Quantum security risk is coming for manufacturers too

SINGAPORE’S push into quantum is entering a more commercial phase. On Jan 9, 2026, Singapore and Japan signed a memorandum of cooperation on quantum science, technology and innovation.

As Singapore’s first quantum-specific pact of this kind, the partnership aims to narrow the gap between research and commercial deployment, advancing the overall growth of the quantum sector.

For business leaders, the practical question is no longer whether quantum will matter, but when organisations need to be ready, especially where valuable data and intellectual property must stay confidential for years.

This shift is already visible in quantum-safe security discussions here. In September 2025, the Monetary Authority of Singapore, together with industry partners, published a technical report following the completion of a quantum key distribution (QKD) proof-of-concept sandbox for secure communications in the financial sector.

More broadly, Singapore plans to invest over S$700 million in quantum technologies and talent by 2030, fuelling early innovation across multiple critical sectors.

While financial services are moving first, manufacturing has not kept pace, with few formal post-quantum readiness trials or sector-wide approaches comparable to those emerging in more heavily regulated industries.

At the same time, manufacturers are already facing heightened cyber exposure. Recent Singapore data shows that manufacturing accounted for 31.58 per cent of ransomware incidents in the first half of 2025.

Given manufacturers’ reliance on long-cycle intellectual property (IP), from proprietary designs to engineering blueprints, the sector can become an attractive target as quantum capabilities mature.

Securing a competitive edge

Quantum computers would eventually break current encryption algorithms protecting everything from business communications to proprietary designs, research and development blueprints, and trade secrets.

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While capable quantum machines may still be five to 10 years away, organisations need to consider the longevity of sensitive data now. Unlike transactional banking data, stolen manufacturing IP could remain valuable for a decade or even more.

This requires a shift in perspective: instead of only asking how sensitive data is, organisations should also ask how long it must remain secure. Data that must stay confidential for 10 to 30 years, such as engineering designs or medical records, is particularly vulnerable.

Organisations need to design systems with adaptability at their core, ensuring encryption methods can evolve as threats and standards change.

This means building frameworks that allow cryptographic processes to be updated without major overhauls and exploring hybrid approaches that combine classical and quantum-resistant algorithms.

Beyond real-time operations, long-term data repositories must be safeguarded with future-proof encryption to protect sensitive information over decades. This is critical for compliance-heavy industries.

Building a roadmap for quantum readiness in manufacturing

To begin the transition to post-quantum cryptography, organisations should start with targeted pilot projects that build expertise and demonstrate value such as proof-of-concept initiatives in supply chain optimisation.

Collaborating with quantum startups, research institutions, and consortia, or experimenting through cloud-based quantum platforms can provide early experience without major investment.

However, migration to post-quantum cryptography is a complex undertaking. Encryption protocols are often embedded deep within legacy infrastructure, and any change carries implications for system performance, compliance and operational continuity.

For many organisations, transition efforts will span years, depending on evolving standards, supply chain alignment and regulatory clarity. A structured approach is therefore essential to avoid fragmented or premature implementation, which can be guided by a roadmap built around five key steps:

• Inventory sensitive data: Identify information requiring protection for over five years, including IP, identity systems, and critical applications.
• Assess risk: Prioritise based on sensitivity and longevity. Focus on the most critical data first.
• Enable flexibility: Build systems that can adapt to new encryption standards without major overhauls, supported by employee training.
• Phased implementation: Start with the most critical systems and expand gradually.
• Align your ecosystem: Ensure vendors and partners are also preparing to adopt quantum-resistant encryption, as your security depends on theirs.

Cost of waiting is high

Quantum computing may still be years away from full maturity, but the threat it poses is real.

For high-IP, innovation-driven businesses like manufacturers, the risk is more than the loss of sensitive files; it is the erosion of long-term competitive advantage. Ideas, strategies, and developed today could be quietly compromised long before a breach is ever discovered.

Beyond operational resilience, safeguarding the ideas that set your business apart will be crucial in the quantum era. As the groundwork for a quantum-secure future takes shape, organisations have an opportunity to translate these lessons into long-term competitive advantage.

Manufacturers cannot treat quantum risk as a distant concern. By starting with pilots, building internal expertise, and developing a phased roadmap for post-quantum cryptography, businesses can protect their most valuable assets and secure a competitive edge for the next decade. In the quantum era, resilience isn’t just about staying online but safeguarding the ideas that define your business.

The writer is field chief technology officer for Asia-Pacific, Commvault