Malaysian Currency: Your Complete Guide to the Ringgit

Malaysia is a fascinating country that draws travelers with its unique natural environment, rich cultural heritage, and long history. As you begin your journey to Malaysia, it would make your trip easier if you familiarize yourself with the local currency. To find out more about the Malaysian Ringgit, the currency of this nation, follow Asia King Travel.

Currency of Malaysia

Overview

The official currency of Malaysia is Ringgit, unofficially known as the Malaysian dollar. The currency code for the Ringgit is MYR, and it is symbolized as RM. When you’re buying currency for Malaysia, look out for the currency code MYR. And once you’re in Malaysia, you’ll see the symbol RM used to show prices. Other currencies aren’t widely accepted in Malaysia.

Ringgit - The Malaysian currency. (Source: Bangkok Post)

History of Malaysian Currency

The Malaysian Ringgit has a long history that dates back to the formation of the Malayan Federation in 1948. However, it was not until 1967 that the Malaysian Ringgit was formally introduced by Central Bank of Malaysia, which showed a major departure from the earlier currency. 

The word ‘ringgit’ is derived from Malay meaning ‘jagged’, which symbolizes financial robustness. The ringgit underwent several transformations at different times to meet emerging economic needs thus making it become recognized as a strong and stable currency within its region. Similarly, the cents were renamed to sen.

The first series of banknotes in 1967. (Source: MNP Auctioneers)

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Denominations of Malaysian banknotes

Ringgit has banknotes worth RM100, RM50, RM20, RM10, RM5, RM1 and 50 sen (cent) coins, as well as 20 sen, 10 sen, and 5 sen coins. The notes are brightly colored and easy to distinguish – the colors range from blue (RM1), green (RM5), pink (RM10), orange (RM20), teal (RM50), and purple (RM100).

Denominations of Malaysia banknotes. (Source: Kayiwa Craves)

The latest series of Malaysian banknotes, introduced in 2012, is themed 'Distinctively Malaysia.' This series draws inspiration from elements that define the country's diverse culture, heritage, and natural beauty. Each note features traditional expressions in art and craft, depictions of natural wonders, and symbols of Malaysia's economy and tradition. The designs are not only practical but also a source of pride for the country because they serve as a visual reflection of its identity.

Payment in Malaysia

Cash

Cash payments are commonly used in Malaysia. Most shops, restaurants, markets, and small vendors accept cash payments, especially in smaller towns and rural areas. It’s a good idea to change  your currency to Malaysian Ringgit upon arrival to cover your daily expenses. Having cash on hand assures that you may make purchases even in more distant regions, even in major towns and tourist destinations where credit and debit cards may be accepted.

Most shops, restaurants, markets, and small vendors accept cash payments. (Source: Malay Mail)

Debit/Credit Card

Debit and credit cards are widely accepted in cities and tourist areas in Malaysia. You can use a credit card for purchasing high-cost items, paying hotel deposits, and handling emergencies. It is also accepted at shopping centers and restaurants, but be aware of a transaction fee ranging from 2% to 4% of the total amount. But it's always a good idea to have extra cash on hand just in case, especially if you're going to smaller places or in rural areas where card acceptance can be limited.

Many Malaysian banks have partnered with VISA, MasterCard, Maestro, American Express, and Discover, making it easier to pay. (Source: iMoney)

Mobile Payment

Alongside traditional payment methods, mobile payment solutions are becoming more widely used; well-known apps like Apple Pay, GrabPay, PayPal, Touch 'n Go eWallet, and Samsung Pay are starting to gain favor. This means there are many mobile payment options are available that are convenient for both locals and tourists. Make sure your mobile payment applications have enough money loaded and the merchant accepts the payment option by checking with them before you go.

Tourists as well as residents can find plenty of useful mobile payment choices. (Source: LinkedIn)

Travel Card

A travel card, also called a currency card, is a type of a card that allows you to keep multiple currencies. Many banks offer a travel card service. Before your travel, you might request that the bank you are comfortable with apply for one. In Malaysia, using a travel debit card is often inexpensive, secure, and practical because there are no additional costs for making payments or for making international transactions.

US Dollars

Some tourist areas, high-end hotels, and some certain shops accept U.S. dollars, but this is not common, and the exchange rate may not be favorable. However, you can find currency exchange services that available at airports, banks, and other venues in addition to currency exchange counters.

USD is accepted but not as common as MYR. (Source: Vietnam Plus)

Exchange currency

Exchange Rate

Here are the approximate USD, AUD, and EUR to MYR conversion rates as of August 2024: 

USD, AUD, EUR to MYR Conversion Table

Remember that these rates might change at any time, and that the rate you get will depend on where you convert your money.

Places to exchange Ringgit

It is illegal to trade the Ringgit outside of Malaysia, so you’ll need to exchange some cash when you arrive. Here are some places where you can exchange currency.

Bank: Most local banks in Malaysia offer currency exchange services, including major urban branches and branches in tourist areas. Although it has a higher transaction fee compared to exchange counters, it is safer and more reliable for tourists to avoid potential risks.

Exchanging currencies in banks for a better experience. (Source: The Star)

Currency Exchange Counters: Large cities and tourist centers have exchange offices where you can exchange money with a normal fee. These counters can be found in airports, local markets, shopping malls,... Another excellent option is to look for online currency conversion services. Reliable online exchange services with flexible delivery options and competitive rates can be found on websites like marcopolee.com, maxmoney.com, and travelex.com.my.

Pengurup Wang - Currency exchange counters in Malaysia. (Source: KembaraGD) 

Hotels and Resorts: Some hotels and resorts may offer currency exchange services for their guests. These services may be convenient, but exchange rates may be different with the banks or exchange offices. Make sure to check all needed information before you travel.

Airports: Upon arrival in Malaysia, you can exchange money at the airport. Kuala Lumpur International Airport (KUL) has 9 currency exchange locations you can choose from. This is a convenient option but comes with a high exchange fee and a lower rate.

Currency exchange services are available at Malaysian airports. (Source: Wise)

ATMs: Malaysia is well-equipped with ATMs that allow cash withdrawals in the Ringgit. While they're convenient, using an ATM could cost you extra, particularly if your local bank charges for transactions outside of the country. Always make sure you are aware of the ATM withdrawal fees before utilizing this service.

ATMs can be found in banks, shopping malls, and transport hubs. (Source: Northern Vietnam)

More Tips for the Malaysia Tour

• Carry cash: Even though you can exchange money in Malaysia, some tourist venues and vendors only accept cash. The main tourist centers will have ATMs, but the further you venture away from busy areas, the less ATMs and card-accepting places there’ll be. So it is important to have enough cash with you, especially if you plan to visit more rural areas.
• Exchange leftover Ringgit: If Kuala Lumpur is your ultimate destination in Malaysia and you will be departing via Kuala Lumpur Airport, exchange any remaining Malaysian Ringgit to USD, EUR, or any other currency while in the city. Selling prices for foreign currencies at KLIA2 are equally as awful as purchasing rates. In Kuala Lumpur City Center, currency exchange is simple and offers substantially better exchange rates.
• Exchange Ringgit around Chinatown and Central Market: Better currency exchange rates may be found from Kuala Lumpur money changers on the streets near Central Market and Chinatown. To locate the greatest money changer in Kuala Lumpur, simply do some exploring.

While having fun, you can search China Town and Central Market for locations to exchange currencies. (Source: Finding Beyond)

• Negotiate when buying souvenirs and other items: Many souvenir shops in tourist areas have fixed prices, but there may be room for negotiation in other stores, such as markets. Prices can also vary depending on the time of year, so it's always a good idea to shop around and compare prices before making a purchase.
• Tipping in Malaysia: There is no need to tip in Malaysia as it is not mandatory. Tipping is always appreciated, though. Remember to treat and tip with kindness and respect.

Tipping in Malaysia is not really a must. (Source: traveloka)

Conclusion

We hope this guide has given you a clear understanding of Malaysian currency. If you're planning a trip, our agency is here to assist with all your currency exchange needs. Reach out to Asia King Travel, and we'll make sure you're well-prepared for your journey.

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