7 in 10 Singapore-based firms admit to operating in markets with high corruption risk

The downside of going global, they say.

According to PwC’s 2014 Global Economic Crime Survey, 70% of Singapore-based respondents have operations in markets with high levels of corruption risk (compared to 50% globally).

Increasing globalisation and the need for Singapore companies to look beyond the domestic market to stay competitive has resulted in 60% of Singapore-based companies pursuing an opportunity in a market with a high level of corruption in the last two years (compared to 38% globally).

Due to a strong and efficient local legal framework, strict deterrence in the form of punishments, as well as the typically strong culture of anti-bribery/ anti-corruption compliance, only 15% of Singapore respondents reported incidents of bribery and corruption as compared to 27% of global respondents.

However, it is important to note that the risk of corruption for Singapore-based companies extends beyond Singapore.

More than half of the Singapore-based respondents perceive that corruption/bribery is the highest risk in doing business globally compared to other risks such as money laundering and competition law.