During the circuit breaker period from April to June 2020, most office workers were required to work from home and many offices were shut. However, as a business, we were still receiving cheques and as a business owner, I would still head to the office once every few weeks to collect the mail which included some cheques. It was clearly an inconvenience, but one that we have to bear with given that some companies would still issue cheques as a form of payment.
By 2025, this will no longer be the case.
Corporate Cheques To Be Discontinued
The Monetary Authority of Singapore (MAS) has set a roadmap to eliminate the use of corporate cheques in Singapore by the end of 2025. Corporate cheques will be discontinued, with individual cheque usage allowed for a short period beyond this deadline.
Starting from November 1, 2023, seven “Domestic Systematically Important Banks (D-SIBs)” including Citibank, DBS Bank, HSBC, Maybank, OCBC Singapore, Standard Chartered Bank, and UOB will begin charging for cheques issued by both corporate entities and individuals. Other banks in Singapore will follow suit by July 1, 2024. To discourage the use of cheques, Charges for SGD cheques deposited will also be introduced gradually, with varying rates depending on the bank.
The Association of Banks in Singapore (ABS) will collaborate with the D-SIBs to create an Electronic Deferred Payment (EDP) solution by 2025. This digital solution will leverage existing payment systems like PayNow and GIRO. In situations where non-digital payments are preferred, physical cashier’s orders will still be available even after the discontinuation of corporate cheques in 2025.
The move aligns with Singapore’s Smart Nation vision for fast, secure, and straightforward payment solutions. The EDP solution aims to provide a modern alternative to traditional cheques, allowing payers to make post-dated payments with ease while enhancing the efficiency and security of transactions.
Learning From Lee Kuan Yew: In His Own Words
The video “Lee Kuan Yew: In His Own Words” by CNA delves into Singapore’s early post-independence era, offering valuable historical insights that extend beyond mere history. It contains lessons applicable to the business world.
One key lesson highlighted is the importance of diversifying economic relationships rather than relying on a few major trading partners. Singapore’s high trade-to-GDP ratio, one of the world’s highest, demonstrates the benefits of such diversification across various economies. Businesses, likewise, are encouraged to diversify their customer base for resilience.
Singapore’s rapid transformation also required adaptation. Similarly, there is a need for businesses to adapt to change and innovate continually in response to evolving markets and technology. High operating costs also necessitate continuous investment in employee skills and knowledge.
Finally, just as Lee Kuan Yew had successors in government, businesses should also have succession plans to ensure continuity when key leaders step down.
Read Also: Business Lessons We Can Learn From The CNA Documentary, Lee Kuan Yew: In His Own Words
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