Trust in WA Government down, boards grapple with cyber threats: Australian Institute of Company Directors poll

Confidence in the WA Government among local company directors has slipped to its lowest level since pre-pandemic, with more disagreeing it understands business than agreeing for the first time in years. Despite this, confidence in the WA economy over the next year remains strong though has slipped substantially since the second half of last year, according to the latest poll by the Australian Institute of Company Directors, to be released on Wednesday. The WA Government copped a pasting over its botched handling of Aboriginal Cultural Heritage laws last year while major employer groups have reignited the fight for payroll tax reform ahead of the State Budget next month. More broadly, all boards and company directors are grappling with increased cyber-security risks and challenges, which is the biggest issue keeping directors awake at night, followed by legal and regulatory compliance. The report from the AICD as new figures from the International Monetary Fund overnight showed the number of cyberattacks globally has almost doubled since pre-pandemic levels. Nearly one-fifth of all incidents has affected financial firms, with the IMF urging beefed up national cybersecurity strategies to prevent further financial loss. “Every single director needs to be cyber-literate and have a strong working understanding of what that means — not a static understanding,” AICD policy head Christian Gergis said, adding while many directors were pleased with the Federal Government’s approach to the issue, there were concerns about potential reforms to the Privacy Act that would mandate certain penalties. “Breaches are affecting everyone from not-for-profits to large listed companies to government departments, we need to be careful about how legal compensation mechanisms are legislated,” he said. Just 28 per cent of WA directors surveyed said they trusted the State Government, still one of the higher ratings but lagging SA and Tasmania, while just 36 per cent believe it understands business, compared to 45 per cent six months ago and as many as 52 per cent 18 months ago. Nearly 60 per cent believe business conditions in WA will remain strong in the next year, down from 72 per cent six months ago but by far the strongest result of all States. The same number saw current business conditions as strong, while 25 per cent said it was weak — up from 13 per cent in the second half of last year. Meanwhile, 79 per cent of directors say the WA economy is strong — down from 92 per cent six months ago. Just 65 per cent expect the economy will be strong in the next year — again, well above all other States — but that expectation is down from 81 per cent in the second half of last year.