OCBC will let customers in Singapore hold up to RM50,000 in Malaysian ringgit in their savings accounts from 23 October.
The bank claims to be the first non-Malaysian bank to introduce the feature.
Customers with an OCBC Global Savings Account or Premier Global Savings Account can convert Singapore dollars into ringgit and earn interest on their balances.
They can also spend using a linked debit card without foreign currency transaction fees.
Cash withdrawals at OCBC ATMs in Malaysia will not incur foreign exchange conversion charges, administrative fees or third-party operator fees.
With the addition of ringgit, the multi-currency accounts will support 11 currencies.
Tan Siew Lee, Head of Group Wealth Management at OCBC, said,
“Many Singaporeans make frequent cross-border trips to Malaysia for work, leisure and everyday spending. The launch of ringgit on OCBC’s Global Savings Account will be particularly powerful for such consumers.
It gives them the ability to lock in favourable exchange rates ahead of time, hold ringgit in a regulated Singapore deposit account, earn interest on cash balances, protect against future currency swings, and enjoy greater certainty over their travel spending.”
OCBC reported that the value of transactions made by its customers across the Causeway has grown at a compound annual rate of 25 percent since 2022.
Malaysia accounts for one in three overseas transactions by its customers, making it their most popular overseas spending destination. Dining and shopping are the two largest spending categories.
The bank expects the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link to further increase cross-border travel and spending.
Featured image: Edited by Fintech News Malaysia, based on image by OCBC
