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Shopping or working across the Causeway? Here are some fast, simple ways to pay
One bank aims to meet the cross-border banking needs of customers in both Singapore and Malaysia without losing the human touch
Thousands of Singapore residents cross the Causeway for shopping and dining due to the favourable exchange rate.
PHOTO: GETTY IMAGES
Tan Hwee Hwee, Content STudio
Mr Abdul Rahmat Kairul is among the thousands squeezing through the land links to Johor Bahru every day.
The 34-year-old Malaysian food delivery driver has been working in Singapore for seven years. Yet his payday routine, like his daily commute, remains tedious and a test of his patience.
On the 29th of each month, he withdraws his salary from his Singapore savings account and heads to a money changer in Clementi to convert his Singapore dollars into Malaysian ringgit.
Mr Rahmat lives in Johor Bahru with his wife, 41, and three children aged three, five, and 10. He is the family’s sole breadwinner.
While he is aware of the convenience and better exchange rates that interbank transfer offers, Mr Rahmat still prefers using money changers.
“Sometimes, it can take a few days to receive the money in my Malaysia bank account,” he explains. “For example, if I make the transfer on a Friday, I would only receive the money the following Tuesday.”
The delay means he might have difficulties paying for urgent monthly payments such as utilities and phone bills.
People flow across land checkpoints
Be it for business, school, or leisure, about 415,000 people used the Causeway and Second Link daily before the Covid-19 pandemic, according to the Immigration and Checkpoints Authority (ICA).
Current daily traffic flow through the two checkpoints is returning to pre-Covid-19 levels during peak periods.
Over 1.7 million people crossed the checkpoints over the long weekend of the 2023 presidential election, from Aug 31 to Sept 4, notes the ICA. The figure is a record high since land borders between Singapore and Malaysia reopened in 2022.
Figures from the United Nations show that Malaysians form the largest group of migrants living and working in Singapore, accounting for 44 per cent of the foreign-born population in the Republic.
“For Malaysians who work in Singapore (but have families back home), they frequently need to perform cross-border funds transfers to pay for bills, necessities, and to support their families,” says Mr Sukhvinder Singh, head of Digital Banking, Maybank Singapore.
Typically, international funds transfers can take up to five business days. There may also be extra charges involved, such as administrative fees.
From sending money to loved ones on festive occasions, to providing for education needs, and even financial assistance during emergencies, having access to fast and seamless cross-border funds transfer options is important for people who are away from home, Mr Singh, 45, says.
He cites the example of Maybank’s instant funds transfer services, which come with low fees and competitive exchange rates.
The bank also offers a convenient cross-border bill payment solution for Malaysians working in Singapore with bills to pay back home. The free service enables customers to pay their bills (such as utility bills, insurance premiums and club memberships) in Malaysia via their Maybank Singapore account through their website or mobile banking app.
With over 3,800 Maybank ATMs across Malaysia, Singapore, Brunei, Cambodia, Indonesia and the Philippines, the bank’s customers can conveniently withdraw cash – with no transaction fees – when they work or travel in the region, adds Mr Singh.
Seeking a livelihood across the border
- Malaysians working in Singapore say the stronger Singapore dollar will mean more money for their families, but they are concerned about higher rents here and inflation back home.
- Quality family time, social life and sleep are some of the sacrifices made by Malaysians crossing the border daily to make a living in Singapore.
How we shop
From outlet shopping to dining, thousands of Singapore residents cross the Causeway because of the favourable exchange rate.
The Singapore dollar rose 4.9 per cent against the Malaysian ringgit to RM3.45 in the first half of 2023. The Malaysian currency has recovered a little ground in the current quarter and is trading at RM3.43 to the Singdollar as at Sept 15.
One such shopper is Ms Ng Kar Yian, who works in a human resource outsourcing company in Singapore. She does her grocery shopping in Johor Bahru up to three times a month.
“We save up to 20 per cent when we buy household items and baby products such as diapers, as compared with buying them in Singapore,” says the 32-year-old Singapore permanent resident (PR).
She moved to Singapore from Malaysia in 2016 with her husband, who is now a Singapore citizen. They have two boys aged two years old and six months old.
Heading to Johor?
- Singapore drivers may be able to use their credit and debit cards to pay for the toll and road charge at the two border crossings into Johor by 2024.
- From seafood restaurants to night markets and massage spas, here are the top picks for travellers from Singapore heading to Johor Bahru for a road trip.
Besides shopping, Ms Ng and her family also travel to Malaysia at least once every three months for leisure or to visit relatives in Kuala Lumpur.
They use credit cards for payments on their trips. “This saves us the hassle of having to head to the money changer or hunt for an ATM,” Ms Ng explains. She also gets to earn rewards on her credit card as she spends.
Some cards, such as the Maybank Family and Friends Card, enable customers to earn up to 8 per cent bonus cashback for eligible retail transactions made in ringgit.
Besides credit cards, travellers like Ms Ng now have more options for payment across the Causeway. In March, the Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) jointly launched Nets-DuitNow QR code payment linkage to improve the connectivity of cross-border payments.
Consumers travelling across the Causeway can pay for products and services by scanning Nets or DuitNow QR codes. The initiative will help boost cross-border commerce and enable merchants, especially small businesses, to tap on a wider pool of consumers, said MAS managing director Ravi Menon in a statement on the launch.
DuitNow QR is a QR standard that allows Malaysians to make payments and receive funds from any participating bank and e-wallet via a QR code.
The central banks of Singapore and Malaysia plan to expand this payment linkage by the end of this year to enable cross-border account-to-account funds transfers and remittances.
Users will be able to make real-time fund transfers between Singapore and Malaysia conveniently using just the recipient’s mobile phone number via PayNow and DuitNow.
Fast, personalised and seamless
Beyond convenience and rewards, what else do consumers look for in cross-border financial solutions? Digital-savvy Andy, 37, leans towards user experience.
The Segamat-born digital marketer, who asks that we not share his last name, started working in Singapore 11 years ago. Now a PR, Mr Andy married his Singaporean wife last year.
He uses a multi-currency card when he travels back to Malaysia to visit his family because he likes how “it’s a one-stop solution”.
The multi-currency card, issued by a fintech company, allows Mr Andy to link up to five credit cards. “The user interface makes it easy for me to compare and select the best exchange rate across various credit cards when I make purchases.”
Customers of today are used to digital experiences that are fast, personalised and seamless, and they expect banking to be the same, observes Maybank’s Mr Singh.
The bank seeks to meet these digital-first demands through initiatives such as digital onboarding and applications. For example, Maybank Malaysia customers can open a Singapore dollar savings account with Maybank Singapore fully online without any branch visits.
Nonetheless, the human touch remains at the heart of the bank’s solutions, says Mr Singh.
He adds: “By harnessing our digital capabilities to provide intuitive and accessible cross-border payment solutions, we are reimagining a more seamless banking experience for our customers.” For example, customers with Maybank accounts in both countries can view their balances with a single login via online banking or the mobile app.
“This is pivotal as we continue to expand our scope of digital banking services not just between Malaysia and Singapore, but across Asean as well,” says Mr Singh.
In partnership with Maybank Singapore
