machines of the participating banks and terminals at retail outlets are being upgraded to facilitate meps cash transactions. with these developments, specific programmes need to be implemented to promote the usage of meps cash among the public and business entities. indeed, this e - payment program is a good start to promote a wider use an acceptance of this means of payment. ladies and gentlemen, while the efficiency of electronic means of doing banking is valued, the basic tenet of banking services that is providing security and safety still remains. the potential benefits from electronic delivery channels need to be exploited without undermining the security and confidence of the banking public. the challenge to providing multi channel services in today ’ s banking is the ability to integrate and interface the different delivery channels. multi channelling strategies therefore needs to be approached holistically. technological development is not only about creating alternative delivery channels, but it is also redefining the financial landscape. indeed, as a result of significant innovations in technology, the payments industry landscape will be redefined with the entry of non - banks into payment services once thought to be the domain of banks. banks need to be more proactive in their role in the payments mechanism. this includes continually finding new effective ways to provide the payment services in a cost - effective, and efficient manner by taking advantage of technological advances and meeting the changing demands of businesses and consumers. banking institutions need to innovate to reach potentially new markets and consumers. it is not just about web enabling existing products and services but also being able to provide the complete financial services required by consumers and businesses. it is also not just about implementing technology solutions but being able to customise the product offerings to our local requirements and preferences. ladies and gentlemen, the growing evolution and demand for online financial services will lead to greater digitisation of banking services. while the use of cash and cheques will continue to be important, more consumers are realising the convenience and flexibility of electronic banking in meeting their daily payment needs. the change in consumer behaviour is reflected in the increasing use of electronic payment systems in the country. the volume of cheques processed through the cheque clearing centres has shown a declining trend in terms of both volume and value. this has been reinforced by the introduction of the interbank giro and internet banking three years ago. the number of interbank giro payments has more than quadrupled in 2002, while electronic funds transfer and bill payments conducted through internet banking has been on an increasing trend. more customers are likely to be drawn

. in addition, developmental financial institutions ( dfis ) are being strengthened to play a bigger role in supporting financing to smes. the ongoing restructuring of dfis as announced by the government will enlarge their financing capacity while improving synergies and economies of scale to support financial flows to higher risk segments. this includes helping banks evolve their approach to sme financing through risk sharing arrangements as well as developing alternative non - bank funding sources. in parallel, we continue to leverage on bnm's funds for smes to better address financing gaps and encourage financial flows in more impactful areas of development. one example of this is our ongoing collaboration with the government to curate end - toend tech adoption programs for smes that include elements of tech advisory, capacity building, financing, and proportionate incentives to encourage participation. ongoing 2 / 5 bis - central bankers'speeches efforts to develop sme capital market segments and private equity financing are also important. notwithstanding these efforts, we recognise that there are pockets of smes that continue to face challenges in accessing finance. we have looked at this issue very closely and the evidence we have suggests that these challenges are commonly associated with a history of credit defaults, uncertain repayment capacity and business management concerns3. this underscores the importance of the third area of focus which concerns the need to strengthen smes themselves as a necessary precondition to improving access to finance. through programmes like itekad and bnm's sme funds, we continue to collaborate with relevant sme agencies and associations to integrate technical training, financial capability and business support services with financing support. following the significant impact on smes from the pandemic crisis, we significantly scaled up the capacity of akpk to help smes improve their financial resilience and resolve debt problems. and we continue to intensify our financial literacy efforts which reached more than 6. 3 million malaysians including sme entrepreneurs in 2023. ladies and gentlemen, looking ahead, smes will need to contend with emerging mega trends that will fundamentally shape future business prospects of smes. one such trend is the growing global momentum of transitions to sustainable or green business practices. the case for transition towards more sustainable practices is by now well established not just as a socially responsible response to business. it is vital for long term business survival. for some businesses, this is already having an impact on performance and access to funding as demand for climate - related disclosures increase and become more