It is printed on our banknotes, displayed on price tags and used in almost every financial conversation in Malaysia. But while the Ringgit is an unmistakable part of Malaysian identity today, its name may have originated from a Spanish silver coin that circulated in this region centuries ago.
The story connects Malaysia to an earlier age of international trade, when foreign coins passed through ports across the Malay world and were identified not only by where they came from, but also by how they looked and felt.
Before The Ringgit, Many Different Currencies Were Used
Long before Malaysia established its modern currency, different forms of money circulated across the territories that would eventually become the country we know today.
These included Straits Settlements banknotes, the Malayan dollar, Sarawak dollars, North Borneo currency, Penang dollars, Kelantan pitis and Terengganu keping.
Their use reflected the region’s long and complex history.
Different states and colonial administrations had their own monetary systems, while international trade introduced foreign coins into local markets.
Among the foreign currencies that became widely recognised were Spanish silver coins.
The Ringgit Name Came From Its Jagged Edges
Spanish silver coins were once widely used in international trade, including in this part of the world.
One of their most distinctive features was their jagged or ridged edges.
In Malay, something with ridges or serrated edges could be described as “beringgit.” Dewan Bahasa dan Pustaka defines ringgit as the ridges or grooves found along the edge of an object, while beringgit means having such ridges.
Because of this physical feature, local communities reportedly began referring to the Spanish silver coins as ringgit.
Over time, the description of the coin’s edge became associated with the coin itself. The word survived even after the Spanish silver coins were no longer part of everyday trade.
It Was “Ringgit” In Malay But “Dollar” In English
Although Malaysians had already been using the word Ringgit, it was not originally the currency’s official name across all languages.
Before 1975, the country’s money was generally called the “dollar” in English, while “ringgit” was used in Malay.
That changed in August 1975, when Ringgit was officially adopted as the proper name of Malaysia’s currency.
The decision ended the use of two different names and established a single national term. Whether spoken in Malay or English, the currency would officially be known as the Ringgit.
It was an important change because the name was no longer merely a Malay translation of “dollar”. It became the recognised identity of Malaysia’s currency in its own right.
The Name Changed, But The “$” Symbol Remained
Interestingly, adopting the Ringgit name did not immediately lead to the RM symbol we use today.
Even after the official change in 1975, Malaysia continued representing its currency with the “$” symbol.
For almost another two decades, the country had a currency officially called the Ringgit but still used a symbol closely associated with the dollar.
It was only in 1993 that “$” was replaced by “RM”, meaning Ringgit Malaysia.
The change completed the currency’s transition towards the identity Malaysians recognise today: a distinct national name paired with its own familiar symbol.
Even The Word “Sen” Has Ancient Roots
The smaller unit of the Ringgit also carries a much older linguistic history.
The word “sen” is connected to the Latin word centum, meaning one hundred. This is also the origin of words such as “cent” and “centimetre”.
The connection is fitting because one sen represents one-hundredth of a Ringgit, just as one centimetre represents one-hundredth of a metre.
So, while the name Ringgit has been linked to the jagged edge of a Spanish silver coin, the word “sen” traces its roots to an ancient Latin term.
Together, the two words reflect how the language of money can travel across countries, cultures and centuries.
A Malaysian Name Shaped By Centuries Of Trade
Today, Ringgit is a distinctly Malaysian name. Yet its origin tells a much wider story about the country’s historical place within regional and international trade.
A Spanish silver coin entered the Malay world. Its jagged edges inspired a local description. That description remained in use, evolved into the name of a currency and was eventually adopted as an official symbol of Malaysia.
The journey from “beringgit” to Ringgit, from “dollar” to a single national name, and from “$” to “RM” did not happen all at once.
It developed over centuries, shaped by trade, language and Malaysia’s own journey as a nation.
Every time we say “Ringgit”, we are therefore using more than the name of our currency.
We are repeating a word that carries a small but fascinating piece of Malaysian history.
Sources: 1 | 2
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