How to transfer money to China from Malaysia: Options and fees

A rundown of the main methods Malaysian businesses can use to transfer money to China, what each one costs, and how to keep more of the payment reaching you

Key takeaways

• Malaysian businesses transferring money to China have four main options: bank transfers, remittance providers, digital wallet transfers, and multi-currency accounts.
• Bank transfers through SWIFT are widely accepted but slow. There can also be intermediary fees involved.
• The World Account from WorldFirst supports outbound payments in CNH at competitive exchange rates, so Malaysian businesses can pay Chinese suppliers directly

For Malaysian businesses working with Chinese suppliers, manufacturers or partners, moving money into China is often a recurring task. Each transaction involves a currency conversion, a set of fees, and a decision about which route to take. The mode of payment can also have a direct impact on the profit margins saved.

This guide covers the main methods available to Malaysian senders, what each one actually costs, and how to think about the payment setup as trade volumes grow.

How to send money to China from Malaysia: top methods

Bank transfer

The standard route for Malaysian businesses is a telegraphic transfer (TT) from their Malaysian bank, routed through the SWIFT network to the recipient’s Chinese bank account. Every Malaysian bank offers international transfer services for both personal and business customers. Fees, processing times and exchange rates can vary for each provider.

The sending bank charges a wire fee, the receiving bank in China may charge for accepting the transfer, and intermediary correspondent banks along the SWIFT route may deduct their own fees before the funds arrive.

Foreign exchange conversion happens at the sending bank’s exchange rate which may or may not be shared upfront.

Cash pickup or direct transfer through remittance providers

Remittance providers like Western Union offer alternatives to bank transfers. Depending on the provider, the recipient can pick up cash at a physical location in China or receive funds directly into a Chinese bank account.

Remittance providers often offer fast processing and transparent exchange rates. Fees vary by provider and destination, and larger transfers may face limits or additional compliance checks.

Multi-currency accounts

A multi-currency account gives businesses a way to send funds directly in the currency the supplier accepts. For Malaysia-to-China transfers, this usually means sending CNH (offshore Chinese yuan) directly to the supplier’s account at competitive exchange rates, without routing MYR through USD first.

How much does it cost to send money to China from Malaysia?

The visible fee on a transfer confirmation rarely captures the full cost. Malaysian businesses transferring to China should look at three cost layers together.

• Transfer fee: The upfront fee the provider charges to process the transaction. Some providers advertise no fee transfers and instead recover their revenue through the exchange rate markup, so the advertised fee alone doesn’t tell you what the transfer costs.
• FX markup: The difference between the exchange rate the provider offers and the mid-market rate
• Intermediary bank fees: The fees charged by correspondent banks along the way. Some providers guarantee the recipient receives the full transferred amount on supported routes, which removes this variable.

Adding the three together gives a clearer picture of the actual cost. For businesses making regular transfers, tracking the total cost across a few months is the most reliable way to compare providers.

How to transfer money from Malaysia to China with your World Account

The World Account is a multi-currency account from WorldFirst, an international payments provider for cross-border businesses. For Malaysian businesses paying suppliers in China, the account supports outbound CNH payments directly to Chinese bank accounts. Here’s how the transfer works.

Step 1: Add the Chinese bank account as a new payee

Before sending funds, the recipient’s account needs to be added and verified inside the World Account dashboard.

1. Sign in to the WorldFirst dashboard and go to Payees.
2. Click Add a new payee in the top-right corner.
3. Select Single payee.
4. Choose Third-party account and select the appropriate account type.
5. Enter the recipient’s country and the sending currency (CNH for a Chinese bank account).
6. Fill in the recipient’s bank account details.
7. Complete verification through the Authy app or via SMS.

After verification, the payee is either approved immediately or flagged for additional review. If additional review is needed, the WorldFirst team will request the required documents through the Payees dashboard within 24 hours.

Step 2: Send the payment

Once the payee is approved, initiating the transfer takes a few steps.

1. Go to Payments in the dashboard and click Send & withdraw.
2. Select Single payee and choose the Chinese bank account from your payee list.
3. Enter the amount, either in the sending currency (MYR or your funding currency) or the amount you want the recipient to receive (CNH).
4. Choose whether to send the payment now or schedule it for later. Scheduled payments use the spot conversion rate applicable at the time of the transfer.
5. Verify the transaction through the Authy app or via SMS.
6. Review the transaction summary and click Confirm payment.

The payment is then queued and processed by WorldFirst.

FAQs

1. What’s the cheapest way to send money to China from Malaysia?

The cheapest option depends on the transfer amount and frequency. For one-off smaller transfers, remittance providers can offer good rates. For larger transfers or ongoing business payments, a multi-currency account that supports CNH sending typically works out cheapest because it removes the double conversion cost of routing through USD.

2. What information do I need to send money to a Chinese bank account?

You will need the recipient’s full legal name (as it appears on their bank records), the bank account number, the bank name and branch, and either the SWIFT/BIC code or the China UnionPay routing details. For business recipients, additional information about the company may be required for compliance purposes.

3. Can I schedule recurring transfers to China through WorldFirst?

Yes. Payments can be scheduled for a future date through the Send & withdraw section of the World Account dashboard. Scheduled payments use the spot conversion rate applicable at the time of the transfer.

This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.