Malaysia

Nation urged to strengthen cybersecurity ahead of CAFTA 3.0 rollout

Ong Tee Keat warns of cybercrime threat as ASEAN eyes digital trade growth under China-ASEAN pact

Updated 10 months ago · Published on 04 Aug 2025 9:15AM

Nation urged to strengthen cybersecurity ahead of CAFTA 3.0 rollout
Victims are often coerced into perpetrating scams under threats of violence and illegal confinement in unregulated digital spaces - August 4, 2025

by Ian McIntyre

MALAYSIA must reinforce its cybersecurity framework in tandem with its pursuit of economic growth through the upcoming China–ASEAN Free Trade Area (CAFTA) 3.0 agreement, which is set to focus on digital trade, green transition, and e-commerce, former MCA president Tan Sri Ong Tee Keat has said.

Speaking as president of the Belt and Road Initiative Caucus for the Asia Pacific (BRICAP) during a recent roundtable on cybersecurity, Ong highlighted that digital trade of goods could unlock a global market worth USD 1 trillion by 2030. However, he cautioned that this opportunity comes with significant regional security risks.

"The promising market is not all rosy and risk-free," said Ong, who now champions regional cooperation, particularly in commerce with China. "Thriving cross-border cyber scams and human trafficking are now growing into one of the key regional challenges in the non-traditional security concerns."

Citing figures from the United Nations Human Rights Office, Ong said an estimated 120,000 people in Cambodia and 100,000 in Myanmar were forced to carry out online scams in 2023, many of whom were victims of cyber-enabled human trafficking.

Some of these individuals were reportedly Malaysian citizens. Victims are often coerced into perpetrating scams under threats of violence and illegal confinement in unregulated digital spaces.

He warned that such crimes have evolved into a serious threat to national and regional security, particularly across the ASEAN peninsula. Malaysia, he said, is not exempt from these impacts.

The State of Scam Report 2024 found that Malaysia suffered losses of RM54.02 billion (USD 12.8 billion) to scams—amounting to three percent of the country’s GDP. These losses have inflicted not only economic damage but also significant psychological and social distress.

Globally, the Federal Trade Commission (FTC) in the United States reported a record USD 12.5 billion in online fraud losses in 2024—a 27 percent increase from the previous year. In Europe, cyber-enabled crimes now account for over 60 percent of all organised criminal activity, highlighting a global shift in criminal enterprises toward digital exploitation.

To address these mounting threats, Ong noted that ASEAN is actively working to fortify its cybersecurity capabilities through the ASEAN Cybersecurity Cooperation Strategy (CCS) 2021–2025, which aims to promote cyber readiness, enhance regional coordination, and foster international trust.

Central to this effort is the ASEAN Regional Computer Emergency Response Team (ASEAN-CERT), which coordinates real-time responses to cyber incidents, digital forensics, and data sharing across member states.

As Malaysia assumes the ASEAN chairmanship this year, it will lead the formulation of the ASEAN Cybersecurity Cooperation Strategy 2026–2030. Ong described the task as “daunting,” given the varying levels of digital maturity and literacy across the 10-member bloc.

"The real challenge lies in the concerted political will in addressing the growing threat before we can give full play to the upcoming China-ASEAN Free Trade Area 3.0," Ong said, adding that the agreement is widely viewed as a new economic lifeline amid global trade disruption driven by US tariffs. - August 4, 2025.

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