ContextOpening address by Abdul Rasheed Ghaffour, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the inaugural AICB (Asian Institute of Chartered Bankers) Nexus Conference, Kuala Lumpur, 8 July 2026.
Why it mattersMalaysia's central bank on fraud, cyber threats and reskilling, and a first look at its next financial sector plan for 2027-2030.
- Scams, fraud and cyber threats keep rising.
- Innovation can weaken trust if it is not well governed.
- Workers risk being left behind by new technology.
- Pursue innovation with a clear purpose and strong governance.
- Fight fraud and cyber threats through collective action.
- Invest in reskilling and prepare the 2027-2030 Financial Sector Blueprint.
Read the speech summary
1. Innovation without trust
Speaking at the first AICB Nexus conference, which joined banking and bank-audit communities, Governor Abdul Rasheed Ghaffour said AI is reshaping finance, helping detect fraud, assess risk and serve customers, but that finance rests on trust, so innovation without trust is not progress. He set three priorities.
2. Purposeful and responsible innovation
First, purpose: over 70% of Malaysian financial providers have deployed at least one AI application, mostly for internal gains, and the next frontier is using AI on problems no institution can solve alone, such as scams and cyber threats, where BNM, police, banks and PayNet already share intelligence; institutions should compete where markets demand and collaborate where the public interest does. Second, responsibility: trust in AI is a governance challenge, raising questions of accountability when decisions are hard to explain, fairness as models keep learning, and control frameworks that lag capabilities. AI belongs on the board agenda with clear outcomes and a defined risk appetite, assurance functions must be able to explain and challenge outcomes, and accountability cannot be handed to software.
3. Progress for all and BNM's approach
Third, progress must reach everyone: invest in people, with upskilling and reskilling and the AICB's Future Skills Framework. BNM's stance rests on proportionality, parity and technology neutrality, with early engagement, clearer expectations and shared infrastructure; the Open Finance framework starts phased implementation from 2027, tokenisation moves into pilots, and the Financial Sector Blueprint 2027-2030 follows.