Boards also need to be accountable and ensure that the risks associated with consumer financing are well understood and being effectively managed. The second area that is being closely monitored is residential property prices. The aim is to ensure affordable housing for the population and that imprudent financing to this sector does not become a source of financial instability. Generally, the price levels of properties in Malaysia have remained relatively stable, recording an annual increase of 5.6% in the first quarter and 4.2% in the second quarter of this year. At the national level, residential property prices have increased steadily in tandem with economic development and the rise in household income levels. This aggregate growth trend of this sector has remained largely manageable and residential property prices have not deviated from the long term trend. In the more recent period, however, certain specific locations, particularly in the urban centres, have experienced faster growth, both in house prices and the number of transactions. Supporting this trend has been the increase in financing for multiple unit purchases by a single borrower. This suggests investment activity that is of a speculative nature. BIS Review 146/2010  3  While Malaysia is not experiencing a general property price bubble, targeted pre-emptive measures are appropriate to moderate the increases in property prices that are evident in select locations arising from purchases that are speculative in nature. These measures aims to support a stable and sustainable property market, and to ensure that prices of properties remain affordable for the general public.

The new funding ecosystem will thus need to provide comprehensive and flexible financial solutions to Malaysian consumers and businesses. Recognising the importance of having a payment system that is comprehensive and efficient to support the needs of the consumers and businesses in a high-income economy, the payment system infrastructure would be enhanced and more inclusive, capitalising on the advancements in technology as well as the high number of banking accounts and mobile phone penetration in the country. The focus will be on infrastructure developments necessary to provide the speed and efficiency while offering convenience to consumers and businesses. Electronic payments should be the preferred medium for all economic transactions. This includes having the infrastructure necessary for industry-wide mobile banking and payment ecosystem, including an extensive outreach of the point-of-sale terminal facilities. The pricing structure and a comprehensive awareness programme to steer desirable payment behaviour are also key areas that will be addressed in our next phase of the development of our financial system. The blueprint will also seek to extend the reach to the potential untapped market represented by the latent demand for financial services among the non-urban population and urban residents in the lower income group. The blueprint will endeavour to develop a conducive environment for the design of financial products and services and the utilisation of delivery channels will effectively overcome the barriers to financial access, particularly cost restrictions and physical accessibility.