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 ”. 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. under this working group, policies have been developed to improve the business environment for smes, build sme management capabilities, enhance access to markets, promote innovation, enhance access to financing and encourage sustainable business practices. successful projects implemented in 2009 include the replication of business counselor training programmes across the region and the development of strategies for enhancing the competitiveness of small trading houses and exporters. under the memorandum of understanding entered into by various apec financial institutions dealing with smes in 2003, many more financial institutions have benefitted from increased trade facilitation, transfer of knowledge, expanded cross - border growth opportunities and information sharing. conclusion let me conclude my remarks. the importance of smes in apec economies is clear. however, while their large numbers make them important to the economy, it is their potential that places them at the centre of the economic transformation agenda. support for sme development requires cohesive and cross - cutting strategies which encompasses the collective efforts of the financial sector, the governments and smes themselves. in the global economy, common strategies that are well coordinated across borders would facilitate the participation of smes in the globalisation process. the ultimate goal is to promote entrepreneurship and develop an environment favourable to smes that will allow them to become more competitive in both the domestic and international markets. in closing, i would like to congratulate the association of banks malaysia for hosting this event and encouraging wider international dialogue on important developments affecting

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. to implement the policies of the council, the sme corporation malaysia ( sme corp ), a specialised government agency, was established in october 2009 to ensure the effective implementation of sme development programs under three broad strategic thrusts : strengthening the enabling infrastructure, enhancing capacity and capability of smes and enhancing access to financing. for the year 2010, a total of 354 programs, with a financial commitment of rm6. 02 billion is being implemented to develop high performance and resilient smes. to strengthen the financial infrastructure for smes, bank negara malaysia has implemented wide ranging measures. the restructuring and consolidation of the banking sector following the asian financial crisis as well as the financial reforms and capacity building efforts taken over the years, including enhancing corporate governance and strengthening risk management practices, had strengthened their capacity to provide more diversified financial services to smes. the deregulation of the financial sector including the new interest rate framework allowed for flexible pricing to reflect the risks and it also promoted increased competition in the financial system. encouraging banking institutions to establish advisory units to support smes also reinforced increased access to financing. these have been reinforced by the establishment of the credit guarantee corporation to provide credit guarantees to smes to facilitate their access to financing from financial institutions. 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