Before you start using Malaysia commercial banking, make sure you have a firm understanding of the rules and regulations regarding banking in Malaysia. Many foreign chartered banks offer business banking in Malaysia, and they are often preferred over Malaysia commercial banks by many corporations. Select one commercial bank in Malaysia, open a small business account and begin working with banks in Malaysia.

It is best to have several Malaysia banking institutions to chose from before committing too many financial resources to corporate banking in Malaysia. Decide upon a Malaysia banking institution that meets all national and international standards. Research the background and financial stability of the bank before making a large-scale commitment.

1. Bank in Malaysia with a renowned international bank that offers Malaysia commercial banking.

2. Select from Malaysia banks that provide a complete suite of services to international customers.

3. Start using banks in Malaysia to establish a corporate presence in one of the world's fastest growing economies.

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Bank in Malaysia with foreign owned Malaysia banking institutions

Many Malaysia banking institutions have foreign partners, but the reverse is also true where foreign banks have many Malaysian partners. International banking institutions have operated in Malaysia for decades and some have provided operating capital to some of the largest corporations in Malaysia. This investment in the Malaysian economy has given foreign banks a tremendous advantage across Malaysian financial markets.

I recommend: Use one of the overseas financial institutions which have banks in Malaysia. Bank of Tokyo-Mitsubishi is a leading international banking institution with offices in Malaysia. Citibank Malaysia offers a full range of deposit services to business clientele.

Work directly with banks in Malaysia with local contacts and whose deposits are insured

Malaysia banking institutions should have extensive local connections within the various financial sectors of the economy. Many Asian cultures conduct business through via personal connections. The Malaysia government insures the security of deposits through a mandatory system similar to the FDIC.

I recommend: The United Overseas Bank has a large Malaysia commercial bank presence. The bank has established numerous relationships with Malaysian financial institutions. Check to see if the Malaysia banking institution is insured by the Malaysia Deposit Insurance Corporation.

Familiarize yourself with Malaysia commercial banking practices and services

Banks in Malaysia offer some rather unique challenges to their business that wish to conduct regular banking business within Malaysia. Asian banks in general can be characterized as having many institutional practices that are unfamiliar to businesses that use western banking institutions and this is particularly true of Malaysia. The society and government of Malaysia can present daunting challenges to those who are unprepared.

I recommend: Use the Malaysian Electronic Payment System (MEPS) for interbank transfers of funds within Malaysia. MEPS is used by a large consortium of banks in Malaysia. Understand the Shariah concepts essential to Islamic banking before banking in Malaysia.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Develop a personal relationship with a connected local person either through Malaysia banks staff or through one of the many foreign business groups in Malaysia.

When doing business in or with Malaysia, it is important to have a good knowledge about the system of banking in Malaysia. Malaysia is home to several hundred different banks — commercial banks (including several international banks with Malaysian offices), Islamic banks, and credit unions to name a few. These different banks cover a wide range of banking needs, but a detailed knowledge of banks in Malaysia is necessary to successfully take advantage of the system.

Malaysia commercial banking is very strong, and the government encourages foreign investment and business. It is important to remember, however, that Malaysia banking institutions differentiate between Islamic and business banking in Malaysia. The rules of each of these types of banks differ greatly. The major difference between Islamic and conventional banking is the absence of interest in Islamic banking.

Keep the following in mind when looking for banks in Malaysia:

1. Focus on banks that will meet your specific needs.

2. Remember that urban and commercial banking in Malaysia differ greatly from rural personal and development banking.

3. Comparing Malaysia banks will help you find the right bank from the many available.

4. Check out the many websites devoted to Malaysian online banking.

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Gather general information to compare Malaysia banks

Information about Malaysia commercial banking and general financial state of Malaysia can be found from the Malaysian government and from private sources.

I recommend: Bank Negara Malaysia, the national bank of Malaysia offers exchange, economic and general banking information on Malaysia. PropertyShowrooms.com offers an article with practical information for the foreigner wanting to bank in Malaysia.

Get background information on banks of Malaysia before doing business or making investments

There are several banking service companies and organizations that provide detailed information on Malaysia banks and economics.

I recommend: There are several Malaysia bank organizations including the Institute of Bankers -- Malaysia, the Association of Islamic Banking Institutions Malaysia and the Association of Banks in Malaysia.

Research particular banks in order to know which banks will best suit your needs

With hundreds of banks of many different types, you need to compare Malaysia banks in order to make a knowledgeable choice before banking in Malaysia.

I recommend: Bank Negara Malaysia offers lists of commercial banks, Islamic banks and investment banks.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Malaysia banks are happy to deal with foreign investments, but be sure you have all the right information before doing business.

Banks in Malaysia benefit greatly from the country's strong economy and deposits from the Malaysian energy sector. Banking in Malaysia is regulated by the Bank Negara Malaysia, which is the country's central bank. Commercial banking in Malaysia provides businesses with several hot business opportunities by providing access to both Middle Eastern and Asian economies.

This banks in Malaysia industry overview also covers some of the major foreign owned banks that are heavily invested in Malaysia commercial banking. There are many Malaysia banks that provide Muslim customers with specialized Islamic banking. Malaysia commercial banks have offered Islamic banking services since 1963, and Islamic banking is experiencing rapid growth with billion dollars in Sukuk ("Islamic bond") issued every week.

1. Start banking in Malaysia by reviewing both governmental regulations and Malaysia banking institutions that cater to Islamic customers.

2. Compare Malaysia banks before banking in Malaysia. Some banks in Malaysia offer more services to foreign businesses than others.

3. Visit several Malaysia banking institutions before deciding on a commercial bank in Malaysia.

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Select from the largest Malaysia banks to ensure a full range of services

Foreign banks in Malaysia offer the same international services they provide customers in their home countries. While business banking in Malaysia is at times complex due to the complicated banking regulations, this is also the case in many countries throughout the world; it's not just limited to corporate banking in Malaysia.

I recommend: HSBC calls itself the world's local bank, and this is certainly reinforced by the services it provides through its Malaysia bank system. The AmBank Group is one of the largest Malaysia banking institutions and provides a full range of services for international customers, as well as specialized services for Islamic clients.

Choose only from fully compliant Malaysia banking institutions

Select a Malaysia commercial bank that has always fully met government regulations and is fully up to date in regards to banking technology. Most Malaysia banks that offer international banking services are fully compliant, with not only national but also international standards.

I recommend: Read the Central Bank of Malaysia guidelines for Malaysia commercial banking to smooth business relationships with your Malaysian business partners. The Export-Import Bank of Malaysia is wholly-owned by the Government of Malaysia and provides a wide range of services designed mostly for your Malaysian partners, which in turn benefits your business relationship by guaranteeing funds.

Visit banks in Malaysia before you invest

Conducting businesses with foreign companies has both pitfalls and potential. This especially true when working with Malaysia banks due to the interconnectedness of banking regulations and religious guidelines. It is best to spend at least a month in Malaysia to become familiar with the culture and business environment before depositing money in any Malaysia banking institution.

I recommend: Get a full grasp of business banking in Malaysia as preparation for a business trip. Immerse yourself in the culture before proceeding to banking in Malaysia. Ask for a meeting with management staff of a bank such as the EON Bank Group of Malaysia or Maybank. Bring along a list of questions and concerns.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Establish an office in Malaysia if your company will be conducting a great deal of banking there. When problems arise, they are best dealt with in person.

Whether you’re looking to invest in a Malaysian bank or expand operations into the region, it's important to understand key industry terms. Although the banking industry is increasingly global in scope, there are still going to be adjustments necessary when banking in Malaysia. However, the structure will remain largely the same. Malaysia has a depository insurance corporation and a central bank much like the United States.

Before you make a deposit in a Malaysian bank, here are some key terms that can help with the process:

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Malaysia Deposit Insurance Corporation or Perbadanan Insurans Deposit Malaysia

The Malaysian Deposit Insurance Corporation or, as it's known locally, the Perbadanan Insurans Deposit Malaysia, is the entity which ensures all banking deposits in Malaysia.

I recommend: Review the information from the Perbadanan Insurans Deposit Malaysia on its Malaysian banking insurance.

Foreign currency accounts for non-residents

A foreign currency account for a non-resident is essentially the ability to open a Malaysian business account in U.S. Dollars instead of Ringgits.

I recommend: Evaluate the information at Maybank for a definition of foreign currency accounts for non-residents. For a detailed view of the rights of foreign depositors in Malaysia, study the charts at Lawyerment.

Association of Banks in Malaysia

The Association of Banks in Malaysia was founded to foster a functional and efficient banking environment. If you have any questions or concerns about the Malaysian banking industry, the Association of Banks in Malaysia is an excellent resource.

I recommend: Examine the profile of the Association of Banks in Malaysia for more information.

The Banking & Financial Institutions Act or BAFIA

The Banking & Financial Institutions Act came into law in 1989 and provides regulatory guidelines for all Malaysian banks and financial institutions.

I recommend: Study the Malaysian banking regulatory history available at My Money Skills.

Central Bank of Malaysia

The Central Bank of Malaysia came into existence in 1959 and is the banker to the Malaysian government. In addition, the Central Bank also controls the currency flow, enables monetary stability, and manages the national payment and settlement system.

I recommend: Assess the detailed explanation of the banking functions at the Central Bank of Malaysia.

Ringgit

The Ringgit is the Malaysian equivalent of the U.S. Dollar. The Sen, or the cent in U.S. terms, is the Ringgit divided by 100, which is also the same as the U.S. monetary denomination. It's important to know the current currency conversion rate prior to making any banking deposits in Malaysia.

I recommend: Use the conversion calculator and Ringgit definition at Convert World for further information.