Security Challenges Hinder SG SMB Growth
- By CDOTrends editors
- October 25, 2022
While Singaporean small and medium businesses (SMBs) continue to enjoy growth despite challenges, a new survey has revealed that security concerns are holding back many from fully capitalizing on opportunities.
Check Point Software Technologies released the results of its cybersecurity survey of Singaporean SMBs. It sought to uncover how SMBs are emerging from the pandemic and how their cybersecurity needs are changing.
The survey, conducted by research firm Analysys Mason, revealed that despite being the highest IT investors globally, Singaporean SMBs are unprepared for the increased cyber risks that come with growth.
SMBs in Singapore increased their spending on IT faster than SMBs worldwide (0.8% compared to 0.3%), indicating that they understand the need for investment in technology and are willing to put more money towards it. While the spending is meant to support hybrid working, many companies fail to prioritize security.
Among the SMB respondents, 55% have adopted either a hybrid or fully work-from-home model for their businesses. Measures have been made to help remote employees, with 44% purchasing new laptops and 32% offering financial support for home broadband.
However, as remote workers increasingly use home and office access points, the attack surface has expanded, increasing the risk of cyberattacks. Cybercriminals increasingly use more vulnerable small- to medium-sized businesses as an entry point into larger enterprises.
SMBs in Singapore are such targets, with 66% of remote employees not mandated to undergo added security training measures. This approach wreaks havoc on both SMBs and all the enterprises they interact with.
Given the global cybersecurity skills shortage, SMBs are struggling to properly secure their critical assets, making them a growing target for cybercriminals. On the other hand, larger enterprises usually have bigger IT budgets and security resources to recover more quickly from a cyberattack.
For SMBs, a cyberattack can be fatal to their business. The survey found that two of the biggest losses for SMBs from cyberattacks are revenue (28%) and customer trust (16%).
Teong Eng Guan, business leader for ASEAN & Korea at Check Point Software, suggested a way to address this: “It is reassuring that SMBs in Singapore have increased their investment in cybersecurity to the highest in worldwide levels to support business growth and the new hybrid work model, but having the correct mix of security products is only part of an effective strategy. SMBs should also be looking for a consolidated and unified security suite that achieves a high level of protection across their network, endpoints, mobile, and email.”