Singapore businesses seeking to demonstrate security maturity often face a fundamental question: should we pursue ISO 27001, SOC 2 or both? The answer depends on your client base, industry, growth plans and regulatory environment. This article provides a practical comparison to help Singapore organisations make the right choice.
Framework Origins and Recognition
ISO 27001 is an international standard published by the International Organization for Standardization, recognised globally across all industries and regions. It is the dominant security certification in Asia, Europe and the Middle East.
SOC 2 is a reporting framework developed by the AICPA, primarily recognised in North America. However, its adoption has expanded significantly as US technology companies require it from their global service providers, including those in Singapore.
Key Differences
Approach
- ISO 27001: Prescriptive framework with 93 specific controls in Annex A. Organisations must address each control or justify its exclusion in the Statement of Applicability
- SOC 2: Principles-based framework built on Trust Services Criteria. Organisations design their own controls to meet the criteria, providing more flexibility
Output
- ISO 27001: Results in a certificate issued by an accredited certification body, valid for three years with annual surveillance audits
- SOC 2: Results in a detailed report prepared by a CPA firm. Type I is a point-in-time snapshot; Type II covers a period of six to twelve months. Reports are typically refreshed annually
Scope
- ISO 27001: Covers the entire Information Security Management System including governance, risk management and all supporting processes. The scope can be defined to cover part or all of the organisation
- SOC 2: Focuses on the systems and services relevant to the Trust Services Criteria selected. It is inherently service-oriented
Cost Comparison for Singapore
- ISO 27001: Total cost including consultancy and certification typically ranges from SGD 50,000 to 120,000 for SMEs
- SOC 2: Total cost including readiness assessment and audit typically ranges from SGD 60,000 to 150,000 for Type II
Timeline
- ISO 27001: Six to twelve months from start to certification
- SOC 2 Type I: Three to six months from start to report
- SOC 2 Type II: Additional six to twelve months after Type I for the observation period
Which Framework for Which Situation
Choose ISO 27001 If
- Your primary clients are in Asia-Pacific, Europe or the Middle East
- You need a recognised certification (the certificate itself) for tenders and marketing
- You want a comprehensive security management framework that covers governance
- Singapore government contracts or MAS-regulated activities require it
- You want alignment with CSA Cyber Trust and other Singapore security frameworks
Choose SOC 2 If
- Your primary clients are US-based enterprises
- You are a SaaS provider, managed service provider or data processor serving American companies
- Clients specifically request SOC 2 reports in their vendor assessment process
- You want flexibility in how you design and implement controls
- You need a detailed report rather than just a certificate to share with clients
Consider Both If
- You serve a global client base spanning Asia and North America
- You are a Singapore fintech or technology company with both regional and US clients
- You want maximum market credibility and competitive advantage
- Your organisation has reached a maturity level where the incremental effort of the second framework is manageable
Leveraging Overlap
The good news is that ISO 27001 and SOC 2 share approximately 80 percent of their underlying control requirements. Organisations that implement one framework have already done most of the work for the other. Key overlap areas include:
- Access control and identity management
- Change management processes
- Incident response procedures
- Vendor management
- Security awareness training
- Logging and monitoring
- Security policies and documentation
Using an integrated compliance platform that maps controls across both frameworks can significantly reduce the effort and cost of maintaining dual compliance.
The Singapore Context
For most Singapore businesses starting their compliance journey, ISO 27001 is typically the better first choice. It is more widely recognised locally, aligns with CSA frameworks and MAS expectations, and the SAC accreditation infrastructure is well established. SOC 2 can then be added as a second layer when US market expansion demands it.
However, Singapore SaaS companies that primarily serve US clients may find SOC 2 delivers faster return on investment, as it directly addresses what those clients are asking for.
Conclusion
There is no universally correct answer to the ISO 27001 vs SOC 2 question. The right choice depends on your market, clients and strategic direction. What matters most is that Singapore businesses take a structured approach to security, whether through ISO 27001, SOC 2 or both. The frameworks complement each other, and the investment in either one builds a foundation that makes the other significantly easier to achieve.