KUALA LUMPUR (Jan 7): The strengthening ringgit is reducing foreign remittances among migrant workers using Merchantrade’s platform, as they send less money to their respective home countries and retain more funds domestically, the company’s chief commercial officer Ivan Alias said.

“From a remittance data standpoint, when we look at our data comparing December 2025 against the year before, we see the total remittance outflow from Malaysia has now reduced. But the number of transactions has increased more than 25%,” he said during a panel discussion themed “The Ringgit Boost - Implications for 2026” hosted by CGS International. The ringgit appreciated by about 9% against the US dollar in 2025.

Ivan added that this translated into increased domestic spending because more income from the foreign workers is being kept within the local.

He said the increase in transaction volumes was driven by new users shifting from informal remittance channels and existing customers making more frequent, smaller transfers as the ringgit strengthened against their home currencies.

In 2024, Malaysia had about 2.5 million active foreign workers, who remitted RM32.6 billion to their home countries, compared with RM31.4 billion in 2019, according to Bank Negara Malaysia’s 2024 economic and monetary review report.

Merchantrade Asia is the country’s largest money services business operator backed by Kenanga Investment Bank Bhd (KL:KENANGA).

Merchantrade provides international money transfers and currency exchange out of 94 branches and over 400 agent locations in duty-free zones, travel agents, luxury hotels and major shopping malls, according to its website. The company also provides digital payment services and travel insurance.