The MSB industry in Malaysia is also highly competitive, with among the lowest remittance costs in comparison with other markets. I know that this has been an issue of some concern among some players in the industry as margins have continued to narrow. As in any other industry, an environment of healthy competition that delivers more choice, provides better service and encourages innovation, generally benefits society. Tonight’s awards are a good example of MSB companies that have stepped up to deliver an outstanding customer experience in order to attract and retain customers. Many strategic partnerships between companies in the industry have also been formed over the 1/3  BIS central bankers' speeches  years in response to greater competition. This has unlocked value for the companies by opening up new business opportunities and increasing cost efficiencies. Throughout history, whether in an organisation, an industry or a nation, progress and development have always been achieved through a process of creative destruction, adjustment and evolution. The industry will continue to transform and evolve, and in the process, it become more efficient and advanced in delivering superior products and services to the public. Bank Negara Malaysia remains committed to ensuring that the market for money services continues to function efficiently and sustainably in the best interests of consumers, and a competitive market is an important part of this process. The industry’s remarkable development has not gone unnoticed. More than a few countries have been interested to study and learn from Malaysia’s experience.

More than half of the industry today is made up of MSB companies with annual turnovers of at least RM50 million, compared to only a third of the industry operating at this level 6 years ago. The public can conduct money changing and remittance transactions at over 2,500 locations nationwide, more than double the number of access points in 2011. An increasing number of companies are also offering online options for customers to conduct remittance and money changing transactions. The Bank is also happy to note that the industry received a positive assessment under the most recent mutual evaluation exercise conducted on Malaysia by the Asia Pacific Group (APG) on Money Laundering. As you know, the APG is an international organisation committed to the implementation and enforcement of international standards against money laundering and the financing of terrorism, working closely with organisations like the Financial Action Task Force, the International Monetary Fund and the World Bank. The assessment is a rigorous process, so a positive assessment is something that the industry can take great pride in. In its most recent 2015 report, the APG specifically noted that mitigation of money laundering and terrorist financing risks in the MSB sector has improved significantly in recent years, while acknowledging that there are challenges among smaller companies that we are collaborating together with the industry to address. One of the key steps that we are taking is to provide compliance officers with appropriate training, and then supporting them to be professionally accredited.