As emerging Asia aspires towards achieving higher levels of income and living standards, a different path from that which led the way for many advanced economies will need to be considered. The global financial crisis and the Asian financial crisis have provided us with many important lessons that should form the underpinnings for the development of a sound economic and financial policy framework. Such a framework must effectively combine strong regulation and market discipline to reinforce financial stability. The recent crisis has shown that markets cannot be exclusively relied on to rein in excesses. A broader perspective of regulation that looks beyond individual institutions is also essential to identify the build-up of system-wide risks. Equally, financial institutions need to consider how to meaningfully include such system-wide perspectives in their approach to managing risks in their respective institutions. Public policy also has a crucial role in promoting economic development that benefits society at large, and that addresses the disproportionate social welfare effects of a financial crisis on the most vulnerable groups of society, including low-income households, retail consumers and small businesses. Specifically, policies that protect the core savings of these groups, promote financial inclusion and contain excessive leverage should also form an integral component of the resolution and reform agenda. Given the high costs of financial crises there is now a better appreciation of the need for such policies to co-exist with free markets, working to efficiently allocate economic capital to achieve more sustainable outcomes.
This provides an opportunity for banks and businesses to leverage on, to improve the coverage of Point-of-Sale Terminals to facilitate the use of the debit card as means to reduce the need for cash, as well as, to increase tourist spending at more merchant outlets. With higher broadband and debit card penetration rate, coupled with increased payment innovation and strengthened security measures, businesses should consult their banks and take advantage of the various electronic payment solutions to reap the benefits of cost savings and productivity gains. 6  As at end-Sept 2013 – Total broadband subscriptions = 4.5 mil. With the additional 2.8 million household, total broadband subscriptions will increase to 7.3 million. Penetration rate = 7.3/6.7 mil household = 108%. 4  BIS central bankers’ speeches  I hope you will continue to provide your support in making this national electronic payments campaign a success for the benefit of the country. Conclusion I hope that all of you will benefit from today’s program. Please do take time to visit the exhibition booths to inquire about the latest promotional offers on electronic payment services and sign up to experience electronic payments at an affordable cost. On this note, it gives me great pleasure to open the Payment System Forum 2013. BIS central bankers’ speeches  5