ASEAN companies face US$750b risk from cyberattacks
In this article (5)
Companies across the ASEAN bloc face a growing risk of cyberattacks, which can expose the region’s top-listed firms to a US$750 billion erosion in current market capitalisation.
This was revealed on Tuesday in a new research commissioned by Cisco.
Conducted by global management consulting firm A.T. Kearney, the research underlines that ASEAN’s growing strategic relevance, driven by economic expansion and ongoing digital adoption, make it a prime target for cyberattacks.
A combination of nascent policy preparedness, absence of a unifying regional governance framework, shortage of skilled talent, underestimation of risk and lack of adequate investment are among the factors contributing to the heightened risk.
The research report, titled “Cybersecurity in ASEAN: An Urgent Call to Action”, emphasises that cyber-security risk across the bloc will continue to escalate as the bloc gets more digitally interconnected.
ASEAN countries underspend on cyber security. The region currently spends an average of 0.07 per cent of its collective gross domestic product (GDP) on cyber security annually. It will need to increase the spending to 0.35-0.61 per cent of GDP between 2017 and 2025 to be in line with the best benchmark (based on spending levels as percentage of GDP for Israel).
The research estimates that this translates to $171 billion in collective spending needed across ASEAN countries during the period. Limited sharing of threat intelligence, often because of mistrust and a lack of transparency, will lead to even more porous cyber-defence mechanisms.
“It will need to increase the spending to 0.35-0.61 per cent of GDP between 2017 and 2025 to be in line with the best benchmark (based on spending levels as percentage of GDP for Israel).”
Naveen Menon, ASEAN President at Cisco, said: “Digital innovation and adoption are central pillars of economic growth for ASEAN. Its success hinges in large part on the bloc’s ability to combat cyber threats. Cyber security needs to be an integral part of policy discussions at the semi-annual ASEAN Summit, with the aim of developing a unified policy framework for the region. The corporate sector also needs to start treating cyber security as a business wide issue that can only be tackled by adopting a risk-centric approach to building resilience, rather than just an IT problem.”
Lương Thị Lệ Thuỷ, general director of Cisco Việt Nam, said: “Việt Nam has fallen to rank 101 among 195 countries in the Global Security Index 2017 compiled by the UN International Telecommunication Union, down 25 places from 2016.”
“The National Assembly (NA) has been discussing the need to formulate a law on cyber security. It has been put under consideration at the fourth session of the 14th NA. However, all stakeholders need to work together to help build cyber-security capabilities in Việt Nam to ensure that we are able to combat these threats,” Thủy said.
Questions & Answers
Q.What factors contribute to the heightened risk of cyberattacks for ASEAN companies?
What factors contribute to the heightened risk of cyberattacks for ASEAN companies?
The heightened risk is due to nascent policy preparedness, a lack of unifying regional governance, a shortage of skilled talent, underestimation of risk, and insufficient investment. These factors collectively make the region a prime target for cyberattacks.
Q.How much more should ASEAN countries spend on cybersecurity to meet benchmark levels?
How much more should ASEAN countries spend on cybersecurity to meet benchmark levels?
ASEAN countries currently spend 0.07% of their collective GDP annually on cybersecurity. They need to increase this spending to 0.35-0.61% of GDP by 2025, which translates to a collective $171 billion investment during that period.
Q.Why is limited sharing of threat intelligence a problem for cybersecurity in the region?
Why is limited sharing of threat intelligence a problem for cybersecurity in the region?
Limited sharing of threat intelligence, often stemming from mistrust and a lack of transparency, will lead to even more porous cyber-defence mechanisms. This hinders the bloc's ability to combat cyber threats effectively.
Q.What is Việt Nam's recent performance in the Global Security Index?
What is Việt Nam's recent performance in the Global Security Index?
Việt Nam fell to rank 101 among 195 countries in the Global Security Index 2017, compiled by the UN International Telecommunication Union. This represents a drop of 25 places compared to its 2016 ranking.
Reader pulse
What is the biggest threat from cyberattacks?
20,210 votes so far