Merchantrade founder and managing director Ramasamy K Veeran added that Vital Rate’s owner would be given an executive vice-president’s post in Merchantrade’s currency division.
“Some of them have decades of experience, and by absorbing these talents we believe we will be able to attain 10% of the money exchange market share in two to three years,” he said in a press conference at The Westin here today.
“Merchantrade’s strong brand name and expertise in the money services business, coupled with Vital Rate’s knowledge in currency management, will also help to add value to its already strong customer base.”
Vital Rate was previously in the money exchange retail business. Prior to this Merchantrade had an estimated 1.7% of the market share, but with the acquisition of Vital Rate, Ramasamy said that number had increased to 4.7%.
He said Vital Rate was one of the top five money changers in the country, based on search results and nine strategically placed branches in notable malls – Pavilion, Suria KLCC, Da:men Mall, Giant Senawang, Giant Taman Permata, MyTown, KL Sentral, Medini Mall in Johor and Sungei Wang Plaza.
All branches acquired by Merchantrade are fully operational except for MyTown that will begin operations on Mar 15.
Ramasamy said Merchantrade, which deals in remittance, wholesale currency and money exchange, had its weakest link in the money exchange business.
“With the acquisition of Vital Rate’s assets, we believe this will change very quickly.”
He also expressed confidence that the money exchange business would continue to grow.
“We are capitalising on the robust growth of inbound tourists as well as Malaysians travelling abroad, not to mention the number of students studying overseas and those from overseas coming into the country to study.
“This is one of the reasons we are excited. We see a lot of growth taking place.”
On whether growth in the retail business would affect their wholesale business due to waning trust among competitors, Ramasamy said it was unlikely.
“There are over 300 retailers spread throughout the country. Also, as retailers we are able to supply more currency at cheaper rates.”