The document discusses Malaysia's money services business regulatory framework that supports the growth of remittance businesses. It notes that there are 33 non-bank remittance service providers that have over 2000 access points nationwide through branches and agents. Total outward remittances from Malaysia have been growing steadily under this regulatory regime, increasing at an average annual rate of 24.4% from 2011 to 2014. Promoting awareness of formal remittance channels and expanding financial inclusion among target groups like migrant workers and SMEs is an initiative proposed to further develop the remittance market.

1. RAHSIA
1
Money services business regulatory framework supportive of growth and
development of remittance business in Malaysia
• Non-bank remittance service providers, incl. development financial institutions (33)
− Over 2000 access points nationwide via branches and agents
 Allowed to appoint agents , subject to compliance with regulatory
requirements and agent oversight framework
 Allowed to open mobile kiosks or temporary booths at designated locations
where concentration of migrant workers is high
• Banks – Over 2000 branches and agents
Banks (43)
Non-Banks
(33)
• Remittance landscape in Malaysia
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2010 2011 2012 2013 2014
RM'b
Total Outward Remittance
Banks Non-banks
− Malaysia is a sending country for migrant remittance
 Outward remittance grew at an average rate of 24.4% p.a.
between 2011-2014 to USD9.2 b in 2014 (2011: USD4.5 b)
− Strong increase in outward remittances reflected:
 Wider outreach of authorised non-bank remittance channels
 Increased awareness of migrant workers on remittance services
available
− B2B remittance transactions (commenced in 2013)
increased by threefold to USD93 m in 2014
• Total outward remittances remain uptrend under the MSB regulatory regime

2. RAHSIA
PROJECT: GREENBACK 2.0 – Malaysia’s Proposal
• Promote awareness on formal remittance
channels and expand financial inclusion among
target groups
• Improve further market transparency,
competition, and reduce prices for remittance
services
Target groupd:
a)Urban foreign workers
b)Plantation workers
c)SMEs
• Local councils
• Industry players
• The SME corp., SMI Association and banks
• Plantation companies
• Migrant Association and relevant Embassies
• Survey – Market environment and
remittance market behavior
• Awareness programs – Remittance
education workshop, city tour,
business expo and remittance fair
Supporting tools:
Usage of technology/social media
platform, e.g. Pick a remit apps