S’pore remains Asia’s least corrupt country

Source : Straits Times - 8 Apr 2009

SINGAPORE continues to be the least corrupt country in Asia but the recession could see a rise in corruption in its private sector, says a Hong Kong-based consulting firm.

This is because with the economy stuck in its deepest recession in years, more businessmen could resort to corruption to make ends meet.

The Political and Economic Risk Consultancy (Perc) made this observation in its latest annual survey of perceptions of corruption in the region.

However, it also noted that the hard times are unlikely to aggravate corruption in the public sector, which is perceived to be low:

‘Foreign investors view Singapore’s ‘clean’ image as an attribute that gives it a competitive advantage over most other countries in the region.

‘Perceptions have been remarkably steady for over a decade, and there is no reason to expect there to be a break for the worse in 2009.’

The survey report, out today, also rated Hong Kong and Japan highly among 14 Asian economies, with Indonesia and Thailand as the most corrupt.

About 1,750 local and foreign executives in the region, Australia and United States were interviewed face to face, by direct mail and e-mail last month.

They were asked for their perceptions of corruption among politicians and civil servants - or political corruption - and to rate the corruption problem in different parts of the system where they lived.

Perc found that within Singapore, the tax authorities were perceived to be the least corrupt, while the private sector received the worst score of 2.0.

But Perc noted that even this was better than scores for other Asian economies. Only the US had a better score of 1.33 on this front.

Professor Neo Boon Siong of the Lee Kuan Yew School of Public Policy said Singapore’s low score suggests private-sector companies resorting to corruption to get business ‘is not likely to be a significant issue’.

‘Integrity and anti-corruption are now widely accepted norms and values in the public sector - this strong ethos will protect it from corruption even in difficult times.’

The Perc report highlighted that what the Singapore Government had done well was to keep the perception of corruption low in the public sector.

It had also fought to maintain the integrity of institutions such as the police and the courts.

Perc however noted that ‘political rivals of the Government do not necessarily agree with these perceptions’.

‘Their argument is that the tactics PAP (People’s Action Party) uses to maintain its dominance over the political system involve excessive interference and favouritism towards a small group of inside elite,’ the report said.

‘However, this is not a view shared by the general population or foreign executives we surveyed.’

Perc also noted that the Government is not cutting back on the size of the civil service in the present crisis, and is stepping up public spending rather than adopting more austere policies.

‘A challenge will be to see that this extra spending is used as it is intended and that individuals with special access do not divert money into their own pockets,’ the report said.

‘However, the Government has good auditing and compliance measures in place to minimise these kinds of abuses.

‘There could well be some mistakes, especially during these difficult times, but if abuses are uncovered there is little doubt that they will be dealt with harshly and publicly.’

The Corrupt Practices Investigation Bureau said recently that on average, about 10 public servants and 100 private-sector employees are arrested yearly for corruption. Offenders face up to seven years’ jail and a fine of up to $100,000.

Perc also observed that civil servants and politicians here are well paid, and in exchange ‘the public expects them to behave beyond reproach when it comes to how they perform their duties’.

‘There is a risk that the high pay in the public sector at a time when private-sector workers are asked to trim their pay or face job losses will cause some resentment that the pain of the recession is not being shared evenly,’ it added.

‘But this is a different issue from corruption, and is likely to be managed by senior executives of state-owned companies and senior politicians accepting voluntary pay cuts to demonstrate their own willingness to share in the pain.’

The Government has said civil servants’ pay is set to drop this year. Salaries of top officials and ministers are forecast to fall by some 20 per cent.

CLEAN IMAGE

‘Foreign investors view Singapore’s ‘clean’ image as an attribute that gives it a competitive advantage over most other countries in the region.’ - Perc, on the country’s reputation in Asia