Remittance to cheer up Syawal celebrations
KUALA LUMPUR: As Syawal approaches, there is a significant increase in remittance transactions from Malaysia to predominantly Muslimpopulated countries such as Indonesia and Bangladesh, highlighting the desire to connect with loved ones before the celebrations begin.
Malaysia’s largest Money Services Business (MSB) operator, Merchantrade Asia Sdn Bhd recorded more than half a billion ringgit in remittance transaction volume during the month of Ramadan last year and the trend is expected to continue this year as well.
According to Research and Market, the international inbound remittance market in Malaysia increased by 2.9 per cent in 2022 to reach US$1.63 billion (US$1=RM4.74) in 2023.
The international outbound remittance market in Malaysia increased by 2.1 per cent during 2022 to reach US$8.94 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 1.7 per cent, increasing from US$8.76 billion in 2022 to reach US$9.72 billion by 2028, it said.
The global remittance market was valued at US$738.62 billion in 2023 and is anticipated to project robust growth in the forecast period with a compound annual growth rate (CAGR) of 5.78 per cent through 2029, reaching US$1031.45 billion, said the report.
Merchantrade Asia managing director, Ramasamy K Veeran told Bernama that Merchantrade has invested and built a robust infrastructure to ensure seamless transactions.
With 95 branches and over 480+ agent locations nationwide, Merchantrade’s physical touchpoints are well-equipped to support its growing customer base.
“In preparation, Merchantrade branches remain open on the weekends, with additional resources deployed to key branches to handle the influx of walk-in customers on weekends.
“It is an important period for our Muslim customers throughout the nation, and we are glad to be able to support them,” he said noting this heightened demand can be seen in Merchantrade branches located in Kuala Lumpur, Johor Bahru, Ipoh, Penang and Inanam, Sabah.