Deputy PM urges financial firms to upskill, not just slash headcount
Singapore — Deputy Prime Minister Gan Kim Yong on May 20 told banks to harness AI to create higher-value jobs, not just cut costs, warning that headcount slashing alone damages long-term competitiveness.
“When firms implement AI, they should not only ask: how much cost can we save? They should also ask: What new roles can we create?” Gan said at the DBS Leaders Dialogue, according to Reuters.
His call came a day after Standard Chartered set a 2030 deadline to eliminate more than 7,000 back-office roles, the first global bank to put a specific number and timeline on AI-driven layoffs, TechTimes reported.
Gan rejected a slowdown. “If we slow AI adoption, we will weaken our competitiveness and ultimately hurt workers more, not less,” he said, as quoted by Reuters.
A DBS report released at the event ranked Singapore third among 15 global AI financial hubs, behind New York and San Francisco, describing it as the open-market centre best positioned to marry AI capability with institutional trust.
DBS plans to shed about 4,000 contract and temporary positions over three years as automation handles administrative work. Morgan Stanley estimates AI could erase more than 200,000 European banking jobs by 2030, roughly 10% of the sector’s workforce. HSBC chief executive Georges Elhedery acknowledged that generative AI will “destroy certain jobs” and “create new jobs,” urging staff to embrace the change, The Star reported.
To ease the transition, the MAS and IBF launched the Young Talent Programme for AI in Finance, with 20 firms offering over 1,000 placements, The Edge Singapore noted.
The government highlighted DBS as a model. The lender has embedded AI in customer engagement and risk management, reskilled customer service officers into roles like AI Agent Monitoring Manager and Gen AI Evaluator, generating S$1 billion in economic value from AI and data analytics last year, the Ministry of Trade and Industry said in a March speech.
Gan stressed that Singapore’s next phase as a financial hub hinges on moving AI “from experimentation into enterprise-wide adoption,” creating good jobs and embedding trust, safety and security into AI development, The Star reported.
References
The Star, “Singapore urges financial firms to use AI to create better jobs,” May 20, 2026. https://www.thestar.com.my/tech/tech-news/2026/05/20/singapore-urges-financial-firms-to-use-ai-to-create-better-jobs
Monetary Authority of Singapore, “Keynote Speech by Mr Gan Kim Yong at the IBF Financial Industry Fiesta 2026,” May 19, 2026. https://www.mas.gov.sg/news/speeches/2026/keynote-speech-by-mr-gan-kim-yong-at-the-financial-industry-fiesta-2026
Ministry of Trade and Industry, “Speech by DPM Gan Kim Yong at MTI Committee of Supply Debate 2026,” March 2, 2026. https://www.mti.gov.sg/newsroom/speech-by-deputy-prime-minister-and-minister-for-trade-and-industry-gan-kim-yong-at-mti-committee-of-supply-debate-2026/
TechTimes, “Standard Chartered to Cut 7,000 Back-Office Jobs by 2030,” May 19, 2026. https://www.techtimes.com/articles/316851/20260519/standard-chartered-cut-7000-back-office-jobs-2030-first-major-bank-put-ai-layoff-schedule.htm
Fortune, “DBS, Southeast Asia’s largest bank, is cutting 4,000 temp roles due to AI,” February 25, 2025. https://dc.fortune.com/asia/2025/02/25/dbs-singapore-to-cut-temp-jobs-ai-piyush-gupta
The Edge Singapore, “MAS and IBF launch the Young Talent Programme for AI in Finance (YTP-AIF),” May 20, 2026. https://www.theedgesingapore.com/news/future-economy/internship-stacking-just-got-boost-newly-launched-young-talent-programme-ai
