Interbank withdrawals will no longer be charged RM1 (S$0.32) in Malaysia

MALAYSIA: Starting July 1, 2026, Malaysian bank customers can withdraw cash at any ATM or smart recycler machine nationwide without paying the RM1 (S$0.32) fee. The initiative, supported by ABM, AIBIM, and ADFIM in collaboration with PayNet, grants unlimited free withdrawals across 14,000 machines. 

The associations said the move reflects the industry’s commitment to accessible, inclusive, and affordable financial services, easing everyday burdens while recognising that cash remains essential for many Malaysians.

Positive reactions have flooded social media following the removal of the ATM fee. On X, one praised the initiative, noting Malaysians no longer need to hesitate when withdrawing cash from another bank’s ATM. They described it as a progressive move by the government to ease everyday financial burdens. The user also expressed hope that more consumer‑friendly measures will follow. 

Additionally, another expressed relief, noting that their preferred bank, Bank Islam, has limited ATM availability compared to larger institutions. The user highlighted how customers have long felt forced to make “donations” to banks through transaction fees simply to access their own money.

Some voiced suspicions that this move may be politically timed, hinting that national elections could be approaching. Throughout the tenure of the Madani government, complaints have surfaced about rising living costs and less convenient policy changes. 

Calls for transparency have emerged following this. Some questioned whether banks should be required to disclose how much revenue they collected from the fee over the years. He argued that the policy was unfair to consumers, who were forced to pay simply to access their own money.

Others continued on with the positivity, saying this will encourage cash usage again, as this move will increase the convenience of withdrawals. 

Malaysians welcome the move, as it eases everyday financial routines. While the country is increasingly cashless, there remain transactions that still require physical money. Eliminating the fee helps reduce unnecessary burdens and ensures greater convenience for those who depend on cash access.