In fact, since 2000 real GDP growth in NMS was on average more than double that registered in the euro area member countries. These considerations acquire greater significance when viewed in the context of fiscal developments. On the basis of 2005 data, among the NMS participating in ERM II only Malta failed to satisfy the relevant criterion, with a fiscal deficit to GDP ratio of 3.3%. Malta, however, expects to be within the reference value by the end of this year. This represents a considerable fiscal consolidation effort, especially when viewed in the context of an average ratio of 6.7% during the first five years of this decade. This progress is expected to prove durable, as it has been based not only on tax measures, but also on the restructuring of public sector entities, spending cuts and efficiency improvements. Challenges to fiscal sustainability in NMS remain, nevertheless, mainly arising out of the future dynamics of the welfare system combined with population ageing, but these are hardly different from those being faced by euro area members. It is furthermore interesting to note that on average the NMS participating in ERM II recorded lower deficit to GDP ratios compared to the present euro area member countries in 2005, among whom five posted deficits in excess of 3%. The positive fiscal performance of these NMS is further underscored, with some individual exceptions, by their lower levels of public debt, which as a percentage of GDP average around one half of those of the current euro area member countries.
With the completion of the industry-wide migration to secure chip-based payment cards in 2005, the fraudulent skimming or counterfeiting of payment cards was eradicated. Whilst the migration costs the banks about RM200 million, this industry move proved to be a beneficial one as the pay-back to the banks in terms of potential fraud avoidance was in 2 and a half years. The efficiency and business opportunities to build applications on the chips are enormous. With a safer payment card infrastructure, tourists have increased their spending via credit cards in Malaysia, from RM4.7 billion in 2006 to RM7.7 billion in 2012, recording an average annual growth of 9% per annum. Malaysia as a tourist destination has benefited from the greater trust placed in its payment card platform, which allows Malaysian businesses here to earn more from tourists through their use of payment cards. For the tourists, it is not only efficient but safe, without the need to carry large amount of cash. Apart from these two (2) key achievements, Bank Negara Malaysia has been planning ahead to continuously improve the country’s payment infrastructure in search for greater efficiency gains and cost savings for the country to remain competitive. Migration to electronic payments and its benefits With the rapid technological advancements and increasing demands for more efficient payment services, migration to electronic payment systems and channels has become imperative. Research has suggested that a successful migration to electronic payments has the potential to drive further efficiency gains and cost savings of about 1% of GDP annually.