Monday, July 12, 2010

MAS reply to my suggestion on cheques

Why it's not feasible to ditch cheques

I REFER to Mr Tan Kin Lian's letter ('Cheques are cumbersome and redundant; July 3).

The Monetary Authority of Singapore (MAS) agrees that the use of cheques is less efficient than electronic means of payment ('Cheques are cumbersome and redundant', July 3). However, any effort to deter the use of cheques is likely to involve customers paying high cheque charges. Careful consideration has to be given to the needs of different segments of consumers and businesses.

MAS has been working with the industry to facilitate the development and use of alternative forms of payment like eGiro, Internet banking and kiosks, such as AXS and SAM.

Cheque usage in Singapore has declined by 9 per cent over the last five years while the use of eGiro has increased by 26 per cent, surpassing the volume of cheques cleared last year.

MAS will continue to partner the industry to enhance the electronic payment infrastructure and encourage the greater adoption of more efficient payment modes in Singapore.



Angelina Fernandez
Director (Communications)
Monetary Authority of Singapore


My comments
I did not suggest to ditch away with cheques (words created by the Straits Times). I only suggested that MAS should take the lead to make electronic payment easily, especially for payment to business entities. MAS did not want to call me to clarify my suggestion.

My earlier statement "Many countries have done away with cheques" is probably inaccurate and has been taken off-context by the Straits Times and MAS.

8 comments:

  1. Dbs internet banking now allows payment to a third party by just typing in the details of the payee (name and address). The service is free -- they will mail the cheque to the payee.

    Have not tried the service, but will be doing so soon.

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  2. reply with statistic data again! just to show they are always right! haha

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  3. "However, any effort to deter the use of cheques is likely to involve customers paying high cheque charges."

    This statement suggests a fixed mindset that the government adopts towards problem solving. Why must any endeavour necessarily lead to higher charges. If you simply provide a better service, people will naturally switch over. You don't have to coerce them via penalty charges unless they are "daft".

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  4. Authorities in Singapore like to give "text-book" answers to hide issues and defend their actions rather than to solve problems...while the GOVT cry loudly to "improve" productivity.

    I think if they change their operational mode, overall productivity would improve two fold (4~5%) instead of what they dreaming and targetting at 2~3% in the near future.

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  5. I agree with C H Yak. The current process adopted by governemnt agencies increased the cost of doing business. If they simplify the procedure, they will improve productivity for the public and thir own officers. So, a higher productivity level is possible.

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  6. Dear Mr Tan,

    I wrote to your gmail sharing what I wrote to the MAS today.

    Are you able to post the original text of your letter to ST Forum in your blog?

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  7. The very standard typical diplomatic government reply. it leaves you wonder "eh....so now what?" It neither tells you yes or no, right or wrong, and if any action will be taken to address the issue. Chinese has a saying "ask already like never ask"

    Jerome

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  8. You blog is getting very dry and boring.

    You are bankcrupt of ideas.

    Crappy old fat pot belly butcher.

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