These include transactions with suppliers, customers and utility providers. The record of transaction behavior is expected to provide comprehensive information on the SMEs, especially for SMEs that are accessing financing from the banking sector for the first time. Secondly, the SME Credit Bureau uses a credit methodology that discounts aged information thus providing a fairer assessment of the SMEs current credit worthiness. SMEs should also use the services provided by the SME Credit Bureau to better understand the credit evaluation processes. This will facilitate the efficient processing of the loan applications. This will also allow SMEs to secure more favorable financing terms from financial institutions. This approach is also expected to incentivise SMEs to inculcate a credit culture that enhances their eligibility for financing. A positive assessment from the SME Credit Bureau will be recognized by all financial institutions. The SMEs will therefore have increased options and will be able to compare and obtain the most favorable terms. Over the years, SMEs have become an increasingly important segment of the loan portfolio of our financial institutions. With higher exposures to this sector, the comprehensive information compiled by the SME Credit Bureau will be a valuable information source that will facilitate better monitoring and management of the SME portfolio. The information from the SME Credit Bureau will also expedite the assessment of developments in new markets and  2  BIS Review 47/2009  the creation of a liquid secondary market which would in turn increase the availability of funds to SMEs.

The global economy is expected to remain weak following the synchronized recession in the advanced economies. While there is significant uncertainty on the prospects for recovery, the stimulus measures being implemented across the globe and the measures to address the financial crisis in the advanced economies are expected to contribute to improving conditions in the second half of this year. However, should there be further delays in addressing the impairment of the financial systems in the crisis affected countries, this would be a risk to the economic recovery process. This would in turn continue to have significant spillover effects on the rest of the world. Whilst Malaysia has successfully maintained the stability of its financial system during this period of uncertainty, the economy is not insulated from these global developments. Despite the high degree of openness of our economy, Malaysian businesses are however, less leveraged with significantly less foreign financial exposures and therefore better able to cope with the effects of the global economic downturn. During this recent decade, Malaysia has aggressively implemented measures to promote domestic demand as a driver for growth and thus achieve a more balanced growth. While the export sector is still important, the significance of domestic demand has gradually increased. In this current environment, the Malaysian Government has implemented a significant fiscal stimulus to sustain domestic demand. Following the reduction in interest rates, retail borrowing costs have declined to new historical lows.