Banking in Malaysia

Prior to 2010, it is quite easy to open a bank account in Malaysia and due to the rigid and stringent Anti Money Laundering laws in Malaysia, things are getting harder to handle.

Opening a current account (checking account to some, with a cheque book) in Malaysia involves a few hoops to jump over. The main local banks, Malayan Banking Berhad (Maybank), Arab Malaysian (AmBank), Public Bank, CIMB and RHB along with Alliance, EON, Hong Leong Bank are the main players offering conventional and islamic banking whereas Bank Islam, Muamalat, Bank Rakyat only offer Islamic Banking on top of the full licensed foreign banks such as Al-Rajhi Bank and Kuwait Finance House which offers Islamic Products only along side OCBC, Standard Chartered, Citibank, United Overseas Bank and HSBC offering both systems.



You will definitely need an INTRODUCER to open an account with any of the banks. Al-Rajhi would normally open you a bank account if you fulfill their KYC requirements supported by a Bankers Reference Letter from your host country, faxed beforehand. HSBC are far harder and you should approach your HSBC Premier Banking Manager to handle it. Common to many, Maybank is the Preferred Choice as they have the MOST number of branches nationwide, alongside CIMB and RHB after mega mergers. Many personal sales or direct deposits go through Maybank or their internet banking system Maybank2U or M2U for short.

Also before hand, you should get your company secretary to provide a Memorandum and Resolution of Board of Directors, to enable the bank to open a bank account for the company with the stated persons in the resolution to operate the account. You will need a resolution every time you need to open a new account, or modify the terms and conditions on use of the account. Normally, the directors are the signatories to the account, and requires two signatories for anything above a certain limit. It is also common that a director pre-signed the chequebook prior to his absence from duties and a deputy or manager countersign the cheques.

All the signatories must be present at the bank to open the bank account, with relevant documents such as National ID (MYKAD) for locals and Passports for foreigners with a VALID WORK VISA endorsed within. We know it is a chicken and an egg situation, but of times, trust is somewhat important. Maybank is totally rigid in their audit trails, as with others. They will require a secondary proof of residence like Driver's License from Malaysia to dictate the address on the file.

The normal minimum amount needed to open the account is RM5000 for most accounts, with foreign and bigger banks requiring at least RM10,000 with HSBC and Citibank. Banks do not provide a debit or ATM card for companies (Sdn Bhd/Pte Ltd) at all due to security reasons, except for Alliance Bank which does have a debit maestro card for restricted use. This will require secondary memorandum to allow all these functionality. Normally, Internet Banking is available for the company accounts and may require an annual fee. It's pretty useful to know the going ons in the account and to stop cheques immediately upon loss or theft by yourself or the payee. There may be some legal fees you need to pay.

Also wise is to attend to the banking requirements early in the morning, usually about 1000hrs as they will need to do your credit check and other matters. Company accounts are NOT OPENED IMMEDIATELY and subjected to Securities Check by the SSM and also Central Bank for bounced cheques. That is why the initial directors are usually the people who need to go to the bank and open them up as the banks would already have a relationship with them.

While you are at it, kind of wise to open your own personal savings or checking account so you can cash your payroll cheques. Every since 9/11 , company cheques are NON-ENCASHABLE and MUST BE BANKED IN. However, if your bank is Maybank and you have an account with them, by going back to the home branch of the drawing cheque, you may pay it in at the teller immediately as a HOUSE CHEQUE where the proceeds are made available immediately. Of course, it must be crossing cancelled. Then you may ask the teller to cash it out immediately. However, if you are holding a savings account, you must bring your own passbook and in the case of checking, a blank cheque so you can cash out from your own account. It is kind of silly, but with a checking account, you cannot withdraw cash out at a teller without your chequebook.

ATM or Multi Function Debit Cards (Mastercard Electronic or Visa Electron) are made available to PERSONAL ACCOUNTS. It costs usually RM12 or RM18 for the card issue, and you cannot use it abroad or at the internet sites, unless pre-arranged. Tell the teller to make sure you can draw up to RM5000 a day and able to spend abroad as you are an EXTERNAL ACCOUNT HOLDER. They will try dodge the problem by telling you million and one answers but it's the truth, they have to activate it for you from their console, and no where else.

Malaysia don't use IBAN system, but utilises the SWIFT system. All banks except BSN and some other smaller entities are connected to SWIFT and even though you may have a conventional account and islamic one at the same branch, different swift code applies. However, the bank may inter-credit it for you for a convenience fee and usually takes out RM20+ 0.125% from any incoming wires, plus the standard Visa Forex charge of 2%. Currency transfers exceeding RM10,000 needs to be declared. Ask the branch for more info, and despite swift transfers, they kind of take up to 3 to 7 working days to credit in.

Western Union and Moneygram are the fastest way to wire in.

Refer to our SWIFT BANKING CODES for more information.