Summary
Malaysia offers a tropical climate, multicultural cuisine, breathtaking landscapes, and vibrant bustling cities that are alive with atmosphere. As such, it is no surprise that it is a popular country to visit and, for some, to buy a property.
There could be a multitude of reasons for sending money from the UK to Malaysia, from holidays and deposits to remittances and beginning the process of moving overseas. Whatever the reason, there are many ways to transfer money overseas, and by going through an international money transfer service rather than your bank, you could get more for your money with better exchange rates and lower/no fees.
GBP and MYR
In the UK, the British Pound Sterling (GBP) has long been in circulation and is one of the most traded currencies globally. With recent economic problems, Brexit, and the COVID-19 pandemic, the GBP has wavered and depreciated from its relatively stable position.
The Malaysian ringgit has been in circulation since the 1960s and was initially known as the Malaysian dollar. It is a free float currency following a period of being pegged to the US dollar. Similarly to the GBP, the MYR has faced fluctuations, with financial issues, political uncertainty, and stock market instability contributing. Despite this, the economy in Malaysia has been seeing growth in the long run.
Trading and political relations
The bilateral relationship between the UK and Malaysia has origins going back to the British empire, but today both countries share a more independent status. With both being members of the Commonwealth and the Five Power Defence Arrangements, diplomatic ties between the two countries are stable.
In terms of trade, Malaysia exported goods worth $2.36bn to the UK in 2021, while imports rose significantly to $1.78bn. With Brexit pushing the UK to strengthen trading relationships outside of the EU, further trade agreements are in talks to potentially boost this relationship.
Banking
Opening a bank account in Malaysia is a relatively straightforward process. Non-residents are able to open accounts as long as they apply using the correct documentation. You can also open a bank account online, however this may limit your options slightly. There are also expat bank accounts with banks such as HSBC which may be suited to your needs.
For those planning to move to the country, getting a bank account will be necessary, but to just transfer money from the UK to Malaysia, you don't need a bank account there. International money transfers can be made through a money transfer service, and this can get you the best deal.
Taxation
Whereas in the UK the tax year runs from April to April, the Malaysian tax year runs from 1st January to 31st December. Personal income tax ranges between 0-30% depending on salary/income, and tax begins once relevant income hits RM5000. Those staying in Malaysia for at least 182 days of the year are then considered a tax resident. If planning the move, it is advisable to seek legal advice and familiarise yourself with up to date tax information.
A positive of the diplomatic relationship between the UK and Malaysia is that a double taxation treaty means that income will only be taxed in one country. Be sure your documentation is correct for both countries to avoid being over-taxed.
Visas and immigration
In order to move to Malaysia, you will need to secure a visa, which will require you to have the correct documentation, including a passport. The best option is to apply through a Malaysian Representative Office or local visa application centre. The processing time will depend on a number of factors, so check before beginning an application.
For study, you will need to apply for a Malaysian Student Visa, or for prolonged periods a Long Stay Visa. There are also single entry visas as well as multiple entry visas, so how you wish to travel will determine which visa you require. For permanent residency, you will need to have lived in the country for at least ten years, along with some other requirements.
Buying property in Malaysia
As with the process of moving to any other country, doing your research first is a must. Firstly, where is it that you want to move to? If you are looking at city properties for example, they will likely be different to property types you will find in more suburban or rural areas. Research the area you are looking to move to, or if you are purchasing property as an investment, whether or not this is suitable for you. Getting to know taxes associated with the purchase of property will save you from any costly surprises down the road.
Real estate is well regulated in the country, so as long as you go through the correct channels, you should not face issues with authenticity. For those looking to retire to Malaysia, there is also the Malaysia My Second Home (MM2H) Programme which aims to aid foreign nationals in moving to the country.
Using our platform, you’ll be able to send money from the UK to Malaysia with a trusted money transfer service, and find the deal that works best for you.