'Foreign workers remitted RM19.75bil home'
BernamaPublished: Nov 11, 2013 8:27 AM | Updated: Nov 11, 2013 8:30 AM
PARLIAMENT Foreign workers remitted RM19.75 billion abroad legally last year, up from RM15.68 billion in 2011 and RM13.4 billion in 2010, Deputy Finance Minister Ahmad Maslan told the Dewan Rakyat in Kuala Lumpur today.
PARLIAMENT Foreign workers remitted RM19.75 billion abroad legally last year, up from RM15.68 billion in 2011 and RM13.4 billion in 2010, Deputy Finance Minister Ahmad Maslan told the Dewan Rakyat in Kuala Lumpur today.
The five top recipients of the remittances last year were Bangladesh (RM3 billion), Indonesia (RM2.95 billion), Nepal (RM1.9 billion), India (RM625.1 million) and the Philippines (RM561.3 million).
“Since 2009, remittances have jumped from RM10 billion to nearly RM20 billion in 2012, due to the improved remittance services offered by legal non-bank institutions,” he said in reply to a question from Ko Chung Sen (DAP-Kampar) who wanted to know the amount of remittances sent by foreign workers evey year and to which countries.
On the effect on the economy of this cash outflow, Ahmad said amid the fluctuating global financial market recently, Malaysia has experienced a moderate capital outflow, a reversal from the inflow previously.
“However, it is important to note that capital reversal is also experienced by all rapidly growing economies including in the region, and not just in Malaysia,” he said, adding the capital outflow from the domestic financial market has so far been in an organised manner and not affected the economy.
“This continuous two-way capital inflow and outflow will be a permanent feature of the Malaysian economy, so it is important to ensure that the capital flow does not cause any imbalance that could create instability in the nation’s economy and finances,” he said.
To a supplementary question from Ahmad Hamzah (BN-Jasin), Ahmad said the rise in remittances between 2010 and 2011 was due to the extension of remittance services nationwide.
“Before this, remittance services were limited to Western Union, Merchant Trade and the like, now they have been expanded, and we have allowed moneychangers to offer the service since 2011 with the Money Services Business Act 2011.
“Of the 498 moneychangers to whom we gave permission, 196 were appointed agents, and 75 are operating, so it is easier for them to remit money,” Ahmad said.
- Bernama
The five top recipients of the remittances last year were Bangladesh (RM3 billion), Indonesia (RM2.95 billion), Nepal (RM1.9 billion), India (RM625.1 million) and the Philippines (RM561.3 million).
“Since 2009, remittances have jumped from RM10 billion to nearly RM20 billion in 2012, due to the improved remittance services offered by legal non-bank institutions,” he said in reply to a question from Ko Chung Sen (DAP-Kampar) who wanted to know the amount of remittances sent by foreign workers evey year and to which countries.
On the effect on the economy of this cash outflow, Ahmad said amid the fluctuating global financial market recently, Malaysia has experienced a moderate capital outflow, a reversal from the inflow previously.
“However, it is important to note that capital reversal is also experienced by all rapidly growing economies including in the region, and not just in Malaysia,” he said, adding the capital outflow from the domestic financial market has so far been in an organised manner and not affected the economy.
“This continuous two-way capital inflow and outflow will be a permanent feature of the Malaysian economy, so it is important to ensure that the capital flow does not cause any imbalance that could create instability in the nation’s economy and finances,” he said.
To a supplementary question from Ahmad Hamzah (BN-Jasin), Ahmad said the rise in remittances between 2010 and 2011 was due to the extension of remittance services nationwide.
“Before this, remittance services were limited to Western Union, Merchant Trade and the like, now they have been expanded, and we have allowed moneychangers to offer the service since 2011 with the Money Services Business Act 2011.
“Of the 498 moneychangers to whom we gave permission, 196 were appointed agents, and 75 are operating, so it is easier for them to remit money,” Ahmad said.
- Bernama
View Comments0