KUALA LUMPUR (Nov 30): Bank Negara Malaysia warned money services business (MSB) entities against excessive focus on price competition as such emphasis inherently increases the risk profile of such companies.

Bank Negara Assistant Governor Jessica Chew Cheng Lian said excessive focus on price competition can lead to loss of focus on competitive positioning for the long term, compromise service quality standards, and heighten compliance risks.

“For some customers, safety, speed and convenience are often as, if not more, important than cost,” Chew said in her speech at the closing ceremony of Project Greenback 2.0 in Johor Bahru today. She said "an excessive focus on price competition on the part of MSB companies would be misplaced."  

The Project Greenback 2.0 aims to improve the cost of remittance transactions for individuals and businesses in Johor Bahru, according to Chew.

“We are encouraged by the efforts of some MSB companies that have responded to greater competition through a focus on innovation and investing in building a trusted company brand that consumers can be confident in,” she said.