Response to "Cheques are cumbersome and redundant" (ST - 3 July 2010)
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 (Ms) Director (Communications) Monetary Authority of Singapore