There are several reasons for this. First, the opening of the labour market to the new EU countries has provided us with access to a reserve of labour. There has been a substantial flow of labour into Norway. Labour migrates to locations where potential earnings are highest. Growing numbers of workers are moving to Norway and establishing residence here. Many workers are only here on shortterm assignments and will perhaps move on when the job is done and when there is an economic turnaround. In 2007, Norway’s population increased by about 55 000, with net inward migration coming to 35 000. This is the highest population increase ever registered. BIS Review 45/2008  1  Second, higher imports from low-cost countries and high prices for a number of our export goods have resulted in a considerable improvement in Norway’s terms of trade since the end of the 1990s. Prices for oil and gas, freight, fish, industrial commodities and engineering products have increased markedly. The terms of trade have improved by about 40 per cent since 2002. Recently, however, Norway’s terms of trade have fallen somewhat again as the rise in prices for some export goods has slowed. Slightly higher import prices are also having a negative impact. Third, businesses in Norway have become more efficient, lowering their production costs and making it profitable to expand their workforces. This applies to both companies competing on international markets and those supplying goods and services to the domestic market.

To this effect, companies should put in place continuing training programmes for their directors. 14. MAS has recognised the importance of this by proposing new provisions on “continuous development” in the Corporate Governance Regulations and Guidelines for locally-incorporated banks and significant life insurers. 15. The proposed provisions require the boards of such companies to establish a continuing development programme for all directors, and a framework to identify relevant skills for such directors. Nominating Committees should assess at least once a year, whether directors lack any skills to perform their roles. 16. Besides getting the right training, directors must set the right tone for the company’s culture. Core values like honesty, integrity and fairness which underpin good governance must prevail among management and the company as a whole. The best company directors stand out with their commercial acumen as well as their strong ethical fibre. Where SID can play a part SID can play an important part in promoting the professional development of 17. directors by providing thought leadership, building a platform for sharing of best practices, and enhancing training standards for directors. In fact, SID has been doing this for the past years, including collaborating with the Singapore Management University to launch a formal certification program for directors. 18. SID has also been increasing its outreach both within and outside Singapore. These include: training workshops for China-based directors of Singapore-listed companies, as well as courses for our small and medium sized enterprises and private companies who are looking to list on the stock market.