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10
Cybersecurity in ASEAN: An Urgent Call to Action
ASEAN’s cybersecurity spend was estimated to be $1.9 billion in 2017, representing 0.06 percent
of the region’s GDP. ASEAN’s spending on cybersecurity is forecasted to grow at 15 percent CAGR
from 2015 to 2025 (see figure 6). The top three economies—Singapore, Malaysia, and Indonesia—
are likely to drive a significant portion of this growth, accounting for 75 percent of the market by
2025. Indonesia, the Philippines, Vietnam, and Malaysia are expected to see the highest growth as
they address gaps in infrastructure and as the managed service landscape evolves.
Notes: Cybersecurity spend includes both private and public sector spend on the following: identity and access management, infrastructure protection
(including content and endpoint), and network security.
Sources: International Data Corporation, Gartner; A.T. Kearney analysis
Figure
ASEAN cybersecurity spending is expected to show double-digit growth up to
ASEAN cybersecurity spending
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However, when benchmarking national cybersecurity spending as a percentage of GDP, most
ASEAN countries fall below the global average and well below best-in-class, creating a potential
risk of insufficient spend relative to a rapidly escalating threat landscape (see figure 7 on page 11).
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1.3Anascent local cybersecurity industrywith shortages of
home-grown capabilities and expertise
The cybersecurity industry in the ASEAN region faces structural challenges because of its highly
fragmented nature. In addition, the shortage of skilled talent impacts the competitiveness of
the local industry.
1.3.1 Fragmentation of products offeringswith lack of end-to-end solutionproviders
The cybersecurity industry globally and in the region, is characterized by numerous products
and solutions (see figure 8 on page 11). Vendor product portfolios are varied, and few offer
solutions that cover the entire capability value chain. End users face the challenge of navigating
through a complex web of vendor relationships to design their cybersecurity programs. Despite
14
Based on cybersecurity as a percentage of spend for select global markets