In 2025, APAC experienced a sharp escalation in risks linked to political instability, armed conflict, and terrorism, with countries like Pakistan and Indonesia going through civil unrest.
These risks were “driven by structural issues and grievances within their economies and political systems”, according to a 2026 study titled ‘Crisis Management Annual Review’ by Willis, a WTW business.
“Interstate tensions also boiled over, including along the Thailand-Cambodia border and between nuclear-armed states India and Pakistan, amid rising nationalist sentiment,” the report stated.
Protests
The report also looked at “Dark Indonesia”, the student movement in Jakarta, Yogyakarta, and Medan. The protests emerged in February 2025 against austerity measures, which included reductions in education and healthcare budgets.
Terrorism
The report highlighted that terrorism across APAC “underwent significant transformation, with overall fatalities and incident rates showing sharp increases in key regions such as Pakistan’s Khyber Pakhtunkhwa and Balochistan regions”.
According to the report, the number of events exceeded 600 by August 2025, and total terrorism-related deaths moved past 1,400.
Islamabad, in particular, went through its deadliest suicide attack in two decades, when Jamaat-ul-Ahrar militants killed 12 people near the judicial complex on 11 November 2025, the report said.
Outlook
According to Willis’ report, APAC is “likely to experience sustained civil unrest, driven by economic pressures, political grievances and rising youth activism” in 2026.
It also noted that countries such as Indonesia may continue to witness mass protests, “particularly in urban centres, as populations react to austerity measures, restrictions on social freedoms, and perceived elite corruption”.
“Student movements and Generation Z activists are expected to play a prominent role, leveraging digital platforms and social networks to mobilise demonstrations,” the report said.
“Governments may respond with a combination of concessions and force, potentially escalating tensions and prolonging instability, which could impact domestic economic activity and foreign investment.”