these systems is that they do not deter worker mobility. this is so in austria because, by not forgoing their " established rights ", it is workers themselves who manage the accumulated resources during periods in which they are unemployed. also, this arrangement offers protection to all workers, even those whose previous terms of employment have been short - lived. in denmark, the choice was of a system which firmly supports the unemployed ( with substantial unemployment subsidies and intensive training programmes ) in a setting in which, however, firing costs are very low. just as 50 years ago the external sector crisis obliged spain to change its trade protection policy, the current, serious unemployment crisis should lead us to examine what we can change in our labour market, given what other countries have done with very favourable results. admittedly, this is nothing new, since the banco de espana has reiterated in its annual reports, at least in the past 10 years, the need for such reform. what is new is that reform has now become absolutely vital ; otherwise, when we emerge from the current crisis, and in the absence of the instruments that were used in the past, we will be liable to grow far below what we did in previous decades. the reform of labour institutions is a pressing task, since the short - run effects on hiring are absolutely necessary in the current circumstances. but we require action on another front, even though the effects are longer - term. i refer to education. undoubtedly, progress in education is spain's most important outstanding task in respect of economic growth, enhanced productivity, fairer income distribution and also the attainment of low unemployment. true, spain has advanced in some fields here, such as university education and business schools. but we continue to take up the rear as regards the average quality of our citizens ’ educational attainment, with the serious consequences this entails. it is well known that countries with a better educated population are characterised by having higher wages, lower unemployment rates and a higher labour market participation rate. for example, both in denmark and in the united kingdom, more than two - thirds of the population have a post - compulsory education qualification, as against only 50 % in the case of spain. in both countries, the average worker has 30 % higher spending power than spanish workers, and their unemployment rates in 2007 were 3 % and 5 %, respectively, less than half the level in spain. this relationship between training and wages is explained by the fact that more highly educated workers are more efficient, and therefore

gross domestic product is 180 %. this means that savings is mobilised including from small savers into the formal financial system. this allows the savings to be channelled to productive economic activity. to further drive the provision of basic financial services to the underserved, the national savings bank in malaysia has been mandated to enhance the outreach of deposit services and micro - financing. their efforts, together with those of commercial banking institutions and government mandated micro - financing agencies, have resulted in a significant expansion of micro - financing. micro - financing has increased from rm151 million in 2000 to rm1. 7 billion in 2008, representing an annual average growth rate of 35 %. early this year, bank negara malaysia celebrated its 50th anniversary. the bank has taken the opportunity to review our existing legislation ; the central bank act to take into account the dramatically changed domestic and international economic and financial environment. the work on this proposed new legislation has spanned two years. in articulating with greater clarity the mandate of the bank, the objective of financial inclusion, not explicitly mentioned in our existing act, but undertaken in practice is now explicitly articulated in the proposed act. this is to ensure that going forward, the future generation of central bankers at bank negara malaysia will continue with the unwavering commitment to the building of an inclusive financial system. conclusion let me conclude my remarks. in this current environment of great uncertainty, financial intermediation has a vital role in supporting an economic recovery. as regulators, the focus is placed on ensuring the soundness and stability of the financial system, and thereby provides the platform on which the role of the banking sector in the economy can be enhanced. it is the continued functioning of the financial system that will be a vital element in the economic growth and development process. for emerging market economies in particular, the efforts have to be extended beyond this to building the financial infrastructure, raising the level of financial literacy and providing the enabling environment for a more inclusive financial system. this forum will provide us an opportunity to deliberate on the many issues that are before us, particularly in the context of the unstable times and the manner in which we can strengthen our capacity to enhance the financial inclusion agenda. on that note, i wish you a very productive and successful meeting. thank you.