Digital trust tools needed amid rising cyber threats; spending on solutions to reach $765b by 2027

SINGAPORE – A new breed of tools, collectively known as digital trust solutions, has emerged to mitigate the negative effects of digitalisation and bridge the gap where trust with the public is lacking.

Where it is hard to verify one’s identity online to minimise fraud, digital identity services like SingPass aim to verify a user’s authenticity, to ensure the rightful user gains access to an app or service.

Where personal data needs to be collected, encryption tools hide sensitive data. And where cyber threats lurk, data recovery tools restore affected systems and cyber insurance policies cover the losses borne so that companies are not crippled completely.

Spending on digital trust solutions

– including cybersecurity, digital identity services, immutable digital ledgers, cyber insurance and digital certifications – is expected to double from $385 billion in 2022 to $765 billion globally by 2027, according to a study released in October by trade association SGTech.

In Singapore, this sector is projected to stand at $1.7 billion in 2022, with more than half of its value coming from cyber security. The sector is expected to grow to $4.8 billion by 2027, with an accompanying workforce of up to 45,000 people, said SG Tech in its report titled Digital Trust: Unlocking The Next Wave Of Growth In The Digital Economy.

The growth of the digital trust sector will be driven mainly by demand for cyber security, immutable digital ledger and privacy-enhancing technologies, as well as cyber insurance and digital identity services, said the report.

SGTech chairman Wong Wai Meng said that rising cybercrimes, privacy violations and misinformation have made users wary of digital platforms.

“Text messages that contain links are hard to trust as it is tough to tell which are scams,” he added.

“The push to digitalise and innovate has opened a can of challenges for companies, who must consider new privacy, security and information-control issues as they collect and store more data,” said Mr Wong. “Building digital and data systems based on trust is key to surmounting these challenges.”

The white paper and its projections were drafted following interviews with more than 80 industry leaders, said SGTech, which represents more than 1,000 companies here.

Trust in tech companies was at an all-time low in 2021, eroded by the prevalence of cyber attacks, data breaches and misinformation that have plagued the rapid growth of digitalisation amid the pandemic, according to the report.

Confidence in governments worldwide took a hit too, it added.

“Now, more than ever, governments and companies need to pay attention to digital trust.”

One business opportunity is in cyber insurance as more small and medium-sized enterprises look to protect their survival, said the report. Companies that apply for cyber insurance will in turn be required to implement basic cyber measures, raising the standard of digital protection across the industry, said the report.

As more transactions are made online, demand for digital identity services is also expected to grow to ensure money, data and other transfers are genuine.

“Digital Identity helps verify the authenticity of information, be it from a company, individual, or Internet of Things device,” said SGTech, adding that digital transactions overseas could be given a boost when countries collaborate on digital identity services.

Lawyers and consultants will be in demand to implement new policies, while organisations will also seek trainers to educate their workforce.

But the projected growth of the digital trust sector here depends on Singapore’s availability to maintain leadership in this field, said the report, which recommended a push for seamless cross-border transactions and growing the digital trust workforce.

Singapore can tap the lucrative digital trust market by forging consistent policies with other economies, said Mr Wong, who cited the Cross Border Privacy Rules (CBPR) System, which helps to bridge differing national privacy laws within the region to facilitate cross-border data transfers.

Under the CBPR system, participating businesses have to implement data privacy policies, such as giving users a choice on whether their personal information can be collected. Unless more countries come on board, it will be hard for Singapore to benefit from trusted data sharing, said Mr Wong.

Speaking at the launch of the white paper, Senior Minister of State for Communications and Information Tan Kiat How said Singapore has made headway into ensuring the reliability of emerging technologies like blockchain or digital ledger technologies. He cited the Monetary Authority of Singapore’s proposed plans to support the development of stable coins as a credible medium of exchange in a digital asset ecosystem, aiming to lower volatility risks associated with cryptocurrency trading.

Mr Tan also announced a new virtual collaboration platform called the Digital Trust Centre of Excellence that will be used to conduct research in the sector. Run by SGTech, the centre will also work with companies and the authorities on how they can build digital trust, such as implementing cyber security measures.

Mr Wong said discussions on the centre’s key goals and operations are still in progress.

Correction note: An earlier version of this story misnamed SGTech. It has been corrected. We are sorry for the error.