https://www.paypal.com/my/webapps/mpp/personal-payments-faq

Update on Personal Payments Service

Dear Customers,

As PayPal focuses on our business strategy of enabling secure and convenient commercial transactions in Malaysia, we regret to inform you that the Personal Payments service will no longer be available in Malaysia from 4 June 2013. We sincerely apologise for the inconvenience caused.

PayPal’s mission is to connect merchants of all sizes to millions of consumers around the world, creating more economic opportunity for individuals, businesses and communities. As such, we would like to assure you that you will still be able to use PayPal for commercial activities. For example, you can still shop and pay with any local or overseas PayPal merchant and receive payments for sale of goods and services from any local or overseas buyer with a PayPal account.

We have created this webpage to address concerns and questions you may have. You can also contact our customer support team by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page.

The success of PayPal depends on the success of the community. We thank you for your ongoing support in enabling more secure commerce anytime, anywhere and any way.

Sincerely,

The PayPal Team

Will I be able to send personal payments to other PayPal users living outside of Malaysia?
No, unfortunately you would no longer be able to make personal payments to users both in Malaysia and overseas.