How to send money from Singapore to Malaysia (fast and cheap)
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Singapore and Malaysia have long been vital trading partners in ASEAN, with businesses in Singapore regularly sending money to Malaysia to pay suppliers, partners or cover operational expenses in MYR.
In 2024, Singapore’s exports to Malaysia were valued at roughly US$52.3 billion, highlighting the strength of cross‑border trade between the neighbours. However, sending money between these two countries involves more than just the transfer itself.
Factors such as exchange rates, hidden fees and the speed of payment processing all play significant roles in the overall cost and efficiency of the transaction.
In this guide, we’ll provide a comprehensive overview of how to send money from Singapore to Malaysia, highlighting the best options to keep costs low and ensure your payments arrive on time.
Key takeaways:
- Hidden exchange rate costs: Providers often add a hidden markup to the exchange rate, reducing the amount the recipient receives. Always check the full cost, including the exchange rate, not just the upfront fee
- Transfer fees can add up: Traditional bank transfers include both visible fees and hidden charges from intermediary banks, making them more expensive for regular cross-border payments
- Payment speed varies: Transfers can take from a few hours to several business days, depending on the method and whether intermediary banks are involved
- Clear documentation is crucial: Proper documentation helps prevent delays and ensures compliance with regulations in both Singapore and Malaysia
WorldFirst offers a more efficient solution for cross-border payments. Open a WorldFirst account and start sending money from Singapore to Malaysia with fewer conversion steps and lower fees.
What businesses need to know before sending money to Malaysia
Sending funds from Singapore to Malaysia might seem straightforward, but the real costs and delivery times can vary widely depending on the method you use. For businesses that run on tight margins, even slight differences in fees and currency conversion can add up quickly.
Understanding where costs and delays typically occur helps you make better decisions and keep your finances more predictable.
1. Exchange rates and hidden FX costs
One of the least obvious costs in a cross‑border payment is the exchange rate markup.
Many banks and providers charge a premium above the mid‑market rate, sometimes 1–3% above the actual market price for the currency swap.
This percentage may not seem large at first, but over repeated transactions, it can significantly reduce the value of your payment. Traditional bank transfers often include this markup on top of any headline fee, making the effective cost higher than it appears at first glance.
Real‑time comparison tools show that providers using the mid‑market exchange rate and transparent fees can significantly increase the amount your Malaysian recipient receives when compared with typical bank pricing.
For example, some online providers show that fees for an SG$1,000 transfer funded through a multi‑currency account can be as low as a few dollars, with the rest of the cost reflected in the exchange rate you receive.
What this means for your business:
Always check the implied exchange rate, not just the headline fee. A lower upfront fee can mask a less favourable rate that costs you more in real terms.
2. Transfer fees and cost structures
When businesses send money from Singapore to Malaysia, several components typically make up the total transfer cost. Banks and financial institutions often charge a combination of direct fees and currency conversion charges.
According to the World Bank’s Remittance Prices Worldwide data, the cost of a cross-border transfer includes two main parts:
- Visible fee: The upfront charge to initiate the transfer
- Exchange rate margin: The difference between the official mid-market rate and the rate applied to the transfer, which is often embedded in the currency conversion and not always clearly visible
Providers don’t always quote the exchange rate margin as a separate fee. Still, it significantly contributes to the total cost of sending money internationally, especially between close trading partners like Singapore and Malaysia.
The exchange rate margin represents the difference between the official mid-market rate, which is the rate at which currencies trade on the global market and the rate actually applied to your transfer. When transferring from Singapore dollars (SGD) to Malaysian ringgit (MYR), this margin can be significant.
Processing and intermediary charges also affect transfer costs. When money moves from Singapore to Malaysia, payments often pass through intermediary banks, especially with traditional systems like SWIFT. These banks may deduct fees, increasing the total cost.
It’s important to consider both the initial fees and any intermediary charges when calculating the full cost of a transfer. International bodies track remittance prices, factoring in both fees and exchange-rate margins in their cost analyses.
Actionable point: When budgeting for a payment from Singapore to Malaysia, consider both the upfront fee and the difference between the exchange rate you receive and the market rate. The total cost includes not just the stated fee but also the hidden costs in the exchange rate margin, which can significantly reduce the amount the recipient receives.
3. Transfer speed and settlement times
Payments between Singapore and Malaysia can vary in speed depending on the payment channel used.
PayNow–DuitNow link
The PayNow–DuitNow link, launched in November 2023 by the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia, allows for instant, 24/7 cross-border transfers between the two countries.
This system uses only mobile numbers, enabling users to transfer funds directly to the recipient’s bank account in real time via QR code or mobile app, with no settlement delays. Users can transfer up to SG$1,000 or RM3,000 daily at competitive rates, bypassing the typical 1–3-day remittance processing time.
This makes PayNow–DuitNow an ideal solution for everyday, low-value transfers that require immediate settlement.
For larger business payments, settlement times are generally longer. Cross-border transactions often take one to two business days due to the involvement of intermediary banks and the necessary regulatory and compliance checks in both Singapore and Malaysia. These checks ensure the transaction complies with the rules of both jurisdictions, but they can introduce delays.
What this means for your business: Understanding payment timing is crucial for managing cash flow and meeting supplier obligations. PayNow–DuitNow offers a fast, reliable solution for smaller, time-sensitive transactions, while larger payments require more consideration of the expected processing time.
4. Compliance, documentation and payment purposes
Every cross‑border payment undergoes compliance screening in the sending and receiving jurisdictions. Clear and complete documentation reduces the likelihood of delays or returns.
Common requirements include:
- Accurate beneficiary information
- A clearly stated payment purpose that aligns with regulatory expectations
- Supporting documentation for larger or unusual transfers
In addition, structured reference information, such as invoice numbers and purpose codes, helps both compliance teams and recipient banks process the payment more smoothly.
Standardising how your business labels and describes payments not only improves transparency but also reduces the risk of unnecessary queries that can slow down settlement. Ensuring that your payment has a clear purpose and matches supporting documents helps keep funds moving without interruption.
Comparing transfer methods: banks, online platforms and multi-currency accounts
When sending money to Malaysia, businesses in Singapore have several options, each affecting the cost, speed and exchange rate control in different ways:
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1. Traditional bank wire transfers (SWIFT)
Despite the rise of digital payment solutions, many Singapore businesses still rely on SWIFT bank wire transfers to send money to Malaysia.
While familiar, this method is often less efficient and more expensive compared to modern alternatives. The reasons are:
- Costs: Traditional banks usually charge a fixed outgoing transfer fee, typically ranging from SG$10 to SG$40 per transaction. Additionally, they apply an exchange rate markup of 1%–3% above the mid-market rate, which is embedded within the conversion rate rather than disclosed separately. This markup represents a hidden cost that reduces the value the recipient receives in Malaysia
- Settlement time: Transfers via SWIFT can take anywhere from 2 to 5 business days due to the involvement of intermediary banks and multiple clearance systems. These delays can be problematic for businesses that rely on timely payments to maintain cash flow and supplier relationships
- Intermediary fees: They occur when funds pass through intermediary banks, which may deduct additional charges before the recipient receives the payment. These deductions increase the overall cost of the transfer. Combined with upfront bank fees and exchange rate margins, they make traditional bank transfers expensive for businesses that make frequent payments to Malaysia
For businesses that send money only occasionally or for larger payments, traditional bank transfers may still be a viable option. However, for regular transactions, especially smaller amounts, the combination of fees and slower processing times can become a significant disadvantage.
2. Online international payment platforms
Fintech companies and specialised remittance platforms offer an increasingly popular alternative to traditional bank transfers for Singapore–Malaysia payments. These platforms focus on:
- Lower fees: Online platforms typically charge flat fees or lower percentage-based fees compared to banks. Fees are generally transparent and easy to understand, with no hidden exchange rate markups. By eliminating intermediary banks, these platforms pass on cost savings to senders and offer more competitive pricing
- Faster settlement: Transactions through online platforms can settle much faster than traditional bank transfers. Many platforms enable same-day or next-day transfers, especially when using domestic payment networks in both Singapore and Malaysia. For businesses needing to move funds quickly, this can be a game-changer
- Transparency: Online payment providers provide clear visibility into the rates they offer. By knowing the rates upfront, businesses can better control costs and more accurately forecast their expenses
Many businesses using online platforms report a much quicker, smoother payment process than with traditional banks. These platforms bypass the multi-step SWIFT process, reducing delays and increasing reliability, particularly for businesses that need to make regular payments to their Malaysian counterparts.
3. Multi-currency accounts and local payment networks
Multi-currency business accounts provide a streamlined way for Singapore businesses to manage payments to Malaysia. With this approach, businesses can hold, convert and send payments in both SGD and MYR, simplifying cross-border transactions.
Benefits of multi-currency accounts:
- Avoids repeated conversions: Businesses don’t have to convert currency each time they make a payment. Instead, they can hold MYR balances and pay directly from that balance when transferring funds to Malaysian suppliers or partners
- Greater control over exchange rates: Multi-currency accounts allow businesses to convert currency when the exchange rate is favourable. This gives them better control over FX costs, especially when handling large volumes of cross-border payments
- Faster settlements: By using local payment networks in Malaysia, multi-currency accounts can help businesses avoid the slow processing times of SWIFT. Payments made from a MYR balance to a Malaysian bank account are processed as domestic payments, which means they clear much faster – often within hours
- Reduced costs: This approach also helps businesses avoid high transfer fees and exchange rate markups applied by traditional banks. Multi-currency accounts provide businesses with more flexibility, enabling them to optimize currency conversion times and manage cash flow effectively
Example: A Singapore business may choose to convert SGD to MYR when the exchange rate is profitable and then send funds to a Malaysian supplier directly from their MYR balance. This method reduces reliance on traditional banking networks, eliminates multiple intermediary fees and usually results in faster, cheaper transfers.
How these methods compare:
| Method | Typical fees | Exchange rate visibility | Payment speed | Best for |
| Bank transfer (SWIFT) | High | Low | Slow (2–5 days) | Infrequent large payments |
| Online transfer platforms | Mid | Medium to high | Faster (same day) | Regular or moderate transfer needs |
| Multi-currency accounts | Low | High | Fast (local settlement) | Ongoing supplier or partner payments |
Recent developments in Singapore–Malaysia connectivity
Recent efforts to improve economic and transport connectivity between Singapore and Malaysia open up new opportunities for businesses to simplify cross-border payments in Malaysian Ringgit (MYR).
The Johor–Singapore Special Economic Zone (JS-SEZ) combines Singapore’s strengths in research and innovation with Johor’s industrial capacity. It will support 50 projects and create 2,000 skilled jobs, offering Singapore businesses new opportunities for expansion into Johor.
The launch of the JB–KL ETS Service in December 2025 reduces travel time to 4.5 hours, improving connectivity across Malaysia’s west coast. This also paves the way for the upcoming Johor Bahru–Singapore RTS Link, making it easier than ever for businesses to operate across borders.
How WorldFirst supports Singapore–Malaysia payments
As Malaysia strengthens its connected economy, WorldFirst – a non-bank financial services provider specialising in cross-border payments – offers a more efficient way to handle payments in Malaysian Ringgit (MYR).
Businesses can now use their World Card to make payments directly in MYR, drawing from their MYR balance in their World Account. If the MYR balance is insufficient, the transaction still goes through, with the shortfall covered by the USD balance, using the account’s live FX rate.
With MYR added to the list of 15 currencies available for direct settlement, businesses now have greater flexibility to handle cross-border payments, whether for routine supplier payments or large one-off transfers.
Most important features of a World Account for Singapore–Malaysia payments:
- Receive in 20+ currencies with local bank details: WorldFirst supports local receiving accounts in 20+ currencies, including MYR, enabling businesses to collect funds directly from Malaysian clients or marketplaces without incurring receiving fees
- Fast international payments in 100+ currencies: Send payments to Malaysia and 210+ countries and territories, typically completing transactions in hours rather than days
- Competitive FX and treasury tools: Take advantage of live FX rates and treasury tools such as forward contracts and firm orders to control when and how you convert currency, helping you manage your exposure to exchange rate fluctuations
- Integrated multi-currency dashboard: Manage currency holding, conversion and payments from a single platform, with complete visibility into balances and payment movements
- Local marketplace collections: Collect payments directly from over 130 global marketplaces and payment gateways in MYR, SGD and other currencies, making cross-border e-commerce transactions smoother than ever
Are you still relying on traditional bank wires for regular cross-border payments?
With WorldFirst, you can unlock a more efficient, transparent and cost-effective way to send money from Singapore to Malaysia.
Open a WorldFirst account today and start making payments with better control over exchange rates, fewer conversion steps and clearer visibility over your international transactions.
Sources:
- https://www.mas.gov.sg/
- https://www.bnm.gov.my/
- https://www.worldfirst.com/sg/
- https://www.worldbank.org/ext/en/development-topics
- https://www.zigram.tech/article/mas-notice-626-for-aml-practitioners/
- https://www.worldfirst.com/sg/help-center/making-payments/how-long-will-my-payments-take/
- https://ctmfile.com/story/malaysia-and-singapore-connect-real-time-payment-systems-industry-roundup-20-november
Joan Poon leads marketing across Southeast Asia at WorldFirst, driving growth and brand leadership in key markets including Singapore, Malaysia and the Philippines.
Joan Poon
Author
Head of Marketing SEA, WorldFirst Singapore
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