OCBC customers in Singapore will be able to hold up to RM50,000 in Malaysian ringgit in their savings accounts from Thursday (23 October), Fintech News Singapore reported, in a move the bank says makes it the first non-Malaysian lender to offer the feature.
The option will be available on the OCBC Global Savings Account and the Premier Global Savings Account. Customers can convert Singapore dollars into ringgit, earn interest on their ringgit balances and spend the currency through a linked debit card without paying foreign currency transaction fees.
Cash withdrawals at OCBC ATMs in Malaysia will also be free of foreign exchange conversion charges, administrative fees and third-party operator fees, according to the report. The addition of ringgit brings the number of currencies supported by OCBC’s multi-currency accounts to 11.
Malaysia tops overseas spending
The launch is pitched at Singaporeans who cross the Causeway regularly. OCBC said the value of its customers’ transactions across the border has grown at a compound annual rate of 25% since 2022, and Malaysia now accounts for one in three overseas transactions made by its customers, making it their most popular destination for spending abroad. Dining and shopping are the two biggest spending categories.
Holding ringgit in advance allows customers to convert when they consider the exchange rate favourable, rather than at the point of each purchase.
“Many Singaporeans make frequent cross-border trips to Malaysia for work, leisure and everyday spending,” said Tan Siew Lee, OCBC’s head of group wealth management.
What’s next
OCBC expects cross-border travel and spending to rise further once the Johor Bahru-Singapore Rapid Transit System (RTS) Link opens. The ringgit feature adds to the bank’s growing cross-border offerings between the two countries; earlier this month, OCBC launched a tokenised deposit solution with Ant International for treasury management between Singapore and Malaysia.
