The regulatory compliance environment in Asia is diverse and rapidly evolving. In terms of operational resilience, the Monetary Authority of Singapore (MAS) and the Hong Kong Monetary Authority (HKMA) have issued guidelines and requirements for financial institutions to maintain business continuity and recover from disruptions effectively. MAS requires financial institutions to identify critical business services, set impact tolerances, and regularly test their operational resilience. Cybersecurity compliance is a top priority, with many countries adopting the NIST Cybersecurity Framework and the ISO 27001 standard. China has implemented the Multi-Level Protection Scheme (MLPS) and the Cybersecurity Law, which impose strict requirements on network operators and critical information infrastructure operators. Technology and AI risk management is an emerging area, with China being the first to introduce AI-specific regulations like the Interim Administrative Measures for Generative Artificial Intelligence Services. Other countries are relying on non-binding guidelines and principles, such as Singapore's Model AI Governance Framework.
Singapore and Thailand have each introduced a Payment Services Act aim to promote innovation whilst mitigating risks. These regulations involve licensing requirements, AML/CFT measures, and consumer protection provisions. Privacy regulations are being strengthened across the region, with laws like China's Personal Information Protection Law (PIPL), Japan's amended Act on the Protection of Personal Information (APPI), and South Korea's Personal Information Protection Act (PIPA) setting new standards for data protection. Internal audit management is crucial for ensuring compliance with various regulatory requirements, and regulators are emphasizing the importance of robust internal control frameworks and risk management practices. ESG regulations are gaining traction, with countries like China, Japan, and Singapore introducing mandatory ESG disclosure requirements for listed companies and financial institutions.
In the financial services sector companies faces stringent compliance requirements, such as the Basel III capital and liquidity standards, and the FATF's AML/CFT recommendations. The pharma and healthcare industry must comply with regulations like China's Drug Administration Law and Japan's Pharmaceuticals and Medical Devices Act. The government and defence sector prioritises cybersecurity and export control compliance. Telecommunications companies are subject to data localisation requirements and cybersecurity regulations. The energy and utilities sector must adhere to environmental regulations and safety standards. The automotive industry faces safety, emissions, and cybersecurity regulations. Aviation is governed by international standards like the ICAO's Annexes and national regulations. The food and consumer goods industry must comply with safety, labeling, and environmental regulations.
