Under a new bank rule in Malaysia, those who change foreign currency worth RM3,000 and below must provide their full name, identification card number, and date of birth. This has apparently led to a loss in business for money changers in Malaysia.
Meanwhile, foreigners need to show their passports.
Many customers are now changing their money in Singapore instead as they fear their particulars are being collected to be sold to scammers or reported to the Inland Revenue Board, The Star reported.
In light of the new law which came into force on 6 Feb, some workers in Malaysia are heading to Singapore to change their money instead.
47-year-old Mohd Ali Hassan, who travels to Singapore daily, told The Star that the new ruling is “confusing and inconvenient”.
“Why are they asking me for my personal details? I am worried this information may be misused and they might report me to the income tax department,” he said.
He added that he used to change his money in Johor, where the exchange rates were better sometimes.
Another Malaysian working in Singapore, Ms Wendy Tan, 35, has started changing her money here too.
Source: Andrzej Rostek on Canva
She expressed concern about the potential misuse of her particulars. Ms Tan also noted her shock when the money changer asked for her details “just to change S$200 (RM710)”.
She added that the public could have gotten more time to prepare for the new rule. Instead, many are now choosing to convert their cash in Singapore.
Money changers in Johor Bahru have felt the effects of the new law, The Star reported.
One money changer said business used to be good at the end of the month as that was when salaries would come in.
“I paid more than S$142,300 (RM500,000) in taxes to the government last year,” he claimed.
But he said he won’t be able to pay that amount this year due to a drop in sales.
He also warned that the new rule would cause an “illegal outflow” of ringgit to Singapore to cope with rising demand there.
Processing time for each transaction has also increased, leading to longer queues.
Another money changer who has been in business for more than 20 years said his staff members now often face abuse from angry customers, some of whom even curse at them.
“I hope the central bank of Malaysia can find a solution to this problem as we are facing a huge drop in business,” he said.
When asked whether the rule will help fight terrorism or scammers, he only replied: “My customers are daily wage earners who work in Singapore to support their families in Johor.”
K. Raman, chief executive officer (CEO) of the Malaysian Association of Money Services Business (MAMSB), explained the law in light of the backlash.
He said that the law was drafted in hopes of safeguarding the integrity of the financial system.
Those who converted cash worth more than RM3,000 already had to provide their personal details, he reasoned.
The change is simply that the law now affects those who convert less than RM3,000 in cash, he told The Star.
In response to complaints, Mr Raman said he has issued notices to members to show their customers and make them understand that this is a requirement set by the regulators.
He also urged customers to be patient.
Also read: S’pore Dollar equates to RM3.57 as M’sian Ringgit drops further on 20 Feb
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