Sending Money to Malaysia from the UK: Do’s and Don’ts

The United Kingdom and Malaysia have a long intertwined history and, even in modern, independent Malaysia there are still strong ties with the centre of the former British Empire. There is often the need for Malaysian expats in the United Kingdom to send money back to Malaysia or business deals to be transacted efficiently between the two countries. There are many ways to go about this process, but the fact remains that sending cash from the UK to Malaysia can come at quite significant expense. We have compiled a few do’s and don’ts here for you to consider before you make the final decision about how to go about your money transfer from the UK.

Do

-Make sure that you have checked not only what fees are being charged at both the UK and Malaysian ends, but how good the exchange rates are too. It’s a good idea to compare the rates that you have been offered to an independent source so you know you’re not getting a raw deal, as many providers will load the rates in order to appear cheaper than their competitors.

-Talk to the company you are using to send funds to Malaysia about what is going to happen at the other end. Are the funds going to arrive right into a bank account or will the recipient have to go out to collect them from another outlet? Is the recipient going to be charged any additional fees for the transfer when the money gets to Malaysia, and if so exactly how much?

-Fully understand how long the funds are going to take to reach Malaysia. Some providers will have them there in a week, some longer. Others will have them in a Malaysian bank account within 1-2 business days.

Don’t

-Use a small, brick and mortar remittance service just because they are cheaper. There are laws that govern remittance providers operating out of the UK and any smaller operator is not required to ringfence (separate client’s money from their own) at the end of the business day. This can put your money at risk if they hit hard times while completing your transaction.

-Use an online transfer service without doing your research. It’s important that you’re satisfied that they are established in the market and that they will take care of your funds. A quick trip to the search engines before you get out your bank card will go a long way towards seeing what experiences others have had in the past.

-Just go straight to your high street bank assuming that it is your best option. Unless your UK institution has a reciprocal arrangement with the recipient’s bank in Malaysia, you will find that this is generally the most expensive way to go, not to mention that it can also take over a week for the funds to arrive in Malaysia.

Hopefully this brief article has highlighted a few of the things that you need to consider before you transfer money from the United Kingdom to Malaysia. In today’s global village, transferring money internationally is increasingly something that people need to do in the course of their daily lives and there is no need to pay over the odds for such a service.

OrbitRemit provides transparent exchange rates, low fees and will have your money in a Malaysian bank account on the next business day after we receive your funds. Check out our calculator to see exactly how much you’ll save by transferring with us.

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Where To Invest In Malaysia Hotspots For Property Investment?

Where are the Klang Valley hotspots for property investment to make more money? Everyone is so interested to know where to invest in property hotspots at KL and PJ. Therefore, I keep collecting the information released from our Malaysia property experts and consultants regarding the hotspots for property investment, especially residential property at KL and PJ.

Malaysia KL and PJ Property Hotspots for Investment

1. Northeastern Petaling Jaya (Bandar Utama, Taman Tun Dr Ismail, Mutiara Damansara, Kota Damansara, Sri Damansara, Desa ParkCity and Valencia)
2. Subang Jaya – Shah Alam belt
3. Damansara Heights
4. Sri Hartamas
5. Bangsar
6. Taman Seputeh
7. Taman Desa

Why Invest in Property in Malaysia?

The value-driven real estate market with sustainable growth potential has made Malaysia an attractive property investment destination and option for investors. Malaysia's economy remained on a steady path in the first quarter of 2013 by registering a growth of 4.1%. According to a new World Bank report, Malaysia's gross domestic product (GDP) is expected to grow by 5.1% for both 2013 and 2014, driven by higher consumer and business spending.

While the housing index in Malaysia reported a decrease amounting to 6% in the first quarter of 2013, compared to 12.2% in the last quarter of 2012, Bank Negara Malaysia, the central bank forecasts a rise to 9.31% by the year-end.

The Malaysian property market remains positive even after the much-awaited Election 2013. The Malaysian housing market remains strong, although the rate at which house prices are rising is now slowing down, mainly due to stricter lending guidelines including the 70% loan cap on the margin of financing for one’s third property onwards, and the revised real property gains tax (RPGT) of 15% for properties sold within two years and 10% for properties sold between two and five years. Banks are also using net income instead of gross income to calculate the debt service ratio for loans.

Doing Business in Malaysia : Investment and Tax Incentives

FOREIGN INVESTMENT

Malaysia welcomes foreign investments, particularly in the manufacturing sector, and does not discriminate against investors from any country. To encourage foreign investments, Malaysia offers many incentives and other advantages to foreign investors and has entered into double taxation agreements with more than 60 countries.

Malaysia has also entered into investment guarantee agreements with over 70 countries. These agreements generally guarantee that, except for public purposes, Malaysia will not expropriate or nationalise property without prompt and adequate compensation.

Foreign investors in the manufacturing sector can hold 100% equity. All projects approved under this policy will not be required to restructure their equity. A company with foreign paid up capital of USD 2 million and above will be allowed up to 10 expatriate posts, including five key posts (posts that are permanently filled by foreigners).

Malaysia offers a wide range of  tax incentives under the Promotion of Investments Act 1986 and the Income Tax Act 1967. The main incentives include the following:-

Pioneer status  Investment tax allowance  Reinvestment allowance  Industrial adjustment allowance  Incentives for high technology and strategic projects  Double deduction of expenses incurred for promotion of exports    Incentives for training  Incentives for approved international procurement centre and regional distribution centre

Incentives for agricultural projects   Incentives for research and development  Incentives for in-bound tour operators   Incentives for approved overseas investments  Incentives for overseas construction projects  Incentives for exports of products manufactured in Malaysia and export of approved services  Operational Headquarters incentives  Labuan International Offshore Finance Centre  Multimedia Super Corridor (MSC)  International Procument Centre  Regional Distribution Centre

Other attractive socioeconomic advantages of Malaysia

•Malaysia in the third place after India and China in the 2014 Global Services Location Index (GSLI) for off shoring destination of choice.

•Malaysia maintains low unemployment rate of less than 3% yearly with the inflation rate at average 2.5%. Living cost is relatively low in the region.

•Malaysia experiences increasing visitor arrivals for 2013 – Top 10th Tourist Destination in the World.

•A place of peaceful living free from major natural disasters such as volcanoes, floods, tsunami and earthquakes.

•Harmonious multicultural society.

•English language is widely used thus it is easy to communicate with locals.

•Malaysia is ranked 3rd Best Place to Retire by International Living Inc. in 2014 for its retirement residency program – Malaysia My Second Home program (MM2H).

•Easy and affordable connectivity to other countries with well developed infrastructure of airports, highways and seaports.

•Private hospitals and health care system attracting foreigners for quality services with world-class healthcare facilities.

Why do foreigners invest in Malaysian property?

In terms of property market, Malaysia property prices are still among the cheapest in Asia with good growth amidst a resilient economy. Regional property markets like Hong Kong and Singapore have actually risen too much in the past few years and are now taking a breather, as shown by the Regional 1- and 5-year House Price Changes below. This has deterred the appetite of foreign investors in the two popular Asian cities.

The majority of 93% of the total investment in Malaysia are still by the local Malaysians, and only 3% are from the foreigners. Thus, Malaysia's property price index has been steady over the years despite constant hiccups of world crisis due to steadily increasing demand for properties. The local demand fuels the wealth and prosperity growth over the years in Malaysia.