as ‘ different ’ are premised on several considerations. first, is that we considered financial stability risks in our monetary policy decisions. while moves to formalise this as part or within the broader context of monetary policy frameworks have been a more recent phenomenon in the aftermath of the recent crisis, malaysia has always been vigilant against the risks of financial imbalances. we have looked into this aspect for as long as i can remember. in 1992, for instance, the bank had already introduced administrative limits, or macro and microprudential measures as it is known now, to address the risks of financial imbalances arising from specific sectors of the economy. back then, limits on hire purchase loans and guidelines on credit card operations were put in place as complementary measures to the tighter monetary policy stance of the bank. even since then, financial stability has remained an important mandate of the bank. this mandate was reinforced with the introduction of the central bank act in 2009, which established bank negara malaysia as the financial stability authority for malaysia. second, we have always kept our banking system supervisory role in - house, even when the notion of separating the monetary authority from financial supervisory authority was held up as a more effective model in more than a few countries. we now see moves to recombine these functions under the central bank post - great financial crisis. the uk, for instance, had restored the supervisory role back to the central bank after a painful episode with the collapse of northern rock in 2007. authorities were widely blamed for inaction, poor coordination and constraints that held back early interventions. third, is the fact that malaysia has always relied on a broad policy toolkit, even during the early 1990s when we introduced measures to manage capital flows. it was only in 2012 that the imf updated their institutional view and began recognising the usefulness of capital flow management measures. more recently, at end - 2016, we introduced bold ‘ market - correcting ’ and prudential measures to ensure the orderly functioning of the domestic financial market. these measures were seen as ‘ anti - market forces ’ at its inception but they have been proven effective in reducing speculative pressures on the ringgit and imbalances in the domestic foreign exchange market. it has in fact further liberalised the market than the situation before the measures were implemented. learning from malaysia ’ s policy experience there are important lessons behind malaysia ’ s approach which are relevant to our policymaking, at least from my perspective. these lessons cut

put in place while actively promoting their product arrangements that will give customers the peace of mind. this may include strengthening the effectiveness of fraud detection and prevention engine using the latest technology such as artificial intelligence and machine learning. additionally, offering liability protection programs and a commitment to resolve disputes within a stipulated timeframe would go a long way in providing assurance to customers. supporting this, financial institutions ’ mobile applications and internet banking channels must provide seamless ways for users to track their expenses. this would include budgeting features, instant notifications and possibly smart money management tools. some of these enhancements may be small tweaks with a potentially big impact to get users to be more comfortable with e - payments. going beyond payments to enhance value proposition to end - users this brings me to second key priority – the need to go beyond payments in response to certain “ new normals ” in the payments landscape. today, customers increasingly expect payments to be fast, frictionless and free. competition has also heightened. non - traditional players such as fintechs and bigtechs are increasingly relying on payments as entry point into financial services. against this backdrop, payment service providers must rethink their strategies to remain relevant and be sustainable in the long run. today, going cashless is more than just e - payments. instead, it should be about putting customers at the core of innovation to address real pain points and drive greater value creation. this means delivering integrated solutions to enhance the value proposition to end - users. in the e - wallet space, we have noticed the practice by some players in offering generous rewards including cashback to stimulate usage among users. while such practice may be effective in driving e - wallet adoption at the initial stage, it is questionable whether such practice is sustainable in the longer run. for instance, we have observed that the transaction volume of some players tend to fall significantly once the promotion period is over. to achieve a more sustainable migration, the industry should strengthen the value proposition of e - payments. greater focus should be placed on creating innovative and value - added solutions that go beyond payments. this may serve as a natural incentive for customers to adopt digital 2 / 4 bis central bankers'speeches financial services. to enhance the value proposition to end - users, bank negara malaysia has also focused its efforts on evolving our regulations to facilitate new business models. the ongoing work on the digital banking framework is one example, amid growing interest among traditional and nontraditional players to enter this segment. of importance,