This is well exemplified by the recent emphasis on the need for regular stress testing to understand the effects of shocks on the solvency of individual banks, the stability of the entire financial system, the broader economy and, more importantly, the feedback effects. The roles of granular statistics and sound stress testing methodologies have become vital. While the recent global financial crisis has necessitated a substantial policy focus to address short-term challenges, policymakers also need to keep sight of the economy’s long-term vision. Continuous structural reforms are needed to strengthen fundamentals and improve economic resilience. This involves measures to remove structural bottlenecks, improve productivity and promote innovation and enhance competitiveness. Formulating such structural policies to improve growth prospects hinges on rigorous empirical research in these areas. For Malaysia, the economy is currently undergoing a transition towards becoming a higher value added economy. This has involved setting clear, time-bound and measurable targets, to allow for the policy approach to be focused. This has depended heavily on the availability of good data and statistics that capture developments across all sectors. It also enables us for the monitoring of the progress and the effectiveness of the policies. It is also now widely recognised that economic growth can only be sustainable if it is inclusive. Growth will only slow as income disparities widen. It is also recognised that financial inclusion is an important contributor towards achieving such a more inclusive economic development.

The BIS international banking statistics is for example being expanded and refined to capture the entire balance sheet of internationally active banks on a consolidated basis, and with greater granularity. On-going initiatives by the Financial Stability Board (FSB) and the International Monetary Fund (IMF) to close these information gaps, particularly at the individual bank level for systemically important global banks, are also significant steps in this direction. Another key global trend that has elevated statistical science to a new level is the rapid innovation and advances in information and communication technology. It is staggering that 90 percent of the world’s data was created in this recent two years alone 1. With the rapid expansion of data storage capacity 2, growing global connectivity which includes almost 3 billion internet users worldwide and double-digit growth rates in the mobile broad-band market, there is no doubt that the swift pace of technological developments has not only facilitated the rapid collection of new statistics but also led to more effective measurement of information. Improvements in technology have brought tremendous benefits to most segments of society. Amid the wider availability of information on financial planning products, households now have the potential to make better savings and investment choices. For businesses, the  1  Source: IBM Watson Foundations: http:-01http://www-01.ibm.com/software/data/bigdata/.ibm.com/software/ data/bigdata/. 2  According to IDC, between 2013 to 2020, the “digital universe” which measures all the digital data created, replicated, and consumed in a single year, will grow by a factor of 10– from 4.4 trillion gigabytes to 44 trillion.