From Banks To Borders: The New July Changes That Affect Malaysians
Several new policies, as well as updates to existing ones that cover banking and immigration that have come into effect today.
- From 1 July, Malaysians can withdraw cash from any bank's ATM for free, scrapping the RM1 interbank fee across 14,000 machines nationwide.
- Malaysia now offers 10-year passports for RM350, featuring 94 security features, with applications rolling out in phases throughout July 2026.
- Imported CBU electric vehicles must now meet a minimum CIF value of RM200,000 and 180kW output, likely pushing showroom prices above RM300,000.
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Several significant policy and regulatory changes are taking effect starting from today (1 July 2026), affecting everyone from bank customers and travellers to businesses and car buyers.
Here’s a quick roundup of everything we know:
Free Interbank ATM Withdrawals Nationwide
Perhaps the most consumer-friendly change this month is the abolition of the RM1 interbank ATM withdrawal fee.
Starting 1 July, debit cardholders can withdraw cash from any bank’s ATM or Smart Recycler Machine (SRM) in Malaysia without paying the RM1 charge. The initiative covers more than 14,000 ATMs and SRMs nationwide and allows unlimited withdrawals.
The Association of Banks in Malaysia (ABM) earlier said the initiative, undertaken in collaboration with Payments Network Malaysia Sdn Bhd (PayNet), reflects the banking industry’s ongoing commitment to making financial services more accessible, inclusive and affordable for its customers.
The RM1 interbank cash withdrawal fee at ATMs in Malaysia was historically charged to cover the maintenance, security, and networking costs of shared financial infrastructure, specifically the Malaysian Electronic Payment System (MEPS) managed by Payments Network Malaysia Sdn Bhd (PayNet).
Who benefits from this?
- Anyone who regularly uses ATMs outside their own bank’s network.
- Rural and smaller-town residents who may not have easy access to their own bank’s machines.
10-Year Malaysian Passports
Back in June, Malaysia officially gazetted new passport fees that include a 10-year passport validity option, a major change from the traditional five-year passport.
The new 10-year passport costs RM350 for Malaysians aged 18 and above, offering longer validity and fewer renewal hassles for frequent travellers, while the five-year passport remains at RM200.
Additionally, new passports issued from today onwards have enhanced security features that strengthen protections against forgery, alteration and misuse.
According to Immigration director-general Datuk Zakaria Shaaban, the enhanced travel document will have 94 security features, nearly double from the previous version and includes visual, covert and forensic security features.
Malaysia’s Immigration Department advised citizens not to rush into applying for the new passport, and released a list of immigration counter locations that will accept applications for the updated passport in phases.
Phase one begins today, while phase two starts on 6 July, phase three on 9 July, and the fourth final phase will take place on 13 July.
New Rules For Imported EVs
The government is tightening requirements for fully imported, completely built-up (CBU) electric vehicles (EV).
A new policy, introduced by the Ministry of Investment, Trade, and Industry (MITI), states that from 1 July onwards, all imported EVs must have a minimum CIF (Cost, Insurance and Freight) value of RM200,000 and they must also produce at least 180kW of power.
Because of that, MITI also said showroom prices for CBU EVs may likely start from RM300,000 after implementation of the new ruling.
However, vehicles that are already in the country, at local ports or in transit before 1 July can continue to be sold under the previous framework until inventories are depleted, limiting the immediate impact on consumers.
The new rule is aimed at safeguarding the Malaysian automotive industry by encouraging global manufacturers to establish local assembly operations.
So at the moment, that dream EV you’ve always wanted might have had a giant price hike, unless you’ve already booked it before today.
Vehicle Entry Permit Enforcement Continues
Malaysia’s Vehicle Entry Permit (VEP) for Singapore-registered vehicles is now under full enforcement.
Starting today, Singaporean motorists entering Malaysia by land must have a registered and activated VEP tag, and non-compliant vehicles can be issued a RM300 summons. Motorcycles remain temporarily exempt.
According to a report by Malay Mail dated 4 June, nearly 200,000 RFID tags — which act as ID cards for registered vehicles — have been installed and activated this year, based on the Ministry of Transport’s estimates.
Ten Singaporean motorists have been fined in the first hour of the VEP’s implementation today, which began at midnight, New Straits Times reported.
The VEP system was first mooted in 2017 to combat cross-border crimes like car theft as well as tackling widespread road rules violations by Singaporean car owners who often escape enforcement.
Phase 4 Of E-invoicing Extended To End Of 2027
The Inland Revenue Board’s (LHDN) e-invoicing rollout continues to expand today.
Businesses with an annual revenue of RM1 million to RM5 million (based on FY2022 audited accounts) have been given a longer penalty-free relaxation period to proceed with implementing e-invoicing systems. The extension ends on 31 December, 2027, according to a newsletter by chartered accounting firm PKF Malaysia.
The official implementation date began on 1 January 2026, but the government provides a penalty-free transition period to allow affected SMEs to adapt.
Businesses with an annual revenue of below RM500,000 remain exempt for now, while implementation deadlines for smaller businesses were previously deferred. Companies in the next revenue tiers are gradually being brought into the e-invoicing ecosystem as Malaysia moves towards broader digital tax compliance.
The e-invoice programme is one of the government’s biggest tax administration reforms and will eventually affect most businesses operating in Malaysia.
BUDI Diesel Integrated With BUDI95
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim earlier announced that the government will reduce the subsidised diesel price for Malaysians to RM2.10 per litre, effective July 2026.
In addition, the BUDI Diesel programme will be integrated with the BUDI MADANI RON95 (BUDI95) initiative from today, with subsidy verification to be carried out using MyKad.
DBKL Business Licences Can Now Be Renewed for Up To Three Years
Kuala Lumpur City Hall (DBKL) has introduced a new initiative allowing business licences to be renewed for up to three years, as part of efforts to create a more business-friendly, efficient and progressive urban ecosystem.
Under the new system, approved business licence renewals can be extended from the current one-year validity to either two or three years, subject to certain conditions.
One of the main requirements is that licence holders must not have any outstanding fines or rental arrears with DBKL.
EPF Physical Contribution Payment Counters To Close
All Employees Provident Fund (EPF) contribution payment counters at EPF offices nationwide will cease operations effective 1 July 2026.
However, EPF service counters will continue operating as usual.
Following the closure, members and employers can continue making contribution payments through the following alternative channels:
- EPF i-Akaun mobile application
- Internet banking
- Authorised bank agent counters
- Self-Service Terminals (SST)
- EPF Mobile Team / Retirement Advisory (RA) services
MADANI Book Voucher Redemption Begins
Redemption for the 2026 MADANI Book Voucher Programme will run from 1 July to 31 October 2026.
A total of 2,217,579 recipients are expected to benefit from the initiative, including students from transition classes, Forms One to Six, vocational colleges, matriculation colleges, and the Institute of Teacher Education Malaysia (IPGM).
According to Deputy Education Minister Wong Kah Woh, the e-vouchers can be redeemed from 11am via the BookCapital platform.
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