Reduce the cost of clearing checks

28 August 2012

Editor, Forum Page

Straits Times

I saw a report that 91 million checks were cleared in Singapore 

in 2000. This is almost 20 checks for every resident in Singapore!

I do not have any more recent figure, and this number is likely to be 

larger today.

Why are so many checks being used, when there are  

more efficient ways to make payments, e.g. through 

electronic banking.

It probably cost businesses a few dollars to process each check, considering

the work that has to be done by accounting staff to mail the check and for the other 

party to receive and bank in the check.

I have tried to make electronic payments for my business transactions and

found the process to be difficult and error prone. After the disappointments, I have decided 

to go back to writing checks.

Can the Monetary Authority of Singapore and the Association of Banks in Singapore

look at how to make it easier for business entities to make electronic payments and to 

promote its usage?

Tan Kin Lian
Director
Tan Kin Lian & Associates Pte Ltd