Perceived level of bribery and corruption low in Singapore: EY

THE perceived level of bribery and corruption in Singapore is low, but companies here still have some way to go to convince their executives that such misconduct would be penalised, results of an EY survey showed.

The 15th EY Global Fraud Survey found that just 10 per cent of Singapore respondents still believe bribery and corrupt practices remain prevalent in business. This compared favourably against 38 per cent for global executives who shared similar perspectives.

EY Asean Fraud Investigation & Dispute Services Leader Reuben Khoo said the low perception levels of bribery and corruption in Singapore captured in the survey "affirm the anti-corruption culture that Singapore has taken effort to build over the years".

Mr Khoo noted that a higher percentage of Singapore executives, or 38 per cent of respondents surveyed here compared to 22 per cent globally, "believe that acting with integrity is every individual's responsibility, not just that of the management".

But the survey results pointed to a mismatch between intentions and actual behaviour - 28 per cent of Singapore executives, or 13 per cent of global respondents, indicated that they would justify making cash payments to win or retain business. The EY report also flagged room for improvement among companies when it comes to managing misconduct. Just 52 per cent of Singapore respondents, compared to 78 per cent globally, believe their organisations have the clear intent of penalising misconduct. Only half of the executives surveyed here are aware of people having actually been penalised for misconduct.

Mr Khoo said this finding is "a strong call" for companies in Singapore to communicate very clearly and consistently their compliance programmes and protocols. "This will better enable employees to respond appropriately should they encounter any unethical behaviour."

EY's report also identified a need for companies to step up on managing the conduct of their third-party agents. The survey found that third-party due diligence may not be a priority for companies here and overseas. Only 56 per cent of Singapore executives and 59 per cent of respondents globally indicate they have a tailored risk-based approach to due diligence on third parties.

The 15th EY Global Fraud Survey drew findings from 2,550 interviews conducted with senior decision-makers across 55 countries, including 50 executives in Singapore.