Singaporean financial institutions are becoming more concerned over artificial intelligence-assisted cyberattacks as demand for AI technologies continues to grow.
In a survey conducted by the Monetary Authority of Singapore, about 80% of chief risk officers believe AI-related risks and cyberattacks are the top concern, compared to 77% of respondents who voted for geopolitical risks.
MAS said the survey reflected "concerns that technological advances could make cyberattack tools more accessible, sophisticated and scalable."
Government data showed that Singapore's non-oil domestic exports, including semiconductors and chips, soared by 46.2% year on year in August, which the LSEG said was the biggest rise in exports in a series from November 2005.
AI is becoming so advanced that it could be used to exploit the vulnerable and be used for sophisticated fraud. The overinvestment into the AI industry might also cause financial market stress amid the excess supply of semiconductors and data centers.
Geopolitical tensions are also a cause for concern, MAS said, as supply shocks from the closure of the Strait of Hormuz and tariffs affected the global supply chain, especially in emerging Asian markets that are dependent on commodity imports.
"Looking ahead, respondents identify quantum computing as an emerging risk requiring early attention," MAS said. "While still a nascent threat, expected advances in quantum decryption capabilities have led to concerns that sensitive, encrypted data could be pre-emptively stolen today to be unlocked in the future."
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