This keynote address by Deputy Prime Minister Gan Kim Yong, Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore (MAS), delivered at the recent key event, set a clear direction for the future of Singapore’s financial sector. It focused on strengthening operational resilience, embracing responsible innovation, and building robust infrastructure for digital finance amidst a fast-evolving global landscape.

Deputy Prime Minister Gan outlined three key transitions the banking sector must navigate: geoeconomic fragmentation, climate risk, and technological transformation. While all are critical, his emphasis on digital and fintech evolution stood out as both a challenge and a catalyst for long-term competitiveness.

Technology risk and operational reliability formed a central concern. Citing recent disruptions in financial services, Deputy Prime Minister Gan noted the need for heightened digital resilience across Singapore’s banking sector. MAS has introduced a set of intensified expectations to strengthen technology risk governance. These include mandatory system recovery drills, clearer escalation protocols, and increased board oversight.

The establishment of a Cyber and Technology Resilience Experts Panel in 2024 will guide these efforts, offering insights from global tech risk leaders to raise industry standards. MAS also expects financial institutions to integrate these practices across their international operations, reflecting Singapore’s position as a regional financial hub.

Artificial intelligence and data analytics emerged as another major theme. While recognising the vast productivity gains AI could unlock, Deputy Prime Minister Gan warned of its associated risks, particularly around ethical use and systemic bias.

MAS has introduced a suite of governance tools for financial institutions: a set of principles for the responsible use of AI and data analytics, a self-assessment framework, and a verification toolkit. These aim to guide the sector in building trustworthy and accountable AI systems without stifling innovation.

The responsible deployment of AI, he emphasised, will differentiate credible financial institutions from speculative or short-sighted players. He also encouraged financial institutions to adopt AI solutions that enhance customer experience, reduce fraud, and improve credit assessment.

Digital currencies, especially wholesale Central Bank Digital Currencies (CBDCs), are gaining ground as an enabler of more efficient financial market infrastructure. MAS is conducting trials that explore CBDC applications in interbank and securities settlement. It is also collaborating with international partners to enable cross-border connectivity. The approach, Deputy Prime Minister Gan stressed, is pragmatic and purposeful, focused on use cases that bring genuine economic value.

In parallel, MAS is taking a calibrated regulatory stance on emerging digital assets such as crypto tokens and stablecoins. The goal is to support meaningful innovation while pre-empting systemic risk and protecting consumers. Singapore’s reputation as a well-regulated fintech hub, he noted, depends on maintaining this balance.

MAS will continue refining its frameworks to adapt to evolving technologies and emerging risks in the digital asset space. This includes working closely with industry to pilot interoperable solutions and sandbox initiatives.

MAS is also fostering global collaboration to drive responsible digital finance. Through platforms like Elevandi and its successor initiatives, Singapore is engaging industry leaders, policymakers, and investors to push forward progress in tokenisation, green finance, and financial inclusion. These international linkages ensure that Singapore remains embedded in the global digital finance ecosystem.

Throughout the address, Deputy Prime Minister Gan underscored that banks must take ownership of these transitions, especially technological change. MAS will support the sector with clear regulation, guidance, and engagement, but accountability ultimately rests with financial institutions.

Deputy Prime Minister Gan framed the current period as one of not just disruption but opportunity. By prioritising trust, resilience, and innovation, Singapore is laying the foundations for a secure and competitive financial future, one that is digitally enabled, ethically grounded, and globally connected.