Cyberattacks rank the most feared risk to doing business among firms in Singapore while, regionwide, companies cite high concerns around economic growth, according to Zurich Insurance.
Citing results of the World Economic Forum’s Global Risks Report 2016, Zurich said half of Singapore’s top 10 risks to doing business are economic threats, and 13 out of 19 APAC countries rank economic risks as their number one threat to doing business (with energy price shocks and asset bubbles their top two concerns).
Meanwhile, at a global level, the report points to climate change as having the potential to exacerbate both water and food crises with knock-on impacts including conflicts and more forced migration.
In addition to cyberattacks, Singapore’s top five risks to doing business include the risk of an asset bubble (46%), energy price shocks (35%), terrorist attacks (34%), and the spread of infectious diseases (27%). Lowest ranked was the risk of state collapse or crisis (0.6%), reinforcing confidence in Singapore’s stability and governance.
The report is based on a survey of 750 experts and draw on the views of more than 13,000 business executives.
Results also revealed that as the region sets out to lead the world in technology and innovation, APAC countries name cyberattacks as the seventh biggest risk to doing business –- another indicator of the region’s overwhelming business and economic focus.
Singapore, Japan and Malaysia single out cyberattack as the risk of highest concern, whereas this threat does not feature in the global top ten. Globally, cyberattacks ranked only 11th with only 16% of those surveyed identifying it at as top concern.
Consistent with Singapore, asset bubbles rank the second biggest risk to doing business in APAC with both developed and developing APAC nations -– including Australia, Cambodia, China, Hong Kong, Myanmar and Thailand -– naming asset bubbles the biggest risk.
Energy price shocks are ranked the number one risk to doing business in APAC, by predominantly developing countries including Bangladesh, Indonesia and Sri Lanka. While Singapore is the energy trading capital of the region, energy price shocks only ranked third.