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It depends on what you want from a bank.
Did you try first to research "banks review in kuala lumpur"?

Here is what i found, that even international banks dont share ability, they are for some reason limited when operating in Malaysia.

The best local bank is Maybank, they are full service and handle international transfers and so on. In international banks, there is HSBC, OCBC and Standard Chartered, all of which have high fees for everything and the lowest interest paid on savings accounts. Maybank has international branches but those are for specialized work like VIP accounts, special loaning for construction projects, not full service like the local branches. There is also the american Citibank but if I remember they only take on rich customers. I think the minimum deposit is RM250,000 (?)

Point being, there is no one bank here that allows a person to expect the same or better service at another of its branches abroad. An OCBC account in Malaysia wont offer the same service at the OCBC branch in California, leading one to just take an account where they are living. Since there is no purpose in paying the highest possible charges at a given global bank, then stick with the best of the normal banks and thats probably Maybank.

Different expats have different needs and preferences so maybe they can chime in about some special service they have been able to enjoy at their preferred bank.

This said, I basically despise all banks and among the reasons is that in Malaysia they are protected by the govt to shield themselves from customers. If your money is stolen, if something goes wrong, if there is credit card fraud, they are not responsible unlike US banks, for example. I hope one day that changes.

Sophisticated products and services to meet customer loyalty. Different ways of making banking services available, mainly for sensitive information and privacy..

I have one local and one international bank and this works well (Maybank and SC).

There are some weird operational things in Malaysian such as a blackout period from about midnight to 7 am when no online transactions can be done (Maybank) and also ATM withdrawals are not possible between about midnight and early morning (not sure exact times).

Not all banks are part of the internet banking system to some pay bills - so this is worth checking this out (HSCB is one of them).

It's not actually correct that there are high fees in all international banks..... actually the opposite is true e.g. if I transfer funds just from my international bank to my local bank the local one takes a fee. If you become a Premier customer then its better. This is done by opening an account with a certain level of deposit. Citibank is also present in Malaysia.

Check whether you have to place a Fixed Deposit in order to get a Credit Card (Debit Cards are issued freely).

At the moment there is a restriction on opening accounts for MM2H visa holders, who can only have ONE banking relationship. So its important to chose wisely. Those on Employment Passes can have more than one bank.

Interest rates for Fixed Deposits tend to be better with local banks. (But it is possible to "negotiate" terms sometimes).

The thing in Malaysia is Cash Back and Discounts which various banks offer. There are also some Draws and Points systems to get goodies.

Personally I investigated HSBC but decided against opening an account. They are perceived as a very expensive bank and a bit flaky, i.e. they suddenly close accounts or restrict services.

All above notes are very good. Thank you to all.

For USA CITIZENS ONLY with MM2H approvals-
Singaporean banks, e.g. OCBC and OUB, will tell you to look elsewhere. They are not willing to work with the US citizens thanks to the US government putting pressure on the banks all over the world.

HSBC will be vetting your application for one month and no guarantees that they will let you to open an account to deposit your FD with them either.

The best option for the US citizens is a Malaysian bank. Apply to all of them and compare the deals.
In the application for opening a new account, you will be asked for your current address, Malaysian phone number (foreign number is not accepted), your SSN. You will also fill out your tax form there. You obviously need to show your MM2H approval letter and your passport.

Some banks ask for your original SS card, so it is a good idea to bring it in case it is needed. You may need to show your rental agreement or a utility bill as a proof of your local address, but not all the banks are asking for this..
But even for a Malaysian bank it takes one week to process your application. Good luck! 

Gravitas wrote:

At the moment there is a restriction on opening accounts for MM2H visa holders, who can only have ONE banking relationship. So its important to chose wisely. Those on Employment Passes can have more than one bank.

I asked an agent in Sabah about this restriction, so far there is no such restriction in Sabah.
I can't confirm about the peninsula.

This discussion is in the Kuala Lumpur section of the forum and therefore relates to peninsular Malaysia.

The restriction was put in place by Bank Negara (central bank of Malaysia).

It would be great if you could reconfirm when you have more than one banking arrangement.

Gravitas wrote:

This discussion is in the Kuala Lumpur section of the forum and therefore relates to peninsular Malaysia.

The restriction was put in place by Bank Negara (central bank of Malaysia).

It would be great if you could reconfirm when you have more than one banking arrangement.

We have no plan to have more than one bank here, in Sabah, in the nearest future. However, an agent  I talked about this told me that one of her clients just recently opened accounts in two banks and there is no such restriction in Sabah.
Why would be such a rule in the peninsula, it is hard to explain. But with a rule like this, you are correct, one needs to choose a bank wisely. I guess, it is always a good idea to shop for the best option, right?

The background to the new ruling was people were opening new banking arrangements when they discovered they could get higher interest rates for their FD elsewhere (without negotiating with their current bank). So the mm2h programme was getting lots of requests to move the Fixed Deposit around year after year. Firstly there was a restriction on moving FDs and following that the single banking relationship started.

Shopping around includes things like not placing the FD on a one year rolling basis because the board rate of interest is 2.95-3.15% approximately. Whereas it is about 4.3% on a 5 year placement.

Other considerations include ease of depositing funds in the Malaysian current/checking account. Some people like to have a global relationship say with HSBC. Others prefer to use services such as Transferwise (limit rm100k per transfer has been reported). It may be possible with an existing international bank to prepare the mm2h FD account before arrival in Malaysia.

Another issue is getting a Credit Card. Malaysian banks require a separate FD to be set up for the maximum borrowing limit of the card........ go figure....... so credit would be against own funds. Debit Cards are available but unfortunately some services in Malaysia such as some online booking portals only accept a CC and not a DC hence choice of bank is affected.

Lastly it is worth enquiring whether the interest earned on the FD can be paid into the current /checking account instead of it being added to the FD itself.

Rules are always changing in Malaysia so whatever you may be trying to achieve, it will help you to have face to face meetings to make enquiries rather than just relying on Internet searches. Keep in touch with other foreigners as well to share experiences. Often the newbies have information. Agents often inform their clients of changes. Some embassies hold regular mm2h information meetings which may be worthwhile attending.

HSBC have gone totally bonkers ever since they were caught money laundering for the Sinaloa cartel. I would stay well away from them.

Maybank is the best local bank for services. The others, HLB, Public Bank etc are okay but not as sophisticated, esp in terms of online banking. Maybank means less queuing in the post office. 

When you go, make sure you get the name and contact number of the person you deal with. Then establish a relationship. Otherwise, you'll spend years trying to get past tellers who think their function is to be difficult.

Basically, keep as much of your money out of Malaysia as you can because they will mess you about with nonsense new 'rules'.

Yes, I loathe banks too :-)

Gravitas wrote:

Shopping around includes things like not placing the FD on a one year rolling basis because the board rate of interest is 2.95-3.15% approximately. Whereas it is about 4.3% on a 5 year placement.

Interesting. Do you know any Malaysian bank offering a 5 year placement?

The interesting thing is that in Malaysia rates rise by length of time the deposit is held and not on the size of the deposit

Here's an example - Bank Rakyat



(need to go to the rates section from the dropdown menu under "Features" )

Term Deposit-i Account
Rates
Term (Month) /

1.  3.50
2.  3.55
3.  3.65
4.  3.70
5.  3.75
6.  3.80
7.  3.80
8.  3.85
9.  3.85
10. 3.90
11. 3.95
12. 4.10
15. 4.15
18. 4.20
24 4.25
36 4.35
48 4.45
60 4.50
> 60 Visit bank

Here's Public Bank rates

Here's Maybank Board Rates

By doing Priority Banking (requires a minimum amount of assets in the bank of around MYR 200,000) clients can access terms above Board Rate

Gravitas wrote:

By doing Priority Banking (requires a minimum amount of assets in the bank of around MYR 200,000) clients can access terms above Board Rate

Thank you so much, Gravitas, for the information on the banks!
It looks like Rakyat gives a higher rate for 60 months.

We visited 2 branches of Maybank and didn't get a good impression, because it is very crowded and their service is not efficient. Yes, it is true that a preferred client (locking 250RM, not 200) gets a better service, however, I can agree with Ellen suggesting to "keep as much of your money out of Malaysia".
We found that Public bank has a much better customer service at the branches.  CIMB was also good.
However, Ellen suggests that paying bills on-line is only good at Maybank:

Ellen Whyte wrote:

Maybank is the best local bank for services. The others, HLB, Public Bank etc are okay but not as sophisticated, esp in terms of online banking. Maybank means less queuing in the post office.

Just wondering what other people's experience on paying bills at Malaysian banks.

Priority Banking clients usually have their own designated banking areas and don't have to use the main banking hall. (In some cases with tea and coffee service)

A quick check of say utility company websites will determine which banks are participating in their online banking options. Standard Chartered, HSBC and often other international banks are in their online systems

It is also worth investigating services available at ATMs for bill payments.

To avoid a fee (apart from the rm1) when withdrawing cash at an ATM there are some reciprocal banking arrangements eg Cimb and Maybank.

Personally I don't like the Statement style at Maybank and so use an international bank for daily transactions. Their online banking is also a bit clumsy for some things such as transfers. Like requiring an email address. But then learned the tip to just use ones own and not the recipients...

To get a credit card through maybank requires placement of a FD to the maximum credit value desired. Some online portals don't accept Debit Cards

Regarding having as little money in Malaysia. With attractive interest rates it's possible to live off an extra FD. But offshore exchange rates are also attractive.