Economy

A fully-fledged ‘tiger’ economy, from the 1970s onwards Malaysia’s GDP grew rapidly at around 10% annually. However, in 1997 the Asian financial crisis brought this process to a shuddering halt. Malaysia has recovered reasonably well since then, although the headlong pre-1997 expansion has been replaced by a more measured pace of growth of around 4 to 5.5% each year, reaching 5.3% in 2005. Inflation was around 3% in 2005.

Healthy foreign exchange reserves, low inflation and a small external debt are all strengths that make it unlikely that a financial crisis similar to 1997 will re-occur. The Ringgit/US Dollar peg was abolished in July 2005. This has not resulted in any significant change to the exchange rate.

Malaysia is a member of the Pacific Rim organization APEC (Asia-Pacific Economic Forum), which is assuming an increasingly important role in the regional economy.


Currency Information:

• Currency
  Ringgit (MYR; symbol RM) = 100 sen. Notes are in denominations of RM100, 50, 10, 5, 2 and 1. Coins are in denominations of 50, 20, 10, 5 and 1 sen. The Ringgit is often referred to as the Malaysian Dollar.
  
• Currency Exchange
  The best currency for exchange is the Pound Sterling, but US Dollars are also widely accepted. All commercial banks are authorized foreign exchange dealers; major hotels are only licensed to buy or accept foreign currency in the form of notes and traveller’s cheques. It may be difficult to exchange foreign currencies outside the main tourist centers.
  
• Credit/Debit Cards and ATMs
  American Express, Diners Club, MasterCard and Visa are accepted.
  
• Traveller Cheques
  Accepted by all banks, hotels and large department stores. To avoid additional exchange rate charges, travelers are advised to take traveller’s cheques in Pounds Sterling, US Dollars or Australian Dollars.

Banking Hours:

Mon-Fri 0915-1630 (some branches open on Saturdays). Banks in Kelantan and Terengganu open Sun-Thurs 0915-1600/1630.