Cybersecurity in ASEAN An Urgent Call to Action

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3 Cybersecurity in ASEAN: An Urgent Call to Action
address the investment gap, ASEAN countries need to spend3 between 0.35 and 0.61 percent of
their GDP—or $171 billion collectively—on cybersecurity in the period spanning 2017 to 2025. This
is a small price to pay considering the value-at-risk and the fact that ASEAN governments spend
up to 3.4 percent of GDP4 on other items, including defense.
Concerted efforts need to be made to fortify theecosystem by advocating for businesses to
adopt a risk-centric, layered defense approach to cyber threats. This includes instilling a
culture that enables the sharing of threat intelligence, extending cyber resilience across the
supply chain, and encouraging the development of regional public–private partnerships
(PPPs) and industry alliances. Finally, because cybersecurity is a continuously evolving
challenge, the region must build the next wave of cybersecurity capability by cultivating the
future generation of security professionals and driving research and development around
innovative technologies that can address emerging and unforeseen threats. Given the
magnitude and complexity of the region’s challenges and its unique context, ASEANmust
embrace a game-changing approach, based on greater cohesion and a collective use of
resources, to achieve a cyber resilient future.
1 TheASEANRegion: APrime Target for
Cyberattacks
With a combined GDP of more than $2.7 trillion, the ASEAN region is the world’s seventh largest
market and is swiftly becoming an economic force to reckon with. Nominal GDP is expected to
grow at a CAGR of 8.2 percent, exceeding $4 trillion by 2022. With a population of 645 million
people—over 100 million more than the European Union (EU)—ASEAN is the third most populous
market in the world.
The region is strategically positioned to capture trade with other growth powerhouses, both
geographically and diplomatically. Trade with China alone is expected to reach $1 trillion by
2020, partly because of partnerships such as the ASEAN–China Free Trade Area. The region’s
global significance can also be seen in its relationship with the United States. US foreign direct
investments into ASEAN have grown at a CAGR of 12 percent since 2004. In fact, the region has
receivedmore investments from the United States than the combined United States investments
into China, India, Japan, and South Korea.5
Although ASEAN is behind its global peers in terms of contribution of the Internet economy, the
region has the potential to enter the world’s top five digital economies by 2025. Over the next 10
years, ASEAN’s digital economy could add $1 trillion to its GDP.6 This digital revolution could
transform daily life, making physical cash obsolete and regional cities smarter, safer places to live
(see figure 2 on page 4). The region could also pioneer the development of new digital services,
especially advanced mobile financial services and e-commerce—sectors that are likely to see the
emergence of local digital champions. Failing to address the risks will impede trust and resilience
in the digital economy and prevent the region from realizing its full economic potential.
The region’s growing strategic relevance and expanding digitalization make it a prime target for
cyberattacks. Although countries are beginning to extend their policies to encompass the
digital playing field, cybersecurity is a very real danger for several reasons:
3 Includes both public- and private-sector cybersecurity spend
4 World Bank
5 The East–West Center, 2017
6 For more information, see at www.atkearney.com