Asia Pacific Is Still Underprepared for the Quantum Threat to Encryption, New CCAPAC Report Warns

SINGAPORE - EntSun -- The Coalition for Cybersecurity in Asia-Pacific (CCAPAC) today released its Annual Report 2026, Quantum Readiness in Asia: Risks and Opportunities, produced with the assistance of Cisco and the Access Partnership Institute. The report assesses post-quantum cryptography (PQC) readiness across Australia, China, India, Japan, Singapore and South Korea, with a case study on Taiwan. It concludes that regional progress is steady but not fast enough.

The most immediate danger of the quantum threat is not just a quantum computer breaking encryption in real time. Adversaries can capture encrypted data today and decrypt it once quantum capabilities mature, an approach known as "Harvest Now, Decrypt Later" (HNDL). A parallel threat, "Trust Now, Forge Later" (TNFL), could mean quantum technology can crack the digital signatures we rely on today, so that they can be forged in future.

"The quantum threat isn't a future problem. Data harvested today will be decrypted tomorrow, and the standards to protect it already exist. What the region needs now is urgency," said Lim May-Ann, Executive Director, Coalition for Cybersecurity in Asia-Pacific.

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The technical foundations exist. In August 2024, the US National Institute of Standards and Technology (NIST) finalised the first PQC standards, which run on conventional hardware and can be deployed now. Migration is nonetheless a multi-year effort, requiring organisations to inventory, prioritise and replace cryptography across every system.

Uneven progress across the region
Singapore and Japan show the most advanced readiness, combining research strength, operational quantum-secure deployments and proactive regulation. Singapore's Quantum Safe Handbook (July 2026) sets milestones for Critical Information Infrastructure, with migration projected by the end of 2031. South Korea is advancing quickly through government mandates and industrial capability, targeting national migration by 2035. Australia has a clear strategic direction but has yet to legislate deadlines. India is accelerating its development while facing a scale challenge, and China is pursuing quantum key distribution alongside PQC although without a mandatory deadline.

Across all markets, the report finds that cryptographic inventories appear to be incomplete or missing, regulatory mandates alone are unlikely to drive the pace needed, small and medium enterprises are largely unaware of the risk, and skilled talent is scarce. Divergent national standards in India, South Korea and China also risk fragmenting interoperability for multinational organisations.

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Recommendations
For enterprises, the report calls for:

• Elevating quantum risk to board level
• Conducting cryptographic inventories
• Adopting hybrid cryptographic schemes now
• Requiring PQC-ready procurement

For governments, it recommends:

• Aligning national standards with international ones and recognizing international certifications
• Funding quantum-safe pilot programmes
• Requiring critical infrastructure operators to report migration progress
• Supporting SMEs through incentives
• Investing in workforce development

"A transition that may take years needs national attention now. Clear policy direction can help organisations move from awareness to action – but they must first understand their assets and where vulnerable cryptography sits," said Sarah Sloan, Head of Cybersecurity Policy APAC, Cisco.

"The quantum age is arriving," the report concludes. "The work must begin, and it must begin now."

The full report is available at https://ccapac.asia/research/.

About CCAPAC
The Coalition for Cybersecurity in Asia-Pacific (CCAPAC) is a group of dedicated industry stakeholders working to positively shape the cybersecurity environment in Asia through policy analysis, engagement and capacity building.