professional services based in singapore. i encourage strong collaboration between these teams, so that we can all accelerate the green transition in asia. artificial intelligence the second " t " is technology. there are many areas of technology, but i will focus on artificial intelligence ( ai ), and in particular what everyone is excited about : generative ai ( gen ai ). 4 / 7 bis - central bankers'speeches a. several insurance players have begun experimenting with how gen ai can transform their business functions. b. for now, there are limited use cases of strong impact. but as with all technology waves, we tend to overestimate the potential in the short - term, and underestimate the potential in the longer - term. there is usually a lot of hype going into a new technology, and a lot of disappointment after the hype. later on, as the technology matures and with greater adoption, we should see more promising use cases. c. in time to come, i have no doubt that the models will get better, and will be applied across a wider range of applications and functions, and will bring about the transformation in finance and insurance. at the same time, we will have to grapple with deep ethical issues, and consider how ai systems can be imbued with human context and human values. mas is supporting the use of gen ai in the industry in two ways. first, in facilitating the development of a governance framework for responsible ai, to harness its benefits while mitigating the downside risks. a. a gen ai model failure, while may be rare, could result in widespread damage if the model is fully trusted in the wrong scenario. one may say that the chance of a model failure is only 1 %, but that 1 % failure can have widespread implications if it is applied wrongly. guardrails are necessary so that financial institutions can adopt gen ai in a responsible manner that keeps consumers, businesses and the broader economy safe. b. mas has also launched project mindforge to promote the responsible use of gen ai. mindforge provides a platform that pools data resources from the financial industry with gen ai technologies to test use cases, like managing complex compliance tasks, against comprehensive risk frameworks. this iterative process will generate learnings to improve the industry's overall resilience, and provide a controlled approach towards the safe adoption of gen ai. we hope to onboard insurers as we develop mindforge further. second, mas is supporting

##ing a strong risk management culture and effective internal controls. going forward, mas will further raise corporate governance standards, particularly with regards to enhancing the independence of boards and institutionalising professional management. but this must be phased in judiciously. we cannot impose these standards in a vacuum without regard to the institutional and cultural realities in our corporate sector. effective market discipline market discipline imposes external incentives on financial institutions to conduct their business in a sound and efficient manner. for market discipline to work, there must be timely and accurate disclosure of relevant information. investors must be sophisticated enough to make good use of disclosed information, and make considered investment decisions appropriate to their needs and risk appetites. mas will progressively raise disclosure standards in the financial sector to meet international best practice. development of the financial industry mas continues to be charged with the development of singapore ’ s financial sector. in 1998, we established a new department to focus our efforts on actively promoting the industry, identifying areas of opportunity, and profiling singapore as an international financial centre. the task ahead is daunting. external conditions are presently not favourable. the global economy is slowing down. southeast asia is taking longer than we had hoped to implement structural reforms that are essential for sustained growth. investors are waiting to see how events unfold. there are fewer opportunities for institutions to service our immediate region, whether in offshore lending, mergers and acquisitions, or treasury operations. we can and must look beyond immediate problems, and press on to upgrade our infrastructure and capabilities, so that institutions and investors will have stronger reasons to site activities in singapore and use our financial markets. then as southeast asia recovers, which in time it will, we will be ready to play our part in its pick up. we have come a long way since 1968 when we started promoting the asian dollar market. as we evolve into a full - service financial centre, it will become more difficult to identify individual projects or areas to pursue. our approach is therefore to establish a conducive overall environment, within which market forces can operate and private sector innovation can thrive. we have to : · develop efficient, comprehensive and world - class infrastructure ; · put in place a sound but pro - enterprise regulatory framework ; and · attract, nurture and retain top talent, both local and foreign. such a competitive and pro - enterprise environment will bring out the areas in which we have a competitive advantage. we cannot predict in advance which activities will take off. but when some activities succeed we can promote and