At the same time, it is reasonable to assume that spending on other programmes, which are today financed over government budgets, will increase as a share of total GDP. With the current tax level, in conjunction with the challenges that increased trade and globalisation pose to the tax system, there would hardly be scope for increasing taxes. It would therefore be reasonable to assert that the value of the right to tax is lower than the value of commitments taken on by the government when the intention is to develop the welfare state. Without substantial government saving in the years ahead, promises to preserve the welfare state will lose credibility. The government thus has a clear motive for saving. At the same time, the high level of petroleum revenues, as mentioned, provides scope for accumulating substantial government financial wealth. In my view, three points are of importance with regard to government wealth management. First, investment must be based on the reason underlying government saving which, as I understand it, is to distribute petroleum wealth across generations and establish a foundation for maintaining important elements of the welfare state. Second, the manager must seek to achieve a maximum return within duly considered risk limits. Returns and risk must be monitored continuously. The return and the risk limit must reflect the government’s motive for saving. BIS Review 14/2001  9  Third, the management must be organised so that the manager pursues the objectives of the owner and does not develop its own goals.
For a beneficiary who has an account within the same bank with the payer, which is known as Intrabank, the funds will be credited instantaneously. The program for today includes the showing of three video clips on online banking and IBG, which can be downloaded through YouTube and ABM and AIBIM’s website, including presentations by two banks. In addition, 17 banks and MyClear (the national payment system operator) have also set up exhibition booths to showcase their respective electronic payments and funds transfer solutions. This is indeed an opportunity not to be missed as you will be able to learn and ask questions about online banking solutions and sign up for the special offers such as free security tokens or waiver of monthly subscription fee for business Internet banking as provided by some of the exhibitors today. BIS central bankers’ speeches  1  In conjunction with today’s roadshow, I am pleased to announce that 2 banks namely, Bank Simpanan Nasional and OCBC Bank, together with 8 banks in Temerloh1 in Kuantan will hold their “Open Day” from today, 2 December until this Friday, 6 December. During the weeklong “Open Day”, visitors can enquire and learn more about e-payment solutions from the branch staff. The “Open Day” event is open to all businesses and the general public to complement the efforts of the roadshow to reach out to smaller towns and I encourage all participants to take this opportunity to visit the bank branches in Kuantan and Temerloh.