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Singapore emerged 12th on the list this year, outshining other developed countries such as the Netherlands, Germany, Japan and France.
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Singapore's reputation as a country with a transparent business climate has been validated by the Opacity Index, a study conducted by US-based consultancy and advisory firm, the Kurtzman Group.
Launched in 2000, the Opacity Index examines aspects of business practices that potentially raise the costs of business and capital, and inhibit economic growth. The 48 countries in the index this year were assessed on five key components: corruption (COR), efficiency of the legal system (LEG), deleterious economic policy (ENF), inadequate accounting and governance practices (ACC), and detrimental regulatory structures (REG).
Singapore emerged 12th on the list this year, outshining other developed countries such as the Netherlands, Germany, Japan and France. Overall, Singapore's opacity rating is 24 (where 100 is equivalent to complete non-transparency). This is a marked improvement from three years ago, when its opacity index was 29.
A lower opacity index translates to better economic development and generates more confidence from foreign investments. "Although the large-scale risks - earthquakes, wars, coups d'etat and major acts of terrorism - are front-page news, the small-scale - fraudulent transactions, bribery, legal and regulatory complexity and unenforceable contracts - represent the real costs to business," said the report.
It added: "Greater awareness of these risk factors that put the brakes on commerce can enable companies to make better portfolio and direct investment decisions regarding where to develop markets, locate productive resources or find the best outsource partner, and can also help governments understand how to make their countries more attractive locations for investment and to measure their progress."
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Corruption (COR), efficiency of the legal system (LEG), deleterious economic policy (ENF), inadequate accounting and governance practices (ACC), and detrimental regulatory structures (REG).
Source: The Opacity Index 2004
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