recent years has helped the area weather the recession generally and, more specifically, the continued loss of textile jobs to import competition. you have also witnessed first - hand that globalization works two ways. as you know from your experience in attracting foreign - owned companies to this region, u. s. workers also benefit from a good deal of “ insourcing. ” nationwide, the employment of u. s. workers by affiliates of foreign firms was more than 5. 5 million during the 2000 - 2002 period - up 1. 7 million from ten years earlier. although globalization clearly has resulted in very real hardships for workers in certain industries, it remains more generally an essential component of economic growth by encouraging innovation and promoting efficiency and higher standards of living. placing restrictions on international trade would, over the long run, be counterproductive ; consumers would likely end up paying higher prices for consumer goods, and businesses might lose the opportunities to be more productive that arise in an environment of open trade. the appropriate policy approaches are those that promote maximum job creation while easing the transition for workers caught up in the painful but inevitable shifts in the mix of job opportunities. an important feature of the ongoing structural change in our economy is the increasing demand for skilled workers, which has arisen both from shifts in the industrial composition of jobs and from the upgrading of skills required within specific industries. ensuring that the supply of workers with the necessary skills matches the demand is a critical element in adjusting effectively to ongoing structural change. as recently as 1980, many young persons depended on a high school education to launch a career ; only half of all high school graduates enrolled in college. today, the expectations of our high governor ben s. bernanke, “ trade and jobs ”, distinguished speaker series, fuqua school of business, duke university, durham, n. c., march 30, 2004. school students have changed dramatically as the rising demand for skilled workers has resulted in a sharp increase in the premium paid in the labor market for a college education. in recent years, roughly 60 percent of high school graduates have enrolled in college. and surveys of high school sophomores indicate that many of them believe that simply earning a bachelor ’ s degree is not enough. in addition to the 40 percent of tenth graders in 2002 who expected that they would complete a bachelor ’ s degree as their highest degree, another 40 percent expected to finish a graduate or professional degree. 2 this appetite for education is good news because the knowledge and skill of a country

place robust monitoring mechanisms to detect suspicious activities ; • promote strong risk awareness and constant vigilance among all staff ; and • empower their compliance and risk management people. my advice to senior managers in our financial institutions is this : keep your risk and compliance people close to you. • they are often seen as hindering opportunity and profits. • but when things go wrong, you wish you had heeded them. • when they say ‘ i think something ’ s not right here ’, listen to them. ultimately, trust and conduct boil down to culture more than any externally imposed rules. by culture, i mean the shared values, attitudes and norms that guide behaviour. financial institutions must get the culture right. this requires setting the right moral tone from the top. • boards and senior management in particular must send a clear signal that profits do not come before values and ethics. • compensation structures must motivate not just high performance but also right conduct. bis central bankers ’ speeches conclusion good fortune has played a role in the growth of singapore ’ s financial sector. • our financial centre has benefited from connecting one of the fastest growing regions in the world with global markets. but fortune can be fickle and economic cycles will turn. to stay relevant and thrive as a financial centre requires us : • to remain resilient through good times and bad ; • to be dynamic in serving the changing needs of the region ; and at all times • to be trusted as a clean and credible place to do business in. mas is committed to working with the industry and all our stakeholders – including an inquisitive and fair media – to ensure that. thank you. bis central bankers ’ speeches