This method places a strong emphasis on social acceptability coupled with supply-side reforms designed to ensure that the pension system is sustainable. A society like ours that is devoting more resources to welfare payments than it can afford, is saving and investing too little and is spending more than it is earning - while financing these excesses with borrowed money - stands in blatant contradiction with its professed commitment to social justice, because it is bequeathing to its children an inheritance of debt in selfish rejection of the principle of inter-generational equity. This prospect is clearly unacceptable. It is time for all to recognise this and to shoulder what has become a moral responsibility. BIS Review 50/2003  3  Environmental Degradation It is in a similar spirit that I approach another important challenge, namely that of environmental degradation. There is no question that a significant part of our economic achievements in recent years have been attained at the cost of the environment. It is doubtful whether this constitutes real progress, as it is eroding the welfare of current and future generations and depleting the productive potential of an economy that is highly dependent on quality tourism. From a more practical economic viewpoint, environmental sustainability, involving the conservation of existing amenities and resources for an indefinite time period, will entail significant resource outlays. This is in addition to the resources necessary to finance the investment needed to face the competitive pressures of globalisation and to meet the costs of population ageing.
In 2009, the penetration of deposit accounts and loan accounts in Malaysia are 3,300 deposit accounts per 1,000 adults and 1,100 loan accounts per 1,000 adults respectively, which is amongst the highest in the world. This high level of financial inclusion is the result of conscious policies to build a progressive and inclusive financial system. The strategies implemented have generated six characteristics of the financial system. First, a business environment that allows a diverse range of financial service providers to thrive and compete. This environment has led to the creation of commercial financial institutions with differentiated strategies based on their strengths and the delivery of a broader range of products and services that meet the diverse needs of consumers and businesses. The financial system also includes foreign financial institutions through a series of sequenced liberalisation measures as well as development financial institutions, cooperatives and Government agencies that complement the domestic commercial banking institutions. This approach leverages on the innovation and the implementation capabilities of the private sector and the diversity and dynamism of competitive markets. At the same time, it has allowed the Government to have a complementary role in serving the segments that are under served by the private sector. Second, basic banking products and services that are made available at reasonable costs. In February 2005, Bank Negara Malaysia issued a guideline that required all banks to provide such basic banking services.