Whatever its starting position the subsequent declines in prices were far more than the domestic industry could bear. Since the mid-1970s domestic output has shrunk by two thirds, domestic employment by 90%. If ever there was a loser from globalisation the UK’s clothing and textile industry would surely qualify as one. 5  All speeches are available online at www.bankofengland.co.uk/speeches  5  Chart 5: Even in nominal terms clothes are  Chart 6: Globalisation crushed domestic  cheaper than in the 1970s  production of clothing and textiles  price index, 1975=100 800 Rest of consumption 600  Clothes  400  200  0 1975  1985  1995  2005  2015 Source: ONS  Source: ONS  What can we say about the balance of these effects? The red line in Chart 7 plots the estimated gains to consumers from lower prices over this period, relative to an assumed “non-globalisation” path of 1¼% per year. As I said above, the actual and more pronounced declines have delivered a real income gain for consumers of around 3%. The blue line plots the estimated loss in labour income in the sector. Because we’ve assumed real prices would continue to fall somewhat, even in the absence of globalisation, the industry would probably have to have slimmed down a bit (falling prices have to be matched by falling average costs). In a plausible scenario, consistent with the assumed 1¼%-per-annum rate of (real) deflation, job numbers would have 3  fallen by around a quarter .
PPKM together with the Asian Institute of Chartered Bankers will cooperate in the future to develop a series of high quality, advanced level financial market forums and seminars, thus creating a platform to expand network, develop expertise and to advance the Malaysian financial market community to another level of professional and technical excellence. Fourth, technology has become a crucial enabler in the financial industry as it continues to provide benefits by reducing financial transaction cost and enhancing trade execution efficiency. We need to embrace new technology, such as electronic platform. Technology also greatly facilitates market surveillance and transparency by offering real-time information. This is particularly critical in a fast moving market, where delay in information mean loss of opportunities for banks, and delay in taking action to stabilise market. The need for real-time information in a fast moving market is urgent. For instance, trades that are still being concluded through traditional voice broking and conversational dealing screens are already obsolete in developed markets. Technological advancement requires behavioral change As we move forward, financial market participants who rely on the traditional ways for dealing and communicating, they must relook at how they strategize their business to remain relevant in this era of rapid technological innovation. If we fail to change, the consequence is obvious, loss of business and demise of your business. BIS central bankers’ speeches  3  Fifth is the trend towards further regional integration. With the implementation on ASEAN Banking Integration Framework, regional markets will be more integrated.