What Currency Does Malaysia Use? A Detailed Look at the Malaysian Ringgit

Malaysia’s official currency plays a key role in the economy, facilitating trade, tourism, and daily transactions. Whether you’re visiting or conducting business, understanding Malaysia’s monetary system is essential.

This article covers key details about Malaysia’s currency, including its physical forms, exchange rate influences, and how it is used locally and internationally.

Currency Name and Symbol

Malaysia’s currency is the Malaysian Ringgit, abbreviated as MYR and symbolized as “RM.” The term “ringgit” means “jagged” in Malay, referring to the serrated edges of Spanish silver dollars that once circulated in the region. The name was officially adopted in 1975, replacing “dollar” to distinguish Malaysia’s currency from others with the same designation.

The international currency code MYR follows the ISO 4217 standard for clarity in financial transactions. The “RM” symbol appears on price tags, receipts, and financial documents.

In digital finance, the ringgit is widely used across online banking platforms, payment gateways, and e-commerce sites catering to Malaysian consumers. International businesses operating in Malaysia often list MYR as a supported currency, ensuring smooth transactions for residents and visitors.

Banknotes and Coins

Malaysia’s currency exists in both banknotes and coins, issued by Bank Negara Malaysia. Lower denominations, RM1 and RM5, are made of polymer for durability, while higher values use a cotton-based material. Each bill highlights national landmarks, cultural symbols, and a portrait of Malaysia’s first Yang di-Pertuan Agong, Tuanku Abdul Rahman.

The current series includes RM1, RM5, RM10, RM20, RM50, and RM100. The RM50 note, one of the most commonly used, features an embedded security thread and color-shifting ink to deter forgery. The RM100 note, the highest denomination, is frequently used for large purchases and savings.

Coins, known as sen, are available in 5, 10, 20, and 50 sen denominations. The latest series, introduced in 2012, is smaller and lighter than previous versions, with designs inspired by Malaysia’s cultural heritage. The 50 sen coin, the largest in circulation, includes micro-lettering as a security feature. Many businesses round cash transactions to the nearest 5 sen due to the phase-out of the 1 sen coin.

Exchange Rate Factors

The value of the Malaysian ringgit fluctuates based on economic conditions, global financial trends, and government policies. Inflation plays a significant role, as higher inflation compared to Malaysia’s trading partners can weaken the currency. Bank Negara Malaysia monitors inflation and adjusts interest rates to maintain stability. A higher interest rate can attract foreign investment, increasing demand for the ringgit.

Malaysia’s trade balance also affects exchange rates. As a major exporter of palm oil, petroleum, and electronics, the country benefits when global demand for these goods is strong. A trade surplus strengthens the ringgit, while a trade deficit can lead to depreciation. Commodity price fluctuations directly impact Malaysia’s export revenue and, in turn, the ringgit’s value.

Foreign exchange reserves held by Bank Negara Malaysia help stabilize the currency. A strong reserve position allows the central bank to intervene in forex markets when needed. Investor confidence also plays a role—political uncertainty or economic instability can trigger capital outflows, weakening the ringgit. Global events, such as changes in U.S. Federal Reserve policy, can further impact exchange rates as investors adjust their portfolios.

Usage in Domestic Commerce

The ringgit is used for all financial transactions in Malaysia, from retail purchases to large commercial dealings. Cash remains common, especially in rural areas and traditional markets. However, digital payments have grown significantly, with mobile wallets like Touch ‘n Go eWallet, GrabPay, and Boost widely accepted. QR code payments have become standard following the introduction of the Interoperable Credit Transfer Framework (ICTF).

The government has encouraged cashless transactions through initiatives like the e-Tunai Rakyat program, which provided digital incentives to promote e-wallet adoption. Major shopping malls, supermarkets, and even small vendors accept debit and credit cards, with contactless payments becoming the preferred method in urban areas. The DuitNow platform, a national real-time payment system, enables instant fund transfers between bank accounts using mobile numbers or national ID numbers, reducing reliance on physical cash.

Accessing It Internationally

Travelers and businesses can obtain Malaysian ringgit through various channels. Currency exchange services are available at international airports, banks, and licensed money changers, with rates varying by location. In cities like Kuala Lumpur and Penang, competitive rates are often found at money changers in shopping malls and commercial districts. Airport exchange counters offer convenience but typically have higher service fees.

ATMs in Malaysia accept most international debit and credit cards, allowing visitors to withdraw ringgit directly from their home bank accounts. However, foreign transaction fees and currency conversion charges may apply. To minimize costs, travelers can use multi-currency accounts or prepaid travel cards that support MYR transactions. Online banking and fintech platforms like Wise and Revolut also offer currency exchange and international transfers with lower fees than traditional banks.