OCBC to become first non-Malaysian bank to allow Singapore saving accounts to hold ringgit from Oct 23

“As (Malaysian ringgit) is a tightly controlled non-internationalised currency, opportunities for individuals to hold the currency in bank accounts outside Malaysia are limited,” said OCBC.

An internationalised currency refers to a currency that is widely used outside of its own borders, such as the US dollar.

OCBC said customers can earn 1 per cent interest per annum until Jun 30 next year, and 0.5 per cent per annum thereafter, noting that e-wallets do not pay interest on cash balances. No minimum balance is required.

The bank said customers are increasingly conscious of currency movements and buy foreign exchange when the Singapore dollar strengthens, citing data that showed consumers built up yen balances when the Japanese currency weakened.

OCBC also noted that the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link is expected to further drive cross-border travel and consumer spending in Malaysia.