit is one of them?
There are three types of currencies that exist in the foreign exchange (FX) market: major, minor, and exotic currencies. This classification depends on how well the currencies trade in the currency markets.
More precisely, exotic currencies are currencies that trade thinly or have relatively low volumes in comparison with other currencies. On top of that, they are also considered illiquid and lack market depth for large transactions. Like the Malaysian Ringgit, exotic currencies are typically not the “go-to” for active forex traders because of their volume.
Because of that, operating in countries that use exotic currencies may come with additional risks as the currency can be more volatile because it is more heavily influenced by political and macroeconomic events.
Common issues with MYR global payments
As Malaysia is a developing country, so are the country’s regulations on its local currency. That’s why, “keeping yourself up to date" is the name of the game when you make a transaction in MYR.
Bank codes for certain locations can differ from the common BIC or IBAN (International Bank Account Number) requirements and additional information regarding the payment may be required during the transaction. From a compliance perspective, this helps the country reduce money laundering attempts and maintain the high integrity of its currency.
Above that, here are the three most common issues and challenges associated with MYR payments:
- Volume – As an exotic currency, MYR typically has lower volumes in comparison to major currencies such as USD or GBP. Therefore, banks or financial institutions may charge a higher margin for larger transactions to recompense the wider spread.
- Delayed payments – The routes used for fund transfers are typically long (which may require more intermediary banks) and complex if the provider does not have a direct payment partner in the region.
- Leverage – The pair’s volatility can increase profits with the use of leverage. However, it also increases the risk of the vice versa. Wallex deploys advanced risk management tools to hedge against volatility risks and lock in certain market rates.
How to set up an MYR payment?
At Wallex, we make it easy for you to set up and automate your payments in any of our supported currencies, and that includes MYR.
Step 1: Open a Wallex account
Step 2: Add beneficiaries
Once your account is approved, you can start by adding Malaysian beneficiaries and setting up your cross-border transactions. This will only take a few minutes, and you will be able to start sending payments globally almost instantaneously.
In terms of payment, you can either use the funds in your Wallex account or directly from your bank account.
Step 3: Payment tracking
With Wallex, you can track your payments at any point of the transaction in real-time. This way, you can watch as your funds arrive safely at their destination.
How much does it cost to send money to Malaysia?
Our low-cost global payment solutions ensure you’ll save big on your cross-border payment needs. Check out the indicative rate for setting up a payment below.
How long will a money transfer to Malaysia take?
The Wallex platform enables you to send money from Singapore, Hong Kong, or Indonesia to Malaysia and have it settled on the same day. However, please note that different payment methods and compliance processes may affect the settlement time. In the meantime, you can also keep track of your funds in real-time through the Wallex online dashboard.
What exotic currencies does Wallex support?
Wallex supports payments in up to 48 currencies in over 180 countries. Here is a breakdown of the exotic currencies on Wallex and the settlement period.
Check out the full list here.
How to get the best FX rates on the Malaysian Ringgit?
Thanks to technological developments, businesses today have more alternatives than ever that can support global payments. These are traditional banks, foreign exchange platforms, or FinTech providers, which also come with advanced custom solutions.
However, exotic currencies such as the Malaysian Ringgit may not be available on certain platforms, which makes it challenging to compare options, let alone find an efficient and cost-effective one.
At Wallex, we pride ourselves on providing a specialist service designed to get your money where it needs to be. Here’s why Wallex is the best solution for your business to make international payments in MYR:
- Transparency of FX rates and fees
- Security in fund delivery on time
- All transactions can be done online
- Visibility of the funds in real-time
- Clarity on the route used and the number
- Faster delivery of funds
- Dedicated account manager to help you with any enquiries
Wallex Simplifies Cross-Border Payments
Wallex is an affordable and secure payment and liquidity management solution for businesses.
Businesses of all shapes and sizes use a Wallex business account to make and receive cross-border payments, hold balance and convert funds in over 46 currencies.
With Wallex, our clients can efficiently plan, manage and hedge their currency needs all from one secure online platform.
If you would like to know more about how Wallex can help your business, visit www.wallex.asia to schedule a demo.
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