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.

Second, we will work to take full advantage of the new FTAs currently being negotiated to create greater financial flows into Singapore, and to enable our financial institutions to access these markets. In our Comprehensive Economic Cooperation Agreement (CECA) with India, we are exploring closer integration of our financial markets. Both countries stand to benefit if our financial sector players can operate seamlessly between the two markets. While there are many regulatory and other issues to be addressed, we see this as a unique opportunity for both India and Singapore. Empowering consumers to achieve fair dealing Third, we must empower consumers to achieve fair dealing. This will help us to develop a more informed and savvy consumer market, which is necessary to grow a vibrant financial sector. With liberalisation, there are now more channels for savings that entice investors with higher yields, such as bonds, equities, unit trusts, hedge funds, and insurance and annuity products. These products also carry higher risk. Has consumer sophistication risen in line with the complexity of financial products? As consumers seize new investment opportunities, how far should MAS safeguard their interests? MAS no longer practises merit-based regulation of products. It is neither feasible nor desirable for MAS to prescribe what consumers can or cannot invest in, how these products should be priced, or what terms and conditions should govern transactions. This would inhibit business enterprise, restrict consumer choice, and raise compliance costs. MAS cannot intervene in commercial disputes with individual institutions or arbitrate on contractual matters.