Category: Singapore

Corruption functions like widespread cancer. The most recent Corruption Perceptions Index (CPI) for 2023, unveiled by Transparency International, unveils a lack of substantial progress in combating public sector corruption worldwide. The global CPI average remains static at 43 for the twelfth consecutive year, with more than two-thirds of nations scoring below 50, underscoring widespread corruption challenges. Denmark maintains its top global position with 90 points, trailing Finland (87), New Zealand (85), Norway (84), and Singapore at 83. Singapore secures the fifth spot in the world, exhibiting resilience despite a decrease from 87 in 2013 to 83. The city-state outshines its neighbors.

Singapore continues to lead in ASEAN, with Malaysia ascending to the second position, marking a positive turn by securing the 57th spot out of 108 nations in this year’s CPI. Transparency International’s data reveals a four-rank improvement for Malaysia, scoring 50 out of 100 points in 2023, a rebound from the previous year’s 47 and a reversal of the declining trend since 2019 when it scored 53. Vietnam claims the third spot (41), trailed by Thailand (35), and Indonesia and the Philippines tied at 34. Regrettably, all other ASEAN members, excluding Malaysia and Singapore, witnessed a decline in the 2024 CPI, with Laos (28), Cambodia (22), and Myanmar just scored 20.

According to Singapore’s Corrupt Practices Investigation Bureau (CPIB), the country effectively combats corruption, as is demonstrated by the consistently low number of public sector corruption cases. The CPIB highlights the favorable outcomes of Public Perception Surveys, which continuously demonstrate a high level of public trust in the country’s efforts to fight corruption. The CPIB also lists additional honors associated with Singapore’s anti-corruption initiatives. In the World Justice Project Rule of Law Index 2023, the nation ranked third for the lack of corruption, making it the top Asian country out of 142. Additionally, Singapore excelled in the Political and Economic Risk Consultancy’s (PERC) 2023 Report on Corruption in Asia, taking first place out of 16 economies. 

The CPIB emphasizes its dedication to working with the community to fight corruption and appreciates Singapore’s well-earned reputation as one of the least corrupt countries in the world. The bureau reaffirms that it will treat all reports and information revealing possible corruption offences seriously, regardless of whether they come from reputable or unreliable sources. In order to maintain a corruption-free atmosphere in the country, the declaration ends with a pledge to maintain incorruptibility as a fundamental component of the Singaporean identity. 

Muhammad Mohan, Chairman of Transparency International Malaysia, attributes the improved ranking of Malaysia this year to the dedicated efforts of the federal government in pursuing legal action against prominent individuals and implementing measures to enhance transparency and accountability in the public sector.

Mohan highlights the government’s commitment to prosecute high-profile individuals through the Malaysian Anti-Corruption Commission and the Attorney General’s Chambers as a significant factor in Malaysia’s rise. The positive public perception resulting from the prosecution of two former prime ministers for corruption, coupled with the judiciary’s independence demonstrated in cases like the SRC International trial and the conviction of a former prime minister, are likely pivotal elements contributing to Malaysia’s recovery.

In contrast to the previous year when Malaysia held the 47th position in the Corruption Perceptions Index (CPI), the low score was attributed to perceived lack of political determination to combat institutional corruption, implementation of substantial Covid-19 pandemic stimulus packages without parliamentary debate and scrutiny, appointment of unqualified politicians to lead government-linked companies, and a hesitancy to decisively address issues such as cost overruns in projects like the Littoral Combat Ship.

Expressing concern about Malaysia’s lack of a clear plan, Mohan notes that leaders often discuss reforms without adequate follow-through. To secure a position in the top 25, he emphasizes the necessity for Malaysia to reach the 68-point range, assuming other countries do not gain additional points.

According to Transparency International’s 2023 Corruption Perceptions Index, Vietnam has seen a decrease, which is consistent with the country’s recent stepped-up anti-graft drive led by the Communist Party. The previous year’s massive anti-corruption campaign, which resulted in the detention and arrest of deputy ministers, the investigation of hundreds of officials, and the resignation of then-President Nguyen Xuan Phuc, is blamed for the score decline. 

Vietnam is still ranked higher than many of its regional rivals, even if its ranking has declined after rising over the previous two years. In contrast, corruption is said to be greater in Indonesia, the Philippines, and Thailand. The Rule of Law Index highlights the link between corruption and the availability of justice, indicating a global deterioration in the efficacy of legal systems. There is a definite correlation between corruption and justice because the nations with the lowest scores in this index also tend to perform poorly in the Corruption Perceptions Index (CPI). 

A growing perception of impunity for corruption is a result of actions taken by both democratic and authoritarian authorities that undercut justice. In certain situations, these actions may even encourage corruption by eliminating the repercussions for wrongdoers. This effect may be seen in a number of nations, from Venezuela (13) to Myanmar (20). In any case, the Singapore government is shining thanks to the CPI Ranking, which is an important statistic for Singapore considering the gravity of the scandal surrounding Iswaran’s case. 

On Wednesday, the Malaysian cabinet announced the establishment of a royal commission of inquiry to investigate the management of cases related to three disputed islets in the Singapore Strait. Prime Minister Anwar Ibrahim, advocating for a reassessment, has specifically highlighted the 2018 decision made during the administration of then-Prime Minister Mahathir Mohamad. This decision involved Malaysia withdrawing its application to revise an International Court of Justice (ICJ) ruling that affirmed Singapore’s sovereignty over Pedra Branca, one of the contested islets.

The protracted disputes between Malaysia and Singapore over small islets concluded with the International Court of Justice (ICJ) awarding Malaysia the Middle Rocks formation and designating nearby Pedra Branca, also known as Pulau Batu Puteh by Malaysia, to Singapore. In an attempt to overturn the Pedra Branca aspect of the ruling in 2017, Malaysia withdrew its claim a year later during Mahathir’s premiership.

Last year, Malaysia’s Attorney-General Idris Harun expressed the government’s belief that the 2018 decision to withdraw two ICJ applications regarding the sovereignty of Pedra Branca, Middle Rocks, and South Ledge was “not in order and improper,” without providing further details. Ongoing scrutiny of task force recommendations, including matters related to the “tort of misfeasance in public office” — a form of misconduct by a public official causing harm or loss to a third party — suggests that appropriate actions will align with the Cabinet’s decision.

According to the Tuesday announcement by Chief Secretary to the Government Mohd Zuki Ali, the approval of the king of Malaysia is required for the cabinet’s decision. The envisioned panel aims to conduct an open, equitable, and unbiased investigation by including specialists with extensive expertise in judicial, legal, and public administration matters.

Pedra Branca, the easternmost point of Singapore, is an outlying island named for the whitish guano adorning its rock surfaces. With dimensions of approximately 8,560 square meters during low tide, this small granite outcrop extends up to 137 meters in length and maintains an average width of 60 meters. Situated about 14 km off the southern coast of Malaysia and 44 km off the east coast of Singapore, Pedra Branca is characterized by a chain of rocky outcrops.

Adjacent to Pedra Branca are two maritime features. Middle Rocks, under Malaysia’s sovereignty, comprises two clusters of small rocks located approximately 250 meters apart, situated 1.1 km south of Pedra Branca. South Ledge, positioned 4.1 km to the south-southwest of Pedra Branca, manifests as a rock formation visible only during low tide.

The issue between Singapore and Malaysia regarding Pedra Branca began on December 21, 1979, when Malaysia published a map asserting the island’s inclusion within its territorial waters. This marked the onset of a over 25-year territorial dispute, encompassing matters of sovereignty over the neighboring maritime features of Middle Rocks and South Ledge. The disputing parties subsequently brought this complex issue before the International Court of Justice (ICJ) for resolution.

On May 23, 2008, the International Court of Justice (ICJ) unequivocally declared Pedra Branca as falling under the sovereignty of Singapore. The ICJ acknowledgment also took note of Singapore’s proposed reclamation plans for Pedra Branca. Despite the island’s initial association with the Johor Sultanate’s sovereignty, both the United Kingdom and Singapore had undertaken acts of sovereignty concerning Pedra Branca. The lack of response from Malaysia and its predecessors to these actions, coupled with other indications recognizing Singapore’s sovereignty, led to the conclusion that Singapore had acquired sovereignty over Pedra Branca.

In contrast, Middle Rocks retained its status as part of Malaysian territory, given Singapore’s absence of demonstrated acts of sovereignty over it. The ICJ refrained from providing a definitive ruling on South Ledge, specifying that its ownership pertains to the state within whose territorial waters it is located. To address the complex territorial matters surrounding Pedra Branca, Middle Rocks, and South Ledge, Malaysia and Singapore established the Joint Technical Committee. This committee is tasked with delineating the maritime boundary in the Pedra Branca and Middle Rocks area and determining the ownership status of South Ledge.

In 2017, Malaysia sought to overturn the ICJ ruling concerning Pedra Branca but abandoned its claim a year later during Mahathir’s tenure as prime minister. On February 1, 2019, Pedra Branca was incorporated into East Coast GRC for representation in the Parliament of Singapore.

Given the profound interdependence and extensive collaboration between the two nations, there will be no escalation with cases. Following the Court’s definitive decision, both Singapore and Malaysia made public declarations of acceptance and commitment to abide by the Court’s ruling. It is evident that the focus of this movement is directed towards Malaysian politics and the government under Mahathir’s leadership. The involvement of Singapore in this context seems unlikely. However, considering China’s expanding presence in the South China Sea and its strategic importance, every rock in the region now holds significance.

Singapore consistently earns recognition as the least corrupt nation in Asia and ranks among the top ten cleanest globally, according to Transparency International. The World Bank’s governance indicators commend Singapore for its commitment to the rule of law, effective governance, and corruption control. However, the recent legal action against former Transport Minister S Iswaran has sent shockwaves through the country’s political landscape. S Iswaran faces a total of 27 charges, predominantly related to bribery and corruption, involving sums exceeding S$384,300. 

In the face of charges against S Iswaran, political analysts downplay the likelihood of a substantial impact on the People’s Action Party’s (PAP) strategic plans for leadership transition and the impending General Election (GE). Prime Minister Lee Hsien Loong is believed to have factored in the potential trial, and even if it exceeds expectations, Iswaran’s resignation as a Member of Parliament (MP) and PAP member is considered a satisfactory resolution to the Corrupt Practices Investigation Bureau (CPIB) inquiry. Deputy Prime Minister Lawrence Wong has affirmed to reporters that the leadership transition plan remains unaffected despite Iswaran’s legal challenges. Nonetheless, there are lingering concerns among political observers regarding the void created by Iswaran’s departure from the West Coast Group Representation Constituency (GRC). This raises apprehensions about a challenging electoral competition for the PAP as they endeavor to identify a fitting replacement for the seasoned former minister.

The future of West Coast Group Representation Constituency (GRC) and the People’s Action Party’s (PAP) prospects in this closely contested area remain uncertain. Although the departure of Iswaran does not automatically translate to PAP losing control of the GRC, there is a significant void to be filled. Iswaran, a well-regarded and popular Member of Parliament (MP) in West Coast, leaves a gap that the PAP must address.

With Iswaran not seeking re-election, PAP faces the challenge of strengthening its position, especially considering the Progress Singapore Party’s (PSP) formidable performance in West Coast GRC during the 2020 General Election. In that closely contested race, PAP secured victory by a narrow margin of 51.69 percent. Given the circumstances surrounding Iswaran’s departure, there may be residents inclined to give the Opposition a chance in the GRC. 

Many analysts contend that the People’s Action Party (PAP) will have difficulty finding prominent political figures among its members to succeed Iswaran. In addition to Iswaran, the party has also had to deal with Tan Chuan-Jin’s resignation, which came about after it was revealed that he had an extramarital affair with PAP MP Cheng Li Hui. The departure of both Iswaran and Tan Chuan-Jin raises questions about the party’s ability to field prominent candidates. Additionally, Dr. Tan, the chairman of the Progress Singapore Party (PSP), headed the team that ran in West Coast GRC in the 2020 General Election, emphasizing the difficult task facing the PAP in finding a capable replacement.

As the impact of the Iswaran case is not confined to the West Coast GRC, the ruling party is demonstrating its commitment to undertaking strong measures against corruption nationwide. Deputy Prime Minister Wong highlighted Singapore’s ministerial code of conduct, emphasizing the prohibition of receiving gifts that could create conflicts of interest and obligations. This code, in effect since 1954 and subject to periodic updates, outlines the expected behavior and personal affairs management for ministers. Mr. Wong assured that the government would consistently review and enhance the code, incorporating insights gained from experiences such as the recent incident. Analysts, however, indicated that the existing checks and regulations within ministries are sufficient to ensure the proper reporting of gifts, mitigating the need for drastic alterations to the code.

In a broader context, analysts commended the People’s Action Party’s (PAP) handling of Iswaran’s case, seeing it as a positive reflection of the party’s intolerance towards corruption. This firm adherence to the party’s values could resonate with younger voters, offering them insight into how the ruling party addresses significant crises involving its members. Nonetheless, the evolving political landscape poses challenges for PAP, as evidenced in the last election. In July 2020, PAP secured 83 out of 93 seats and 61.2% of the popular vote, marking its 13th consecutive general election victory since Singapore’s independence. However, this result represented a notable decline from the 2015 election. So, it is crucial for the PAP to take proactive measures in combating corruption and improving its public image.

Together, Malaysia and Singapore agreed to create a special economic zone along the Singaporean border in the southern province of Johor in Malaysia. The primary objectives include attracting investments and facilitating the seamless movement of people and goods across their shared boundaries.

The Johor-Singapore Special Economic Zone (JS-SEZ) memorandum of understanding (MOU) was signed by Malaysia’s Economy Minister Rafizi Ramli and Singapore’s Trade and Industry Minister Gan Kim Yong to formalize their cooperation. Later, in a joint statement, the two leaders reaffirmed their commitment to moving forward with a thorough agreement.  The Memorandum of Understanding outlines Malaysia and Singapore’s collaborative efforts to improve the movement of people and goods across international borders while also fortifying the SEZ’s economic environment to draw in investments. 

Exploring additional measures to boost the JS-SEZ’s growth, both countries are considering a passport-free passage system on both sides of the border and potential collaboration in the renewable energy sector. The overarching goal of the agreement is to create a business-friendly region in Johor, free from government restrictions, fostering economic growth and improving connectivity.

Furthermore, the collaborative ventures are exploring potential additional initiatives, including the establishment of a consolidated one-stop business-investment service center in Johor tailored for Singaporean companies, the implementation of streamlined digital procedures for cargo clearance at land checkpoints, co-hosting an investors’ forum, and fostering cooperation in renewable energy within the Johor-Singapore Special Economic Zone (JS-SEZ).

In a separate development, both nations welcomed the completion of the initial connecting span for a new light rail transit system (RTS) that links Johor Bahru, the state capital of Johor, with Singapore. Spanning 4 km and boasting a peak capacity of up to 10,000 people per hour in each direction, the RTS is designed to connect Johor Bahru’s Bukit Chagar station with Singapore’s Woodlands North station. Anticipated to commence passenger service by the end of 2026, the RTS aims to alleviate traffic on the Johor-Singapore Causeway, the busiest land crossing globally. The Johor-Singapore Causeway witnesses a daily transit of over 350,000 individuals. Valued at 10 billion ringgit ($2.2 billion), this train link is the latest addition to the Causeway, initially constructed in 1924 and subsequently undergoing various expansions and upgrades.

There were discussions between Malaysia and Singapore centered around the possibility of developing a 350-kilometre high-speed railway connecting Singapore and Kuala Lumpur, supplementing their current connectivity. Despite the initial announcement in 2013, the project was shelved in 2020 due to disagreements and financial hurdles on the Malaysian side. Recent signals indicate a potential inclination from Anwar’s government to resurrect the project, contingent upon substantial cost savings.

Malaysia and Singapore have established a thriving bilateral trade, anticipating a value of $90.3 billion in 2022. This exceeds the combined trade of both nations with Indonesia, Thailand, the Philippines, and Vietnam. Economy Minister Rafizi Ramli underscored the importance of the Johor-Singapore Special Economic Zone (JS-SEZ), describing it as a distinctive opportunity for both countries to amplify cross-border trade and movement. These agreements are poised to further fortify the already intimate economic bonds between Singapore and peninsular Malaya. The positive momentum is evident in the upward trajectory of Malaysian stocks with substantial exposure to Johor in the weeks leading up to the signing of the memorandum. The expected deepening of the relationship between these nations is anticipated to deliver an additional economic stimulus for the region.

Once again, Singapore has solidified its standing as a global leader, with its passport claiming the top position as the world’s most robust in 2024. Joining Singapore at the pinnacle of the Henley Passport Index are France, Germany, Italy, Japan, and Spain. This index, which gauges the number of destinations accessible to travelers without a pre-approved visa, underscores the exceptional travel capabilities of these nations—a pivotal metric in today’s era of global business. In a recent press release, Henley & Partners, the consulting firm responsible for the index, highlighted that residents of these six countries can freely explore an impressive 194 destinations worldwide without the need for a visa.

Singapore and Japan, both Asian nations, have consistently held the top spot on the index for the past five years. During this period, Japan maintained its leading position, except in 2023 when it secured the second spot. Singapore, on the other hand, claimed the top rank in 2019, 2021, and 2023, while securing the second place in 2018, 2020, and 2022.

Examining passport rankings within Southeast Asian nations, Malaysia holds the 12th rank with visa-free access to 182 nations. Brunei impressively secures the 20th rank with 168 visa-free destinations, while Timor Leste ranks 56th with 96 visa-free destinations. Thailand secures the 63rd rank with visa-free access to 82 destinations. Indonesia holds the 66th position with 78 visa-free destinations. The Philippines secures the 73rd rank with visa-free access to 69 states. Cambodia is positioned at the 86th rank with 56 visa-free destinations, and Vietnam stands at the 87th position with 55 visa-free destinations. Laos holds the 90th position with 51 visa-free destinations, and Myanmar, occupying the 92nd rank, offers visa-free access to 48 nations, marking the lowest ranking in the region.

When it comes to international travel, the influence of a passport should not be underestimated, as it significantly shapes the ease with which its possessor can traverse borders and embark on new journeys. The Henley Passport Index stands as a global inventory that evaluates countries based on the travel freedom granted to their citizens, providing a comprehensive overview of the world’s most influential passports. This index assesses passports by considering the number of countries their holders can visit without the requirement of a pre-arrival visa. The ranking relies on data supplied by the International Air Transport Authority (IATA), which maintains the most extensive and precise travel information database worldwide. This data undergoes supplementation and updates through in-house research conducted by the firm, alongside other open-source online data. This approach is implemented to uphold the accuracy of the information provided by IATA, especially considering the ongoing updates to visa policies.

The United Arab Emirates (UAE) has been the Henley Passport Index’s biggest upward mover over the last ten years, according to Henley & Partners. According to the company, the United Arab Emirates has improved its visa-free score by 106 destinations since 2014, propelling it up to the 11th rank from the 55th position. According to the press release, China and Ukraine are two of the top five nations with the greatest rankings gains since 2014. With 148 visa-free countries, Ukraine is now ranked 32nd, while China comes in at number 62 with access to 85 visa-free places. On the other end of the scale, Afghanistan comes in at number 104 on the list. 

As a crucial hub for international business and a bridge between Asia and Europe, Singapore benefits significantly from its high passport ranking. In the competitive landscape of the hospitality sector in Asia, where rivals such as Hong Kong, the UAE, and Saudi Arabia prevail, Singapore’s robust passport ranking and diplomatic strengths provide a distinct advantage.

The Red Sea acts as a vital maritime corridor, facilitating the shortest shipping route between Europe and Asia. With around 12 percent of global trade passing through this crucial waterway, any disruption poses a significant threat to the global economy, particularly impacting Singapore, closely tied to trade between Asia and Europe.

Since November 19, a series of over 20 assaults on commercial vessels in the southern Red Sea and the Bab al-Mandab Strait has unfolded. The Houthis, a militant group controlling much of Yemen, claim responsibility, targeting ships associated with Israel or destined for Israeli ports. This poses a direct threat to the global supply chain.

Responding to the escalating situation, Operation Prosperity Guardian, a multinational naval force led by the United States, has been deployed to secure the seaway and intercept Houthi assaults. US warships successfully defended a Singapore-flagged container ship operated by Maersk, sinking three out of four Houthi boats.

In the aftermath, Iran deployed a warship to the Red Sea, raising tensions further. Major container-shipping companies like Maersk, Hapag-Lloyd, and the Mediterranean Shipping Company have adjusted routes to avoid the affected area, causing significant disruptions in one of the world’s busiest trade lanes.

A central concern arises regarding whether the challenges in the Red Sea could instigate a supply chain crisis, potentially amplifying the impact on an already slowing global economy. The issues in the Red Sea are not isolated, as the Panama Canal, responsible for 5 percent of seaborne trade, faces challenges due to low water levels linked to drought. Operating at just 55 percent capacity, the canal encounters ongoing restrictions, with plans to increase transit slots from mid-January.

The necessity for rerouting, resulting from these challenges, disrupts the intricate synchronization integral to global shipping. This disruption could trigger a bullwhip effect, a supply chain phenomenon where minor fluctuations escalate and cause significant repercussions downstream. Diversions may lead to congestion at unprepared ports or a shortage of vessel space, with empty containers stranded unexpectedly, compounding delays and potentially impacting shipping routes beyond those connecting Europe and Asia.

Concerns extend to the potential impact on global prices, potentially contributing to inflation at a time when signs of a cooling trend had emerged. The duration of the disruption and the occurrence of additional shocks will play a pivotal role in determining the knock-on implications for inflation, as highlighted by experts.

The growing fragmentation of the global order raises problems for small and open economies like Singapore, which are deeply entwined with the shipping and logistics sector. Singapore has long benefited from the rules-based global order, but these days, the system is starting to show cracks, which makes it more difficult for the country to do business smoothly and disrupts the free movement of goods across borders.

Some Singapore based shipping companies like Pacific International Lines (PIL), has staunchly expressed its commitment to maintaining Red Sea services to ports in Yemen and East Africa. Despite ongoing operations, the company is implementing heightened security measures and maintaining constant communication with its vessels in the region. Amid uncertainties, freight forwarders foresee a tense period in the upcoming weeks, closely monitoring potential rate increases, last-minute route diversions, and formulating alternative plans for clients. The recent attack on the Singapore-flagged Maersk Hangzhou has intensified concerns, sparking a frenzied scramble for adjustments in response to Maersk’s decision to suspend all sailings through the Red Sea. Other shipping companies are also closely observing the situation, recognizing the potential impact of their decisions on the Singapore economy.

These challenges extend beyond the realm of shipping enterprises, affecting food importers in Singapore. X-Inc, overseeing food distributors FoodXervices and GroXers, grapples with delays in European shipments, leading to additional costs. The prevailing sentiment in the maritime industry underscores the difficulty of navigating a series of unexpected challenges, ranging from the pandemic to the Suez Canal incident, and now the complex situation in the Red Sea.

On January 3, Singapore joined 13 other nations in condemning the Houthi militants’ attacks, cautioning of unspecified consequences if the assaults persist. This condemnation followed a similar call from members of the United Nations Security Council, emphasizing the need to halt attacks in one of the world’s most critical shipping lanes. 

The Houthies pose a grave threat to the global supply chain, the backbone of the world economy. This risk resonates worldwide, with Southeast Asia, especially Singapore feeling the impact keenly. In response, these nations take decisive government-led initiatives, standing firm against this disruption to safeguard their pivotal roles in the interconnected dance of global trade. The threat transforms into an opportunity for unity and resilience, showcasing the unwavering spirit that binds nations even amid challenges.