PH MSMEs need stronger cyber defenses

Philippine micro, small and medium enterprises (MSMEs) need stronger government support to protect their businesses from cyberattacks as digitalization and artificial intelligence (AI) adoption accelerate, business and technology leaders said.

Speaking at a Manila business forum on October 7, Natasha Beschorner, Amazon Web Services’ (AWS) head of public sector policy for Asia Pacific and Japan, cited research showing that 80,000 Philippine businesses adopted AI in 2024, equivalent to more than nine new adopters every hour.

However, many smaller businesses lack dedicated cybersecurity teams and the resources to implement adequate safeguards, she said.

John Phipps, Palo Alto Networks’ head of public policy and government affairs for ASEAN, said 78% of MSMEs in Asia-Pacific had experienced at least one cybersecurity incident in the previous year, based on data presented by the company.

He warned that AI was adding urgency to the challenge, with the fastest attacks taking just 72 minutes to progress from initial access to data theft. Identity-related risks, compromised credentials and supply-chain vulnerabilities were among the key threats facing MSMEs.

Josephine Romero, senior adviser at the Philippine Center for Entrepreneurship, which operates Go Negosyo, called for closer government-private sector coordination to help entrepreneurs access cybersecurity assistance.

She said agencies such as the Department of Trade and Industry and the Department of Science and Technology already offer programs and training, but many businesses remain unaware of available resources.

Romero also advised entrepreneurs seeking financing for cybersecurity improvements to approach Small Business Corp., the DTI’s financing arm.

Beschorner said governments could connect MSMEs with training and practical resources, including AWS Skills Builder, which offers more than 600 free courses covering AI, cybersecurity and other technologies.

Benjamin Chua of Singapore’s Infocomm Media Development Authority said Singapore provides businesses with guidelines, frameworks and toolkits to promote responsible AI adoption and strengthen cybersecurity.