The Monetary Authority of Singapore (MAS) has just published draft regulations requiring the board of directors and senior management of financial institutions to be directly responsible for risks arising from the use of AI.
- According to the consultation paper, the board (or an authorized committee) must ensure that AI risks are explicitly incorporated into the institution’s risk appetite framework, especially in cases with material impact.
- Senior management is responsible for the effective implementation of AI risk governance policies, while also ensuring the competency of related personnel.
This move comes as Singapore promotes worker retraining and encourages businesses to adopt AI. The three major Singaporean banks are currently retraining all 35,000 local employees within 1–2 years to adapt to the AI-driven digital transformation.
MAS Chairman and Deputy Prime Minister Gan Kim Yong warned: “Jobs will change, it is very difficult to maintain an unchanged position for a long time… We must help people to constantly adapt and remain relevant.”
MAS Managing Director Chia Der Jiun further noted that Singlish – the characteristic blend of English used in Singapore – is posing a challenge for current Large Language Models (LLMs): “Singlish has a complexity that current LLMs do not handle well.”
MAS will collaborate with financial institutions to develop AI models that understand and transcribe conversations in Singlish, Mandarin, Malay, and local dialects, helping AI better serve the Singaporean population.
According to research firm Gartner, AI currently accounts for only 1% of total jobs affected globally, and the overall impact is expected to remain small until 2028.
📌 Summary: The Monetary Authority of Singapore has just published draft regulations requiring the board of directors and senior management of financial institutions to be directly responsible for risks arising from the use of AI. For the first time, bank leaders could be held directly accountable for AI risks, from data and ethics to operations. Simultaneously, Singapore is accelerating staff retraining and developing AI that understands Singlish, affirming its pioneering role in responsibly harnessing and controlling AI.
