72 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 43 | 2025 public sector networks to decrease security breach response times. The systems use threat data correlation to detect incidents instantly while providing real-time response capabilities. Taiwan continues to develop its cybersecurity infrastructure by adding artificial intelligence and big data analytics to boost predictive and automated capabilities (Albahri et al., 2024). AI defenses are essential considering that Taiwan’s government systems face 20–40 million attacks monthly, mostly from China (Huang, 2020). The NCSP maintains workforce development as its fundamental objective. In 2017, the DCS set a goal to reach 1224 civil servants who would be dedicated to cybersecurity, yet Taiwan had only 672 (Jing, 2019). The government addressed these workforce deficiencies by starting five cybersecurity master’s programs and providing 400 hours of Ministry of Economic Affairs–funded training. The NCSP established a formal objective to increase the cybersecurity workforce by 25% by 2025 (Jakubczak & Yau, 2021). The Cybersecurity Management Act of 2018 provided critical legal reinforcement for cybersecurity efforts. The Act compels government agencies and critical infrastructure managers to adopt standardized security controls, file yearly cybersecurity management reports, and undergo periodic evaluation (Garcia-Millan, 2019; Wang, 2024). Entities classified as Level C or above—a designation reflecting their cybersecurity responsibility based on service importance and risk level—must conduct regular penetration testing. The Act applies to financial institutions, energy facilities, water systems, telecommunications networks, and health-care organizations (Garcia-Millan, 2019). The legislation reflects industry-wide efforts to improve cybersecurity against supply chain weaknesses and AI-based threats. Taiwan is developing advanced encryption capabilities as part of its cybersecurity approach, working to establish cryptographic methods that are secure against attacks by quantum computers and end-to-end encryption across 5G networks, which will defend against current and future quantum and AI-powered attacks (Albahri et al., 2024; Yau, 2019). These investments matter because of Taiwan’s history of foreign attacks against its telecom infrastructure. International cybersecurity collaboration Taiwan’s diverse international cooperation approach strengthens cybersecurity through technological exchanges while conveying strategic political messages. The One China policy prevents Taiwan from joining formal international cybersecurity forums, including the UN Group of Governmental Experts and the Budapest Convention, but Taiwan maintains extensive international collaborations. The US and several Indo-Pacific and European partners have significantly enhanced bilateral and multilateral cooperation with Taiwan in recent years because of Taiwan’s geopolitical importance in digital security. A major breakthrough in Taiwan–US relations occurred when both signed the 2019 Cybersecurity Cooperation Agreement, establishing mechanisms for information sharing and joint cyber threat evaluations and defense exercises (Huang, 2020; Yau, 2019). During 2019, Taiwan and the US conducted their most advanced operational collaboration, the joint Cyber Offensive and Defensive Exercise through the American Institute in Taiwan (Huang, 2020). The exercises simulate cyberattacks to assess defensive capabilities, exchange best practices, and improve operational compatibility. The Global Cooperation and Training Framework, launched by Taiwan, the US, and Japan, now includes Australia and the Netherlands, enabling Taiwan to organize workshops on cybersecurity governance, cyber hygiene, and election protection (Jing, 2019). Through its participation in the Automated Indicator Sharing program, Taiwan joined forces with the US Department of Homeland Security to promote real-time cyber threat indicator sharing between governments and private sector partners. Major national computer emergency response teams (CERTs), including US-CERT, CERT-EU, JPCERT, and Trend Micro, signed memoranda of understanding with Taiwan to enable broader information-sharing networks (Jing, 2019). The Asia-Pacific Economic Cooperation Telecommunications and Information Working Group (TELWG) serves as a platform for Taiwan to participate in multilateral dialog while contributing to Asia-Pacific regional cybersecurity resilience and norm-setting efforts through its indirect influence. For example, Taiwan hosted the forty-first TELWG meeting in 2010, where delegates exchanged best practices on information and communications technology connectivity, cybersecurity frameworks, and capacity building. In addition, Taiwan’s New Southbound Policy—launched in 2016 to deepen regional cooperation with 18 partner countries in Southeast Asia, South Asia, and Australasia—has incorporated digital and cybersecurity initiatives as part of its broader strategy to promote sustainable development, technological exchange, and good governance. As part of this effort, Taiwan shares expertise in critical infrastructure
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