PHILIPPINE micro, small and medium enterprises (MSMEs) need a government-led support ecosystem to strengthen their digital defenses because many lack the resources and expertise to implement cybersecurity standards and technologies, business and technology leaders said.
Speaking at a business forum in Manila on Wednesday, Oct. 7, Natasha Beschorner, Amazon Web Services’ (AWS) head of public sector policy for Asia Pacific and Japan, said artificial intelligence (AI) adoption was gaining momentum in the Philippines.
She cited AWS research showing that 80,000 businesses in the Philippines adopted AI in 2024, equivalent to more than nine new adopters every hour.
The rapid adoption of AI, however, has raised questions about whether businesses can trust the technologies they use and whether they are applying adequate security standards, she said.
John Phipps, Palo Alto Networks’ head of public policy and government affairs for Asean, said rapid digitalization since the Covid-19 pandemic had outpaced cybersecurity preparedness across the region.
He said data presented by Palo Alto Networks indicated that 78 percent of MSMEs in Asia-Pacific had experienced at least one cybersecurity incident in the previous year.
Phipps also cited figures showing that 84 percent of MSMEs in Malaysia had faced threats, while 76 percent had been subjected to repeated attacks.
Malware targeting small businesses in Vietnam had increased twentyfold, while Indonesia had recorded an increase of more than 124 percent, he said.
The development of AI has made stronger cybersecurity standards even more important, Phipps said.
He said the time attackers needed to move from initial access to data exfiltration had fallen to 72 minutes in the fastest attacks, with attack speeds increasing fourfold over the past year.
Among the main threats facing MSMEs are identity-related risks, compromised access methods and supply-chain exposure, he added.
Beschorner said small businesses rarely had in-house security teams, even as customers and regulators increasingly required them to demonstrate that their data were protected.
“Trust is a growth enabler for MSMEs,” she said. “When businesses meet the trust requirements of customers and partners, they can expand across borders and turn security from a cost into a growth lever.”
Conversely, a lack of trust can become a barrier to growth.
Josephine Romero, senior adviser at the Philippine Center for Entrepreneurship, the nonprofit organization behind Go Negosyo, called for closer coordination between government agencies and the private sector.
She said programs, courses and other forms of support were already available from agencies such as the Department of Science and Technology and the Department of Trade and Industry, but many businesses were unaware of them.
Entrepreneurs seeking financing could also approach Small Business Corp. (SB Corp.), the DTI’s financing arm, and explain that they needed funds to improve their cybersecurity standards, Romero said.
Phipps said governments were well placed to build consensus and conduct coordinated information campaigns. Industry could support these efforts by holding workshops and funding education programs, among other initiatives, he added.
Beschorner said governments could also serve as “knowledge brokers,” connecting MSMEs with information, training and resources on emerging digital technologies.
AWS, for example, offers a Skills Builder program with more than 600 free courses, many of them covering AI, cybersecurity and other advanced technologies.
“But many organizations may not be aware of them,” Beschorner said, underscoring the need for government to act as a link between businesses and available resources.
She said other countries could look to Singapore and Japan as examples of governments that are active in providing guidance to their industries.
Benjamin Chua of Singapore’s Infocomm Media Development Authority said the city-state’s government provided businesses with practical resources, including guidelines, frameworks and toolkits, to address AI governance and cybersecurity issues and promote safe and responsible practices. / PHILEXPORT