Moving the Malaysian Ringgit need not be a risky business

28 January 2019

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Moving Ringgit with Cash

With around half a million Malaysians living or working in Singapore and thousands of Singaporeans investing in Malaysia, it is not hard to imagine the frequent need to buy the Malaysian Ringgit apart from holiday uses.

To date, the most widely used method is to buy Ringgit cash and carry it physically across the border given the proximity of Malaysia to Singapore.

Unfortunately, this outdated practice is fraught with lots of risks. And even though most people are aware of such risks, the moving of Ringgit physically with cash may be the only choice for some due to lack of access to banking facilities.


Sending the Ringgit via electronic funds transfer is a Safer option

The safest alternate method to get move your money to Malaysia is obviously to transfer it electronically to a bank account in Malaysia.

Interestingly though, quite a number of people who possess bank accounts in both sides of the border still choose to move the Ringgit using cash due to misinformation about transferring the Ringgit. Below are a few myths that we hope to bust:


Myth #1 - Buying Malaysian Ringgit cash at money-changers can fetch you better exchange rates compared to money transfer.

This myth can't be any further from the facts and numbers do not lie. Below is a screenshot of MoolahGo Ringgit rate for remittance versus the best Ringgit cash rate as per a third-party money-changer rates comparison website.

At the rate of 1 SGD to 3.03 MYR, MoolahGo's Ringgit rate is about 0.5% more compared to the best money-changer rate of 3.0165. This means that for every SGD 1,000 sent to Malaysia using MoolahGo, you get MYR 14 more!



Myth #2 - The fixed cost to remit money to Malaysia is too high.

This is not true, if you're using MoolahGo to transfer your funds.

MoolahGo does not impose a minimum fee of between $10-$18 as what other money-changers or remittance shops do. Instead, we charge a nominal percentage fee on the amount sent. For example, if you send SGD 1000 to Malaysia, MoolahGo only charges you SGD 5.

On top of that, everytime you send funds with MoolahGo, you earn reward points which can be redeemed for shopping vouchers. Therefore, overall you can earn substantial savings.


Myth #3 - Sending money is not safe – I'm unsure when my funds will be deposited into my account or my money may get lost.

Fair concern. This is why one should only engage with companies that possess valid money transfer license issued by the MAS. Never assume that all money-changers are permitted to carry out remittance service because separate licenses are required.

MoolahGo is fully licensed by MAS. When you make payments to us, your funds are deposited into a segregated bank account which ensures that your funds do not mix with our own monies.

MoolahGo's funds transfer service is also very speedy. On average, funds are credited into the recipient's bank account within six hours after transactions have been approved and processed by the system. And to date since our launch, MoolahGo has not experienced any lost funds and we intend to keep it this way.


Myth #4 – It is more convenient to buy Ringgit cash. My money-changer is just nearby.

Yes, if you happen to live near a money-changer, it would be quite convenient for you to buy Ringgit cash. However, you should know that the best rates are usually offered by money-changers in the city center.

If you must travel to the city for the best exchange rate, using MoolahGo's online money transfer service would be much more convenient. The whole transaction can be done in less than a few minutes.

Also, did you know that there are laws in Singapore and Malaysia regulating physical currency export and import?

In Singapore, if you are bringing out more than SGD 20,000 in cash, you need to declare at the customs. Anyone who fails to give a full and accurate report is liable to a fine of up to $50,000 and/or jail for up to three years.

And when you arrive in Malaysia with more than MYR 30,000 notes, you need to declare them as well.

Considering all the declarations that you need to make in both countries, one should question if it is really more convenient to buy Ringgit cash.


Myths Busted

We hope that the above information has helped you to come to the conclusion that transferring funds to Malaysia by using an online money transfer service such as MoolahGo ( is a much better approach.

Be prudent. Err on the safe side by sending your funds instead of possibly losing your hard-earned cash.

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