Former DBS Chief Gupta Urges Singapore to Take Bigger Risks in Finance

Piyush Gupta, who led DBS until earlier this year, warned on August 17 that Singapore’s financial sector risks becoming too cautious despite its global reputation for stability. Speaking at the launch of his book at the National University of Singapore, Gupta argued the city must take calculated risks and innovate faster to compete with rivals like Hong Kong. He cited the SGD 6.5 billion Equity Market Development Plan as proof Singapore can balance safety with boldness.

Why Gupta says stability has become a trap

Singapore built its financial dominance over 50 years by prioritizing trust and regulation. That success now risks becoming a liability. Gupta noted the city-state’s reputation for prudence could “calcify into risk aversion” at a moment when competitors move faster. “The pace of change is extraordinary,” he said on Monday. “This is the time we have to be as bold as we were in the 1960s and 70s.” Hong Kong has already launched fiat-backed digital currencies while Singapore deliberates, he warned.

The tension between innovation and trust

Financial services face a unique constraint: they handle customers’ money, unlike technology platforms. A failed bank destroys savings; a failed app loses users. Gupta stressed that “trust is not a soft virtue in this business; trust is the product.” Singapore has historically balanced this tension well, but the speed of technological change means caution itself now carries risk. Minister for National Development Chee Hong Tat, deputy chairman of the Monetary Authority of Singapore, echoed the call for calculated risk-taking when pursuing new opportunities.

Recent wins show Singapore can move boldly

Gupta initially doubted Singapore would take enough risks as a system, but recent moves changed his mind. The Equity Market Development Plan, worth SGD 6.5 billion, aims to boost the local stock market. The Global Listing Board allows companies to list simultaneously on Nasdaq and the Singapore Exchange. Gupta suggested Singapore explore launching SGD-backed stablecoins to stay ahead in digital finance. “Singapore’s advantage has always been our ability to walk the tightrope better than anyone,” he said.

What this means for Singapore’s financial future

Gupta’s book, based on three lectures delivered at NUS’s Institute of Policy Studies in 2025, traces how Singapore navigated innovation and stability across decades. The message to policymakers and industry leaders is clear: the environment that rewarded caution in the 1990s and 2000s no longer exists. The future depends on Singapore’s willingness to test new ideas, accept some failures, and move faster than competitors. Chee said Singapore must be “prepared to take calculated risks” because “not every challenge comes with an established playbook.”

Final Thoughts

Gupta’s warning reflects a real competitive pressure: Hong Kong, Dubai, and other hubs are moving faster on digital assets and market innovation. For DBS and other Singapore banks, the message is that regulators will back bolder moves. The risk is that hesitation costs market share.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.