What Is Remittance and Who Uses It?
The term ‘remittance’ may be familiar to some but, most might know it in more informal forms such as ‘transferring’ or ‘sending’ money to others. While it is not highly specific that remittance occurs between two entities located in two different countries, in today’s world, this is usually the case when one speaks of initiating a remittance.
Remittances can be performed by both individuals for personal reasons as well as businesses for commercial ones.
Within the last few years, the act of sending money internationally has ramped up significantly due to the advances in internet connectivity. Individuals are more familiar and comfortable with purchasing from overseas e-commerce brands and businesses themselves no longer feel the need to limit their purchases from local suppliers.
However, these are not the only reasons one might perform a money transfer abroad. Here are a few more groups and their reasonings to remit money across the world.
Parents of International Students
Malaysians are no strangers when it comes to furthering their studies abroad. Whether it is to complete their entire tertiary education overseas or going on a year-long or even a couple of months exchange program, these students need a way to fund their daily expenses while abroad.
While some parents may opt to provide their children with credit cards to aid with their spending, over time, hefty foreign transaction fees and conversion rates are sure to burn a hole in their pockets. Frequently the local money change also brings about similar results.
For this reason, most educational institutions recommend their international students open a local bank account once they arrive in the country. With this in place, parents can perform money transfers straight into their children’s accounts at a significantly cheaper cost whenever it is required.
Expatriates and Immigrants
Whether one moves to a new country for better work opportunities temporarily or permanently, more often than not, they would be leaving behind some of their most beloved family members. In cases like these, the need to perform money transfers back home to their loved ones also exists.
Should they be the sole breadwinner of their family, or they would like to provide some additional monetary support to their family back home, performing remittance is one of the most convenient ways of getting their hard-earned money to where it needs to be.
Businesses
In a more globally connected world, borders are now the least of one’s concerns when doing business. For some, overseas suppliers may be the most cost-effective option even after taking into consideration the costs that come from importing goods. Certain skillsets also may only exist in the workforce abroad which further encourages Malaysian companies to collaborate with foreign partners.
After sourcing the goods and services they need, companies now have to start thinking about paying them off. Remitting money to their partners comes out as the most economical option. Even more so if they are working with multiple overseas partners frequently, many remittance services provide bulk payment options to ease the entire process for businesses.
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For further details and inquiries, please contact Sunway Money Customer Support at business@sunwaymoney.com or via WhatsApp at +6011-272 54895.
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