Cybersecurity shines bright in SEA amid market gloom

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Hello reader,

Nowadays, before looking at charts of market indices, stocks, exchange-traded funds, and even my own portfolio, I perform a somewhat superstitious ritual.

Like a child afraid of seeing a ghost, I cover my face with my hands and slowly spread my fingers apart to view the screen. Suffice to say, it makes no difference – I’m invariably greeted by plummeting red lines that would make even investors with huge risk appetites yelp in horror.

Last week, I witnessed the biggest US Federal Reserve interest rate hike of my lifetime. The central bank raised its benchmark interest rates by 0.75% in its most aggressive hike since 1994 to combat soaring (and already high) inflation. The Bank of England, too, pushed its interest rate up to a 13-year high.

With more interest rate hikes in the offing, recessions looming, and the cost of borrowing rocketing up, a beaten-down stock market fell even further into bear territory.

However, despite the global economic slump, certain sectors are growing in relevance. One such industry is the cybersecurity space – especially in Southeast Asia.

I not-so-fondly recall the first time my computer was hacked. Each time I clicked on an application, a message would pop up, saying, “I control this computer now.” It was creepy, scary and, frankly, terrifying. Maybe it was some sort of sick joke, but it made me realize I needed to protect myself on the internet.

Want to hear another sick joke? Last year, there were 1.6 billion cyberattacks detected in Indonesia, Southeast Asia’s largest economy – a 5x increase from 2019.

As the number of cyberattacks in Southeast Asia mushrooms in tandem with the rise of its digital economy, Tech in Asia shines the spotlight on the growing need for businesses in the region to adopt a holistic approach to meet cybersecurity needs in this week’s feature piece.

In the premium story, my colleague, Xavier, also charts out the challenge to mindsets faced by cybersecurity businesses such as Fortinet (FTNT, NDAQ), Palo Alto Networks (PANW, NDAQ) and NortonLifeLock (NLOK, NDAQ), and details the industry’s booming potential in Southeast Asia.

— Shravanth

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