Top 10 Banks in Malaysia
Mesan Ali
Whether you are starting a business in Malaysia, getting your first job, or looking to secure your savings, opening a bank account can be immensely beneficial. The banking sector in Malaysia is vast, hosting a multitude of local and international banks that have firmly established their presence in the industry. Each bank leads the market in different categories, offering unique services tailored to various customer needs.
However, choosing the right bank can be a daunting task. Since this is not a “one-size-fits-all” situation, we have compiled a list of the top 10 banks in Malaysia to simplify your decision-making process.
Overview of Banking in Malaysia
The banking sector in Malaysia consists of a blend of national and international financial institutions. It plays an essential role in the nation's economic development, providing a wide range of services that include personal accounts, loans, and corporate financing.
In addition to local and international banks, Malaysia also has Islamic banks, which operate according to Shariah law and do not offer interest-based products.
To open a bank account in Malaysia, you typically need the following documents:
A valid identification card (MyKad)
Proof of address (utility bill or rental agreement)
Initial deposit (varies by bank)
While some banks offer free account openings, others may charge a monthly or annual maintenance fee, which can differ significantly. It's important to note that using your bank's ATM is usually free, but using another bank's ATM may incur transaction fees.
The local banking system remains affordable for most services, but if you require a USD account or need to receive international funds, you should consider Elevate Pay.
Top 10 Banks in Malaysia
Let's explore the top 10 banks in Malaysia, highlighting each bank’s standout features.
Maybank
Founded in 1960, Maybank is the largest bank in Malaysia and a leading financial services provider in Southeast Asia. With total assets of 947.8 billion Malaysian ringgit and equity of 86.0 billion Malaysian ringgit, Maybank ranks first. The bank offers a comprehensive range of services, including personal banking, corporate banking, and investment solutions. Notably, Maybank posted the strongest year-on-year growth in operating income, largely driven by an increase in non-interest income. Its extensive branch network and digital banking capabilities make it a popular choice among customers.
CIMB
CIMB, established in 2006, is one of the largest banks in Malaysia, boasting total assets of 733.6 billion Malaysian ringgit and equity of 73.72 billion Malaysian ringgit. The bank has gained a reputation for its strong performance, particularly after its recent mergers and acquisitions, which resulted in the highest Return on Equity (ROE) among its peers. CIMB offers a wide array of services, including personal finance, investment banking, and Islamic banking, catering to diverse customer needs.
Public Bank
Founded in 1966, Public Bank is recognized for its prudent financial management and extensive range of services. With total assets of 493.3 billion Malaysian ringgit and equity of 50.2 billion Malaysian ringgit, Public Bank ranks third. The bank has consistently shown a positive increase in ROE following its strategic mergers and acquisitions, reflecting its effective management of equity capital. Public Bank is well-regarded for its retail banking services and customer-centric approach.
RHB Bank
Established in 1994, RHB Bank has emerged as a strong contender in the Malaysian banking sector. With total assets of 310.8 billion Malaysian ringgit and equity of 28.7 billion Malaysian ringgit, it ranks fourth. RHB Bank has managed to maintain stable operating income quarter-over-quarter, despite a significant year-on-year increase in operating expenses. The bank offers a broad range of financial products, including personal banking, business financing, and wealth management services.
Hong Leong Bank
Founded in 1905, Hong Leong Bank is known for its strong performance and innovative banking solutions. With total assets of 265.2 billion Malaysian ringgit and equity of 32.1 billion Malaysian ringgit, it ranks fifth. The bank has demonstrated significant improvements in Return on Assets (ROA) and ROE after recent mergers and acquisitions, positioning itself as a competitive player in the market. Hong Leong Bank offers a variety of services, including retail banking, corporate banking, and Islamic banking.
AmBank
AmBank, established in 1975, has made significant strides in the Malaysian banking sector. With total assets of 185.2 billion Malaysian ringgit and equity of 17.6 billion Malaysian ringgit, it ranks sixth. AmBank is noted for having the highest Return on Assets (ROA) among its peers, reflecting its efficient asset utilization. The bank provides a diverse range of financial services, including personal and corporate banking, investment solutions, and Islamic banking.
UOB Malaysia
UOB Malaysia, part of the Singapore-based United Overseas Bank Group, was established in 1993. With total assets of 140.4 billion Malaysian ringgit and equity of 12.6 billion Malaysian ringgit, it ranks seventh. UOB Malaysia has a strong reputation for its corporate banking services and customer service excellence. The bank's recent acquisition of Citibank Malaysia has further solidified its position in the market, enabling it to offer a wider array of financial products and services.
Bank Rakyat
Founded in 1954, Bank Rakyat is known for its Islamic banking services and commitment to serving the community. With total assets of 117.3 billion Malaysian ringgit and equity of 22.6 billion Malaysian ringgit, it ranks eighth. The bank has been steadily increasing its total assets, contributing to the overall growth of commercial banks in Malaysia. Bank Rakyat focuses on providing personal financing and microfinance solutions to its customers.
OCBC Malaysia
As a subsidiary of the Singapore-based OCBC Bank, OCBC Malaysia has been operating in the country since 1932. With total assets of 99.5 billion Malaysian ringgit and equity of 9.3 billion Malaysian ringgit, it ranks ninth. OCBC Malaysia benefits from its parent company's global presence and financial stability. The bank offers a variety of services, including personal banking, wealth management, and corporate banking.
HSBC Malaysia
Founded in 1884, HSBC Malaysia is a part of the global HSBC Group, one of the largest banking and financial services organizations in the world. With total assets of 94.6 billion Malaysian ringgit and equity of 11.2 billion Malaysian ringgit, it ranks tenth. HSBC Malaysia is known for its international banking operations and comprehensive suite of financial products, including personal and business banking, investment services, and wealth management.
Sector Overview
The banking sector in Malaysia has shown steady growth, with total assets increasing to around 1.78 trillion Malaysian ringgit in 2023. The sector's performance is influenced by various factors, including operating income, non-interest income, and operating expenses. Maybank and CIMB have emerged as notable performers, showcasing strong year-on-year growth and high Return on Equity.
Why is Elevate Pay the best Choice for USD Bank Accounts?
Freelancers and remote workers earning in USD often face challenges in managing their international income. Elevate Pay is designed to address these hurdles, allowing users to streamline their financial transactions. With Elevate Pay, users can open a free USD account through a simple three-step sign-up process. This account, provided by Bangor Savings Bank, enables you to receive and store USD funds easily.
Elevate Pay focuses on serving emerging markets, providing tailored customer service that aligns with your specific needs. By downloading the Elevate Pay app on your iOS or Android device, you can start using the service immediately, making it an excellent solution for managing your USD income.
Conclusion
This guide serves as a comprehensive resource when looking for options to open your bank account in Malaysia. With an overview of the top banks in the country, you can make an informed decision based on your personal or business needs. Malaysia's banking sector is home to several leading financial institutions, each offering unique services.
By evaluating these 10 banks, you should be able to identify the distinctive features of each institution and make the right choice that aligns with your financial interests. The Malaysian banking industry is robust and diverse, ensuring that there is a suitable option for everyone.