indispensable part of their users ’ daily lives. so, while there has been quite a bit of payments innovation in singapore, our payments experience needs to be as good as the best we see globally. our vision is to make singapore an electronic payments society. a society : • that spurs continuous innovation in payments technology ; • that gives consumers maximum convenience and confidence in making payments ; • that enables firms to increase productivity through payments integrated with business processes ; and • where swift, simple, and secure payments is a reality for everyone. mas has been working closely with the financial industry and other government agencies to drive electronic payments. we have also engaged kpmg advisory to study singapore ’ s payments landscape ; kpmg ’ s report will be released later today. let me elaborate on the four key strategies to create an e - payments society : • streamlined regulation ; • inclusive governance ; • interoperable infrastructure ; and • pervasive digitisation. streamlined regulation – targeted, activity based, risk appropriate first, we will streamline our regulatory framework for payments ; strengthen consumer protection ; and make regulation more targeted based on the specific payment activities that businesses undertake. the existing regulatory framework for payments cuts across the money - changing and remittance businesses act ( “ mcrba ” ) and the payment systems ( oversight ) act ( “ ps ( o ) a ” ). the mcrba was introduced in 1979, an era when bricks - and - mortar money changers and remittance agents were the norm. • for more than three decades, it has served us well. • we have a thriving remittance industry that provides an essential service to residents, including the many foreign workers in singapore. the ps ( o ) a was enacted in 2006, with the objective of keeping our key payment systems safe and efficient. • the ps ( o ) a also protects customer funds held in widely - accepted stored value facilities such as the ez - link and nets flashpay cards that commuters on public transportation use every day. • thanks to the ps ( o ) a, our key payment systems continue to operate safely and efficiently. but fintech is changing the face of payments. • every month, mas meets many fintech firms that do not fit neatly into categories like remittance or stored value. bis central bankers ’ speeches • most internet - based stored value wallets today would be regulated under both the mcrba and ps ( o ) a. • it is not efficient for companies to

and so the central bank needs to expand its liquidity adjustment tool - kit to carry out its financial stability function efficiently. in consideration of discussions on the organizational structure in major countries, korea needs to establish a macro prudential policy framework with a view to heightening its financial crisis response capacity. 3. strengthening the economic fabric the third challenge is to strengthen the economic fabric so as to minimize the impact on the real economy of external shocks such as the eruption of a financial crisis. growth potential should be enhanced by cultivating industries offering new growth momentum while the structural adjustment of existing firms should be driven forward without delay or error. ( drive for corporate restructuring ) the thoroughgoing corporate structural adjustment undertaken following the 1997 asian foreign currency crisis has contributed greatly to korea ’ s swift recovery from the global financial crisis. firms ’ financial structures were greatly improved, helped by the turnaround, exit or sale of distressed firms and the tightening of accounting standards to heighten management transparency. corporate debt ratios in manufacturing were slashed from 396 % at year - end 1997 to 98 % at year - end 2007 and there was a rise in the equity capital ratio from 20 % to 51 % over the same period. meanwhile, firms ’ further structural adjustment has been delayed in the course of the response to the global financial crisis. instead of the number of firms in default shrinking, there was a big increase in the number of firms with an interest coverage ratio less than unity owing to the promotion of various emergency support measures including the government ’ s fast track support for smes and increased credit guarantee ceilings. since the korean economy has largely shaken off the influence of the global financial crisis, the drive for the restructuring of firms should in future be carried out in a normal manner at their own initiative based on the market mechanism. systematic improvement efforts should be redoubled so that the market mechanism can work properly by reducing the barriers to new entry and exit for firms. government support should be limited to start - ups that have just entered the market so as to block the continued existence of firms that are dependent upon rent - seeking behavior. ( expanding growth potential ) given that overcoming the financial crisis ultimately hinges upon the sustaining of growth, it is an essential task for policy to foster industries that offer future growth momentum. most advanced countries and our developing country rivals are also pressing ahead with similar types of growth strategies. considering korea ’ s stage of economic development and its changing demographic structure including the ageing of the population, there is little to be gained by continuing