muhammad bin ibrahim : malaysia ’ s “ my ringgit ” mobile app and the use of ink staining technology for atms keynote address by mr muhammad bin ibrahim, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the launching of “ my ringgit ” mobile application and ink - stain technology, kuala lumpur, 11 may 2015. * * * i wish to welcome you to this event, first to launch a mobile app my ringgit which aims to provide members of public with a tool to obtain information on the security features of our currency ; and second to launch an ink staining technology as an innovative solution or approach against any attacks on our atms. malaysia has one the lowest counterfeit rates in the world. indeed, if compared to developed economies. malaysia ’ s counterfeit rate is 2 per million pieces compared to development economies which range between 48 to 100 pieces to a million. our counterfeit rate is only a fraction of the rate experienced by these countries. most counterfeits found in circulation in malaysia were of low quality produced using colour printers without any security features. empirically no counterfeit notes have ever passed through the sophisticated cash processing machines used by bank negara or financial institutions. this is because there is a spectrum of advanced security features embedded in our currency. nevertheless, from time to time we keep hearing cases that the general public inadvertently receive counterfeit notes in the course of doing business. in most cases, counterfeit notes managed to pass through because the victims were too busy and casual to check their currency notes properly. this is indeed unfortunate and certainly avoidable if we are a bit more vigilant and aware of some security features found in our currency. our currency notes are designed to protect against any forms of counterfeiting from the most basic to the most sophisticated. however, even the best security features and technology that are available will not help unless members of the public are adequately educated on the basic security characteristics of our currency notes. the security features in our currency notes utilise the latest technology and have stood the test of time. for example, “ intaglio ” or raised printing effect, one of the most well - known security element found in almost every currency in the world, have never been featured on any counterfeits generated by colour printers. if only the general public is aware and able to identify of this particular security feature, they should be able to detect ninety nine percent of counterfeits in malaysia and the world over.

to collect and compile the relevant data in a reliable and timely manner. this will also form a basis for better policy formulation and effective monitoring and assessment of the effectiveness of policies. data coverage needs to involve both the mobilisation of savings and financing activities, including information on the profile of the new entrants into the formal financial system. this is not only to promote effective participation in the financial system but to avoid conditions of over leverage and indebtedness. access to credit registries to financial service providers would also support the sustainability of the supply of such services. such financial statistics also needs to evolve with the changing environment including on the range of products and services, the distribution channels and the relative performance of the borrower and the financier. this will allow for early detection of risks and vulnerabilities and thus allow for prompt policy responses to ensure sustainable financial intermediation for the underserved sector. priorities 3 : strengthening the role of regulation and supervision the third area relates to the role of regulation and supervision in financial inclusion. today, there is a growing consensus that the policy goals of financial stability, financial integrity, consumer protection and financial inclusion are complementary and mutually reinforcing. there is now a re - thinking of prudential and conduct regulation to reflect a more proportionate approach. the validation by global standard setting bodies that includes the basel committee on banking supervision, the insurance association of insurance supervisors, and the financial action task force that regulation should be commensurate with the risks, benefits and costs is a significant step towards improving the regulatory and supervisory conditions that will be consistent with the conditions for financial inclusion. while the principles of proportionality are widely embraced, there is much less clarity on how they can be applied in practice to reflect risks associated with low - income households and small businesses. the practical issues can be challenging particularly in the context of full service banks. lending and provisioning standards, reporting requirements, minimum capital adequacy and customer due diligence requirements are among the key areas in which there is still little formal distinction made to address the impact of such regulations on the access to financial services to low income households and small borrowers. bis central bankers ’ speeches global standard setting bodies therefore have an important role in accelerating the conversion of proportionality principles into practice. this will also be important in the assessment of national financial systems and how it measures up against global standards. for example, under the financial sector assessment programme ( fsap ).