Sanichi to venture into remittance business


  • Corporate News
  • Monday, 12 Nov 2018

Companies that provide short-term consumer loans at high interest rates are on the increase in countries like Indonesia and the Philippines as many people struggle to get advances through traditional channels such as banks.

PETALING JAYA: Sanichi Technology Bhd plans to tap into cross-border money remittance business through its upcoming joint-venture (JV) with a publicly-listed Indonesian state-owned enterprise (SOE).

The ACE Market-listed company told Bursa Malaysia on Monday that the JV allows its financial technology subsidiary, Bina Bicara Sdn Bhd, to capture a share of the US$2.7bil (RM11.2bil) outward money remittance business from Malaysia into Indonesia.

Apart from money remittance services, the JV comprising Bina Bicara and the Indonesian SOE will offer multi billing payment services which allows direct payment to various utilities, telecommunications, banking institutions, and transportation providers in Indonesia.

According to Sanichi group managing director Datuk Seri Pang Chow Huat, the collaboration will seek to meet demand of underserved market as well as contribute towards the growth of digital remittance.

He pointed out similar joint venture model of remittance and multi billing payment services has been implemented in other regional countries such as Hong Kong, Korea, Japan and Taiwan.

“Indonesian citizens in these countries prefer to perform their remittances back to Indonesia via Indonesian home-brand [SOE] due to its reliable 120,000 remittance channels with its banking and non-banking institution network partners across the whole of Indonesia islands.

“This [JV] is in line with financial regulators’ on-going efforts to ensure hard earned money of Indonesian citizens are remitted efficiently, safely and orderly back to Indonesia as compared to some having to resort to traditional physical transportation of cash and other forms of unrecorded transactions such as Hawala system,” stated Pang in a press release.

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