Money Exchange in Malaysia

Nancy Kerstetter, Leaf Group

Exchanging money in Malaysia's larger cities is relatively easy to do. Banks, licensed money changers and hotels offer currency exchange. Malaysian currency is called the ringgit and denoted as "RM." Unofficially, the money might be referred to as Malaysian dollars. Prices are often noted with a dollar sign, which might seem confusing, but they still connote Malaysian funds, not American or Singaporean dollars.

Bringing Funds In and Out of Malaysia

United States dollars exchange well in Malaysia as do the British pound and Australian dollar. You can bring cash or travelers checks for exchange. Other currencies can also be exchanged at banks in the large cities. You may carry any amount of U.S. currency into Malaysia, but amounts over $10,000 must be declared at customs. Upon departure, you can take RM 1,000 per person, approximately $340 U.S. dollars. When departing Malaysia, the amount of money you carry in the form of either cash or travelers checks cannot exceed the amount you brought into the country.

Places to Exchange Funds

You can exchange cash or travelers checks at most banks in the larger cities of Malaysia for a small fee. Licensed money changers are open later in the day than banks and offer the most favorable exchange rates. Avoid using unlicensed money changers on street corners in Kuala Lumpur and other cities. Large hotels often will exchange funds, but their rates might not be as attractive as a bank or licensed money changer. Several international banks have branches in Malaysia. Banks operate 9:30 a.m. to 4 p.m. Mondays through Fridays and 9:30 to 11:30 a.m. on Saturdays. In the Muslim states of Kedah, Terengganu and Kelantan, the banks are closed on Fridays and open 9:30 to 4 on Saturdays through Wednesdays and 9:30 to 11 on Thursdays.

Automatic Teller Machines

ATMs can be found in most Malaysian cities, but are scarce in rural or isolated areas. ATMs issue funds in Malaysian ringgit. Some have a daily withdrawal limit and most charge for each transaction. Check with your bank card provider about withdrawal limits and transaction fees before you travel.

Malaysian Currency

Before your trip, research what the currency looks like. Become familiar with its size and appearance; this precaution helps you handle money with more confidence upon your arrival. Once you exchange some funds, arrange the bills in order of either ascending or descending value. Because lower-value bills are smaller, ascending order is preferable. Bills come in six denominations, each a different size and color: RM1, RM2, RM5, RM10, RM50, RM100. The ringgit is divided into 100 sen or cents. Coins are issued in 1, 5, 10, 20 and 50 sen, although 1 sen coins are rarely used.

Travel Tips

Notify the banks and credit card companies associated with the cards you might use on your Malaysian trip. Tell them the dates you will be traveling. This avoids the unwelcome problem of having your charges or drafts denied. Many companies will not allow charges abroad unless you contact them with your travel plans. Carry a coin holder, envelope, or zipper plastic bag to hold currency if you are traveling to more than one international destination. This saves frustration and embarrassment when using unfamiliar currency. Stow leftover Malaysian coins and bills together when departing the country.