Maybank has extended its Malaysia Ringgit Current Account to eligible Singapore-based companies, allowing them to receive, hold and transact in ringgit for permitted Malaysia-related activities directly from Singapore, The Business Times reported.

Maybank says it is the first bank in Singapore to offer this type of account.

Companies with suppliers, assets or investments in Malaysia can hold ringgit and time their currency conversions ahead of scheduled payments instead of converting funds whenever payments are due.

Previously, Singapore corporates typically relied on ad hoc spot foreign exchange conversions when making payments in Malaysia or opened and funded non-resident ringgit accounts in Malaysia.

With the new account, companies can convert funds from their Maybank Singapore dollar or foreign currency accounts in advance and maintain a ringgit balance for upcoming payments.

Maybank describes this as anticipatory foreign exchange, which allows businesses to purchase and hold ringgit ahead of scheduled obligations.

Permitted transactions include payments to Malaysian suppliers for goods and services, receipt of eligible ringgit proceeds, purchases and sales of assets in Malaysia, and collection of eligible dividends and interest.

The account requires no initial deposit or minimum balance, carries no monthly fee and does not earn interest.

Maybank also charges no remittance commission or commission in lieu of exchange. It has waived processing and agent-bank charges for transfers to Maybank Malaysia until further notice.

Transfers to other Malaysian banks incur an RM22 agent-bank charge per transaction, while processing fees may also apply.

The account is available to non-financial corporations registered outside Malaysia that already maintain a Maybank Singapore dollar corporate current account.

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