Bangkok--15 May--KBANK
In an effort aligning with the ASEAN Economic Community (AEC) to support capital movement and labor relocation, KASIKORNBANK, in cooperation with Myanmar’s Asia Green Development Bank Ltd. (AGD Bank), is launching a Thai-Myanmar funds transfer service to ensure that the 1.6 million Myanmarese workers in Thailand can, for the first time, transfer funds to their hometowns.
Mr. Somkiat Sirichatchai, Senior Executive Vice President of KASIKORNBANK, said the Bank has worked to create a complete financial service network in support of the AEC commencement in 2015 by building partnerships with a number of banks in the rest of ASEAN and Asia. Recently, KBank joined hands with AGD Bank, one of Myanmar’s leading banks, to support capital movement and labor relocation among ASEAN countries in the upcoming AEC.
During the initial stage, KBank and AGD Bank will offer “Funds Transfer to Myanmar” via KBank’s diverse service channels, including K-ATMs, with a maximum funds transfer of 90,000 Baht or USD3,000 per day. Recipients in Myanmar can receive money within one day. The new service will be available from July 1, 2012 onwards via KBank branches and K-ATMs in 11 pilot provinces including Bangkok, Samut Prakan, Samut Sakhon, Nonthaburi, Pathum Thani, Chiang Mai, Chon Buri, Rayong, Surat Thani, Songkhla and Phuket.
The one-day funds transfer to Myanmar will ensure that Myanmarese workers in Thailand can transfer their money between the two countries for the first time via the Bank, which guarantees time savings and receipt of money for customers.
Among ASEAN countries, Thailand has been the largest investor in Myanmar and recorded the highest value of border trade, while Myanmarese laborers in Thailand have been part of the manpower driving the Thai economy and industry, as Thailand has been short of labor. As of January 2012, more than 3 million Myanmarese citizens are working in Thailand, of which 1.6 million are legalized. They will generally send money back to their relatives in Myanmar after working for a time in Thailand. However, with fund remittance constraints, they often have their relatives travel home with cash in hand, with the accompanying risk of loss or robbery. Thus, KBank’s funds transfer service to Myanmar will respond directly to their needs. The Bank’s Myanmarese-language ATMs will accommodate them for this transaction. KBank expects at least 500,000 Myanmarese workers to use the new service, or approximately 30 percent of all legal Myanmarese workers in Thailand.
Mr. Somkiat added that KBank is in the process of applying for a representative office license from Myanmar’s central bank. This representative office, which is expected to open officially within October of this year, will provide consultancy service in business and transactions around Thai-Myanmar border areas, including international trade transactions, as well as business matching service.
AGD Bank is one of the 19 commercial banks in Myanmar, and is also one of the four banks approved by Myanmar’s central bank to conduct funds transfer service with Thailand, Singapore and Malaysia.