How to Transfer Money from Singapore to Malaysia at Low Rates

Need to send money quickly to family or friends in Malaysia? Your first thought might be the exorbitant fees that are typically charged during money transfers. However, transferring money from Singapore to Malaysia doesn’t have to be expensive. 

Thankfully, there are fast, low-cost, and secure money transfer options available today. For instance, online money transfers offer competitive exchange rates and low fees. Some services offer cash pick up in just a few minutes while others allow seamless transfer to a bank account.

Read this guide to compare exchange rates and fees between different services to secure the best deal.

Factors To Consider in Choosing the Best Remittance Service

For years, people have used a variety of remittance services to send money overseas. Today, the size of the remittance market has grown leaps and bounds. In fact, aside from transferring money via a bank or through Western Union, you can also send money through digital remittance services like Wise or BigPay. 

So how do you choose the right remittance service? Here are a few factors to consider when choosing money transfer companies. 

Transfer Fee

When you send money overseas, you will always incur transfer fees. Banks usually charge at least S$10 per transfer. That said, you may save more if you send large amounts and pay a flat fee. With digital money transfer services, such as BigPay, you’ll be charged S$1 per transfer.

Exchange Rate

Sometimes, money transfer companies advertise low transfer fees. However, it’s hidden in the exchange rate which may not be favorable. Additionally, the SGD-MYR relationship fluctuates often. That said, it’s best to consider using a money transfer service that allows you to lock in exchange prices. Doing so will help you save more if the MYR rises against the Singapore dollar. 

Processing Time

Before choosing a money transfer service, ask how much time it’ll take before the recipient will receive the money. For instance, banks may take 3 days or longer to process the remittance and for the money to be reflected in the recipient’s bank account.

Transfer Limit

Sending large amounts instead of many small transfers may lead to more savings in transfer fees and exchange rates. That said, you need to know the maximum amount you can transfer. The transfer or sending limits may vary per company.

Transfer Methods

Do you prefer to have the money picked up as cash at the nearest branch? Or do you prefer that the money be sent to the recipient’s bank account? Narrow down the list of money transfer companies that match your preferred money transfer method.

Top Remittance Services for Sending Money From Singapore to Malaysia

Take a look at the table below for the summary of the most competitive remittance services. Plus, we also included the 3 banks with the cheapest money transfer rates.

1. BigPay – Cheapest Way To Transfer Money From Singapore to Malaysia

BigPay is a digital banking platform that comes with an e-wallet app and a physical Visa card. This means you can also transfer money at a nominal bank transfer fee starting from S$1, depending on where you’re sending it to.

For money transfers from Singapore to Malaysia, you’ll be charged S$1. However, if the recipient is also a BigPay user, the transfer fee is free. Keep in mind that there is a daily transaction limit of S$5,000 and S$10,000 monthly limit.

So what’s the downside? 

Recipients won’t be able to withdraw funds from their BigPay account into their bank account. They can only use the funds in that account with their BigPay Visa debit card. 

2. Wise – Best for Transparent Fees and Easy Verification Process

Formerly known as TransferWise, Wise offers a dynamic fee structure and they make it crystal clear how much you are paying in fees before transferring money.

Wise uses a mid-market rate for transfers. This means you can lock in a rate for a day or more to complete your transfer. On top of that, it is also the easiest Singapore-Malaysia remittance service to use.

The easiest and cheapest way to send money is via bank transfer or PayNow- usually takes 15 minutes only.

With the integration with PayNow, you can simply input your PayNow details and start sending money. 

3. Singtel Dash – Widely Accepted Remittance Service 

If you need quick transfers, Singtel Dash’s remittance service known as Dash Remit is a good choice. As the brainchild of Singapore’s largest telco and mobile network provider, Singtel Dash can be used to send money to 27 different banks in Malaysia. 

On top of that, Singtel Dash also charges a flat transfer fee of S$2. So whether you’re transferring S$500 or S$5,000, you’ll be paying the same transaction fee.

However, it is important to note that Singtel Dash sets its own exchange rate. It’s best to check the difference before sending money.

4. SingX – Best for Low Cost, Speedy, and Transparent Remittance Services

SingX is another money transfer company that offers customers mid-market rates for transactions which result in lowered costs for customers. Customers will only be charged a fee ranging between 0.25% to 1% that is quoted to you upfront.

You don’t have to have an account in order to get a quote for your money transfer. This is beneficial if you want to check your costs before committing to transfer money. However, you can only transfer money to a bank account. This means the recipient can’t opt for a cash pick-up or mobile wallet.

5. CIMB – Best for Transferring to a Malaysian Bank Account 

If you prefer to send money through banks in Singapore, then you can’t go wrong with CIMB.

CIMB offers cheap transfer fees. In fact, you don’t have to pay a transfer fee if the recipient has a CIMB Malaysia Account. However, you need to sign up for the CIMB FastSaver Account.

To open an account, you will need an initial deposit of S$1,000 and you’ll enjoy a 0.3% p.a. interest rate. Link your CIMB FastSaver Account to a Malaysian CIMB account to remit funds from Singapore to Malaysia. 

Frequently Asked Questions 

Can Singapore Bank Transfer to Malaysia?

Yes, you can transfer funds from Singapore Banks to Malaysia. For instance, CIMB offers a free transfer fee for recipients with a CIMB Malaysia account. You can also consider transferring funds through OCBC or DBS.

Need more cash? Find out what is cash advance and how do they work.

Can I PayNow From Singapore to Malaysia?

According to MAS, the first phase of Singapore’s PayNow and Malaysia’s DuitNow linkage will be launched in the fourth quarter of 2022. With this linkage, customers can make real-time Singapore-Malaysia fund transfers using just a mobile number. Most importantly it allows for more seamless payments for large remittances between Singapore and Malaysia.

But while this linkage isn’t in effect, customers can consider using Wise. Thanks to its integration with PayNow, customers can use their PayNow details to send money. 

What Is the Best Way To Send Money to Malaysia?

The best way to send money from Singapore to Malaysia will depend on several factors. That said, you need to compare your options.

For instance, if you wish to pay low transfer fees, then BigPay is a good choice since they only charge S$1 regardless of the amount you’ll be sending. However, you also need to consider the exchange rate and if they use the mid-market rate.

Conclusion

Today, banks and digital remittance service providers have improved their services. Most Singapore-Malaysia remittance services offer same-day transfers. However, charges may vary per service provider. That said, compare money transfer services to find the strongest rates and fast and secure delivery.

Key Takeaways:

• Aside from transferring money via a bank or through Western Union, you can also send money through digital remittance services like Wise or BigPay.
• When comparing remittance service providers, take into account the transfer fees, exchange rates, transfer limit, and processing time.
• Money transfer companies that use mid-market rates for transfers will allow you to lock in a rate for a day.

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