As Malaysia’s financial sector changes under the Financial Sector Blueprint, banks are quickly adopting AI while dealing with new regulations, cyber risks, climate changes, and global uncertainties. This highlights the importance for banks to not just use AI, but to implement it in a trustworthy way, supported by better governance, assurance, resilience, and skilled talent.
Dato’ Khairussaleh Ramli, FCB, Chairman
of ABM and Group President & Chief
Executive Officer of Maybank
Dato’ Sri Abdul Rasheed Ghaffour, FCB,
Governor, Bank Negara Malaysia,
YB Senator Datuk Seri Amir Hamzah
Azizan, Minister of Finance II, Malaysia
Tan Sri Azman Hashim, FCB, Chairman,
Asian Institute of Chartered Bankers,
Edward Ling, Chief Executive, AICB
To tackle these issues, the Asian Institute of Chartered Bankers (AICB) held the 4th Malaysian Banking Conference (MBC 4.0) and the 2nd Bank Audit Conference (BAC 2.0). These events brought together over 1,000 leaders in banking and auditing to discuss how the industry can build trust and resilience while maximizing the benefits of AI. The conferences were officially opened by YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, and Dato’ Seri Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia.
Organized by AICB’s Chief Internal Auditors Networking Group (CIANG), The Association of Banks in Malaysia (ABM), and the Asian Banking School (ABS), the conferences focused on themes like Banking Reimagined: AI, Trust and the Future of Finance and Audit Reimagined: Innovation, Trust and the Future of Assurance. Discussions highlighted how AI, governance, cybersecurity, sustainability, and workforce changes are transforming the future of banking and auditing.
A significant moment at the conference was the launch of the AICB-Ecosystm AI in Practice: How Malaysia’s Banks & DFIs are Adopting and Governing AI report, created by AICB, Ecosystm, and AICB’s Chief Risk Officers’ Forum. This report, based on feedback from nearly 90 senior leaders in Malaysian banks, digital banks, and development financial institutions, gives an overview of AI adoption, readiness, and governance in Malaysia’s banking sector.
The report revealed that while AI is used in areas like customer onboarding, fraud detection, and improving employee productivity, only 25% of respondents feel confident enough in AI-generated results to base important business decisions on them. These findings mark an important shift for the industry, moving from trying out AI to using it responsibly at scale, with trust, governance, and assurance being essential for long-term success.
YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, who delivered the special ministerial address, said, “The AI Governance Framework developed by AICB’s Chief Risk Officers’ Forum, with the support of BNM and the endorsement of the Association of Banks in Malaysia, reflects the kind of industry-led initiative that the sector needs today. Rather than being a government-led directive on how banks should adopt AI, it represents the banking industry taking the lead in setting its own standards and responsibilities. That is how trust is built, from within the system, not merely imposed upon it.”
Dato’ Seri Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, in his opening address, added, “Innovation is not just adoption of technology, but also about leadership and governance to ensure that the financial system we build remains trusted and firmly anchored in the needs of society.”
In his welcome remarks, Tan Sri Azman Hashim, Chairman of AICB, said, “As the banking industry embraces AI and emerging technologies, continued investment in talent development and professional excellence will be critical to building resilient institutions and sustaining public confidence. Equipping banking professionals with the right capabilities will enable the industry to respond confidently to future opportunities and emerging risks.”
Workforce readiness has become a key focus at conferences, highlighting how AI and digital changes are shaping the future of work. The World Economic Forum’s Future of Jobs Report 2025 predicts that by 2030, almost 39% of the skills workers need will change due to AI, automation, and digital technologies. Additionally, a survey by AICB in July 2025, which included 99 financial institutions and had a response rate of 68%, found that 67% of these institutions believe their workforce is only somewhat prepared for future skills needs. The survey also revealed that cybersecurity threat intelligence is the area with the biggest talent shortage, followed by data science.
The conferences emphasized AICB’s commitment to preparing banking professionals for the future through initiatives like the Future Skills Framework and FSF Xcel. Created with input from industry leaders, the FSF highlights the key skills needed to support the future of banking while enhancing the resilience and competitiveness of Malaysia’s financial sector.
As banks in the region face similar challenges regarding AI governance, cyber resilience, climate risks, and talent readiness, AICB’s MBC 4.0 and BAC 2.0 encouraged strategic discussions, collaboration across industries, and shared ideas, allowing Malaysia’s financial sector to tackle important issues, improve professional standards, and create practical solutions for a complex global financial environment.
As Malaysia’s main professional organization for banking, AICB is dedicated to improving banking education, nurturing the next generation of banking professionals, and promoting innovative thought leadership that contributes to a competitive and trustworthy financial sector.