KUALA LUMPUR: A whopping 50 per cent of Malaysians find the high cost associated with remittances to be a challenge, with almost half, or 48 per cent, reducing the amount sent and more than one-third (35 per cent) completely giving up on sending a remittance.
These findings were from a survey commissioned by global technology company TransferWise, a London-based online money transfer service, to better understand how the Covid-19 pandemic has affected the remittance habits of those living in Malaysia.
Further, the survey also revealed four biggest challenges faced by Malaysians in the past 12 months, with 57 per cent saying the time needed for remittances to reach the intended recipients.
Secondly, 54 per cent Malaysian feel not being able to travel to a physical branch to make a remittance order is a challenge, 51 per cent point out the time needed to set up their transfer, and 50 per cent say the challenge is on high cost of remittances.
With many Malaysians affected by the pandemic, this further highlights the growing need for consumers to have access to remittance services that are cheaper, faster, and more convenient.
The speed of transfers is a key consideration for many Malaysian consumers, with 61 per cent of those surveyed saying it was an important factor when choosing an online remittance service.
Another huge concern is the long time spent waiting for their overseas remittances to reach its intended recipient, the ability to track the status of their transfers in real-time.
With more than one-third or 32 per cent of Malaysians opting to set up their remittance order in person at a bank, survey respondents found not being able to visit a physical branch during the past 12 months a challenge due to the Movement Control Order (MCO) measure implemented.
The long time needed to set up their remittance order was also an issue for 51 per cent of them.
This independent survey conducted by Ipsos from 27 November to 3 December 2020, collecting 1,000 respondents targeting both citizens and expatriates living in Malaysia who have sent an overseas remittance in the past 12 months.
TransferWise Malaysia country manager Lim Paik Wan said the findings of the survey tells that due to the pandemic and current MCO measures, the need for cheaper, faster, and more convenient remittance services have never been more necessary for Malaysians.
"Many surveyed said that not having access to a physical bank counter and the high costs of remittances were a challenge during the past 12 months," she said.