Oversea-Chinese Banking Corporation (OCBC), Singapore's second-largest bank, has introduced a service allowing local personal savings accounts to hold Malaysian Ringgit (MYR) for the first time. By adding the Ringgit—whose holding in overseas bank accounts has been limited due to the characteristics of a non-internationalized currency—to its multi-currency savings accounts, customers are now provided with a new asset management environment where they can respond to exchange rate fluctuations while earning interest.

OCBC announced on October 21 that it would officially incorporate the Malaysian Ringgit into its Global Savings Account (GSA) and Premier Global Savings Account lineups. Consequently, starting October 23, customers will be able to exchange currencies for Ringgit and store them in their accounts in advance at favorable exchange rates ahead of trips to Singapore or local consumption. Unlike existing digital multi-currency wallet services, this OCBC account differentiates itself by paying interest on Ringgit cash balances. Until June 30 of next year, the initial implementation period, an annual interest rate of 1 percent will be provided, after which an annual rate of 0.5 percent will apply. The holding limit per account is set at a maximum of 50,000 Ringgit.

This measure is closely related to the recent strong trend of the Singapore Dollar (SGD). As the Singapore Dollar strengthened following the monetary policy adjustments by the Monetary Authority of Singapore, consumers' movements to utilize exchange rate fluctuations became active. In fact, the number of subscribers to related global savings accounts surged by more than 25 percent in three months immediately following the policy adjustment. Tan Siew Lee, Head of Group Wealth Management at OCBC, diagnosed that consumers have a clear tendency to preempt favorable exchange rates, emphasizing that customers can now achieve the dual goals of exchange rate advantages and asset growth simultaneously.

Malaysia firmly ranks as the top overseas spending destination for Singapore residents. According to OCBC's data, Singapore residents' local spending in Malaysia has steadily increased, recording a compound annual growth rate of 25 percent since 2022. One-third of all overseas transactions occur in Malaysia, with dining and shopping cited as the major spending categories. In particular, ahead of the upcoming opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, cross-border travel and consumption activities between the two countries are expected to accelerate further.

Users can freely make payments locally in Malaysia without the burden of additional foreign exchange transaction fees by utilizing the linked OCBC debit card. In addition, the convenience of withdrawing Ringgit cash without extra costs such as currency exchange fees, management fees, and third-party operator fees at all OCBC automated teller machines (ATMs) in Malaysia is provided. As small exchange rate differences lead to significant savings over frequent visits and prolonged consumption, this service expansion is expected to greatly enhance the financial convenience of commuters and travelers frequently traveling back and forth between the two countries.

[ⓒ Global Economic Times. 무단전재-재배포 금지]