AI Governance
Global Frameworks, Malaysia’s
Approach & Banking Sector
Application
Agenda
• Why AI governance matters
• Key global frameworks & best practices
• Malaysia’s attitude & regulatory readiness
• AI governance in banking & regulatory roles
• Recommendations & discussion
Why AI Governance Matters
• Rapid AI adoption creates unprecedented
opportunities and systemic
risks fileciteturn1file5
• Issues: bias, privacy, explainability, safety,
accountability
• Governance builds trust, ensures compliance
and sustainable innovation
Global AI Governance Landscape
• European Commission: Trustworthy AI &
forthcoming AI Act (focus on riskbased
‑
obligations) citeturn0search0
• OECD, UNESCO: aligned ethical principles
(human‑ centred, transparency, robustness)
• NIST AI RMF 1.0: govern–map–measure–
manage cycle for risk
management fileciteturn1file2
ASEAN Guide on AI Governance &
Ethics
• 7 principles: Transparency, Fairness, Security,
Humancentricity,
‑ Privacy, Accountability,
Robustness fileciteturn1file5
• 4 components: Internal governance,
Humaninloop,
‑‑ Ops management, Stakeholder
interaction fileciteturn1file5
• Templates: AI risk‑ impact assessment &
regional cooperation
Implementing Governance in
Practice (EU)
• Lifecycle approach: design → develop →
deploy → monitor
• Assign clear roles, documentation & KPIs for
each stage citeturn0search0
• Toolkits: checklists, model cards, bias testing,
incident logs
Malaysia’s Baseline & Legal
Foundations
• No standalone
‑ AI Act yet; relies on PDPA 2010
& sectoral laws fileciteturn1file9
• Malaysia AI Roadmap 20212025‑ ('AIRmap')
‑ to
build a responsible AI
ecosystem fileciteturn1file7
• Emphasis on early dialogue, risk mitigation &
multi‑ stakeholder collaboration
Malaysia AI Roadmap –
Governance Highlights
• AICentral
‑ Implementation Unit & Foresight
Committee for
oversight fileciteturn1file9
• AI & Digital Ethics Committee to define
‘red‑ lines’, registry & impact assessment
• Quadruple‑ Helix model (Government–
Academia–Industry–Society)
Comparative Snapshot
• EU: Risk‑ based legal obligations, fines
• ASEAN: Voluntary yet harmonised principles
• Malaysia: Roadmap + PDPA → towards
adaptive regulation
• Convergence: transparency, accountability,
human oversight
AI Governance in Banking
• Use cases: fraud detection, credit risk,
compliance monitoring, GenAI ‑ assistants
(DBS GPT) citeturn0search1
• Benefits: efficiency, customer experience,
competitive edge
• Risks: model bias, data leakage, hallucinations,
thirdparty
‑ exposure fileciteturn1file2
Banking Risk Governance
Frameworks
• Enterprise Risk Management + Three Lines of
Defence fileciteturn1file2
• Model Risk Management (SR 11‑ 7) & ongoing
validation
• Third‑ Party & Data Risk Management
integrated with AI lifecycle
Aligning with NIST AI RMF
• Govern: boardlevel
‑ policies &
accountability fileciteturn1file2
• Map & Measure: inventory, impact & bias
assessments
• Manage: controls, monitoring & continuous
improvement
Case Study: DBS Responsible AI
• Inhouse
‑ Gen AI ('DBS GPT') builds productivity
& compliance citeturn0search1
• Secure sandbox, human review &
explainability for all models
• Responsible AI framework anchors trust &
competitive advantage
Role of Financial Regulators
• Bank Negara Malaysia: expected to integrate
AI into Risk Management Guidelines
• Align with Basel, NIST & ASEAN to ensure
interoperability
• Possible requirements: model validation,
incident reporting, consumer rights
Recommendations
• Enact a Malaysian AI Act aligned with ASEAN
& EU principles
• Mandate AI impact & bias assessments for
high‑ risk applications
• Adopt NIST AI RMF + sectoral add‑ ons for
banking
• Invest in AI talent & audit tools; foster
public‑ private collaboration
Q&A
• Thank you – Questions welcome!
