Re: Opening a Bank Account in Kuala Lumpur
 

If you have a buffer so you can buy and sell at the same time then you would know and would only go ahead when you see what you get.

Re: Opening a Bank Account in Kuala Lumpur
 

From post 152:
''So you want to first establish a non-Fixed Deposit account (to bring in your US$ @$40k) THEN withdraw that money in US$ currency and take it to a money changer to convert it to RMY?''
As far as I know, you are not allowed to withdraw forex cash from a forex account in Malaysia. In Singapore it is however possible, but at a fee. CIMB SG charges for example around 0.8%-1% for withdrawals of EUR, USD, AUD, JPY or CAD

Re: Opening a Bank Account in Kuala Lumpur
 

So what is that buffer...a bitcoin you bought for US$20,000 and now trying to sell for US$11,500?

Come on stepen lets face it.....your bitcoin idea to do forex is ridiculous unless you're money-laundering.

Re: Opening a Bank Account in Kuala Lumpur
 

I don't think that the Malaysian bank cares much about your Canadian passport, or the shared Commonwealth identity. My guess is that they fear more the US penalties they may face if they make a mistake in handling you as a customer, given the fact that you have clearly a relationship with the US tax authorities. And thus that the bank may face obligations to hand over certain information pertaining to you to those US tax authorities.

Re: Opening a Bank Account in Kuala Lumpur
 

Yes, Malaysian banks will not do any cash transactions with foreign currencies. Expect moneychanging with extremely shitty rates. You can have a USD or EUR account but cannot withdraw in cash.

Re: Opening a Bank Account in Kuala Lumpur
 

My initial thought was that a USD denominated account at CIMB did not allow for cash withdrawals in Malaysia. It certainly cannot be done from ATM machines. However, upon reading the terms&conditions there seems to be a possibility:
https://www.cimbbank.com.my/en/perso...t-account.html
from the PDF document which is available on that page:
I don't know which branches would be able to give you cash USD though, let alone 40 k USD.

Re: Opening a Bank Account in Kuala Lumpur
 

When I gave up my MM2H I was not allowed to transfer my MYR fixed deposit. I had to forex using the bank's lousy rate to another currency.

Re: Opening a Bank Account in Kuala Lumpur
 

You could not take out the cash from your account when closing it?

Re: Opening a Bank Account in Kuala Lumpur
 

Hi,

Very interesting discussion.

I am still not able to decide on the best way to bring USD funds into Malaysia in order to place a FD of $150k MYR to meet MM2H requirements. By best, I mean to get most number of $ in MYR, balanced against time, safety and convenience, with most MYR to be more weighted than the other criteria, since this is a one-time thing.

1) I like to hear about how past MM2Her's bring money into Malaysia for their placement of FD? What are the lessons learned, good or bad?

2) Can someone post examples of current exchange rate as posted in Money exchange shops in KL recently, along with date & time when those rates are posted, and the name of the shop? I only have acess to on-line quotes, and is not sure how accurately they reflect the actual on the ground rates of those shops?

3) General consensus appears to be that exchange rate offered by bank (say CIMB) is lousy, but that they are also negotiable. Can someone post past exchange rates actually achieved by CIMB or any other banks, based on personnal experiences, preferably from the position of preferred customer status, and preferably recently?

4) Whether one can withdraw USD cash from USD account in Malaysian bank is an open question? What is the point of keeping a USD account if one cannot withdraw USD cash from it? I will try to contact CIMB to find out the actual facts on the ground. I know that both Citibank Hong Kong And HSBC Hong Kong allow withdrawal of USD cash from their USD account, and no fee is charged.

Thanks,
Qwert

Re: Opening a Bank Account in Kuala Lumpur
 

Short of carrying in US$40K in currency, I think one is going to have to do some sort of bank-to-bank transfer. Whether you do that via a domestic exchange like Transferwise or through the banks is I think the realistic issue.

One other possibility, and it's out there. There's a branch of Scotiabank in KL- they do engage in Foreign Currency Exchange, and the fees seem quite reasonable. But perhaps there would be a way to have an account set up in Canada and then transferred to the Scotiabank (they have offices in JB and Penang, too). It says they do Saving and Checking accounts too. They handle Fixed Deposits though the rates are under what have been floating about currently. Maybe you could negotiate upward because of the longer term and higher amount. The Bank of Nova Scotia Berhad, Menara Boustead, 69 Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia

They can be contacted by telephone: (60-3) 2141-0766 http://www.scotiabank.com.my/

Here are their fees...but are their exchange rates competitive. Would the bank negotiate a better rate or reduced fee given the amount of the transfer?

https://scotiabank.com.my/scotiabank...=main&nowhat=6

Re: Opening a Bank Account in Kuala Lumpur
 

I'm sure that was an option but carrying over MYR200,000 in cash from the KL HSBC downtown branch wasn't something I contemplated and, in hindsight, I'm glad I didn't.
The banks's location looks like a seedy side of KL and we still had our bags as we'd arrived directly from the airport to Putrajaya and then to the bank.
After closing the account and transferring the money we tried for a taxi but they were scarce, then one driver stopped. He wouldn't even open the trunk to put our bags in and kept yelling at my wife to open herself. I dismissed him and he was furious because I'd then hailed a luxury cab which had big sliding doors.
We went to a hotel near the Petronas towers where we'd been before and it was full. So we then decided to go back to the airport and fly back to Bali.
I was relieved I didn't need to explain a bag full of MYR to Indonesian customs.

Re: Opening a Bank Account in Kuala Lumpur
 

I don't see why money-laundering is relevant to this?

If you don't have or want to have any bitcoin then then you would have to buy bitcoin, transfer and sell the one you bought, and rates could go up or down during this time. Still in that case I wouldn't call it ridiculous, if the average BTC sell price in Malaysia is higher than the average buy price in USD, EUR. I personally have some BTC from a long time ago, so I could use this to be able to buy and sell at roughly the same time, potentially getting a rate 0,5-1% above the interbank rate.
I will update on how it goes if I decide to try. Just need to check on the Malaysian BTC exchanges first.

Re: Opening a Bank Account in Kuala Lumpur
 

It's relevant in that Bitcoins have been used to money-launder for a few years as the process isn't traceable whereas forex currencies are.

I get your desire to show how your bitcoin works but I don't get why anyone would bother to use it to do forex when 1. It's risky and 2. It's cumbersome.

Re: Opening a Bank Account in Kuala Lumpur
 

While I was at CIMB filling out my MM2H paper work, a Japanese couple was also filling out paper work. I caught at the corner of my eye the couple passing a bag of money (or maybe lunch) to the bank clerk, the clerk then headed up stairs. After the Japanese couple had left, I asked my if it was common for some people to bring cash when making the Fixed Deposit. The clerk confirmed that it wasn't uncommon for Japanese to bring a cash deposit (many JN's keep a good chunk of cash at home).
In the past I've bought over a few thousand $$$ (under $10,000). What's stopping you from bring over 40g's. As long as you properly declare it, including documentation for WHY, I would think it then depends on your nerves walking around with a bag full of money...
I don't think it's been mentioned yet, but the current exchange rate for the day you transfer also should be something to think about. For instance, the dollar (or price of oil) took a .63% hit on Friday. That's a pretty big bite when you are exchanging amounts with many zero's.
Will the dollar make gains once the US FED raises rates in March along with Strong guidance ??? It might not hurt as much if you wait until the dollar firms up.

Re: Opening a Bank Account in Kuala Lumpur
 

1) I like to hear about how past MM2Her's bring money into Malaysia for their placement of FD? What are the lessons learned, good or bad?
---> Cash is king, Moneychangers are fine, Transferwise is great, all things involved banks cost you a lot of money. I have no mood to discuss all this things, just believe me ;)


2) Can someone post examples of current exchange rate as posted in Money exchange shops in KL recently, along with date & time when those rates are posted, and the name of the shop?
---> You have to do your own research along Jalan Bukit Bintang and @ Midvalley Mall. Large amount give you a better rate. I never care about the published rates on the internet.

3) General consensus appears to be that exchange rate offered by bank (say CIMB) is lousy, but that they are also negotiable. Can someone post past exchange rates actually achieved by CIMB or any other banks, based on personnal experiences, preferably from the position of preferred customer status, and preferably recently?
---> This "better" exchange is only for non-cash transfers from your USD/EUR/SGD account to your MYR account. Just forget about this if you don´t want to do dual currency trading.


4) Whether one can withdraw USD cash from USD account in Malaysian bank is an open question? What is the point of keeping a USD account if one cannot withdraw USD cash from it?
---> This is not open question to me, I researched this alot and no bank will allow you to bring in or out foreign currency in cash. Also all my Malay friends told me that only a few banks in Singapore allow this. These foreign currency accounts are mainly used for Dual Currency Investments where you gamble on MYR movement up or down.


@Davita, thanks for clarification. So after cancelling your MM2H you had to cancel all your bank accounts immediately? That is good to know, so everybody should plan the finishing well in advance, so that at least you stand here only with the remaining 150k from the FD. Friends of mine were here on a work visa and years later they still have their CIMB accounts.

Re: Opening a Bank Account in Kuala Lumpur
 

My God - how complicated can you make this?

What I did when I came to Malaysia was to bring EUR 5K in cash. I went into HSBC to open an account and they brought a money changer into the branch to exchange my EUR for RM - the rate was pretty good.

I walked out of the branch about an hour later with a EUR, GBP and RM account, a debit card, a DigiPass for internet banking and a temporary cheque book.

The next day I transferred in the EUR for my FD. The bank converted this from EUR to RM at a very good rate. I think it was 5 pips from memory.

How much are you going to save with all this mucking about and how much stress will it give you? Keep It Simple Stupid.

Re: Opening a Bank Account in Kuala Lumpur
 

No! no! eCdD.... it wasn't even a requirement. I could have easily just removed the MM2H lien on the FD and made any other arrangement with the bank for myself and maintained the account to this day. To be honest I felt the bank was reluctant to lose me as a client.

The interest then on Indonesian Rp (IDR) was 8% and, as I now lived in Bali, I bought IDR from the MYR and made Jakarta's HSBC the bank to maintain my Global Premium status. Previously the MM2H MYR 150,000 FD + MYR 50,000 was my HSBC FD to have that status.

Re: Opening a Bank Account in Kuala Lumpur
 

Ah, OK, sounds good. I don´t know if Malaysia in the far future will be our 1st, 2nd or 3rd home, but I don´t think we cut our ties here completely. So I guess or hope I will keep at least the CIMB account until I pass away.

Re: Opening a Bank Account in Kuala Lumpur
 

My thoughts exactly.
I did a bank transfer and considered the losses due to exchange rate as one of the costs to get myself moved to Penang. Not a big deal, in the larger scheme of things. Getting MM2H, moving to Penang, agency costs, etc, were all more than the total sum involved in this money exchange.

Re: Opening a Bank Account in Kuala Lumpur
 

I'm also pondering how advantageous trying to get a few points more on a beneficial exchange rate will be for a FIXED account anyways. You need to establish the fixed account fairly quickly to get your MM2H and the rate is largely subject to the vicissitudes of factors you have no control over. You can't really control the timing (which might be possible with other exchanges).

And the bulk of it will just be parked there until you depart or use it to purchase property, need it for health care, etc. You could leave it all in place, if you wished. Just as critical is what the rate will be when you leave...and who KNOWS what that exchange rate will be.

The major factor you can negotiate is the interest rate.

But you are right. I'm reminded of the backpackers who keep a little book and compare all the prices in the market looking for the cheapest rate for rambutan, but then go out and drink several buckets of Tiger in the evening bragging about how they out-bargained someone in the pasar.

Re: Opening a Bank Account in Kuala Lumpur
 

My FD rate is 3.9% with HSBC and I am a Premier customer.

I questioned the rate this year and was informed the FD is annually auto renewed and the rate is determined by the offer rate at the time of renewal.

You are correct, after you decide which bank you are lodging your FD with you are stuck as you cannot then cherry pick rates and move your money as you wish.

I am informed this use to be the situation but I guess the banks have effective lobby representation.

Re: Opening a Bank Account in Kuala Lumpur
 

Interesting, as the official HSBC 12 month rate was 2.9%, and 3.15% from 1st feb 2018. When did you last renew it?

Re: Opening a Bank Account in Kuala Lumpur
 

Yes Stepen I fell victim to this as my renewal was late January.

I did not even receive any email or communication notice as well, I guess when they have you locked in then they feel no need.

I had advice from other forum members (before I lodged) that local banks offer better FD rates than HSBC but due to circumstances my decision was based more on access to HSBC Global transfer service so I cannot grumble too much.

It just seems iniquitous to restrict competition in a private sector.

Re: Opening a Bank Account in Kuala Lumpur
 

But the official rate is 2.9%, and you got 3.9% ?

Re: Opening a Bank Account in Kuala Lumpur
 

:eek: Sorry Stepen (and all) if that got anyone excited I meant 2.9% I am not that fortunate.

Some posts recently mentioned rates being available at 4.15% but I am stuck at the 2.9%.

Apologies for the confusion.

Re: Opening a Bank Account in Kuala Lumpur
 

I have never heard of a HSBC promotion FD rate of 3,9 for any customer, not to talk about a locked MM2H FD. You can feel very lucky. If you have the 300k FD, that is a profit of RM 3000 per year compared to other HSBC customers. Enjoy your 1000 extra Laksas this year at the night market.

Edit: Sorry, the 1000 Laksas are canceled ;)

Re: Opening a Bank Account in Kuala Lumpur
 

eCdD unfortunately the night market will have to struggle on without my meager contribution. :blink:

Re: Opening a Bank Account in Kuala Lumpur
 

I am reminded of colleagues working in the Middle East who spent hours comparing exchange rates and transfer charges. Did they end up any better off than those of who just transferred our money on payday ?

Re: Opening a Bank Account in Kuala Lumpur
 

Ask your collegues! I am better off with thousands of Euros (not MYR!) every year by comparing and transfer my money wisely and not just set up a stupid bank transfer that costs you up to 5% instead of 0,5%.

Re: Opening a Bank Account in Kuala Lumpur
 

Thanks to RedApe for suggesting ScotiaBank. But this won't work for me, as I do not have a ScotiaBank account, plus I am not in Canada, and one needs to be at the branch in order to open a new account. Also, Canadian banks have traditionally offered poor exchange rates.

As for carrying 40k USD cash or more into Malaysia as suggested by WiredTight, has anybody actually done that? I have ruled this out previously, as I deem it highly risky, with the possiblity of theft, accidental loss or some small chance of confiscation? In my case, my travel into Malaysia will transit via 3 countries: USA, China(stopover), then Malaysia, and requires navigating the customs/immigration/security areas of those 3 jurisdictions. What if one of them does not believe my explanation of carrying such a large sum of money, and confiscate the cash on suspicion of money laundering.

As for my final decision as to which way to go, I was hoping for some real numbers to guide early decision while outside Malaysia, not just adjectives such as better or worse etc. In any case, I do not need to make the decision until I landed in KL. I will get those numbers then plus find out from CIMB their policies. After plugging in the real numbers and making simple calculations, the decison will be made for me based on the facts. This deliberation is the best plan for me, and is neither complicated nor stressful. Afterall, even in retirement, one must still strive to keep the mind active.

When this part of placing FD is done, I will post my experiences based on real numbers.

Qwert

Re: Opening a Bank Account in Kuala Lumpur
 

For Malaysia:"Currency Import regulations: Local currency (Malaysian Ringgit-MYR) and foreign currencies: No restrictions. Amounts exceeding MYR 30,000.- and USD 10,000.- or equivalent must be declared for re-export.
Currency Export regulations:Allowed: local currency (Malaysian Ringgit-MYR): up to MYR 30,000.- and foreign currencies: up to USD 10,000.- or equivalent. Higher amounts may be exported provided import has been declared upon arrival."

Re: Opening a Bank Account in Kuala Lumpur
 

And for China (transit):

"Cash: Passengers carrying over RMB 20,000 in cash or foreign currencies with a conversion rate exceeding US $5,000 shall be processed by Customs in accordance with the current regulations.

Passengers carrying foreign currencies exceeding US $5,000, which will be taken out of the country at the end of their stay, shall complete a Customs Declaration Form in duplicate. One copy of this form, endorsed by Customs, shall be returned to the passenger for relevant procedures at the time of their exit."

Just declare it with customs. You might also want to request to be screened separately as you don't want to be separated from your money. And maybe purchase one of those trackers or alarm systems that you can remotely trigger and place that within the currency.

Re: Opening a Bank Account in Kuala Lumpur
 

Very similar to what Malaysia's Customs write about it: http://www.customs.gov.my/en/tp/Pages/tp_cec.aspx

Re: Opening a Bank Account in Kuala Lumpur
 

I'm finally approved and will do the MM2H FD in a couple of weeks, and as I only have a couple of days to arrange it in Penang I'm trying to research the best options before I go to banks in person. Does it matter what CIMB branch I go to? The one near Komtar is closest to me and would be most convenient. Is it worth trying Hong Leung, OCBC, or is CIMB the safest bet for long term good rates?

It does seem a bit complicated that one have to negotiate the rates, and then negotiate it again every year. I already have a HSBC account in Malaysia, and I'm a bit tempted to just go with them, as the premier status would save the monthly fees I'm currently paying in Malaysia, and China (1200RMB, about 750MYR), however the 1% extra interest earned would be more than that.
And after one year will have only 150K deposited, so would lose CIMB Preferred status, while HSBC @200K could maybe be possible to keep, if adding another FD or maybe a USD FD.

How fast can I transfer funds from HSBC to CIMB, as I currently have the funds with HSBC Malaysia. Is there a same day transfer option? Will a cheque be deposited the same day, or next day or can it take longer?

Re: Opening a Bank Account in Kuala Lumpur
 

You might want to try contacting your HSMC Malaysia Premier relationship manager and say that you are considering a MM2H FD with another bank and see if you can get a better rate from HSBC. Also when I used HSBC branch at Georgetown I was able to get all the paperwork done in a few hours (including opening of accounts, transfer of offshore funds) as they knew all about the MM2H paperwork and processes. That was important for me as I was only in Penang for a day before proceeding to KL to get the MM2H visa,
For you to decide whether the ease in doing the paperwork is worth the lower FD rates that you may get.

Re: Opening a Bank Account in Kuala Lumpur
 

HSBC of cause is the by far worst choice as has been discussed many times ;) The amount of money you will lose every year is crazy.

There a some things I don´t like at OCBC, but for the FD they are really fair. I am very happy with CIMB also, but I don´t know how the treat you with the MM2H FD.

Re: Opening a Bank Account in Kuala Lumpur
 

​​​​​​Thanks!
Are there others here that have cimb or ocbc and that negotiate the mm2h FD every year ? Wondering how easy it is to negotiate when I only have 150k in a fd and no preferred status and have a fd that can not be transferred to another bank. The "official" cimb rate seems to be 3.25%

Re: Opening a Bank Account in Kuala Lumpur
 

I want to add that one year I could not negotiate because I was abroad I got a rate still quite high above the board rate with 3.95%. But I have priority status indeed.

Re: Opening a Bank Account in Kuala Lumpur
 

thanks, was that OCBC or CIMB?

Re: Opening a Bank Account in Kuala Lumpur
 

So I spoke to a relationship manager at OCBC in Penang and they offer 4.20% the first year, and the next year it will revert to board rate, which is 2.55% for "non-residents". I'm not sure why there is a difference for non-resident, or why I would be considered a non-resident. Anyway, seems OCBC is out.