Maybank extends ringgit current account to eligible Singapore corporate clients

[SINGAPORE] Maybank will allow eligible Singapore-based corporate clients to receive, hold and transact in ringgit, as the bank looks to boost its cross-border banking proposition.

With the ringgit corporate current account, Singapore-based businesses can manage their ringgit transactions directly from the Republic with greater ease and control, the bank said on Thursday (Oct 29).

The offering comes amid rising economic activity between Singapore and Malaysia, alongside increased economic integration expected from the Johor-Singapore Special Economic Zone (JS-SEZ).

Alvin Lee, country CEO at Maybank Singapore said: “Since the announcement of the JS-SEZ, we continue to see growing demand for cross-border banking, payments and treasury solutions.”

“By reducing friction in business flows, we are contributing to stronger regional supply chains and a more competitive Malaysia-Singapore corridor.”

Maybank said it is the first bank in Singapore to provide such an offering.

Previously, corporates would need to perform ad hoc spot foreign exchange conversions when payments are due, in which they would convert ringgit onshore and remit it to beneficiaries in Malaysia.

The alternative is to open and fund a non-resident ringgit account in Malaysia.

This is due to regulations governing the holding, settlement and movement of ringgit outside Malaysia, Maybank noted.

Maybank’s ringgit corporate account – which operates within these regulatory requirements – will allow businesses with a Maybank current account to convert their holdings into ringgit, whether from Singdollar or other foreign currencies.

They can then conduct permitted businesses and investment-related activities in Malaysia, which includes settling trade-related activities, paying for goods and services, and funding operations.

Clients can also buy and hold ringgit ahead of payments to manage their currency holdings.

There is no initial deposit, minimum balance requirement nor monthly fee for the ringgit corporate current account, while remittances and transfers from Maybank Singapore to Maybank Malaysia incurs no fees.

The bank added that processing and agent bank charges for eligible transfers to Maybank Malaysia will be waived until further notice.

Earlier in October, OCBC added the ringgit to its Singapore-based multi-currency savings accounts for retail customers, becoming the first non-Malaysian bank to offer such a service.

Customers with OCBC global savings accounts and premier global savings accounts will be able to convert Singapore dollars into ringgit and hold up to RM50,000 (US$12,250) in their accounts.

No minimum balance is required, and customers can earn interest on their ringgit balances, the bank said.