The top 1,000 companies in Southeast Asia face an estimated $750 million in market capitalisation losses if the region’s countries fail to invest more in cybersecurity, according to an A.T. Kearney report.
The global consulting firm noted that Association of Southeast Asian Nations’ (ASEAN) members must step up their investments in digital security, as technologies such as satellite broadcasting service and Internet use become more common in the region.
The need for more cybersecurity investments partly stems from ASEAN countries’ expanding online connectivity and smartphone adoption. A recent study predicted that the Internet economy in Southeast Asia would be valued at $200 billion by 2025.
Hence, the risks of cyber-attacks become more evident. While online technology becomes modernised, cyber threats become more complicated at the same time. The A.T. Kearney report suggested that ASEAN countries should collectively invest around $171 billion between 2017 and 2025. This would allow them to be more secure against any form of a data breach or hacking activity. Singapore, however, has been the only ASEAN country that spent more on cybersecurity than the global average, according to the report.
A factor for Singapore’s above average spending on cybersecurity involves a stable telecommunications sector. RHB said that the industry would be more competitive this year, due to the entry of new players. The research house chose Singtel as one of its top telecommunications companies for 2018, due to its diversified business and stable yields.
It chose the enterprise despite the arrival of TPG Telecom and two other mobile virtual network operators. For the entire industry, RHB provided a neutral outlook for the year.
The risks of cyber-attacks become more relevant in Southeast Asia, simply because more people and companies have adopted online technologies. How do you plan to invest in cybersecurity?