How To Make MYR To SGD Payments From Malaysia

Singapore and Malaysia share close ties, geographically and economically. With so much volume in terms of bilateral trade and employment, cross-border transactions are inevitable.  

Though SGD to MYR transactions are more commonly discussed, the need to facilitate MYR to SGD payments is equally crucial. With a significant number of Malaysians working in Singapore and Malaysian businesses engaging with counterparts across the border, MYR to SGD transactions are just as essential for seamless financial operations.

Let's take a look at how businesses in Malaysia can make efficient and reliable MYR to SGD payments.

Making MYR to SGD payment through bank transfers

The easiest and most common way to make an MYR to SGD payment from Malaysia to Singapore is via bank transfers. The process of doing so is nearly identical to how you'd use banks to make international payments, whether it’s SGD to IDR, USD to EUR, or HKD to RMB.  

Bank transfers typically have much higher transfer limits, making it one of the best channels for high-value B2B payments. Being heavily regulated by financial authorities, banks have much more robust security measures in place to protect your funds during transfers as well.

Here are the key details needed to make an MYR to SGD payment:  

1. Bank Account Holder’s name  

2. Bank Account Number – consisting of 6 - 20 characters  

3. Purpose of Transaction and/or Supporting Documents

What are the limitations of using bank transfers for MYR to SGD payments?

MYR to SGD payments via a bank may take one to two business days for the funds to reach its recipient. For this, the funds must reach the bank or payment solution provider by 2pm (GMT +8).  

One of the biggest considerations is the fees involved. Banks will charge several fees, such as transfer, conversion, and intermediary bank fees. Not only will these raise the cost of payment, but they are not always transparent – so you only know how much you need to pay at the time of transaction.

Pros & Cons: Bank transfer

Pros:  

• High transaction limit

• Robust security measures

• Easily accessible  

Cons:

• Slower processing time of 1 to 2 business days

• Higher transaction fees

• Low transparency on fees

Making MYR to SGD payment with DuitNow / E-wallets

The financial authorities of Malaysia and Singapore have worked extensively to build interoperable payment rails due to the large number of tourists and business travelers from both countries.  

DuitNow, an instant fund transfer service operated by Malaysia’s PayNet, is interoperable with PayNow – the Singaporean equivalent of DuitNow. It is free to use, and accessible through participating banks and e-wallet platforms, such as CIMB Bank and Touch n Go, respectively.

Users can either:

1. Scan QR images of the Singaporean individual or entity; or

2. Enter the recipient’s registered PayNow mobile number or Virtual Payment Address

They can then key in the amount they wish to send and complete the payment – which is processed instantly.

Not only does this simplify retail transactions for tourists from both countries, but businesses on both sides of the Causeway can also now transact with each other much more easily without depending on bank transfers.

What are the limitations of using DuitNow / E-wallets for MYR to SGD payments?

Sending MYR to SGD via DuitNow or e-wallets have a daily transaction limit of MYR 3,000, though there is no limit to the number of transactions users can perform.  

Like bank transfers, the FX rate quoted for each MYR to SGD transfer on DuitNow or an e-wallet is only shown before the users confirm their transaction, which is not as transparent.

Right now, PayNow users in Singapore or DuitNow or e-wallet users in Malaysia can send money to each, as both platforms are QR-interoperable. However, the same caveats remain regarding transparency on the rates.

Pros & Cons: DuitNow / E-wallet

Pros:  

• Transfers are free – with zero fees

• Funds arrive in recipient’s account immediately

• Convenient and easy to use

Cons:

• Daily transaction limit of MYR 3,000

• Only accessible via participating banks and platforms

• Low transparency on fees

Making MYR to SGD payment with PayPal

PayPal is a popular option for businesses of all sizes globally, due to its prevalence, simple interface, and ease of use. It is widely used by merchants, as it allows foreign customers to easily pay them in their home currency.  

The limit for a single transaction is US $60,000, but there is no limit to the amount of money you can send through PayPal – although this only applies to verified PayPal accounts.

One thing to note is that PayPal transfers take place between two accounts registered on the platform. That means both the sender and recipient must have a PayPal account.  

While this is not an issue for modern businesses, more traditional or brick and mortar companies may not be able to make or receive payments through PayPal.

What are the limitations of using PayPal for MYR to SGD payments?

Aside from requiring a PayPal account, the platform’s fees can accumulate quickly. The fee for making an MYR to SGD payout from Malaysia is 2% of the total transaction, which will be capped at MYR 200. This means that bigger transactions incur higher fees.

Transactions take anywhere from a few minutes for instant transfers, to five business days for standard transfers. PayPal offers instant transfers at an additional fee of 1% of the amount sent, capped at USD $10.

Conversion fees are also worth highlighting. The currency conversion rate for an MYR to SGD commercial transaction is the base exchange rate with an additional 4% tagged on to it. The base exchange rate is based on rates in the wholesale currency markets on the conversion day or the previous business day, whichever is applicable.

These are just some of the fees that PayPal has. There are other fees incurred, such as when you withdraw your PayPal balance to an external bank account.  

Pros & Cons: PayPal

Pros:  

• High transfer limit of USD $60,000 with no monthly or annual limit to amount sent

• Widely used and accepted

• Free account set up

Cons:

• High fees on payments and FX conversions

• Standard transfers take between one to five business days

• Requires both sender and recipient to have a PayPal account

Simplify your MYR to SGD payments with Wallex

There are a number of ways to make MYR to SGD payments. Still, each method has its own pros and cons and switching between different platforms to perform payments which give you the best fees or FX rates can get tedious quickly.

This is what Wallex is designed to help you overcome. Experience unmatched speed, support and savings for your MYR to SGD payments with our fully digital platform.

Say goodbye to switching between different platforms or bank accounts for each transaction – you can make MYR to SGD payments and more with Wallex. FX rates are transparent and you make your MYR to SGD payment when rates are favourable.

Need assistance on any issue, help to expedite an emergency payment, or looking for more competitive FX rates? Just get in touch with your local, dedicated Account Manager, who will help you out.

Ready to simplify your MYR to SGD payments? Talk to us today and let us help!