Title: Singapore Companies Face Persisting Economic Crime Threats: Insights from PwC’s 2014 Survey

Singapore’s Economic Crime Landscape

Singapore’s business environment is well-known for its safety and transparency, resulting in lower reported economic crime incidents compared to the global average. Yet, one out of four (24%) Singapore-based companies experienced economic crime in the past two years, according to PwC’s 2014 Global Economic Crime Survey.

Most Common Types of Economic Crime

1. Asset misappropriation was the most frequently experienced type of economic crime (80%) in Singapore, followed closely by:
   • Bribery and corruption (15%)
   • Cybercrime (15%)

These findings align with the global trends, indicating that Singapore companies require stronger measures to address these pervasive threats.

The Continuing Threat of Asset Misappropriation

Despite Singapore’s strong governance and controls, no company is immune from fraud. The survey underscores the importance of vigilance as Singapore companies expand their global footprint and face increased corruption risks.

Operating in High-Risk Markets

1. Singapore companies with international operations (70%) are more likely to be based in markets with high corruption risk than the global average of 50%. To mitigate these risks, organizations must:
   • Perform risk-based due diligence on international business partners
   • Implement strict anti-bribery and corruption compliance programs

Recent Bribery and Corruption Cases Involving Singapore-Registered Companies

1. A Singapore-based contractor was charged for bribing a US Navy ship commander and a naval investigative agent.
2. A Singapore-based crude oil trader is suspected of offering bribes to an Indonesian oil and gas official.

These incidents serve as reminders of the importance of robust anti-bribery and corruption compliance programs.

The Significant Threat of Cybercrime

1. Singapore respondents reported fewer cybercrime incidents (15%) compared to global respondents (24%).
2. However, cybercrime risks in Singapore are significant, as recent high-profile cyber incidents involving data theft and government websites being hacked underline.

Mitigating Cybercrime Risks

Reputational damage is the biggest concern for Singapore companies, followed by financial losses and regulatory risks. To address these concerns, the Infocomm Development Authority (IDA) has partnered with FireEye to open a cybersecurity facility in Singapore.

Regulatory Framework in Singapore

Singapore’s regulatory framework, including:

1. The Computer Misuse and Cybersecurity Act
2. MAS Internet Banking and Technology Risk Management Guidelines
3. Instruction Manual 8 for the Singapore Government
4. Recently enacted Personal Data Protection Act

provides valuable guidelines and mandates for companies to effectively address cybercrime risks.

Conclusion

The 2014 Global Economic Crime Survey offers valuable insights into the economic crime landscape, helping stakeholders to better understand risks and implement measures to mitigate potential threats. By prioritizing fraud risk assessments, whistleblower programs, and strong internal control frameworks, companies can limit their losses and respond effectively to the constantly evolving business environment.