Pawns following suit: MoneyMax makes $6.1m venture to Malaysia

Another proof that it isn’t a bank for the poor anymore.

Singapore’s largest pawnbroker, ValueMax, set foot on Malaysian soil a few weeks ago in an aim to popularize its brand abroad. It is the first among the city’s top pawnbrokers to expand overseas.

MoneyMax is making a similar move, undertaking a joint venture with Malaysian jeweler Mr Chong Mei Sang as it plans to penetrate Asian markets outside of its home base. The pawnbroker has invested $6.1 million for a 51% stake in the JV firm, and plans to expand to 34 outlets in Malaysia over the next 3 years.

Pawnbroking is starting to gain popularity again, as pledges and loans continue to soar and pawnbrokers encouraged to expand business not only by opening new stores but going overseas.

Here’s more:

The pawnbroking industry has undergone a radical change in profile from its traditional roots. Gone are the days of pawnbrokers having intimidating and solemn-looking shopfronts caged with steel bars; today, pawnbroking shops have a friendlier, and more modern look. Meanwhile, acceptance of pawnbroking is growing, as more people from different and younger age groups utilise pawnbroking services. There are now 214 pawnshops in Singapore, with three of the largest pawnbroking chains listed on the Singapore stock exchange.