51.   The national level savings campaign was launched last December by Prime Minister Datuk Seri Dr Mahathir Mohamad.

52.   The value of national savings has risen steadily.

53.   They suggested greater emphasis on efficiency in national savings to reduce dependence on foreign capital and to shield from capital account shocks.

54.   To cut the balance-of-payments deficit, he said, the government needs to cut spending and adopt measures that raise national savings.

55.   Howard also revealed the government would move ahead with further micro-economic reform, including on the waterfront, and measures to boost national savings.

56.   The study also said that a reduction in public deficits would increase national savings and that fiscal consolidation would reduce long-term interest rate increases.

57.   To reverse the decline in national savings, he added, the government could legislate to boost personal pension contributions while also eliminating its own budget deficits.

58.   This led Berthelot to recommend the East European countries base their policies and strategy on national savings.

59.   We will intensify our efforts to strengthen national savings, in particular through further fiscal consolidation.

60.   Lifting national savings tended to promote economic growth by fostering investment and lowering long-term real interest rates, the report said.