Singapore companies are facing rising financial risks from unstable networks, with many forced to reassess their technology infrastructure after a series of major IT disruptions. According to a new IDC InfoBrief commissioned by Expereo, 60% of businesses in Singapore reported revenue losses of at least US$5 million due to outages or poor network performance.
Businesses rethinking technology priorities
The report, “Enterprise Horizons 2025: Technology Leaders Priorities: Achieving Digital Agility,” found that 46% of organisations have urgently reviewed their IT infrastructure following high-profile incidents ranging from cybersecurity breaches to connectivity failures. As a result, networking and connectivity have climbed higher on the leadership agenda, with 34% of technology executives saying these areas now receive more attention from senior management.
Cybersecurity has emerged as the top investment priority for Singapore businesses over the next year, with 62% planning to allocate more budget to protection measures. Networking and connectivity follow at 48%, ahead of artificial intelligence at 40%. This marks a shift from last year’s regional trends, when AI was seen as the most critical area for investment.
Impact on growth and AI adoption
The urgency is clear. Almost a third of companies in Singapore say poor network performance is directly threatening their growth plans for the year ahead. Additionally, 44% report that current network limitations hinder their ability to support large-scale data and AI initiatives. Only 4% believe their networks are fully prepared to run AI workloads without barriers.
Ben Elms, CEO of Expereo, said the findings confirm the strategic role of connectivity. “To drive a sustainable competitive advantage, connectivity is no longer an IT concern – it is a strategic business imperative,” he said. “As organisations race to adopt new AI solutions, the C-suite must treat network performance with the same urgency as cybersecurity and AI itself, because without it, businesses simply cannot succeed.”
Eric Wong, President for APAC at Expereo, highlighted the financial stakes for Singapore firms. “With nearly a third of businesses here experiencing revenue losses exceeding US$5 million from network outages, it is no surprise that companies are prioritising investment in networking and cybersecurity more than anything else,” he said. “This strategic shift is critical for building the robust digital foundation needed to support data and AI at scale while driving resilient, sustainable growth.”
Skills shortage driving reliance on partners
Building and maintaining a reliable network infrastructure remains challenging due to a shortage of skilled professionals. Networking tops the list of areas where companies struggle to hire or retain talent, cited by 51% of Singapore respondents, followed by cybersecurity at 49%. To close this skills gap, 26% of organisations plan to increase their reliance on external partners, such as managed service providers or technology vendors.
The study underscores the growing importance of resilient networks in Singapore’s digital economy. As businesses invest heavily in AI and data-driven strategies, strong connectivity is becoming as vital as security and innovation for long-term success.
