In seasonally adjusted terms, the quarterly upward trend continued in the third quarter, albeit slower compared to the second quarter during which the impact of the fiscal stimulus package was substantial (Figure 23). BIS Review 31/2010  9  On the spending side, inventory change became the demand component that made the largest contribution to quarterly growth (Figure 24). Nevertheless, private consumption demand slowed down slightly after the tax cuts were phased out (Figure 25). Meanwhile, although private sector investments displayed a quarterly rise after a long time, investment expenditures are not expected to display a significant acceleration in the short term given the current uncertainty about demand and low capacity utilization rates, and it is obvious that it would take some time for investments to return to the pre-crisis level. Data pertaining to the last quarter of 2009 indicate that the moderate recovery in aggregate demand continues (Figure 26). Although inventory de-stocking, which started with the sudden contraction in demand in the last quarter of 2008 and remained strong throughout the first half of 2009, grew significantly weaker, demand for consumer goods continued to support disinflation (Figure 27). 10  BIS Review 31/2010  The significant decline in external demand has been one of the main factors driving the sharp contraction in economic activity during the last quarter of 2008 and the first quarter of 2009.
This is an impressive outcome, made possible only by commitment, enthusiasm and exceptional cooperation that has been shown by the project team and all our partners who are here today throughout these last two years. I am well aware of the numerous logistical and communication challenges that had to be overcome by the team and the industry, and the persistence that it took to break long-held perceptions before we were able to build momentum in our outreach efforts to deliver these results. So let me on behalf of Bank Negara Malaysia, join Faris in extending my congratulations to all who contributed to this important initiative. We are especially grateful to the World Bank for working with us to bring the Greenback Project to Johor Bahru – the first champion city in Asia, and for providing technical support in the project’s design and implementation strategies. It goes without saying that we could not have done this without the exceptional support of Yang Berhormat Datuk Bandar and your team at Majlis Bandaraya Johor Bahru. The city of Johor Bahru has been an exemplary host for the first Greenback Project in Malaysia. Johor Bahru can be proud of serving as a role model for promoting transparent, efficient and affordable remittance services that are contributing to more inclusive financial services for all individuals and businesses.