Building trust in Singapore, keeping the nation in mind

Singapore held its fifth position in the 2016 Edelman Trust Barometer Index[1] with a rebound of seven points among the informed public. This is a modest recovery after the nation’s poor showing last year when it had an eight-point drop and slipped from the top three in the Trust Index. After an emotional and nostalgic 2015 – when Singapore celebrated its 50th anniversary and mourned the death of founding Prime Minister Lee Kuan Yew – the results reinforce efforts made across all four institutions to reignite and rally the nation.The informed public’s trust in the four major institutions rose across the board, with media up 10%, business up seven%, government up six% and NGOs up five%. Compared with the global average, Singapore’s trust in government and media saw the most significant increases. Trust in government was also reflected in the resounding 69.9% of the vote won by the ruling People’s Action Party in the September general election.For the first time, the 2016 Edelman Trust Barometer provided deeper analysis of the levels of trust in CEOs, the attributes they need to build trust and desired leadership qualities. Reviewing each institution against external forces that might hinder trust building, there are five broad themes for 2016 and beyond:Trust in Media: An effective strategy must include online and traditional media powered by searchIn Singapore, online media saw a significant trust increase of seven points to 55% among the general population, now taking up third spot behind search engines at 64% and traditional media at 63%. Trust in social media slipped two points to 45% to tie with owned media. The dip for social media could be attributed to a rise in social media scams and recent missteps by major advertisers that prompted the Advertising Standards Authority of Singapore to draft guidelines for influencer engagement.That said, marketers must still consider social media as it held the top spot for reach, with 70% of the general population citing it as a peer-influenced source that is used several times a week. It is not surprising that trust in friends and family who post on social networking sites, content sharing sites and online-only information resources rose 12 points to 77%. Search comes in at a close 69%.Trust in traditional media in the form of television was at 65%. Magazines and blogs were at a low 31% and 24% respectively. Coming in below the 50% line are well-known online personalities and celebrities. This may be attributed to recent incidents including beauty blogger Juli Phang’s wedding commentary and other online spats.Trust in Business: Companies must solve societal expectations by keeping pace with changeWith a rise of six points, 81% of respondents agree a company can take specific actions that both increase profits and improve the economic and social conditions in its community. In Singapore, businesses are expected to address access to education and training. Companies with regional headquarters in Singapore are expected to help reduce poverty issues in Indonesia, improve access to healthcare in India and protect and improve the environment in China.Singaporeans also trust business over the other three institutions to be able to keep pace with the changing times. The financial services sector in Singapore spiked significantly by 10 points to 69% among the informed public. This could be due to initiatives such as CompareFIRST, which extends the availability and transparency of financial and insurance services information. In addition, the value of mergers and acquisitions has almost doubled within a year, including private equity, venture capital and initial public offerings. The asset management industry has also maintained a strong growth trajectory. Finally, recent actions by Singapore Exchange – from a CEO transition to a restructuring – and increased calls for corporate transparency have all contributed to greater public and investor confidence in the sector.Trust in Government: Singaporeans must be reassured to counter pessimism about their prospects Singaporeans showed more trust in institutions to do what is right but there was a wider 10-point gap between the mass population and the informed public – likely due to a rise in income inequality. For the first time, the 2016 Edelman Trust Barometer asked respondents to consider the five-year outlook for themselves and their families. Less than half thought they would be better off.Government-steered initiatives, such as the Committee on the Future Economy that encourages public-private collaboration with a clear roadmap, can go a long way to reassure the public that their prospects will be better.Trust in NGOs: Work with all other institutions and leaders to drive purpose-based partnershipsWith the pressure on business to solve societal problems, NGOs now need to work with companies on these opportunities. Lack of purpose impacts trust in business – 45% of Singaporeans will not trust a business if they fail to contribute to the greater good.Overwhelmingly, 78% of the general population expect the CEO to be visible in discussing issues such as income inequality, be involved in public policy discussions and have a personal view on societal issues. This is seen as more important than discussing financial results at 71%. Employees are more likely to advocate if companies and their CEOs are engaged in societal issues. Also, employees are more likely to recommend the company as an employer and have confidence in the company’s future.The Evolved Mandate for CEOs: Focus on making a difference and creating jobsSingaporeans want CEOs to focus on positive long-term impact (64%) and job creation (51%). Also, 51% of the general population think CEOs spend too much time on lobbying. They expect business leaders to deliver on operations, purpose and products. But there are two big gaps (of 23% each) that CEOs must bridge between these expectations and how people believe they actually perform. The first is integrity – taking responsible actions and behaving in a transparent and open way. The second is engagement – treating employees well and placing customers ahead of profits.When it comes to building trust in a CEO, 85% of Singaporeans say the big bosses must share their personal values as a top priority. A good example is Piyush Gupta of DBS who has a broader, personal narrative. This is followed closely by CEOs sharing the obstacles they have overcome such as Hyflux’s Olivia Lum, who rose from humble beginnings, and Sheng Siong Group’s Lim Hock Chee, who transformed his family business from pig farming to Singapore’s second-largest supermarket chain.The writer is Amanda Goh, CEO, Edelman Singapore. [1] The Trust Index is an average of a country’s trust in the institutions of government, business, media and NGOs.