Manufacturing has long been the heartbeat of Asean’s economy, fueling growth and innovation across diverse sectors. Contributing between 16% and 27% of GDP in key markets like Singapore, Thailand, Malaysia, and Vietnam, this industry serves as a critical economic pillar across the region.
However, as this industry evolves, it is continuously encountering new and complex challenges. While the adoption of digital technologies has revolutionised operations, it has also exposed manufacturers to an array of cyber threats. Manufacturing companies in Asean’s business hub, Singapore, have experienced these threats firsthand, with the sector being the most impacted by ransomware attacks in 2023, according to the Cyber Security Agency of Singapore.
Once thought to be shielded from such attacks, operational technology (OT) systems—critical to manufacturing—are now prime targets. The shift from isolated environments to interconnected systems means greater efficiency, but it also means greater vulnerability.
In Asean alone, Palo Alto Network's research found that over 75% of industrial organisations have experienced cyberattacks on their OT environments in just the past year. This makes it clear: stronger security measures are no longer optional—they’re essential.
The challenge, though, doesn’t stop there. AI, while transforming manufacturing by automating processes, optimising production lines, and improving supply chain management, also presents a paradox.
It can analyse real-time data to predict maintenance needs and reduce downtime, driving unprecedented productivity. At the same time, AI has the potential to significantly enhance cybersecurity by detecting and preventing attacks faster than ever before. However, it also introduces new risks, as cybercriminals can use the same AI technologies to exploit vulnerabilities in OT systems.
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This delicate balance is becoming harder to maintain. In Singapore, 68% of industrial leaders identified AI-driven attacks as a critical concern. At the same time, eight out of 10 believe AI will be key to stopping future cyber threats. This dual role—where AI is both a solution and a risk—underscores the need for manufacturers to adopt a strategic approach to AI deployment, ensuring that it’s part of a broader, robust security framework.
AI as a force multiplier for security
AI isn’t just another tool in the cybersecurity arsenal; it’s a game-changer. Its ability to process massive amounts of data in real time allows it to spot patterns and anomalies that human analysts could easily miss. In manufacturing, this means AI can detect potential threats before they escalate, offering a critical advantage in protecting OT systems.
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The stakes are high. OT systems control everything from production lines to supply chain logistics, so any disruption can lead to operational shutdowns, causing significant financial losses and, in some cases, even compromising safety. This makes early detection crucial, and AI’s speed and efficiency give manufacturers the edge they need.
But here’s the catch: simply implementing AI isn’t enough. For it to be truly effective, manufacturers need to overcome a common obstacle—the traditional divide between IT and OT teams.
Historically, these two departments have worked in silos, with different priorities and approaches. IT focuses on company-wide security, while OT has been more concerned with keeping operations running smoothly. This lack of alignment can create security gaps, leaving systems vulnerable.
For AI to reach its full potential in cybersecurity, it has to be part of a coordinated effort that bridges the gap between IT and OT. When these teams work together, they can create a seamless defence strategy that leverages AI’s full capabilities.
Mitigating the risks: Best practices for AI integration
The power of AI is undeniable, and there are ways for manufacturers to harness AI effectively while minimising its risks.
First, collaboration between IT and OT teams is non-negotiable. Organisations must foster a culture where both teams share responsibility for cybersecurity. This means breaking down silos and ensuring everyone is on the same page when it comes to deploying AI technologies. When IT and OT align, they can make smarter, more cohesive decisions that strengthen their overall security posture.
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Second, manufacturers should embrace Zero Trust principles within their OT environments. Zero Trust operates on a simple but powerful premise: “Never trust, always verify.” This means that no device, user, or connection is trusted by default. Everything must be continuously authenticated and verified. By adopting this approach, manufacturers can significantly reduce the risk of AI-driven attacks targeting their OT systems.
Finally, regular assessments of AI-based cybersecurity tools are essential. The threat landscape is constantly evolving, and AI solutions must keep pace. Continuous evaluation and updating of these tools will ensure they remain effective, particularly as cybercriminals become more sophisticated in their attacks.
The path forward for Asean's manufacturing sector
Looking ahead, the future of manufacturing in Asean will depend on how well the industry adapts its cybersecurity strategies to address evolving threats. AI will undoubtedly play a pivotal role in this transformation, offering unprecedented opportunities to enhance both productivity and security.
But as manufacturers embrace AI, they must do so with caution. The very tools designed to protect them can also be weaponized by adversaries. This is why a balanced approach is key—one that integrates AI-driven security solutions with comprehensive OT-IT collaboration and Zero Trust principles.
By taking this approach, manufacturers across Asean can protect their operations, safeguard their economies, and continue to drive innovation in an increasingly interconnected world. The journey may be complex, but with the right strategies in place, the rewards are immense.
Steven Scheurmann is the regional vice president for Asean at Palo Alto Networks
