An SME Credit Bureau and the Central Credit Reference Information System (CCRIS) complements the infrastructure that is in place for SME financing by collating vital credit and transaction information that enable SMEs to build their credit reputation from a wide range of informational sources. The Bank also continues to actively reach out to support SMEs through the provision of financial planning and risk management services, and the promotion of financial literacy alongside similar initiatives by financial institutions. Public-private partnerships between The Association of Banks in Malaysia and Bank Negara Malaysia have also worked successfully to encourage improvements in customer service levels and the turn-around time taken to process SME financing applications. These initiatives have yielded tremendous payoffs to the national economy. Malaysia also ranked in first place in the world in 2009 in the category of access to credit by the World Bank in their “Doing Business 2010 Report”. BIS Review 98/2010  3  International and regional cooperation In a global economy, efforts to support SMEs must also address frameworks for facilitating trade, payments and financing beyond national borders. Effective regional and international collaboration can add significantly to enhance further the long term contribution of SMEs to the economy. The endeavour by APEC in the establishment of the APEC SME Working Group in 1995 has provided an important collaborative platform for policymakers and private sector leaders to come together in designing regional strategies for SME development.

Therefore, financial institutions will need to deepen their understanding of these new growth industries, and build capacity to evaluate and manage the associated and related risks. Third, with the increasing adoption of e-commerce applications by SMEs such as internet and mobile banking, financial institutions can also encourage the deployment of technological capabilities to the SME’s business operations. This can include working with SMEs to provide end-to-end supply chain management solutions and the expansion into regional production networks. Such support for the growth of SMEs can bring substantial benefits to financial institutions as SMEs evolve into larger corporations. Role of the government While the economy is powered by private initiatives, Governments have a critical role in providing an enabling environment for private enterprises to thrive. In most economies which have a successful SME sector, the Government has had a major role in coordinating the support and in strengthening the capacity of SMEs and providing an enabling environment for SMEs to thrive. In Malaysia, a comprehensive approach has been adopted by the Government. In 2004, the National SME Development Council (NSDC) was established by the Government to formulate broad policies and strategies aimed at creating an enabling environment for the comprehensive development of SMEs across all sectors. The Council, Chaired by the Prime Minister is the highest policy making body for SME development in Malaysia and brings together more than 15 ministries and 60 agencies under a coordinated national strategy.