Singapore SMEs less aware of cyber threats but AI impact recognised

A recent survey conducted by QBE Singapore, a general insurer, has revealed critical insights regarding the operational risks faced by small and medium-sized enterprises (SMEs) in Singapore. Topics covered in this annual survey included cybersecurity, artificial intelligence (AI), and workplace safety and health (WSH).

Results from the survey indicate that the proportion of SME executives fully aware of potential cyber risks has witnessed a significant drop from 57% in the previous year to 47% this year. Furthermore, the percentage of businesses that lack any processes or protection against cyber risks escalated to 19% this year as compared to 9% last year.

AI has been proven to impact productivity, with 49% of SMEs acknowledging this influence. However, opinions varied regarding the potentially displacing effect of AI on jobs, with 32% of survey respondents anticipating AI replacing or assuming jobs in their firms.

Moving to WSH, the survey outcomes suggested that SMEs have improved addressing these issues. However, a marginal decrease was noted in the importance assigned to mental health. The proportion of companies prioritising this issue dropped slightly from 94% to 89% year-on-year.

The QBE SME Survey for Singapore this year established that awareness of the multifaceted cyber risk realm is waning among local SMEs. The study involved the participation of 605 SMEs, which were queried on operational risks that primarily affect SMEs, encompassing cybersecurity, AI, and WSH.

Of the respondents, 47% relayed that they were completely informed of potential cyber risks, a drop from the 57% recorded last year. The percentage of businesses without any protection against cyber risks has alarmingly increased from 9% to 19% this year. Shun Quan Goh, Head of Underwriting, Retail and SME, QBE Singapore, stated, "Businesses cannot afford to be complacent about cybersecurity; it really is a matter of when, and not if, a cyber breach happens."

Despite AI's much-debated potential to eliminate human jobs, most survey respondents disagreed with this view. Only 32% expected AI to ultimately supplant jobs in their company. Nearly half of the respondents (49%) admitted that AI has had, or will make, a positive impact on their business productivity, especially in areas like automated response, routine manual tasks, and finance/accounting/audit functions.

Measures taken by SMEs have resulted in improvements in overall workplace health and safety. This year, 63% reported no workplace safety incidents, a rise from 55% the previous year. Conversely, the percentage of SMEs that consider mental health very important or somewhat important slightly fell from 94% last year to 89% this year.

Ronak Shah, CEO of QBE Singapore, emphasised, "At QBE, we actively support SMEs in their efforts to prioritise employee well-being within their workplaces. Our aim is to empower SMEs to create positive organisational cultures while ensuring the security and support of their valued workforce."

The recent survey conducted by QBE Singapore sheds light on the evolving landscape of operational risks faced by small and medium-sized enterprises (SMEs) in Singapore. With cybersecurity concerns on the rise and awareness of potential cyber risks waning among SMEs, the findings underscore the critical need for proactive measures to safeguard against cyber breaches. Additionally, while AI presents opportunities for productivity enhancement, concerns persist regarding its impact on job displacement.

However, the survey also reveals positive strides in workplace safety and health (WSH), albeit with a slight decrease in the importance assigned to mental health. As SMEs navigate these challenges, QBE Singapore remains committed to supporting their efforts to prioritise employee well-being and bolster organisational resilience.