Hong Kong ranks 5th in APAC for digital resilience capabilities – but legacy systems and execution gaps weaken recovery

HONG KONG, 15 April 2026 — New research by Economist Impact has placed Hong Kong fifth in APAC for overall digital resilience capabilities, but points to a recovery gap among businesses driven by legacy dependence and uneven execution under disruption.

The results were published in Resilience by Design: Building Connected Ecosystems for the Age of Disruption, an Economist Impact report supported by Telstra International. It drew on a survey of more than 1,400 senior executives across seven industries and 11 APAC markets (including Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Philippines, Singapore, South Korea, Taiwan, and Thailand), with comparative benchmarks from the United States, United Kingdom and Germany.

The Report highlights two constraints on Hong Kong’s next digital resilience gains: accelerating legacy modernisation and translating leadership intent into tested, enterprise-wide recovery capability.

Charles Ross, Head of Policy and Insights, Asia-Pacific, Economist Impact said: "The research shows that Hong Kong has made progress in building digital resilience, but recovery capabilities have not advanced at the same pace. As disruption becomes more frequent and interconnected, modernising legacy systems is important – but digital resilience cannot be achieved through replacement alone. Organisations must ensure new technologies are flexible, rigorously tested and embedded into core decision-making so they can respond effectively under stress.”

Roary Stasko, CEO, Telstra International said: "Hong Kong’s digital future hinges on digital resilience that performs in practice. In a market built on speed and connectivity, recovery time and operational continuity will increasingly determine competitive advantage. The findings highlight the urgent need for large organisations to modernise legacy systems, strengthen recovery capabilities, and embed digital resilience into technology investment decisions from the outset. Closing this gap requires a strategic shift in how organisations plan, build and fund their digital future.”

The research incorporates a Digital Resilience Barometer which measures capabilities across five pillars: external enabling environment, technology and infrastructure, risk management, leadership, and workforce and cultural agility. Hong Kong ranks #3 in APAC on the external enabling environment and #4 on both leadership and workforce and cultural agility – but sits lower on technology and infrastructure (#5) and risk management (#7), highlighting where its next digital resilience gains will need to come from.

Reliance on Legacy Systems: A Critical Area for Modernisation

The Report identifies reliance on legacy systems as a structural vulnerability. 62% of Hong Kong respondents reported continued dependence on legacy infrastructure requiring replacement – the second-highest proportion across all markets surveyed and above the average of 52%. This prevalence of outdated systems can diminish agility during disruptions, highlighting a significant area for strategic investment and modernisation to enhance recovery performance.

While 78% of these organisations reported having digital or cyber resilience strategies in place, few have implemented enterprise-wide recovery mechanisms that are regularly tested. With only 36% of organisations actively participating in government initiatives to enhance cyber awareness and digital literacy, this highlights an opportunity to foster greater ecosystem engagement and bridge any divergence between policy intent and practical implementation.

Empowering Hong Kong's Digital Resilience

Given the evolving risk landscape, enterprises must bridge the gap between strategic intent and operational execution to strengthen digital resilience across the enterprise.

Hong Kong’s strong performance in leadership – centred on board-level engagement on digital resilience – shows a high level of awareness and strategic discussion among senior executives. However, only 38% of respondents reported that executive discussions have led to new investments or policy changes in the past two years, below the average of 45%. 41% of respondents also indicate that accountability primarily sits within one department – such as IT – rather than being shared across the C-suite. This concentration can limit coordination, enterprise-wide execution and recovery preparedness.

“As digital disruption continues to increase in frequency and complexity, effective and swift recovery from operational or cyber incidents is a key factor in organisational stability and competitive advantage,” Stasko added. “At Telstra International, we are committed to helping businesses build their digital resilience capabilities. We work with governments, industry and key partners to anticipate emerging risks, and design networks and systems with multiple layers of digital resilience, security monitoring and response capabilities to support continuity when disruption occurs.”

For further information and to access the full report, please visit our digital resilience page.

About Telstra International

Telstra International is a trusted digital infrastructure and connectivity partner in Asia Pacific and the global arm of Telstra, a leading telecommunications and technology company with a proudly Australian heritage. Telstra International provides secure and resilient connectivity solutions to meet the growing needs of thousands of technology, enterprise, and wholesale customers.

Telstra International is built by industry experts that bring deep technical expertise, a long history of operating in Asia Pacific and a passion for partnering with customers to help their business grow. Connecting to points of presence in close to 200 countries and territories, Telstra International’s global network leverages more than 30 cable systems spanning over 400,000 kilometres, with access to 38 cable landing stations and licences across Asia, Australia, Europe and the Americas.

For more information, please visit Telstra International.

About Economist Impact

Economist Impact combines the rigour of a think-tank with the creativity of a media brand to engage a globally influential audience. We believe that evidence-based insights can open debate, broaden perspectives and catalyse progress. The services offered by Economist Impact previously existed within The Economist Group as separate entities, including EIU Thought Leadership, EIU Public Policy, Economist Events, El Studios and SignalNoise.

Our track record spans 75 years across 205 countries. Along with creative storytelling, events expertise, design-thinking solutions and market-leading media products, we produce framework design, benchmarking, economic and social impact analysis, forecasting and scenario modelling. This makes Economist Impact's offering unique in the marketplace. Visit Economist Impact for more information.