more complex processes, often those that are more rooted in the higher knowledge and skills of our workers. as workers shift to higher value - added employment, real wages will rise commensurately. in addition, u. s. residents are getting access to less costly goods produced abroad. as a consequence, more toys appeared under the christmas tree, and we have a greater choice of inexpensive clothes. i would guess that the less well - off among us probably benefit disproportionately from the availability of many of the types of less - expensive goods coming in from abroad. they are better able to clothe and feed their families and have more income available for other necessities, such as housing and medical care. international trade is not a zero sum game in which one country ’ s gains are another country ’ s loss. by specializing in what they do best, workers in all countries can be winners. even if one country can be more efficient at producing all goods and services than another, each will gain by specializing in what it does relatively better. this is the result of what economists call comparative advantage. increased trade should redistribute jobs, but it should not create or destroy jobs in the aggregate over the long run. long - run levels of employment are determined by the available supply of labor and the flexibility of the labor market. keeping employment reasonably close to its long - term, sustainable level is the job of macroeconomic policy - especially monetary policy. to be sure, individuals do get hurt in the transition, but within a country gains should exceed losses over the longer run. unfortunately, from a political perspective, the gains are often widely disbursed, accrue over time, and are hard to measure whereas the losses are concentrated and palpable. those whose jobs are restructured face a difficult adjustment. even if it is possible, climbing the value - added chain may not be easy, and the dislocations are costly for those involved. people often are unemployed for a considerable time, and a significant portion end up settling for jobs that pay less than the one they left. trying to protect those particular jobs through tariffs or quotas on imported goods may help those workers who face loss, but that protection will likely prove temporary and will reduce the standard of living for the country as a whole. when considering public policy responses to job restructuring, we must keep the pace of change in perspective and remember the flexibility and resiliency of our labor and product markets

a smart financial centre. indeed, the financial sector is well placed to play a leading role given that financial services offer fertile ground for innovation and the application of technology. bis central bankers ’ speeches mas will partner the industry to work towards the vision of a smart financial centre, where innovation is pervasive and technology is used widely to : • increase efficiency, • create new opportunities, • manage risks better, and • improve people ’ s lives. mas will seek to achieve this vision together with the industry through two broad thrusts : • a regulatory approach conducive to innovation while fostering safety and security ; and • development initiatives to create a vibrant ecosystem for innovation and the adoption of new technologies. smart regulation for a smart financial centre first and foremost, a smart financial centre must be a safe financial centre. technology can be a double - edged sword. if not managed well, it can potentially lead to a variety of risks in the financial industry : • financial crime and illicit transactions ; • loss of data or compromise of confidentiality ; • glitches that damage reputation, disrupt business, or worse, cause systemic crisis. the first priority on our journey towards a smart financial centre is therefore to continually strengthen the industry ’ s cyber security. as more financial services are delivered over the internet, the frequency, scale, and complexity of cyber attacks on fis have increased globally. hackers and cyber criminals are constantly probing it systems for weaknesses to exploit. there are two reasons for concern : • first, the connectedness among fis mean that a serious cyber breach in one institution can potentially escalate into a more systemic problem. • second, repeated cyber breaches could diminish public confidence in online financial services and reduce people ’ s willingness to use fintech in general. mas and the financial industry in singapore take cyber security seriously. • fis are expected to : – implement controls and measures to preserve the confidentiality of sensitive data – maintain the integrity and availability of their systems – conduct regular vulnerability assessments and penetration tests to evaluate the robustness of their cyber defences • mas conducts regular onsite inspections of key fis ’ technology risk management processes and controls to check that they meet these requirements. • fis have also established cyber security operations centres to enhance their cyber surveillance and gather cyber intelligence. bis central bankers ’ speeches but cyber threats will not go away. like a cat and mouse game, both hackers and cyber defenders have been enhancing their tools and techniques along with advances in technology as well as in response to