This was a commercial dispute between AIA and policyholders, which had to be resolved bilaterally between them, whether through negotiations, industry-based dispute resolution mechanisms or the courts as a last resort. MAS could not intervene. But MAS had a responsibility to ensure that policyholders had full information of what AIA was offering them, what this was worth, and what other alternatives they had. MAS also had a strong interest in seeing IDRO, the industry based dispute resolution mechanism, work. Thus what MAS did was to ensure that information was disseminated promptly, accurately and adequately, so that policyholders could make a considered decision. We issued a policyholders’ guide to help affected policyholders understand their own policies and the options available to them. AIA was asked to issue a public statement to explain fully and clearly its support package and adjudication process. MAS also made it clear to the industry that if any dispute arose over the jurisdiction or authority of IDRO, it would have had to contemplate introducing statutory and regulatory mechanisms for dispute resolution. Full disclosure and working dispute resolution mechanisms are preconditions for a disclosure-based regime and self-reliance to work. The AIA dispute simmered for many months. Eventually AIA responded to the concerns of policyholders, including those raised by CASE on their behalf, by revising and substantially improving its offer. As this offer addressed many of the earlier concerns, MAS welcomed it publicly.

Together with other government agencies, we launched a national financial education programme “MoneySENSE”, aimed at improving the basic financial literacy of consumers. The “For the Consumer” portal on MAS’ website provides a one-stop access to financial education materials, including consumer guides. V.  MAS workplan for 2004  The past year has been a challenging one on many fronts, but MAS has made good progress in meeting its business priorities. With the global and regional economic recovery, many new opportunities will emerge. To capitalise on these opportunities, we have identified three key thrusts for our 2004 workplan. Enhancing our competitive operating environment The first thrust is to enhance our competitive operating environment. We aim to do so in the following areas. We will enhance the transparency of supervisory initiatives and policies. To improve financial institutions’ understanding of their statutory responsibilities, MAS will articulate more explicitly and systematically the intent of significant changes in legislation and regulation. We also intend to share best practices for compliance. We will also be reviewing our process for conducting monetary policy in light of the ongoing structural changes in the economy. We will be looking at how we make decisions, how we communicate the Monetary Policy Statement, how we implement the policy, as well as studying the transmission mechanism through which the exchange rate affects the real economy. Next, we will seek a judicious cost-benefit balance in our regulatory and supervisory work. MAS will not compromise the safety and soundness of individual institutions or systemic stability.