What's the Best Currency to Take to Malaysia in 2024?

Are you travelling to Malaysia and wondering which currency you should take there? Malaysia uses the Malaysian ringgit, meaning that, except in tourist establishments, airports, or hotels, you normally won't be able to use major currencies like the US dollar or British pound to pay your way.

To pay while you're in Malaysia, you'll either need to buy Malaysian ringgit banknotes before or during your trip, use your credit card, or use a low-cost multi-currency debit card like Revolut's or Wise's travel cards.

In this short guide, we'll discuss what's the best currency to take to Malaysia, how you should pay when you're there, and what your cheapest options are to avoid paying hefty exchange rate charges.

Overview of Currency in Malaysia

As we saw earlier, the currency in Malaysia is the Malaysian ringgit.

As the official legal tender in Malaysia, it's the sole currency recognized by the Malaysian government, and you can use it to settle all financial obligations in the country, from paying for your hotel stay, to the entrance fee at the Petronas Twin Towers, to a bite to eat in Bangsar.

Best Currency to Take to Malaysia

Because it's the local currency and because you won't have any trouble buying goods with it, the best country to have on hand and spend while visiting Malaysia is, unsurprisingly, the Malaysian ringgit.

However, if you're taking another currency along with you, the US dollar is a safe bet, as it's highly exchangeable at banks and currency exchange offices in Malaysia, even if it's neither official nor used ubiquitously across the country.

You can check out the prevalence of a few of the most popular tourist currencies in Malaysia below:

Although Malaysian ringgit is the best currency to use and the US dollar can be helpful at times too, exchanging currencies in the form of cash almost invariably leads to poor exchange rates for tourists (we've seen as high as 20% commissions, although the average is between 5% and 15% of the amount exchanged).

For this reason, it's generally a better idea to use your credit or debit card to pay at local points of sale wherever possible or (if cash is urgently needed) to withdraw some money from a local ATM. This will let your card provider handle the conversion, which is usually, although not always, a better deal than bringing foreign currency into Malaysia and exchanging it there. However, as we'll see below, a conversion-friendly debit card is the best choice of all!

ChangeGroup

ChangeGroup is a viable option If you need physical Malaysian ringgit in cash in hand before your flight abroad to Malaysia. When it comes to popular currency pairs like GBP to EUR, ChangeGroup maintains a low FX markup of approximately 2.2%.

For less common currency pairs like GBP to Turkish lira, however, their rates may be comparable to those offered by traditional services, hovering around 15%. This is why we tend to recommend Revolut and Wise for less common currencies.

• FX Margin: 2.2% - 28.7%, varies by currency pair
• Home Delivery: For a fee
• Cash Pick Up: Free
• Guaranteed Buyback: For a fee
• Availability: UK, USA, Australia, Germany, France, Austria, Spain, Denmark, Sweden, Finland

How to Pay in Malaysia

When it comes to paying your way in Malaysia, you'll have the following three options broadly speaking:

Method 1: Cash

As we mentioned earlier, cash is an important medium of exchange in Malaysia. Pretty much all shops, restaurants, and commercial establishments around the country will accept Malaysian ringgit banknotes, and we recommend having some on hand when you travel. Foreign cash can be purchased before your trip from your bank in your home country, or during your trip at a local Malaysian bank or currency exchange office or (most affordably) from an ATM.

Note that in Malaysia, currency exchange offices normally go by the name money changers, so if you want to exchange your home currency for Malaysian ringgit, be on the lookout for signage with this name.

• Cash prevalence in Malaysia: Very prevalent
• Cost to exchange: 5% - 15% on average

Method 2: Credit Card

Although cash is king in Malaysia, credit and debit cards issued by major global providers like VISA and Mastercard are commonly accepted too. If your card is issued by American Express, Diner's Club, or another card company, there's a good chance they'll also be accepted in Malaysia, but we recommend checking with your bank or card provider directly to make sure that Malaysian ringgit currency conversion is indeed supported, and that card machines and ATMs in Malaysia commonly support cards of this type.

• Card prevalence in Malaysia: Very prevalent
• Cost to exchange: 2% - 5% on average

Method 3: Travel Debit Card

Just like credit cards, prepaid debit cards (which are also normally issued by VISA or Mastercard) provide an excellent way to pay while visiting Malaysia, the main difference being that you normally pay lower fees and exchange rates. Depending on where you live, you'll probably have options from your bank or a third-party provider to use a commission-free debit card or a multi-currency card which can help you dodge high Malaysian ringgit conversion costs, including DCCs.

According to our analysis of dozens of providers, the top two options for travelling to Malaysia, in general, are the following:

Revolut

Revolut is an excellent option for paying in Malaysia. Its all-in-one mobile finance app and debit card offer competitive exchange rates to the Malaysian ringgit and low fees. What's more, you can easily manage everything through your money through Revolut's user-friendly app.

• Monthly fee: $0
• Card type: Mastercard debit
• Card payment cost in Malaysian ringgit: 0.5% - 1.5%
• Cash withdrawal fee: 0% - 2%
• Malaysian ringgit balance: No
• Malaysian ringgit bank details: No

Wise Account

The Wise Account is another great option for paying in Malaysian ringgit. It gives you the lowest possible currency exchange rates with complete transparency and no hidden fees. It also allows you to hold and manage over 50 currencies in one account and provides fast and secure cross-border money transfers at a fraction of the cost of traditional banks.

• Monthly fee: $0
• Card type: VISA debit
• Card payment cost in Malaysian ringgit: 0.5% - 1.5%
• Cash withdrawal fee: 0% - 2%
• Malaysian ringgit balance: Yes
• Malaysian ringgit bank details: No

Wise and Revolut are excellent options that are available in many countries around the world. However, depending on where you live, you might have access to better deals still. We go over a few of them below:

United Kingdom

1. Revolut: Best spending and budgeting app.
2. Wise: Best for multiple foreign currency balances.

United States

1. Chime®: Best all around; no fees for non-USD transactions.
2. Revolut: Best all-around spending app.
3. Wise: Best for foreign currency spending and holidays.

Canada

1. KOHO: No foreign transactions fees on Extra or Everything plan.
2. Wise: Best for foreign currency spending and holidays.

European Union

1. Revolut: Excellent for spending abroad.
2. N26: Best full bank account with low fees (even abroad)
3. bunq: Best credit card (also a fully-licensed bank).