What Currency Is Used in Malaysia?

What currency is used in Malaysia?

If you’re planning a holiday in Kuala Lumpur, sourcing products from Penang, or doing business with Malaysian companies, it’s important to understand the country’s currency. This guide is written for travellers, importers, expats, and international investors. We’ll explain what Malaysia’s official currency is, how it works, where it’s accepted, and how to manage it effectively while avoiding common money-related mistakes.

Malaysia’s official currency: the Malaysian Ringgit (MYR)

The official currency of Malaysia is the Malaysian Ringgit, abbreviated as MYR and commonly symbolised as RM (Ringgit Malaysia). The name "ringgit" means "jagged" in Malay, referring to the serrated edges of old Spanish silver dollars once used in the region.

• Currency name: Ringgit

• Currency code: MYR

• Symbol: RM

• Subunit: 1 ringgit = 100 sen

Ringgit is the only legal tender in Malaysia and is used across all states and federal territories, including Peninsular Malaysia, Sabah, and Sarawak.

Coins and banknotes in circulation

• Coins: 5 sen, 10 sen, 20 sen, and 50 sen

• Banknotes: RM1, RM5, RM10, RM20, RM50, and RM100

Banknotes feature images of Malaysia’s first monarch, Tuanku Abdul Rahman, along with iconic cultural, natural, and architectural landmarks. Currency is issued and managed by Bank Negara Malaysia, the country’s central bank.

Where the ringgit is used

The ringgit is used throughout Malaysia and is the only currency accepted for all retail, transport, hospitality, and government services. Whether you’re in Kuala Lumpur, Langkawi, Johor Bahru, or Borneo, you’ll need ringgit to pay for everything—from street food to hotel bookings.

The ringgit is not accepted outside Malaysia, even in neighbouring countries like Singapore or Thailand. It is also a non-internationalised currency, meaning it cannot be traded freely on global forex markets.

How the Malaysian ringgit works

Malaysia operates a managed float exchange rate system, meaning the value of the ringgit is determined by market supply and demand but may be influenced by Bank Negara Malaysia to ensure economic stability.

As of 2024, typical exchange rates fluctuate around:

• RM4.5 to RM4.8 per US Dollar

• RM5.3 to RM5.8 per British Pound

These rates vary depending on global economic conditions, interest rates, inflation, and Malaysia’s export performance—especially in oil, palm oil, and electronics.

Benefits and considerations of using MYR

Advantages:

• Widely accepted across Malaysia for all types of payments, from formal businesses to small stalls.

• Cash and digital payment friendly: Mobile wallets and card payments are increasingly common in urban areas.

• Stable monetary policy: Managed by an independent central bank with a focus on financial system integrity.

Considerations:

• Not freely convertible: MYR is not available for trade on many international platforms and may be difficult to obtain outside Malaysia.

• Cash still necessary: In rural areas, wet markets, and hawker stalls, cash is often preferred.

• Limited acceptance abroad: You must convert unused ringgit before leaving, as most foreign exchange bureaus don’t carry it.

Common misconceptions about the ringgit

One common myth is that US dollars or Singapore dollars are accepted in Malaysia. This is not true. While some high-end businesses near border areas may display prices in other currencies, all payments must be made in ringgit.

Another misunderstanding is that card payments are accepted everywhere. While contactless and QR-based payments are widespread in cities, cash is still essential for small vendors, taxis, and local services.

Tips for managing your money in Malaysia

• Use ATMs from major banks (Maybank, CIMB, RHB) to withdraw MYR—machines are widely available and offer competitive rates.

• Avoid currency exchange at airports, where rates are typically unfavourable.

• Use a travel card or fee-free debit card for better foreign exchange rates and to avoid international transaction fees.

• Carry RM50 and RM10 notes, as smaller businesses may struggle to change RM100.

• Use mobile wallets like Touch 'n Go or Boost if staying long-term—they’re popular and accepted by many local merchants.

FAQs

Can I use other currencies in Malaysia?
No. Only the Malaysian Ringgit (MYR) is accepted for in-person payments.

Is the ringgit accepted outside Malaysia?
No. It is not internationally accepted and should be exchanged before departure.

Are credit and debit cards widely accepted?
Yes, in cities and tourist areas. However, cash is still preferred in rural regions and smaller businesses.

Is tipping expected in Malaysia?
Tipping is not mandatory, but rounding up or offering 5–10% in restaurants or for excellent service is appreciated.

Real-life example

A traveller from the UK arrives in Kuala Lumpur with £300. They withdraw RM1,700 from a local ATM using a travel debit card and use contactless payment in shopping malls and restaurants. For markets, taxis, and street food, they use RM10 and RM20 notes. By using local ATMs and paying in MYR rather than opting for dynamic currency conversion, they save money and avoid unnecessary fees.