From the earlier period of the federation the currency in used was the Straits dollar issued by the Board of Commissioners of Currency. As the currency depreciated over time, it was pegged at two shillings four sterling pence in 1906. In 1939, the British government introduced a new currency, Malayan dollar (ringgit in Malay) for used in Malaya and Brunei replacing the Straits dollar at par value. It had the smallest denominations of 1 cent to a highest of 1000 Malayan dollar and retained the exchange rate as was from the Straits dollar.
Interestingly, as 1, 5 and 10 dollar notes were printed in the U.K. for circulation in Malaya in 1940, only the 10 dollars were issued following a shipload of 1 and 5 dollar notes being captured by German forces.