CBLMT to tap into US$1b remittance market
KUALA LUMPUR: The City Bank Ltd (CBL) Bangladesh, via its newly acquired 75-per cent subsidiary, CBL Money Transfer Sdn Bhd (CBLMT) will tap into the US$1 billion Malaysia-Bangladesh remittance market.
"Malaysia is currently the third largest remittance market for Bangladesh at almost US$1 billion a year, so it is prudent of CBL Bangladesh to branch out into the country now," said Atiur Rahman, governor of Bangladesh central bank at the launch of CBLMT yesterday.
The bank finalised its 75 per cent acquisition of Rush Money Express Sdn Bhd in July this year and rebranded the firm as CBLMT.
CBLMT director Datuk Gurcharan S Sidhu said the paid-up capital for this new firm currently stood at RM2.6 million.
"And we will put in an additional RM1.5 million within the next two weeks, bringing the total to RM4.1 million," he said.
He said the company will open another branch in Malacca and two more in the country by year-end as it has received an approval from Bank Negara Malaysia to open five branches this year.
Gurcharan also said that globally, the company is looking at a tie up of remittance business with Australia, Japan and Mynmar.
"In fact we are looking at finalising the Australia and Japan sides within this month.
"Right now our biggest global markets are Bangladesh, Nepal, Indonesia and The Philippines but the world is big and money is a hot business so we're not limiting ourselves," he said.
Meanwhile, CBL Bangladesh deputy managing director and chief operations officer Mashrur Arefin said it is the company's target to open 25 CBLMT branches in Malaysia within two years, pending Bank Negara's approval.
"It is difficult to share what our target is for the remittance business as it is too soon to tell but given the number of Bangladeshis in this country, and the approval of another 1.4 million workers in the country by year end, our expectations are definitely high," he said.