Currency in Kuala Lumpur

The currency in Kuala Lumpur is the Malaysian ringgit. Printed denominations are straightforward and easy to sort. Coins are also manageable.

Dealing with unfamiliar currency presents unique challenges for travelers. First, figuring out the best ways to obtain local currency without incurring excessive fees is essential. When making purchases, you’ll need to calculate the exchange rate on the spot while locating the proper denominations in your wallet, sometimes under pressure from others waiting in line.

Fortunately, handling the currency in Malaysia is simpler compared to countries like India, Myanmar (Burma), and other locations with confusing currencies. One noticeable feature of Malaysian money is its vibrant colors. The distinct hues and sizes are not mere decoration; they serve a practical function. You will quickly associate colors with denominations at a glance.

In comparison to U.S. dollars, which are uniform, Malaysian banknotes are colorful and incorporate advanced anti-counterfeiting measures. Furthermore, visually impaired individuals can determine amounts by the physical size of the notes.

The currency in Malaysia is issued by the Bank Negara Malaysia (National Bank of Malaysia). Here are the key details:

• Currency Code: MYR
• Local Abbreviation: RM (for ringgit Malaysia)
• Common Usage: RM preceding the amount (e.g., RM 5.50, RM 15)
• Pronunciation: “ring-it.” This term is used for both singular and plural (e.g., 1 ringgit, 10 ringgit)
• Breakdown: 1 MYR = 100 sen (cents)

The Malaysian Ringgit

The word ringgit translates to “jagged” in Malay, originally referring to Spanish silver dollar coins with rough edges used during colonial times in Malaysia.

Before 1975, the currency in Kuala Lumpur was the Malaysian dollar. Occasionally, you may see prices listed with “$” or “M$,” a remnant of the previous currency.

The ringgit was pegged to the U.S. dollar until 2005 when Malaysia, following China’s lead, allowed the currencies to float independently. Consequently, the Malaysian ringgit is not traded in international markets.

Using the Currency in Kuala Lumpur

The Malaysian ringgit is available in the following denominations: RM1, RM5, RM10, RM20, RM50, and RM100.

In the 1990s, the government removed the RM500 and RM1000 notes to combat money laundering, so be cautious if someone offers you one. Although it’s rare, some of these notes still circulate.

Each denomination of the ringgit features a unique color for ease of identification. The amounts are printed in large fonts, making them easy to read. Additionally, Malaysian ringgit employs high-tech features to prevent counterfeiting. Furthermore, the currency is printed on superior quality paper compared to money in Thailand, Indonesia, and neighboring regions.

Although RM60 and RM600 special banknotes were issued in December 2017 to celebrate the 60th anniversary of the Federation of Malaya Independence Agreement, travelers are unlikely to encounter them, as they were quickly snapped up by collectors and hold greater value.

Malaysian Coins

The Malaysian ringgit is divided into 100 sen (cents), with coins available in 1, 5, 10, 20, and 50 sen denominations. Some coins are so light that they may seem fake, and the smaller 1-sen coins are quite rare.

Unlike Thailand, where coins accumulate quickly, tourists in Malaysia may only encounter a few 50-sen coins. Prices at many establishments are rounded to the nearest ringgit. In some cases, supermarkets may provide candies instead of low-value coins as part of your change.

Currency Exchange Rates for the Ringgit

Since 2000, the exchange rate for one U.S. dollar has typically ranged from 3 to 4.50 ringgit (RM3 to RM4.50).

The current exchange rates can be checked through various online sources:

• Exchange rate for MYR to US dollars (USD)
• Exchange rate for MYR to Euros (EUR)
• Exchange rate for MYR to Canadian dollars (CAD)
• Exchange rate for MYR to British Pounds Sterling (GBP)
• Exchange rate for MYR to Australian dollars (AUD)

Currency-exchange kiosks are present in Kuala Lumpur’s airports, malls, and tourist areas. However, ATMs usually provide better rates, depending on your bank’s international transaction fees. Using ATMs also minimizes the risk of scams.

Compare the current exchange rate to the “sell” rate posted at exchange kiosks. Be sure to count your money in view of the attendant before leaving.

Using ATMs in Kuala Lumpur

ATMs that are globally networked are readily available throughout Kuala Lumpur. The withdrawal fees, if any, are typically lower than Thailand’s high 220-baht fee (approximately USD 7 per transaction).

Tip: It is advisable to use ATMs located inside or attached to bank branches for added security. You have a better chance of recovering your card if it gets captured, and the risk of encountering card-skimming devices is reduced. Avoid using ATMs positioned away from well-lit areas.

Some ATMs dispense RM100 banknotes, which can be challenging to break when shopping, as many vendors may not have change. To avoid complications, seek ATMs that release cash in RM50 denominations, or input an amount that guarantees smaller notes. Check for signs indicating the maximum cash size dispensed by the ATMs.

One strategy for obtaining smaller notes is to request amounts that increase the chance of receiving lower denominations. For instance, opting for RM450 instead of RM500 ensures you’ll receive a RM50 note instead of five RM100 notes. If possible, request RM490 to maximize smaller bill distributions.

Tip: Always inform your bank before traveling to prevent your card from being deactivated due to perceived fraud. This situation can leave you without easy access to funds! Additionally, inquire about any international transaction fees associated with ATM withdrawals while traveling abroad.

Using Money the Smart Way in Malaysia

In countries like Southeast Asia, small change can be scarce for local businesses. They may struggle to provide accurate change throughout their shifts if you deplete their small denominations early. Using a RM50 note to pay for a RM5 meal is considered inconsiderate, so aim to avoid such scenarios.

Accumulate and keep small change to make purchases from street vendors and establishments that may not break large notes. It is a common practice in Southeast Asia to conserve larger RM50 and RM100 notes for situations like paying at hotels or larger establishments where change is readily available.

Traveler’s Checks

Although their use has generally declined, American Express traveler’s checks are widely accepted as a form of backup currency. Be aware that cashing them at banks may incur fees, so bringing larger checks, such as $100, is more efficient than carrying smaller denominations.

It’s wise to document the serial numbers of any traveler’s checks for security. This allows for replacements in cases of theft or damage; capturing photos of the checks and storing them in a private location is a quick and efficient method to keep track.

Using Credit Cards in Malaysia

Visa and MasterCard are the most commonly accepted credit cards in Kuala Lumpur. Most larger hotels, well-known restaurants, shopping malls, and dive shops accept credit cards but may add service fees.

However, smaller merchants and restaurants often do not accept card payments. Consequently, it might be more practical to forgo potential rewards points and utilize cash while traveling in Malaysia.

Tipping in Kuala Lumpur

Tipping is not a customary practice in Malaysia, although it may be expected in luxury hotels and upscale establishments. A 10 percent service charge is sometimes added to bill in higher-end restaurants or hotels.

It’s a common courtesy to round up taxi fares, assuming the driver used the meter and did not quote an inflated rate, which can happen in Kuala Lumpur. Be prepared for the possibility that many drivers may claim they lack change!