This, coupled with the higher remittance cost of 4.5% in Kota Kinabalu compared to other parts of Malaysia presents a unique opportunity to leverage on the Greenback project, to support the financial needs and goals of foreign workers here in Sabah; to increase the development impact of remittances to our neighbouring countries; and importantly, to make remittances generally more efficient for businesses and the population of Sabah itself. Even though this is the second champion city in Malaysia, we are not only looking to replicate our experience in Johor Bahru. Indeed, we acknowledge the different challenges and opportunities presented in Sabah, which is why an important and distinct focus for Greenback Kota Kinabalu will be the wider use of technology to deliver remittance solutions in Sabah. Here in Sabah, people still often need to travel a great distance to send money home. This is 1/3  BIS central bankers' speeches  costly, cumbersome and at times, risky – made even more challenging by Sabah’s geography and remoteness of some parts of the state. Technology offers new possibilities to overcome these difficulties, while significantly improving user convenience. Although remittances through electronic channels is not new, the take-up rate of electronic remittances has been relatively slow. In 2017, the share of electronic remittances accounted for only 12% of total remittances. This in turn has limited the potential to make remittance services much more efficient and accessible to our communities, including here in Sabah.
This is important because our collective efforts here today to improve overall welfare by providing more people and businesses with efficient access to remittance services will be severely set back if trust and confidence in the industry are eroded. When this happens, rules often have to be rewritten, the costs of compliance will increase, and the public is saddled with reduced 2/3  BIS central bankers' speeches  access and other burdens that result from the actions that have to be taken to protect the integrity of the system and manage risks to consumers. We must avoid this path, which will come at a heavy cost to communities and countries that depend on remittances. We have seen this in recent times with de-risking measures taken by financial institutions, and we still continue to see their effects in parts of the world. We must not expose our system to the same effects. In Kota Kinabalu, we also hope to build on Greenback activities to achieve greater financial inclusion of migrant workers and small businesses. For example, beyond remittances, suitable savings, payment and insurance products can help migrant workers make their earnings go further, facilitate access to goods and services, and provide protection for their families against financial hardship as a result of unforeseen events. For small businesses, electronic remittances can be harnessed to build transactional histories which can help improve their overall creditworthiness. This needs to be supported by a strong focus on financial education.