Over 1 million Malaysians work in Singapore, making up the largest group of Malaysia’s diaspora community and the largest migrant group in Singapore. Therefore, it is no surprise that Singapore is the top source country for remittances to Malaysia.
There are various options for sending money from Singapore to Malaysia, including traditional banks, money changers, online remittance service providers, and e-wallets. The choice depends on individual preferences and convenience.
E-wallets have become a particularly popular choice for remittances, not just between Singapore and Malaysia but globally. In today's world, where people prefer handling transactions via their smartphones, e-wallets offer a convenient solution. Beyond convenience, they often provide cheaper and faster ways to send money home.
Several factors contribute to this trend, including collaboration between the public and private sectors. The central banks of Singapore and Malaysia, namely the Monetary Authority of Singapore and Bank Negara Malaysia, have been working to enhance cross-border payments, including e-wallet transactions. Now, sending money between these two countries using online banking or e-wallets requires only the recipient's identification number or mobile number, making the process extremely simple. E-wallet providers such as Singcash, BigPay, and Touch ‘n Go are also partnering to facilitate seamless transfers.
Another significant factor is the growing familiarity with digital financial services, accelerated by the COVID-19 pandemic. As a result, the adoption of e-wallets for remittances is on the rise.
Some popular e-wallets for remittances from Singapore to Malaysia include:
1. Wise
2. Singtel Dash
3. Instarem
4. Touch ‘n Go
5. BigPay
The growing collaboration between Singapore and Malaysia's digital payment ecosystems, coupled with increasing user adoption, is making e-wallets an attractive option for cross-border remittances. In 2022, Malaysia had over 17 million e-wallet users, while Singapore already had 1.5 million mobile wallet users in 2020. This indicates significant potential for growth in digital payments between the two countries. It will be interesting to see who will be the next to collaborate in this space.
