Zamani Abdul Ghani: Developments in electronic money management Welcome address by Mr Zamani Abdul Ghani, Deputy Governor of the Central Bank of Malaysia, at the Official Monetary and Financial Institutions Forum (OMFIF) and Lafferty Group – World Roundtable on Electronic Money Management “From Practice to Policy”, Kuala Lumpur, 15 May 2010. *  *  *  On behalf of Bank Negara Malaysia, I am most pleased to welcome all of you to this gathering on “World Roundtable on Electronic Money Management” – “From Practice to Policy”. This event is jointly organised by Bank Negara Malaysia, the OMFIF and the Lafferty Group. As you may be aware, Bank Negara will also be hosting the first ever Asia OMFIF Meeting, which will take place at Bank Negara’s Lanai Kijang over the next two days. This World Roundtable on Electronic Money Management, thus precedes the Asia OMFIF Meeting. It provides an excellent opportunity for the industry to have an interactive dialogue with regulators and practitioners from around the world to exchange ideas, experience and perspectives on developments in the area of electronic money and electronic payments. Economic efficiency and cost savings Rapid technological advancements and innovation in the last two decades had revolutionised the payment landscape. In the retail payments area, electronic money in the form of stored value cards and other access devices has grown rapidly. Businesses around the world are also intensifying their efforts to cut operating costs and increase efficiency to improve their long-term competitiveness and sustainability.

Taking into account all the new information and analyses which have become available since our meeting on 13 January 2011, we continue to see evidence of short-term upward pressure on overall inflation, mainly owing to energy and commodity prices. This has not so far affected our assessment that price developments will remain in line with price stability over the policy-relevant horizon. At the same time, very close monitoring is warranted. Recent economic data confirm the positive underlying momentum of economic activity in the euro area, while uncertainty remains elevated. A cross-check of the outcome of our economic analysis with that of the monetary analysis indicates that  2  BIS central bankers’ speeches  inflationary pressures over the medium to long term should remain contained. Inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2% over the medium term. The continued firm anchoring of inflation expectations is of the essence. Turning to fiscal policies, it is now essential that all governments fully implement their fiscal consolidation plans in 2011. Where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability. Beyond 2011, countries need to specify concrete policy measures in their multi-year adjustment programmes so as to underpin the credibility of their fiscal consolidation targets. Experience shows that expenditure restraint is an important step towards achieving and maintaining fiscal soundness, notably when enshrined in binding domestic policy rules.