Orient Magazine Issue 87 - June 2022 - Page 47

47 playing catch-up to these innovations . Despite having a high level of awareness locally of gold as a store of value , Thailand ' s policy environment had slightly lagged in terms of supporting gold investment as an alternative form of financial management . Only recently have small scale retail investors been able to trade gold easily with the launch of the Krungthai Gold Wallet in November 2021 , the first endto-end online gold trading service in Thailand .
There is also the possibility of regulation stepping too far ahead of innovation , which may end up stifling it . There are legitimate concerns around the risks of fintech , such as data security and individual privacy . Additionally , a 2022 IMF report identifies several vulnerabilities posed by neobanks that threaten financial system stability , including higher risk-taking in retail loans originations and in securities portfolios , and inadequate liquidity management frameworks . However , the case of Singapore showcases a regulatory approach that can balance both innovation and risk , relying on the use of regulatory sandboxes to test new technologies in well-defined spaces and durations . The fruition of years of regulatory process to finetune the eligibility criteria for digital bank candidates and the commencement of operations of the four approved digital banks this year is also a testament of a possible coexistence of innovation and regulation .
around single-use plastics should be carefully considered as different products . For example , Malaysia , in its plastic sustainability roadmap , has included standards such as BSI PAS 9017 ( the first standard to measure the biodegradability of polyolefins published by BSI ) and ASTM D6400-05 ( required specification for the labelling of plastics designed to be aerobically composted ). These can help clarify new product categories and finetune regulation to cushion the impact on industry and consumers .
Conclusion
The way forward is most definitely , continued publicprivate partnerships , whereby regulation gets shaped by an iterative and collaborative process between the public and private sectors towards win-win scenarios . Fundamentally , there is a need to ‘ de-risk ’ technology in the view of individual users , which can happen by creating space for government and industry to explain policy and commercial considerations respectively . Crucially , it is also on the onus of both government and industry to survey the existing landscape , keep their finger on the pulse of developments , and pre-empt potential concerns to avoid a stranglehold of innovation by regulation , which can be further mired by existing legislative frameworks that may take significant time to change .
Plastics
Another interesting phenomenon is the emergence of mixed materials packaging as well as biodegradable plastic , which has exposed limitations on current regulations . Policymakers remain cautious in the definition of such materials and tend to regulate them as plastic , imposing sanctions or bans on innovators who want to be exempt from these measures . Across Southeast Asia , several countries have recently enacted or are in the process of enacting Enhanced Producer Responsibility ( EPR ) policies . Defining EPR coverage becomes tricky in the face of new technologies , particularly around how governments regard mixed materials . For instance , multi-layer paper-based packaging with a minor component of plastic tend to still be regarded as plastic , despite there being the sorting and technological capabilities to separate the layers . Meanwhile , new biodegradable alternatives or substitutes that address problems
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MOVE FAST AND BREAK THINGS : WHERE REGULATION STRUGGLES TO KEEP PACE WITH INNOVATION AND THE WAY FORWARD