Kuala Lumpur: Malaysians could face losses of up to RM3.3 billion annually by 2029 if hidden fees in foreign exchange transactions remain unaddressed, as highlighted by recent research commissioned by Wise.

According to BERNAMA News Agency, Wise's research indicates that in 2023 alone, Malaysians lost approximately RM2.99 billion (US$655 million) due to undisclosed forex fees. Despite 76 percent of individuals who transferred money internationally believing they understood the costs, only 18 percent were aware of the hidden forex margins affecting their transactions.

Wise explained that an international transfer, such as US$1,000 (around RM4,424) marketed as 'fee-free', could actually incur RM159 in hidden forex markups if a 3.6 percent margin is applied. Although providers often state upfront fees, many include undisclosed markups on exchange rates instead of using the mid-market rate, causing consumers to pay more than anticipated.

Wise, a global technology company specializing in money transfers, reported that 52 percent of Malaysians used PayPal for international transactions, followed by banks at 44 percent, and Western Union at 33 percent. The company noted that while people assume transparency from these providers, many remain unaware of the hidden exchange rate markups.

As more Malaysians transfer money abroad for family support, education, and healthcare expenses, these hidden charges risk becoming a significant financial burden. Wise recommends that Malaysians compare exchange rates against the mid-market rate, be cautious of 'zero-fee' or 'low-fee' claims, and scrutinize the fine print to detect hidden forex fees.