APAC's ‘Cyber Five’ nations -- South Korea, Australia, New Zealand, Japan, and Singapore -- appear nine times more vulnerable to cyberattack than other Asian economies.
This is one of the findings of the 2016 Asia-Pacific Defense Outlook released by Deloitte Touche Tohmatsu Limited (DTTL).
The study noted that these nations are the most heavily dependent on internet-based interactions.
“We're seeing a huge shift in defense focus across the region as more than half of global container traffic now moves through Asia-Pacific waters, and regional navies are building up to defend these economic lifelines,” said report author Jack Midgley, Director with Deloitte Tohmatsu Consulting in Tokyo.
“The same economic growth driving the naval buildup is also creating new kinds of vulnerability to cyberattack, particularly in the advanced economies the Asia-Pacific “Cyber Five,” he added.
According to the study, cyber policy initiatives are underway across the region, as governments take action to bolster domestic information systems security while engaging international partners for intelligence sharing, improvements in threat identification and protection of critical infrastructure.
“Japan’s emerging cyber strategy recognizes the growing risk of cyberattacks against infrastructure, as well as attacks on military targets,” the report noted. “Because Japan’s Self-Defense Forces are integrated with the civil government, Japanese cyber policy is based on a “whole-of-government” approach, and is also closely coordinated with US cybersecurity efforts.”
Chinese law, on the other hand, calls for strengthened management over the internet and tough measures against online attacks, theft of secrets, and the spread of illegal or harmful information.
While Australian cyber policy is under revision, the study said the country’s approach includes a newly created government-wide Cyber Security Centre to integrate operational cyber capabilities, as well as bilateral cyber-related dialogues with China, Korea, India and New Zealand.
Meanwhile, South Korea is doubling the size of its cyber command and is reported to have increased spending on cyber-related defense.
Deloitte’s second Asia-Pacific Defense Outlook examines policies, practices, and trends affecting the defense budgets and strategies of 20 Asia-Pacific nations whose combined defense budgets will account for nearly one-third of global defense budgets by 2020.
This year’s report explains why the Asia-Pacific economies are projected to drive sixty percent of the global increase in defense acquisition, research and development and 30% of the total global defense acquisition budget over the next five years.
"Asia-Pacific countries are growing defense spending slower than their overall economic growth rates. Governments are making clear decisions to shift public spending toward non-defense priorities, and defense capital programs increasingly emphasize local job creation and industrial development,” added Midgley.