Bank Negara's assurance to Malaysian depositors that their money in banks and insurance companies in Malaysia are safe is most welcome given the current global financial crisis.

But is this assurance by itself sufficient to remove the fears of Malaysians that they could lose their money in the financial system? I would seriously doubt it.

Bank Negara has to do more than just give out some assurance that may not be sustainable if the financial turmoil in the rich industrial counties becomes even worse.

Asean/Asian central banks should call for an emergency meeting to appraise this financial tsunami and come out quickly with a contingency plan to defend the financial system from the destructive tides sweeping the world's financial markets .

The central banks or those that can do so, should introduce schemes to guarantee the safety of all deposits in their respective countries as soon as possible.

If Asia as a whole cannot agree, then Asean countries should. If Asean countries also cannot find consensus, then at least Malaysia and Singapore should provide the deposit guarantees since our economies are relatively healthy and so intertwined.

The present Malaysian guarantee for RM60,000 per depositor is just not enough. It covers only about 25 percent of total deposits. It is therefore little comfort to advise our depositors that we have defensive systems based on our well-capitalised banks and good revised regulations when our Perbadanan Insurans Deposit Malaysia or deposit insurance scheme is inadequate.

It is also not persuasive to tell our depositors that our economic and financial fundamentals are strong and that there is no need or that it is too early to introduce a guarantee for all deposits.

At least the authorities should promise to guarantee the deposits of individuals (not companies) to give confidence to ordinary savers who have sacrificed their hard -earned incomes to provide for their future.

If we keep claiming that our economic and financial fundamentals are really strong, then we should also be equally bold in promising to protect the deposits of the ‘small man/woman’ even if it is difficult to provide a blanket guarantee for all depositors, including the big corporations, many of which caused this problem in the first place in the US and Europe.

Malaysians wait with bated breath for quick preventive action before it is too late and the financial tsunami hits our shores with its disastrous effects on the economy and our country.

We urge the authorities to please act decisively and immediately in public interest for the good of our country.

The writer is chairperson, Asli-Center of Public Policy Studies.