Revisions to Growth Rate Forecasts in Advanced and Emerging Economies* (Percent, GDP-Weighted Average)  * Dashed lines show the forecasts using the expectation figures in the previous quarter while the dotted lines show the revised forecasts using the updated expectation figures. Advanced Economies: U.S.A., EU, and Japan. Emerging Economies: China, India, Brazil, South Korea, Mexico, Russia, Turkey, Poland, Indonesia, South Africa, Thailand, Malaysia, Israel, Czech Republic, Hungary, Colombia, Philippines. Source: Consensus Forecasts, CBRT. 1. Monetary Policy Developments and Monetary Conditions  The Central Bank of the Republic of Turkey (CBRT) has aimed at engineering the economy gradually towards a more balanced growth composition against the macro financial risks that aggravated in the first half of 2011. Accordingly, with the support of other institutions, necessary measures were taken to bring loan growth rates to reasonable levels. Furthermore, policies were geared towards preventing exchange rates from moving away from economic fundamentals excessively on either side (Charts 2 and 3). 2  BIS central bankers’ speeches  Chart 2. Chart 3. TL and Emerging Market Currencies*  Loan Growth Rate* (13-Week Moving Average, Annualized, Percent)  (Against the USD, Value of 01.10.2010 = 1)  * Average of emerging market currencies including Brazil, Chile, Czech Republic, Hungary, Mexico, Poland, South Africa, Indonesia, South Korea and Colombia, against USD. Increases denote depreciation of the currency. *Adjusted for the exchange rate effect. Source: CBRT. Source: Bloomberg, CBRT. Data released for 2011 point that the desired rebalancing process in the economy has already started.

Most likely, if a similar study is conducted in Malaysia, the results would show bigger savings here, given the greater digital connectivity we have today. Our efforts over the years have shown some encouraging developments. The aggregate data points that we are on the right track. The growth rate of cash in circulation (or better known as CIC) in Malaysia has been slowing down for three years in a row since 2015. Measured against GDP, CIC decreased albeit marginally for the first time last year since 2014. With high penetration of debit cards and mobile devices, Malaysia is well-positioned to transition into a cashless society in the medium term. To continue our collective effort to ensure widespread adoption of e-payments becomes a reality, my remarks today will touch on the following perspectives; future proofing the Malaysian payment infrastructure, embracing digital disruption that will redefine the payment mechanism as we know it, and some thoughts on public engagement and consumer protection. Future-proofing Malaysia’s payments infrastructure The use of big data will provide a competitive edge among payment service providers. Payment flows used to be an operational matter, but now have immense strategic value. It has to do with the enormous amount of data and information that the system collects on the payment habits of the public. With data analytics, these data can provide deep insights on consumer and merchant behaviour, and even the economy at large. With this information in hand, there is also the enormous responsibility to ensure that it is not being abused and mishandled.