Malaysia Can Be Role Model In Reducing Remittance Cost – World Bank

KUALA LUMPUR, May 8 – Malaysia can be a role model for other countries in meeting the World Bank’s target of reducing remittance costs to three per cent of the amount sent.

World Bank Group Senior Director for the Finance, Competitiveness and Innovation Global Practice Ceyla Pazarbasioglu said the country had a lot to offer other countries in terms of reducing remittance costs, which averaged 6.86 per cent in Asia-Pacific and 7.13 per cent,globally.

“Malaysia has done quite a lot in terms of regulations, legislative changes and enabling easily accessible technology that allow users to send remittances at a low cost,” she told reporters on the sidelines of the Global Forum on Remittance, Investment and Development 2018 Asia-Pacific here today.

Pazarbasioglu said reducing the cost of remittance was an important aspect in achieving the World Bank’s goals of poverty eradication and shared prosperity.

“So far, the global cost of remittances has come down from nine per cent, translating into US$90 billion (US$1 = RM3.948) in savings over time,” she added.

Bank Negara Money Services Business Regulation Department Director Nik Mohamed Din Nik Musa also said remittance cost in Malaysia stood at about three per cent, driven by transparency, competition, digitisation, expansion and volume of transaction.

RemitSCOPE, an online portal providing data, analysis and remittance market profile, reported that Malaysia was among the top four remittance-sending countries in the Asian-Pacific last year, and valued at US$6.18 billion.

The three-day forum, which ends on Thursday, is themed, “Leveraging Remittances for Sustainable Development Goals: A Call to Action”.

The event has attracted more than 400 participants from all over the world who are keen to explore ways to increase the efficiency of remittance markets and services, improve financial inclusion and stimulate diaspora investment.

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