The latest report from specialist insurer Beazley reveals a significant focus on cyber threats among Singaporean business leaders. In 2023, 25% of executives identified cyber risks as their primary concern, with projections showing a slight increase to 26% in 2024.
The firm has released its latest report, titled “Singapore Snapshot,” which forms part of the “Risk & Resilience” research series, focusing on the evolving business and technology risks encountered by Singapore-based companies with international operations. Key areas of concern include the impacts of climate change, new regulatory landscapes, and the increasing threats posed by cyber risks.
More than one in five (21%) businesses in Singapore feel inadequately prepared to manage these cyber risks. This concern is more pronounced in small businesses, with revenues between SG$1 million and SG$9.99 million, where 31% feel unprepared. Consequently, over a third (37%) of businesses are planning to enhance their cyber security measures.
Employer risks are also gaining attention in the post-pandemic era. Businesses are increasingly vigilant about supporting their workforce, addressing mental health issues, and ensuring safe working environments. In 2023, 23% of executives ranked employer risk as their top business concern, a 3% increase from the previous year. However, 26% of Singapore's executives feel unprepared to manage these employer risks effectively.
Regarding environmental, social, and governance (ESG) regulations, 19% of boardrooms in Singapore rank ESG risks as their foremost concern. This figure is expected to rise to 20% in 2024, underscoring the challenges of adapting to new ESG regulations. The report also noted that Singaporean businesses appear more confident in handling ESG risks than their global counterparts. A significant 76% of Singaporean executives feel prepared against ESG risks, contrasting with 75% in the UK, 69% in the US, and 68% in Canada.
“APAC businesses are facing a varied threat landscape. In particular, Singapore-based executives face a spectrum of challenges, such as new ESG regulations, a diverse workforce stemming from Singapore’s status as a regional hub, and growing vulnerability to cyberattacks, and our data reveals that preparedness for these new challenges is becoming harder,” Beazley APAC head Lucien Mounier said.
Mounier also noted the proactive stance of Singapore's boardrooms, with 37% considering exploring insurance options that encompass risk and crisis management. He emphasised the pivotal role of the insurance industry in 2024 in supporting business growth and asset protection.
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