As we are aware, the world’s focus and attention has been to usher in an economic order that ensures high economic growth and an advanced level of development. In this endeavour, the widely discussed topics include liberalization, globalization, IT revolution, poverty alleviation, trade co-operation, political inclusion, regionalization, and many other buzz topics. Amongst these topics, “inequality and poverty” has maintained an important position, and it has therefore been discussed for years. Let us then ask ourselves the question: What do we really mean by inequality and poverty? Inequality means the lack of or fair treatment in the sharing of wealth or opportunities between different groups in society; and Poverty is the condition of being extremely poor. What do those who are stricken by poverty and inequality feel? Simply, they suffer the lack of material well being and lack of opportunities to succeed. Such feelings are often the root causes of political, economic and social upheaval, tension and revolution. Mr. Chairman, poverty and inequality are very closely linked. There is also ample empirical evidence to suggest that inequality and poverty seriously affect development. Inequality often leads to poverty while poverty hinders development and prosperity. Addressing inequality issues would undoubtedly have a positive impact on poverty alleviation. We would also probably unanimously agree that alleviating poverty is vital, considering its many economic, social, cultural and even more importantly, the human costs.
The Association of Banks in Singapore, or ABS, is therefore developing a Central Addressing Scheme (or CAS). •  CAS will allow payments to be made through FAST using only a recipient’s mobile number, or NRIC number, or Unique Entity Number. •  The industry is also working to provide a seamless and common user interface for making FAST transfers regardless of the customer’s bank. •  If all goes well, by this time next year, we will no longer need to remember bank account numbers for a majority of our electronic fund transfers. A second key barrier to using FAST is cost. •  SMEs have told us that some banks can charge up to $ for fund transfers using FAST. But they offer free cheque payments every month! •  This is surprising. Our own studies indicate that the marginal cost of e-payments, including FAST funds transfers, should be far lower than that of cheques. •  Cheque processing is a resource intensive operation that is far from costless. •  Banks should not be reluctant to accurately reflect the true marginal cost of their various payment instruments. Acceptance of card payments – unified point-of-sale terminals (UPOS) Debit and credit cards are widely used by Singaporeans but the experience at the acceptance points in our retail outlets and restaurants needs to be enhanced. •  Not all cards can be used everywhere, and we often have to ask merchants if our card of choice is accepted.