Cybersecurity is no longer a peripheral issue—it is a critical pillar of Asean’s economic resilience and digital sovereignty.
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.
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.
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.
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:
- Develop a unified cybersecurity framework
- Invest in cybersecurity talent development
- Strengthen public-private partnerships
- Align with global cybersecurity standards
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.
Frequently Asked Questions
Q: What is the current state of cybersecurity in Asean?
A: The region is facing growing vulnerabilities and a shortage of cybersecurity professionals, making it more susceptible to cyber threats and data breaches.
Q: What are the economic implications of a cyberattack?
A: The average cost of a data breach in Asean has reached a record US$3.33 million, with the financial sector being the most affected.
Q: How can Asean strengthen its cybersecurity?
A: Asean must develop a unified cybersecurity framework, invest in cybersecurity talent development, strengthen public-private partnerships, and align with global cybersecurity standards.