The Global Policy Dialogue: Towards the Next Decade of Transformation and New Financial Corridors

Picture Credit: by Forbes

At the Singapore FinTech Festival, the theme of “AI and Financial Services: Growth and Workforce Adaptation” took center stage as global leaders reflected on the transformative potential of artificial intelligence in reshaping the financial sector. Representing the United Kingdom, Lucy Rigby KC MP, Economic Secretary to the Treasury and City Minister, underscored the strength of the UK-Singapore partnership and the immense opportunities AI presents for exponential sector growth in the coming decade. Rigby emphasized that while the UK’s financial sector is already a leading adopter of AI technologies, safe and responsible implementation remains paramount. She highlighted the government’s focus on workforce transformation, stressing that reskilling and upskilling are essential to prepare employees for evolving roles shaped by AI. This commitment is embedded in the UK’s broader financial services growth and competitiveness strategy, which places skills development at its core.

Cautionary perspectives on AI were offered by H.E. Dr Serey Chea, Governor of the National Bank of Cambodia, who shared both personal and professional insights. She recounted an instance where ChatGPT produced an incorrect math answer, a reminder that while AI can be powerful, it is not infallible. Dr. Chea emphasized the importance of human judgment in sensitive fields such as finance and healthcare, where errors can have significant consequences. She also drew attention to the risks of bias arising from insufficient or non-diverse data sets, warning that unreliable inputs can lead to flawed outcomes. Her remarks underscored the need for vigilance and diversity in data to ensure trustworthy AI applications.

Hon. Soraya Hakuziyaremye, Governor of the National Bank of Rwanda, highlighted the transformative role of mobile money in advancing financial inclusion across Africa. With 1.2 billion mobile money accounts and 500 million active users, the technology has expanded access to formal financial products such as microloans and microinsurance. Rwanda has embraced innovation by establishing a regulatory sandbox to pilot virtual assets and tokenization initiatives, aiming to democratize investment opportunities while safeguarding financial stability. Hakuziyaremye explained that tokenization can enable small investors to purchase government bonds in affordable amounts, opening new pathways for participation in financial markets and fostering inclusion in developing economies.

Dr. Chea also described Cambodia’s pioneering adoption of blockchain technology. The country has launched a blockchain-based backbone payment system and begun issuing government bonds tokenized on the blockchain, lowering barriers for individual investors. Tokenization, she noted, automates transactions through smart contracts, reducing reliance on costly intermediaries and allowing investments as small as a single dollar. These innovations are expected to broaden participation, enhance government project funding, and improve accountability and transparency in financial markets.

Picture Credit: by Esyatek

Regional integration was a key theme in the remarks of H.E. Abdul Rasheed Ghaffour, Governor of the Central Bank of Malaysia. He discussed advances in cross-border payments within ASEAN countries, including Indonesia, Singapore, and Cambodia, where bilateral instant payment arrangements have facilitated smoother trade transactions. These developments are particularly empowering for small and medium enterprises, which form the backbone of the region’s economies. Ghaffour noted that intra-ASEAN trade currently accounts for 23 percent of total trade, compared to 60 percent in the Eurozone, and emphasized the importance of strengthening regional integration. Malaysia is advancing toward multilateral frameworks such as the Nexus project, which aims to expand payment connectivity across ASEAN, India, and potentially the Euro area. These initiatives balance central banks’ mandates for financial stability with the need to support economic growth through efficient payment infrastructures.

Throughout the dialogue, speakers emphasized the delicate balance required to harness innovation responsibly. Governments and regulators play a critical role in establishing frameworks that enable safe adoption of AI, digital money, tokenization, and cross-border payment systems. While these technologies promise economic empowerment, inclusion, and efficiency, they also introduce risks such as job displacement, data bias, cyber threats, and financial instability. Managing these challenges will be essential to ensuring sustainable progress.

The 10th anniversary of the Singapore FinTech Festival provided a fitting backdrop for this global dialogue, marking a decade of innovation and collaboration. Looking ahead, the financial community is poised to advance new corridors of growth that are more inclusive, resilient, and integrated. Continued investment in workforce skills, diverse data, regulatory sandboxes, and payment infrastructure will be critical to unlocking the full potential of these transformations. The next decade promises to be one of profound change, with AI and digital innovation reshaping the financial landscape while reinforcing the importance of trust, stability, and human-centric progress.