move away from globalization towards the rise of protectionist policies such as the protracted trade tensions between the us and china. while the philippines is not directly affected with the tariff impositions, the continued trade friction could take its toll on the country ’ s external sector. fourth, there is also the so - called rise of the fourth industrial revolution. while technological innovation in itself is not bad, and indeed often brings benefits, the velocity and depth of transformation could have potentially disruptive effects, especially in the short term. in fact, rapid technological innovation has already ushered in broad structural economic changes that policymakers are only just beginning to understand. certainly, this would have significant impact in the conduct of economic policy and the way we do business. on top of these global risks, we also have to deal with the infrastructure gap on the domestic front. nonetheless, despite these risks, we are cautiously optimistic that the philippine economy is poised to sustain its growth momentum amid lingering global headwinds. let me close by assuring everyone that the bsp will continue to adhere to sound policies and remain focused on its mandate. you can continue to count on us to remain steadfast in our primary objective of price and financial stability, factors that reinforce the vibrant investment environment. having said all these, i am looking forward to a productive, open, and stimulating discussion with you and will be receptive to your insights. thank you and mabuhay. 3 / 3 bis central bankers'speeches

to reach everywhere even to the remotest access points, we encourage increased use of affordable digital channels for payments, remittances and fund transfers. our regulations allow banks to prudently service even low - income clients by allowing the participation of convenient, familiar and non - intimidating third party entities like grocery stores, pharmacies and other retail outlets as cash agents. money service businesses and remittance agents are also now covered by enhanced regulations for anti - money laundering, risk management and consumer protection. we recognize that with digital developments, technology - related risks have and are increasing. in 2017, the bsp issued various prudential guidelines enhancing information security management, as well as anti - money laundering / combating the financing of terrorism ( aml / cft ) concerns related with the use of fintech. we continue to pursue policy and supervisory enhancements relevant to cybersecurity. even as we provide an enabling environment for technological innovations in the payments system, the bsp likewise is internally undergoing transformation by digitalizing its own payments processes and upgrading its organizational resources and capabilities. recently, a unit dedicated to studying cybersecurity threats was established in the bsp. we are also strengthening the skills, proficiency and capability of it specialists. moreover, a new subsector within the financial supervision sector ( fss ) has been created to conduct the effective oversight of fintech and other innovative alternatives. we are indeed putting more focus on our third mandate. and part of the journey is promoting awareness and exchanging knowledge about the country ’ s payment and settlement system. ladies and gentlemen, in today ’ s conference, there will be discussions on the philippine retail payments industry, on the large - value payments and settlement system, on the oversight framework, and the value of measuring cybersecurity risks. these are very relevant issues and from whichever point of view you stand, whether you are from the policy group, whether you are operators of fmis, or come from support departments … as members of the ever increasingly interconnected financial ecosystem, it is urgent that we know and understand the developments in the industry. 2 / 3 bis central bankers'speeches we hope you would take advantage of this time to ask questions and learn from our subject matter experts who have very willingly agreed to be here for us. it is through opportunities such as this that we can enhance our roles in building a more efficient, safe, and inclusive national payment system. thank you and i wish everyone a good and productive day.