Singapore looks to strengthen position as trusted AI financial hub

Singapore is looking to deepen its position as a trusted AI-powered financial hub, with deputy prime minister (DPM) Gan Kim Yong urging businesses and financial institutions to move beyond AI experimentation and towards enterprise-wide adoption.

Speaking at the “Trust and AI: Navigating a world in transition” leaders’ dialogue hosted by DBS alongside CEO Tan Su Shan, DPM Gan said the next phase of competition among global financial centres will hinge not just on infrastructure and market depth, but on how responsibly and effectively AI is deployed.

“Financial centres will also be judged by whether they can embrace and harness AI capabilities, and do so responsibly, deploy it at scale, preserve trust, ensure security, and nurture their people with the skills to work effectively and confidently with technology,” DPM Gan said.

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His comments come as Singapore ranked third globally in the newly launched "Global AI financial hub index" report, behind New York and San Francisco.

DPM Gan described the ranking as “a strong vote of confidence” but warned against complacency, adding that Singapore’s future competitiveness would depend on its ability to scale AI adoption, create quality jobs and strengthen trust and governance frameworks around the technology.

He said Singapore’s strategy would be ecosystem-led, positioning itself as a place where regulators, banks, insurers, asset managers and technology firms can collaborate to test and deploy AI solutions in real-world financial settings.

“We cannot outspend the largest economies, nor build the biggest models. But we can be the place where useful AI solutions are developed, tested and deployed against real-world financial use cases,” he said.

DPM Gan also stressed that AI adoption should not come at the expense of workers, acknowledging growing anxiety surrounding entry-level jobs and automation.

“Growth remains essential. But in an age of AI and automation, growth may no longer generate jobs in the same way as before,” he said, adding that some jobs would inevitably be redesigned while others may disappear entirely.

Instead, DPM Gan called on employers to focus on job redesign and workforce transformation alongside AI deployment, particularly in sectors such as finance where professionals can shift towards higher-value work involving judgement, client engagement and problem-solving. He said: 

The future will not be about ‘AI skills’ in isolation. It will be about AI plus domain expertise.

During the dialogue, DBS' Tan raised concerns around workforce anxiety among younger workers and graduates entering an increasingly AI-driven economy. In response, DPM Gan said the government was working with institutes of higher learning to strengthen internship and traineeship programmes to better prepare students for changing workplace demands.

“I think there is this sense of anxiety. This sense of anxiety is not unhealthy,” DPM Gan said. “They ought to be aware of the changing environment so that they are prepared for it.”

Beyond talent and adoption, DPM Gan also highlighted the growing importance of trust, cybersecurity and resilience in the AI era.

“The same technology that helps firms detect fraud can also help criminals carry out more harms,” he said, warning that AI-enabled cyberattacks and operational risks would become increasingly sophisticated.

He added that Singapore’s reputation as a financial centre was built on trust, and maintaining that trust would require stronger AI governance, clearer accountability and robust cyber resilience measures.

Separately, DPM Gan said Singapore remains open to global AI partnerships and talent as competition for AI leadership intensifies globally. He pointed to ongoing regional initiatives such as ASEAN’s Digital Economy Framework Agreement and suggested future collaborations could include joint AI capability development across the region.

He also revealed that Singapore is developing an AI Park in one-north aimed at bringing together researchers, practitioners and businesses to strengthen the local AI ecosystem and support companies experimenting with AI adoption.

“We hope that these leaders and champions of AI will be pathfinders, to show by example how AI can impact businesses, can help and enhance business competitiveness,” DPM Gan said.

DPM Gan’s comments come as Singapore continues pushing for broader AI adoption across industries, despite many businesses still being in the early stages of implementation.

According to a recent report by Singapore’s Ministry of Manpower, 71.5% of firms have yet to adopt AI, while only 28.5% have started integrating the technology into their operations. Of those, just 3.8% said AI had been fully embedded into core business processes, with most companies still in planning or pilot phases. The study, conducted between January and March 2026, surveyed 2,560 private sector establishments employing about 486,600 workers.

Photo courtesy of Gan Kim Yong on Facebook.

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