MALAYSIA’S CENTRAL BANK AIMS TO CUT COST OF SENDING FUNDS IN SABAH STATE TO THREE PCT

KOTA KINABALU, Sabah state, Malaysia Bank Negara Malaysia (BNM) aims to reduce the cost of remitting funds in Sabah state from 4.5 per cent to three per cent in the next two years, said Director of Money Services Business Regulation Department, Nik Mohd Din Nik Musa.(BNM is Malaysia’s central bank)

He said the target would be achieved through the Kota Kinabalu Greenback 2.0 initiative.

“The initiative is organised by the World Bank Group in collaboration with BNM and Kota Kinabalu City Hall (DBKK) to attract more foreign workers in the city to use legal remittance platforms, thereby improving efficiency and transparency in the remittance market,” he said.

Nik Mohd Din said this to reporters after the launch of the project and application of the Association of Malaysia’s Money Services Business here yesterday.

Sabah state Community Development and Consumer Affairs Minister, Jainab Ahmad Ayid, officiated the launch.

Also present were BNM Deputy Governor Jesscia Chew Cheng Lian, World Bank Group Country Manager for Malaysia, Faris Hadad-Zervos and the Mayor of DBKK, Yeo Boon Hai.

He said the remittance rate for Kota Kinabalu was slightly higher due to transportation costs.

“At the end of 2017, the remittance rate for the national level was 3.1 per cent and Kota Kinabalu was at at average of 4.5 per cent,” he said.

“Therefore, our target and goal (BNM) is to lower the remittance rate in Kota Kinabalu to three per cent by 2020 as envisaged in this project so that remittance costs will be cheaper,” he said.

Nik Mohd Din said the Kota Kinabalu Greenback 2.0 project would be implemented for two years starting today, and Kota Kinabalu was the second city to be declared a ‘remittances champion city’ after Johor Bahru which implemented it from November 2015 to November 2017.

On Kota Kinabalu’s Greenback 2.0 project, Nik Mohd Din said, the city’s foreign workers, including the surrounding areas, could now make remittances more easily and efficiently using electronic and digital platforms via e-remittance applications.

He said the new technology, e-KYC, or electronic known your customers, would facilitate the sending company to identify the authenticity of their customers’ identity, and at the same time facilitate customers to make remittances via bank accounts.

Nik Mohd Din said the company would also carry out a Cash Remittance Carnival with various activities including briefing foreign workers here and surrounding areas, SMIs as well as the public to know the legal remittance company in Kota Kinabalu.

“There are a total of 13 legal remitters with more than 80 branches here and surrounding areas,” he said.

Source: NAM News Network