MALAYSIA

BNP Paribas has been present in Malaysia since 1974, with 50 employees based in the country. It is one of only a few international banks to hold a full commercial license, which it obtained in 2010. The bank caters for the domestic and international cash management and trade finance requirements of both foreign companies doing business in Malaysia and Malaysian entities seeking to expand their international focus. BNP Paribas Malaysia is also the bank's Islamic banking hub for Asia Pacific.

BNP Paribas is a major player in trade finance throughout Asia, offering a full suite of traditional trade (letters of credit, bankers’ guarantee, trade financing, standby letters of credit, etc.) and supply chain financing solutions (receivables purchase programmes, supplier financing etc.) products, including a unique inventory solution offered through its trade centres in Australia, China, Japan and Singapore, specifically for companies engaged in international trade, as part of a wider network of more than 100 trade centres globally. BNP Paribas has experienced trade finance advisors and personnel who deliver a range of customised trade solutions and advise on local market practices. These solutions are supported by the bank's ISO-certified trade services support team. 

• Malaysian ringgit (MYR)

• A company is considered resident in Malaysia if it is incorporated in Malaysia, registered in the country or if its place of management and control is in Malaysia.

Traditional payment methods are on the decline in Malaysia as electronic payments, particularly card payments, rise. According to figures from a MasterCard Impact Study 2020, Malaysia leads Southeast Asia in e-wallet use, with 40% take-up compared to 36% in the Philippines. e-wallet transactions in the first ten months of 2020 reached MYR 23.5 billion, up 30% on 2019. e-wallets’ market share of digital transactions rose by 5% to 13% during the same period.GrabPay, Boost and Touch ‘n Go are leading e-wallet providers. Mobile wallet transactions rose 171% in 2020.

The government has introduced a number of initiatives to encourage the migration to electronic payments. In December 2020, the central bank issued its digital banking framework and is expected to beginning issuing licences through 2021.

Electronic banking services are available from all banks. There is no national electronic banking standard in Malaysia, so companies use bank’s proprietary systems. The multibank internet-based payment platform, Financial Process Exchange (FPX), works with banks’ individual proprietary systems.

Online and mobile banking services are provided by 30 and 18 banks respectively. At the end of April 2021, there were 114.7 million mobile banking transactions (69.3 million in April 2020), with a value of MYR 63,979 billion (MYR 23,766.9 billion April 2020). The total number of internet banking transactions was 160.5 million (119.8 million in April 2020), with a value of MYR 857.0 billion (MYR 671 billion in April 2020). As of April 2021, the penetration rates for internet and mobile banking were 115.9% and 65.9% respectively.

Interest payable on credit balances

• Current accounts are typically non-interest bearing, although some banks do offer interest-bearing current accounts, subject to conditions.  

Demand deposits

• Demand deposits denominated in MYR or major foreign currencies are available for terms up to 60 months.

Time deposits

• Time deposits are available in MYR or major foreign currencies for terms up to 60 months.

Certificates of deposit

• Domestic banks issue certificates of deposit with terms ranging from one month to one year. They can be issued paying fixed or variable interest.

Treasury (government) bills

• The BNM issues both conventional and Islamic finance Treasury bills for terms of three, six and 12 months.
• The BNM also issues monetary notes (BNMNs) with terms up to three years.

Commercial paper

• Domestic commercial paper is issued by companies. Most paper is issued for one month, although terms up to 12 months are permitted.

Money market funds

• Money market funds are available as conventional and Islamic (sharia-compliant) short-term investment instruments.

Repurchase agreements

• Repurchase agreements are available with maturities ranging from one day to five years.

Banker's acceptances

• Banker’s acceptances are widely available in Malaysia, with terms ranging from 21 to 365 days.

• As a member of the Association of Southeast Asian Nations (ASEAN), Malaysia has entered into the ASEAN Trade in Goods Agreement (ATIGA) between member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam). Malaysia is also a member of the ASEAN Free Trade Area (AFTA) and is committed to reducing and eliminating tariffs between members.
• As a member of the Asia-Pacific Economic Cooperation (APEC) forum, Malaysia has agreed to liberalise trade and investment rules between members.
• As a signatory to the D-8 Preferential Tariff Agreement, Malaysia has agreed to reduce tariffs on trade between member states (Bangladesh, Indonesia, Iran, Malaysia, Egypt, Nigeria, Pakistan and Turkey).
• Malaysia is a signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Malaysia has not yet ratified the agreement.