Paying a Malaysian supplier: why the invoice is in dollars, not ringgit, bank details without IBAN, the Sdn. Bhd. form, Labuan companies and state weekends.
Estimate the minimum fee
The final fee and rate are fixed in the payment order
Minimum amount: 10,000 USD or equivalent
This is a minimum, not an offer or a rate lock. The final figure depends on the country, amount and the banks involved and is fixed in the payment order.
Request a quoteMalaysia is among the largest producers of palm oil and rubber gloves, and semiconductors are assembled and tested in the state of Penang. Russian companies buy palm oil and its derivatives, latex and nitrile gloves, electronic components, rubberwood furniture and cocoa products here. For palm oil, payment for large batches under a seasonal contract is typical; for electronics, an advance with the order and the balance before shipment.
Palm oil trading is often handled by traders from neighboring Singapore. In that case a Singapore company issues the invoice, the money goes to Singapore, and that country’s rules apply: see the page on payments to Singapore. Check who the seller is in your contract before you request a quote.
The Malaysian ringgit (MYR) does not circulate freely outside the country: the Malaysian authorities do not allow it to be traded abroad. So an exporter puts US dollars in the contract, less often euros or yuan. It can receive ringgit from a foreign payer, but not on every route. We select an agent from our pool with a working channel to your supplier’s bank, in the invoice currency. If the supplier is ready to accept both dollars and ringgit, we will show both amounts in roubles.
The exchange rate and the fee go into the payment order before the roubles are transferred. On request, the roubles wait in a special escrow account at a Russian bank until the supplier receives the money, for an additional fee. You do not pay VEDmost separately: the broker’s fee is paid by the agent.
Malaysia does not use IBAN: you need the bank’s SWIFT code, the account number and the beneficiary’s name. The name ends with the legal form: Sdn. Bhd. for a private company, Bhd. for a public one. Since 2019 the registration number in the companies register has had twelve digits, and the old short number may appear next to it in documents. Both refer to the same company: this is no cause for concern.
If the seller is registered in Labuan, a Malaysian offshore territory, find out where the goods are produced and attach a certificate of origin. Your bank will ask about this during currency control.
In most states the weekend is Saturday and Sunday, but in Kelantan and Terengganu it is Friday and Saturday. Holidays in Malaysia follow three calendars: Hari Raya by the Islamic calendar, Chinese New Year by the lunar calendar, Deepavali by the Hindu calendar. The dates shift every year, so check the advance payment schedule with the supplier.
Five steps, the same for every country. Country specifics are described above.
Beneficiary's country, amount, currency, the invoice and the contract or bill, your company's and the beneficiary's details. We review the request before any documents are signed.
We select a network company and a route and prepare the documents. You sign an agency agreement with that company, which sets the execution period, and a payment order: amount, exchange rate and fee. All of this before you transfer your roubles.
You transfer roubles to the network company from your account at a Russian bank. If you need a guarantee, they wait for execution in a special escrow account, for an additional fee.
The agent sends the currency to the beneficiary under this payment order. A sub-agent is engaged only with your consent. The route does not change without a payment order.
We send you the payment confirmation, and a SWIFT confirmation on request. Then the completion certificate, the agent's report and the currency control package. The deal is not closed until the currency has been sent to the beneficiary.
If you need a guarantee, the payment goes through a special escrow account at a Russian bank: the roubles wait there until the agent sends the currency to the beneficiary and are released only upon execution. This scheme carries an additional fee, shown in the quote before the agreement.
The agent executes the payment within 3 business days: the period is written into the agency agreement.
If the beneficiary's bank accepts payment only from a specific payer, the agent engages a sub-agent. Only with your consent. Your agency agreement does not change.
For large volumes, on request, we assign an agent backed by a large exporter's surety; some companies in our network have one. It can be combined with escrow.
Tell us the rate you pay now or send your current agent’s documents. We’ll calculate the all-in cost with the FX markup and charges and look for a lower rate in our network. If there isn’t one, we’ll say so. The comparison is free.
The ringgit cannot be freely bought and sold outside Malaysia. So exporters invoice in US dollars. A payment in ringgit is not possible on every route.
No, Malaysia does not use it. The SWIFT code of the beneficiary's bank, the account number and the company's full name are enough.
A private limited company. Bhd. without Sdn. means a public company. The form must be the same in all documents.
In some states, for example Kelantan and Terengganu, the weekend is Friday and Saturday. If the supplier's bank is there, Friday is a day off.
Labuan is a Malaysian offshore territory. Such companies are lawful, but your bank will ask where the goods are produced. Attach the specification and a certificate of origin.
Describe the payment. We'll reply with a proposed route and terms. We name the agent in advance, and the rate and fee go into the payment order before your roubles are debited.