Which is why most of the tellers will tell you not to close it and they will ask you to withdraw all your money and leave just RM1 inside so you can save RM10 

No worries for PBB Basic Savings or Basic Current Account. You will be able to close it without incurring any charges at all provided you only close it 3 months after you opened it.

Depends on which bank. Our ATM cards here in can withdraw a maximum of RM5,000 per day and RM6,000 for Standard Chartered (except Hong Leong Bank and several other banks). So your Bank of America VISA debit card will also be able to withdraw RM5,000 per day (the equivalent in US$).

For your information, Hong Leong Bank ATM can dispense RM3,000 only per card per day. Certain banks allow their affluent clients to withdraw up to RM10,000 per day but that is not applicable to your Bank of America check card.
Let say you need a lot of cash but you want to save on the overseas admin fee imposed by Bank of America, you should look for ATM that dispense RM100 notes as ATM that dispense RM100 notes is able to dispense RM3,000 in just one withdrawal. You will be able to find ATM that dispense RM100 with Maybank, CIMB Bank, Public Bank, HSBC, Standard Chartered etc.

I have BoA debit card as well. Yes look for ATM machine that dispense RM100 note as what MilesAndMore point out. Previously I withdraw at HSBC Leboh Ampang. I made RM3000 per withdraw. Regarding the fee, yes BoA charge USD5 + 1% fee as you point out.

The exchange rate is very good. You will get interbank exchange rate. But you will be charge USD5 for non BofA international ATM & 1% fee. The 1% fee is about USD8 for RM3000 withdrawal.

If you want to withdraw paypal fund, the best is still malaysian debit card.

i think normally those ATMs are labelled RM100 notes only

yes, i noticed that in PBB USJ branch
There's a sticker that said This machine dispense RM100 notes only

Look for ATM that provides RM100 bills.
The safest bet is to go to foreign banks ATM such as HSBC and Standard Chartered. All their ATM are labelled with the bills provided.

Another choice would be CIMB Bank ATM. As far as i am concerned, all their ATM are labelled too (those inside their branch).

He is afraid that should he decides to cancel the withdrawal because the maximum amount can be dispensed is only RM1500, he will still be charged $5 by Bank of America.

Yes, look for ATM that have RM100 notes sticker. I only know HSBC Leboh Ampang.

I think if you cancel the transaction, you will not be charged $5. I made  few transaction before but cancel before withdrawing the money, no USD5 charge incur.

Yes, wondering why, Paypal no longer allow Malaysian Paypal user to add fund from US bank account.

balance inquiry definitely charge USD5
but i think if you do not enquire on balance and press cancel before withdrawing, you shud not be charge
do come back and update us

Yes I agree, don't check your balance, instead just make your RM3k withdrawal. If the machine not supporting RM3k withdrawal, just cancel it.

if the checking acc was cancelled, then you are withdrawing from which acc?

, i oso hv both chking and savings, but never tried to withdraw money using the check card
wondering whether i can access the savings then

The check card is link to checking account by default. If you do a transaction via VISA  network, I think it will deduct from checking account.

One more thing to remember is to call their CS before make withdrawal & told them that you are in Malaysia & want to withdraw money. Previously, I did not call them, withdrawal not success & card get block.

I tried to make 3k withdrawal at HSBC & 1.5K at Maybank ATM. Both working well.

Why do you cancel the checking account?