Merchantrade Asia Eyes 10 Per Cent Market Share In Money Exchange Business By 2020

KUALA LUMPUR, March 1 (Bernama) -- Merchantrade Asia Sdn Bhd aims to increase market share in the money exchange business to 10 per cent by 2020 following the acquisition of Vital Rate Sdn Bhd's (VR) nine business outlets. Founder Ramasamy K Veeran said with the acquisition, the company's current market share in the country stood at about 4.7 per cent, up from the previous 1.7 per cent. "Last year, VR's turnover in the money exchange segment was about 472.01 million (RM2.1 billion) and Merchantrade's stood at US$269.52 million (RM1.2 billion). "The acquisition will strengthen our foothold in the money exchange business," Ramasamy told a media briefing on the acquisition here, Wednesday. Merchantrade is a home grown company providing services which includes money exchange, remittance and wholesale currency. Ramasamy said VR had a strategic presence at high-end shopping malls such as the Pavilion and KLCC, which now allows Merchantrade to reach out to a wider customer base demographic. "The acquisition will not only expand our network of physical branches which now stands at 84, but also bring management talent and enhance relationship with key businesses to further improve the company's capabilities and growth trajectory," he added. Ramasamy said the Merchantrade had inked agreements with three shopping malls in Johor Bahru (the capital city of Malaysia's southern state Johor) and the Klang Valley to open more branches within six months. "We plan to acquire more companies in a year's time to achieve the 10 per cent market share target," he added. Meanwhile, he said, the company would capitalise on the robust growth of inbound tourists, as well as Malaysians traveling abroad to build a strong brand in the retail market. Malaysia aims to secure 36 million tourist arrivals with US$37.75 million (RM168 million) tourist receipts by 2020. On the money exchange industry volume, Ramasamy said it is expected to reach US$16.85 billion (RM75 billion) this year, up from the US$15.73 billion (RM70 billion) recorded in 2016. --BERNAMA