The fact that globalisation encourages this type of specialisation is one of the great benefits of having an open trading system, felt by both consumers and manufacturers. The EEF, for example, remains ‘upbeat about the future of UK manufacturing’, especially when it comes to high value-added activities. Globalisation and UK inflationary pressures The changes we have seen in UK manufacturing have occurred, in part, due to the impact globalisation has had on the relative prices of different goods and services. These changes have also had a big impact on the sources of inflationary pressure over the past decade, both here and internationally. First, as in other developed countries, the prices of goods imported into the UK have fallen relative to goods and services produced domestically. Second, most markets for goods and many markets for services are now internationally ‘contestable’. In other words, companies are under continual pressure to keep prices down because of the threat of competition from potential rivals from around the globe and this has limited the extent to which domestic producers can raise prices even in markets where import penetration is low. Third, factors of production have become more mobile. For example, increased labour migration into the UK has helped employment to grow with low wage inflation. And the ease with which production can be switched across countries has contributed towards lower costs in a wide range of services and goods which are still home grown. It is difficult to quantify the impact of these factors on inflation.

Currently, we have 21 remittance service providers offering digital remittance services, more than double the number 3 years ago. With the implementation electronic know-your-customer or e-KYC, consumers will be able to experience end-to-end digital remittance transactions. These are positive and exciting developments happening in our remittance market. Better public-private sector alliance to strengthen compliance Bank Negara Malaysia will continue to work closely with the industry to promote financial inclusion and this will be done primarily through the digitalization of remittance. Regulators also need to keep up with the times. We are taking a different approach this time – from ‘regulator instruct, industry do’ and ‘regulator knows best’, to creation of public-private sector alliance. It is vital to leverage on each other’s strengths and resources, not only to reap the benefits of technology, but also to overcome the emerging threats. We are all in this together. Greater harmonisation of regulatory framework on the remittance industry at the regional and 2/3  BIS central bankers' speeches  global levels is required to increase consistency in standards and reduce regulatory burdens on industry players. As a start, we have shared with other central banks on how we regulate the money services industry in Malaysia. This includes the transformation journey of MSB industry in Malaysia, our approach to innovation and technology, as well as monitoring of the whole industry. I believe that in the long term, harmonisation of rules will also foster innovation and spur regional expansion amongst industry players, while upholding the highest ethical and professional standards.