Cybersecurity Critical For Asean S Economic Resilience Digital Sovereignty

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From Jamil A Ghani
Cybersecurity is no longer a peripheral issue—it is a critical pillar of Asean’s economic resilience and digital sovereignty.
As the region advances toward a US$2 trillion digital economy by 2030, the growing frequency and sophistication of cyber threats pose serious risks to stability and investor confidence.
The urgency to act has never been greater.
Rising cyber threats and their economic impact
Between 2021 and 2022, cybercrime in Southeast Asia surged by 82%, highlighting growing vulnerabilities in the region’s digital infrastructure.
The financial toll of cyberattacks has escalated sharply, with the average cost of a data breach in Asean reaching a record US$3.33 million in 2024, a 7% increase from 2023.
The financial sector has been hit the hardest, with breaches costing an average of US$5.74 million per incident, followed by the industrial and technology sectors.
These escalating costs stem from the complexity of modern IT environments, widespread cloud migration, and the proliferation of IoT (internet of things) devices.
Attacks targeting data across public and private clouds, and on-premises systems are among the most expensive, averaging US$3.55 million per breach.
Compounding the issue, Asean companies take nearly nine months on average to detect and contain a breach, during which time sensitive data can be exploited, causing further economic and reputational harm.
Asean’s cybersecurity gaps
Despite efforts such as the Asean Cybersecurity Cooperation Strategy 2021–2025 and the Asean Regional Computer Emergency Response Team (Asean CERT), significant gaps remain.
Regulatory fragmentation among member states prevents a coordinated response to cyber threats, while uneven security capabilities create weak points that cybercriminals exploit.
The region also faces a shortage of cybersecurity professionals, which further undermines its ability to defend against sophisticated attacks.
To strengthen regional cybersecurity cooperation, Malaysia and Singapore co-chair Asean’s efforts in developing a long-term implementation roadmap for norms of responsible state behaviour in cyberspace.
Additionally, Singapore has committed US$10.1 million to fund and host the Asean CERT facility for ten years, which will enhance cross-border threat intelligence sharing and capacity building.
While expected to improve real-time incident response, its success depends on improved coordination and consistent information-sharing among member states.
Cybersecurity as a geopolitical battleground
Southeast Asia is at the centre of a widening US-China technological and trade rivalry, where cybersecurity has become a key battleground. Beijing’s Digital Silk Road has expanded its influence over regional digital networks but also raised concerns over dependencies and security risks.
Cyber-attacks linked to foreign state-backed actors have targeted high-tech industries like semiconductor manufacturing and telecommunications. With growing reliance on digital infrastructure, ensuring technological sovereignty demands stronger security measures and resilience against these threats.
This leaves Asean in a precarious position—balancing economic engagement with China while securing its digital ecosystems from external interference. Weak defences could expose member states to geopolitical coercion and data theft.
High cost of inaction
If Asean fails to address these weaknesses, the consequences will be severe. Prolonged breaches and weak frameworks will deter high-value foreign investments.
Multinational corporations are already incorporating cybersecurity risk into their investment decisions, and a fragmented digital landscape could push businesses to relocate operations to more secure jurisdictions.
Local companies face increasing exposure to cyber risks, yet many underestimate their financial exposure and continue to underinvest in security. Without investments in cybersecurity systems, workforce development, and advanced threat detection, the region’s continued digital growth is at risk.
Building a secure digital future
To secure its digital future, Asean must do the following:
Develop a unified cybersecurity framework: Asean CERT lays the groundwork for regional coordination, but a stronger, enforceable framework is needed. A common cybersecurity lexicon, standardised incident response protocols, and real-time cross-border intelligence sharing will reduce regulatory fragmentation.Invest in cybersecurity talent development: The region must address its skills shortage by expanding training programmes, incentivising university partnerships, and supporting workforce upskilling.Strengthen public-private partnerships: Cyber resilience cannot be built in silos. Asean governments must collaborate with the private sector, academia and civil society to improve threat intelligence-sharing, security and innovation.Align with Global Cybersecurity Standards: Asean should adopt international cybersecurity best practices, such as the EU’s Network and Information Security (NIS2) Directive, to ensure interoperability with global cybersecurity frameworks and reassure foreign investors.Conclusion
Asean’s digital ambitions cannot be realised without a strong, coordinated and well-funded strategy.
Cybersecurity must be seen not as an IT afterthought but as a core economic and strategic priority.
Failure to act will not only leave the region vulnerable to attacks but also undermine investor confidence, disrupt economic progress, and weaken Asean’s position in the global digital economy.
It must act now to fortify its defences, enhance regional cooperation and assert technological sovereignty in an increasingly contested and complex digital landscape. - FMT
Jamil A Ghani is a PhD candidate at the S Rajaratnam School of International Studies, Nanyang Technological University, Singapore.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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