How to send money internationally for businesses in Malaysia

Key takeaways:

• Malaysian businesses have three main ways to send money overseas: modern fintech platforms, global cash networks, and traditional banks.

• Sending via local rails is usually faster and cheaper than SWIFT, and settling in your recipient’s currency helps avoid unnecessary conversions.

• Airwallex helps Malaysian businesses move money globally more efficiently – with local-rail payouts to 120+ countries, multi-currency accounts, and competitive FX rates that save you up to 80% in FX fees.

Malaysian businesses have multiple options for sending money internationally, each with different costs, speeds, and features that suit different payment needs.

This guide explains how to choose the right method, complete transfers efficiently, and navigate compliance requirements. We’ll also share how Airwallex can simplify cross‑border transfers for you, and help you save when you send money internationally.

What are my options to send money overseas?

If you’re running a business in Malaysia, there are three common ways to send money internationally: modern fintech platforms, global money networks, and traditional banks.

Each works a little differently, and which one makes sense depends on who you’re paying, how fast they need the money, and how much you’re sending.

Modern fintech platforms

Platforms like Airwallex move money using local banking systems instead of SWIFT. In simple terms, your ringgit goes through Malaysia’s domestic payment rails, gets converted at a transparent rate, then lands in your recipient’s local bank account – without bouncing through multiple intermediary banks along the way.

Because of this setup, transfers are usually faster and cheaper. Exchange rates tend to sit much closer to the mid-market rate (the rate you see on Google), and fees are shown upfront. In fact, businesses who use Airwallex save up to 80% on their FX fees.

Global networks

Global networks like Western Union and MoneyGram focus on reach and speed. They operate physical locations in over 200 countries, allowing recipients to collect cash within hours. This is useful if the person you’re paying doesn’t have a bank account or needs funds urgently. In many countries, these global networks also support mobile wallet payouts.

The trade-off is cost. Fees are higher, and exchange rates are less favourable than modern fintech platforms. Still, these networks can be helpful for urgent payments or transfers to regions with limited banking infrastructure.

Traditional banks

Local banks like Maybank, CIMB, and HSBC send international transfers via SWIFT. Your bank issues payment instructions, and the money moves through one or more correspondent banks before reaching your recipient.

Depending on how traditional your business is, you might prefer working with banks because of their long-standing reputations and familiarity. However, transfers are usually slower, and FX markups and fees tend to be higher.

How to send an international transfer step by step

Sending money overseas doesn’t have to be confusing. Here are the five steps to take to send an international transfer from Malaysia:

Step 1: Select the route and currency

First, decide whether to use local rails or SWIFT, based on where you’re sending money and how quickly it needs to arrive.

• Local rails are domestic payment networks, like FPX in Malaysia. Modern fintech platforms link these networks so your money travels through local systems at both ends, making transfers faster and cheaper.

• SWIFT transfers go through the international banking network, passing through multiple correspondent banks. They can reach almost any bank worldwide but usually take longer and cost more.

Also, confirm which currency your recipient expects. Most suppliers will specify this on their invoice, so make sure you check before sending to avoid delays or unnecessary conversions.

Step 2: Collect beneficiary details

To complete an international transfer, you need accurate details about your recipient. Start with the recipient’s full legal name exactly as it appears on their bank account, and their complete address if your bank or platform requires this for compliance.

Next, make sure you have their bank details: the bank’s official name and address, account number, and the appropriate routing code for their country (for example, the SWIFT code or IBAN).

Step 3: Set amount and review fees

Enter the amount listed on your supplier’s invoice and make sure your transfer will cover that full amount once fees and currency conversion are applied.

Check the exchange rate against the mid-market rate, which is the “real” rate you see on Google before any provider adds a margin. Official data from the World Bank shows that banks tend to be the most expensive type of provider¹, with total average costs higher than non‑bank channels.

Next, review all fees carefully:

• Sending fees: Charged by your bank or platform to initiate the transfer

• Intermediary bank fees: Charged by banks handling the payment along the way

• Receiving fees: What the recipient’s bank might deduct

Some providers guarantee that the full amount reaches your recipient. If not, intermediary fees can reduce what the supplier receives, which in turn causes delays or disputes.

Step 4: Submit with approvals and documentation

Before sending your transfer, make sure you meet any compliance requirements your bank or platform requests. This could include:

• Proof of business registration

• Invoices for supplier payments

• Contracts for service payments

These requirements align with Bank Negara Malaysia’s Foreign Exchange Policy, which ensures international payments support legitimate business activities.

Keep copies of all supporting documents, including invoices, contracts, and payment confirmations, for your records and potential audits. If your business has internal approval workflows, route the transfer through the appropriate managers before submitting.

Step 5: Track status and share proof of payment

After submitting your transfer, you’ll usually get a reference number. Use this to monitor progress through your bank or fintech platform, whether via an online dashboard or mobile app. You’ll see updates as the transfer moves from “processing” to “sent” to “completed”.

Once the transfer is complete, download the payment confirmation. This serves as proof for your accounting records and can be shared with your recipient if they need to verify incoming funds.

For SWIFT transfers, you can request an MT103 message, which is a document showing the full payment trail through all intermediary banks. This can be especially useful for auditing or reconciling large business payments.

How much does an international transfer cost?

International transfers involve several types of costs that together determine how much your recipient actually receives. Here’s a breakdown of these costs:

1. Transfer fees

Every provider charges a fee to process your payment. Banks often have higher service fees than digital channels: for example, Maybank charges about RM10 online and up to RM30 at branches for foreign telegraphic transfers². Traditional banks also mostly use SWIFT for international payments, which can add extra costs because intermediary banks often deduct fees along the way.

In comparison, modern fintech platforms usually charge lower flat fees and use local rails where possible. With Airwallex, you can pay out to 120+ countries using local rails, and avoid SWIFT fees for these transactions.

2. Exchange rate margins (FX costs)

One of the biggest hidden costs in an international transfer is the exchange rate margin.

Banks generally don't publish explicit markup percentages in their public fee schedules. Instead, the margin is embedded in the exchange rate itself, which means it’s not transparent.

You only see the effect when you check the conversion rate for your transfer, either by simulating the transaction online or requesting a quote from your bank. You can then compare this rate with what a modern fintech platform offers, which typically comes much closer to the mid‑market rate.

For example, imagine your bank applies a 3% FX markup, a global network charges 2%, and a modern fintech platform charges 0.5%. On a RM10,000 transfer, the FX cost for each option would look like this:

As you can see, the cost of sending money through a traditional bank is significantly higher compared to a modern fintech platform.

Other than using fintech platforms, one way to further reduce costs is to settle in the same currency as your recipient expects. For instance, if you’re paying a US supplier in US dollars and you already hold USD in a multi-currency account, you can pay directly without converting from ringgit first.

This avoids unnecessary currency conversions and additional FX markups, effectively saving money on both sides.

What affects transfer time?

Several factors determine how quickly your international transfer goes through. The fastest transfers arrive within hours, while others take up to several business days.

1. Cut-off times

Most banks and providers have daily deadlines between 3 pm and 5 pm local time. Transfers submitted after the cut-off won’t begin until the next business day. For example, a payment sent at 4:30 pm with a 4pm cut-off will only start processing the following morning.

2. Weekends and holidays

Transfers submitted on weekends or public holidays won’t process until the next business day. A Friday afternoon transfer won’t start until Monday, and holidays in Malaysia or the recipient’s country can add further delays. Always check holiday calendars when planning time-sensitive payments.

3. Destination corridors

Some country pairs have direct banking relationships, while others route through multiple intermediary banks. For example, transfers between Malaysia and Singapore often arrive faster due to strong banking connections. Payments to less common destinations may take longer.

4. Local rails vs SWIFT

Local rails are domestic payment systems, and modern fintech platforms link them across countries to move funds faster.

Transfers sent via local rails typically process faster because they avoid multiple intermediary banks. SWIFT transfers, on the other hand, pass through several banks along the way, and usually take longer to reach the recipient.

5. Compliance checks

Large transfers or payments to certain countries may trigger extra checks. Anti-money laundering regulations require providers to screen transfers against sanctions lists and verify the source of funds for higher-value transactions. These checks typically add extra time to the transfer process.

What details do I need to send money abroad?

To make sure your payment reaches the right account, you need specific information about your recipient and their bank. Missing or incorrect details are one of the most common reasons for delays or failed transfers.

Recipient’s full name and address

Start with your recipient’s full legal name exactly as it appears on their bank account. Even small differences – like “John” instead of “Jonathan” or leaving out a middle name – can cause the transfer to be rejected.

Also, include your recipient’s complete address, as some banks require it for compliance purposes. Accuracy here helps avoid unnecessary delays.

Bank name and address

You’ll also need the recipient’s bank details, including the official bank name and branch address. Avoid abbreviations – for example, write “Hongkong and Shanghai Banking Corporation” instead of “HSBC.”

The branch address should correspond to where your recipient holds their account, though some countries use the bank’s headquarters address for all transfers.

Account number and routing information

The type of account number you need to enter depends on the recipient’s country:

• IBAN (International Bank Account Number) – Used in Europe and some Middle Eastern countries. It combines the country code, check digits, bank identifier, and account number into a single code. Enter this as-is on your transfer.

• Account number + routing code – Used in most other countries. Enter the recipient’s account number along with the appropriate routing code for their bank and branch.

Here’s an overview of the different routing codes:

Purpose of payment

Some providers require a reason for the transfer, such as:

• Payment for goods

• Payment for services

• Salary payment

Being specific and accurate helps with compliance and can speed up processing.

Malaysia compliance for overseas payments

Bank Negara Malaysia’s Foreign Exchange Policy regulates international transfers to ensure payments support legitimate business activities. Understanding these rules can help you avoid delays and stay compliant.

Permitted business payments

For most legitimate business purposes, you can freely send money overseas, including:

• Paying for imported goods

• Settling service invoices

• Compensating overseas contractors

For each transfer, it’s important to keep proper documentation proving the business purpose.

Additional documentation for larger transfers

For transfers above certain thresholds, your bank or payment provider may request extra documents, such as:

• Commercial invoices showing goods or services purchased, including quantities and prices

• Contracts or agreements outlining service or employment terms

• Proof of business registration for your company and, if applicable, the recipient’s company

• Previous correspondence showing the business relationship

Organising your records

Create a systematic filing system for all international payments. Here are the documents you should keep:

• Payment confirmations

• Supporting invoices or contracts

• Correspondence with your recipient

Many businesses also maintain a spreadsheet tracking international transfers with columns for date, recipient, amount, purpose, and document references. This makes audits and reconciliations much easier.

Special approvals and restrictions

Some types of payments require specific Bank Negara Malaysia approval or have restrictions. These include:

• Property purchases overseas

• Investments in foreign securities

• Loans to non-residents

If you’re unsure whether your transfer requires special approval, check with your bank before submitting the payment.

Airwallex: A modern solution for Malaysian businesses

Airwallex is designed to combine the speed and cost savings of digital platforms with the control and flexibility businesses need for international payments. Here’s how it helps Malaysian companies streamline cross-border transfers:

• Fast and cost-effective payments: Airwallex allows you to pay out to 120+ countries using local rails, and 93% of our transactions arrive on the same day. You can hold funds in 20+ currencies using our Global Account, which lets you pay suppliers in their local currency and avoid international transfer fees.

• Global reach: You can send payments to 200+ countries, and collect funds like a local in 70+ countries.

• Competitive FX rates: You get access to competitive FX rates, saving you up to 80% on FX fees. 

• Reconciliation and integration: Airwallex integrates with accounting software like Xero, QuickBooks, and NetSuite, automatically syncing transactions to reduce manual data entry and simplify reconciliation.

Frequently asked questions (FAQs)

Can I use IBAN for transfers to the US, Australia, or India, or do I need ABA, BSB, or IFSC codes instead?

IBAN only works for European countries and some Middle Eastern regions. For the US, you need an ABA routing number. Australia requires a BSB code. India uses IFSC codes. Each country has its own routing system, so always check which code your recipient's country uses.

Why did my supplier receive less money than the amount I sent overseas?

Your supplier may get less due to hidden costs in international transfers:

• Exchange rate markup – Banks often embed a margin in the rate, reducing the amount received.

• Transfer and intermediary fees – Some fees are deducted from the payment itself.

• Currency conversions – Sending in a different currency can add extra costs.

To avoid this, send in the recipient’s local currency and using modern fintech platforms with transparent rates and local payment networks.

What documentation does Bank Negara Malaysia require when I pay overseas suppliers or contractors?

For international business payments, Bank Negara Malaysia requires proof of the payment’s purpose. This usually includes:

• Invoices or contracts showing goods or services purchased

• Proof of business registration for your company (and sometimes the recipient’s)

• Correspondence demonstrating a legitimate business relationship

Keep all documents on file, as banks may request them for transfers above certain thresholds or for compliance checks.

How can I track my international business transfer and get proof of payment for accounting?

Use the reference number your provider gives you to track progress through their online platform or app. Once completed, download your transaction confirmation. For SWIFT transfers, request an MT103 message showing the complete payment trail through all banks involved.

Can I send multiple international payments to different countries in one batch?

Yes, many modern platforms let you submit batch international payments. You can upload multiple recipients and transfer amounts in a single file, saving time compared to sending each payment individually. For example, Airwallex supports batch transfers to up to 1,000 recipients at once, across multiple currencies and countries.

How can I protect my business from exchange rate changes on future overseas invoices?

To manage currency risk, you can lock in exchange rates or use rate alerts to pay when rates are favorable. Planning ahead this way helps you budget more accurately and avoid unexpected costs from currency fluctuations.

Airwallex lets you lock FX rates for future payments and set rate alerts, helping you plan transfers and protect your business from sudden currency swings.

Sources:

1. https://documents1.worldbank.org/curated/en/099735504212234006/pdf/P1730060695b370090908c0bf80ed27eba6.pdf

2. https://www.maybank2u.com.my/maybank2u/malaysia/en/business/services/foreign-telegraphic-transfer.page

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn Bhd is licensed in Malaysia as a MSB Class B (remittance business only) licensee and is regulated by Bank Negara Malaysia (licence number 00318).