Malaysia has a high mobile phone penetration of 144 per 100 inhabitants as at end-2013. In addition, the country’s broadband penetration at 67 per 100 households as at end-2013, is projected to increase with the implementation of the second phase High-Speed Broadband (HSBB) project. Malaysia also has a wide network of about 9,000 access points to banking services comprising bank branches and agent banking network accounting for approximately 4 access points per 10,000 adults.1 Under the agent banking network, basic banking services are provided to customers through third party agents such as post offices, petrol stations, retail outlets and telecommunication agents. The access points are also complemented by  1  2  As at end-May 2014, there are 2,953 bank branches and 5,802 agents under the agent banking network nationwide. BIS central bankers’ speeches  12,430 ATMs nationwide which represents about 6 ATMs per 10,000 adults. All districts and Parliamentary constituencies now have access to basic banking services.2 We believe that the payment instrument that has the highest potential to drive financial inclusion in Malaysia is the debit card. Malaysia has a high debit card penetration of 19.2 million “active”3 cards-in-circulation which is almost equal to the bankable population of approximately 20.4 million adults. The unbanked on the other hand can leverage on prepaid cards which function just like debit cards.

Governments and parliaments, as guardians of the public’s trust, have the necessary legitimacy to set the 1  Mark Carney (2015), Breaking the tragedy of the horizon – climate change and financial stability, speech at Lloyd’s of London, London. Available at: https://www.bis.org/review/r151009a.pdf. 2  Real Instituto Elcano (2019), Los españoles ante el cambio climático. Apoyo ciudadano a los elementos, instrumentos y procesos de una Ley de Cambio Climático y Transición Energética. Available at: http://www.realinstitutoelcano.org/wps/wcm/connect/1c5a8ff2-2533-44bf-b2d6-a0c8053b231a/Informe-Espanolesante-cambio-climatico-sept-2019.pdf?MOD=AJPERES&CACHEID=1c5a8ff2-2533-44bf-b2d6-a0c8053b231a. 3 Real Instituto Elcano (2019), Los españoles ante el cambio climático. Apoyo ciudadano a los elementos, instrumentos y procesos de una Ley de Cambio Climático y Transición Energética. Available at: http://www.realinstitutoelcano.org/wps/wcm/connect/1c5a8ff2-2533-44bf-b2d6-a0c8053b231a/Informe-Espanolesante-cambio-climatico-sept-2019.pdf?MOD=AJPERES&CACHEID=1c5a8ff2-2533-44bf-b2d6-a0c8053b231a. 1  path for this transformation process. And, moreover, they have the most appropriate instruments to make it happen. Specifically, within the ambit of public policy, fiscal policy can and should play a leading role in the management of the transition to a more sustainable economy. Indeed, from the standpoint of economic theory, the origin of the problems associated with climate change is clear: economic agents pursue their activity taking into account only their private benefit or cost, while ignoring the social cost (in this case, environmental) that they generate. As a result, the emission into the atmosphere of greenhouse gases exceeds the socially optimal level. This is what is known in the economic system as a negative externality which needs to be internalised.