Sanichi Technology Bhd plans to tap into cross-border money remittance business through its upcoming joint-venture with a publicly-listed Indonesian state-owned enterprise.
The ACE Market-listed company told Bursa Malaysia on Monday that the joint venture allows its financial technology subsidiary, Bina Bicara Sdn Bhd, to capture a share of the US$2.7 billion outward money remittance business from Malaysia into Indonesia.
Apart from money remittance services, the JV comprising Bina Bicara and the Indonesian SOE will offer multi billing payment services which allows direct payment to various utilities, telecommunications, banking institutions, and transportation providers in Indonesia.
Sanichi group managing director Datuk Seri Pang Chow Huat said the collaboration will seek to meet demand of underserved market as well as contribute towards the growth of digital remittance.
“Indonesian citizens in these countries prefer to perform their remittances via Indonesian state-owned enterprise due to its reliable 120,000 remittance channels with its banking and non-banking institution network partners across the whole of Indonesia islands.
“This joint venture is in line with financial regulators’ on-going efforts to ensure hard earned money of Indonesian citizens are remitted efficiently, safely and orderly back to Indonesia as compared to some having to resort to traditional physical transportation of cash and other forms of unrecorded transactions such as Hawala system,” Pang said.