Remote Banking in Malaysia

A Comprehensive Banking Guide for Expats in Malaysia

If you are an expatriate living or planning to move to Malaysia, understanding the banking system is crucial for managing your finances effectively. This comprehensive guide will walk you through essential aspects of banking in Malaysia, including banks accepting foreigners, KYC requirements, the availability of digital banking services like Wise and Revolut, ATM fees, multi-currency options, the account opening process, currency exchange tips, and clarifications on tax residency.

Banks Accepting Foreigners

Most major banks in Malaysia welcome foreigners to open bank accounts. Some of the popular banks that cater to expatriates include Maybank, CIMB Bank, Public Bank, RHB Bank, and Hong Leong Bank. These banks offer a range of services tailored to the needs of expats, such as multi-currency accounts, international money transfers, and English-speaking customer service.

KYC Requirements

When opening a bank account in Malaysia, you will need to provide certain documents to comply with the Know Your Customer (KYC) regulations. Typically, you will be asked to submit your passport, proof of address (such as a utility bill or tenancy agreement), and a valid visa or work permit. Some banks may also require a letter of employment or a reference from your current bank.

Availability of Wise and Revolut

Digital banking services like Wise (formerly TransferWise) and Revolut are increasingly popular among expats for their low-cost international money transfers and multi-currency accounts. Both Wise and Revolut are available in Malaysia, allowing you to send money abroad at competitive exchange rates and avoid hefty bank fees.

ATM Fees

Most banks in Malaysia charge a nominal fee for using ATMs, especially if you are withdrawing cash from another bank's ATM. To minimize ATM fees, try to use ATMs affiliated with your bank or opt for digital payment methods where possible. Some banks also offer fee waivers or rebates for certain transactions, so it's worth checking with your bank for more information.

Multi-Currency Options

If you frequently deal with multiple currencies, consider opening a multi-currency account with a Malaysian bank. This type of account allows you to hold different currencies in a single account, making it easier to manage your finances and avoid currency conversion fees. Maybank and CIMB Bank are known for offering competitive multi-currency account options for expats.

Opening Process

To open a bank account in Malaysia as an expatriate, you will typically need to visit a branch in person and present the required documents mentioned earlier. Some banks may have specific requirements for expats, so it's advisable to contact the bank in advance to confirm the necessary documentation and procedures. The account opening process usually takes a few days to complete, after which you will receive your account details and any relevant banking cards.

Currency Exchange Tips

When exchanging currency in Malaysia, it's essential to compare rates offered by different money changers or banks to get the best deal. Avoid exchanging money at airports or tourist areas, as they often have higher fees and poor exchange rates. Instead, look for licensed money changers in commercial areas or use digital platforms like Wise for transparent and cost-effective currency exchange.

Tax Residency Clarification

As an expat living in Malaysia, it's essential to understand your tax residency status to comply with local tax regulations. The Malaysian tax system is based on the territorial principle, meaning you are only taxed on income earned within Malaysia. However, if you stay in Malaysia for more than 182 days in a calendar year, you may be considered a tax resident and subject to Malaysian taxes on your worldwide income. It's advisable to seek advice from a tax consultant or the Inland Revenue Board of Malaysia (LHDN) to clarify your tax residency status and obligations.

In conclusion, navigating the banking system in Malaysia as an expatriate can be straightforward with the right information and preparation. By choosing a bank that caters to foreigners, understanding the KYC requirements, exploring digital banking options like Wise and Revolut, managing ATM fees, utilising multi-currency accounts, following the account opening process diligently, making informed currency exchanges, and clarifying your tax residency status, you can effectively manage your finances and enjoy your expat experience in Malaysia.