We like to call Hong Kong Asia's world city. It is a metropolis built on the rule of law and thriving on a business-friendly environment. This includes a free flow of information, a low and simple tax regime, world-class infrastructure and professional services and an industrious workforce. A clean and efficient government and a level playing field for all provide a strong foundation for our business community.

These are some of the reasons that Hong Kong has been rated as the world's freest economy for each of the past 15 years by the US-based Heritage Foundation.

In another study this year, Hong Kong was found to be among the least corrupt economies in the world. The Corruption Perceptions Index 2009 released by Transparency International last month ranked Hong Kong as the 12th least corrupt economy. We tied with Luxembourg and came in ahead of many other major economies in the survey.

In the wake of the financial tsunami, the Transparency International report said: "The Hong Kong Government and the ICAC have intensified efforts to fight corruption in the financial sector. New regulations were enacted and new tools developed."

A holistic approach to tackling corruption has long been a cornerstone of our strategy. Through strong law enforcement, we have made corruption a high-risk crime with severe penalties.

To prevent corruption from occurring in the first place, we have identified loopholes and fine-tuned our procedures over the years to reduce opportunities for graft. We have also stepped up education to remind citizens of the evils of corruption and its impact on society. This comprehensive strategy applies to both the public and private sectors in Hong Kong.

When our ICAC was established - back in the 1970s - under-the-table deals were tolerated as part of doing business. We realised that this behaviour - if left unchecked - would eventually be the undoing of our business community.

Today, thanks to the efforts by the ICAC, community leaders and people from all walks of life, there is a strong consensus that good governance is an asset rather than a liability to business as well as to the overall economic development of Hong Kong.

However, economic crime remains a major problem. The Global Economic Crime Survey 2009 announced last month found that economic crime is rampant among organisations of all sizes and in all industries worldwide. Nearly one in three organisations reported being victims of economic crime in the past 12 months.

Asset misappropriation, financial-statement fraud, bribery and corruption top the list as the most pervasive crimes. Due to the tremendous growth in international trade and capital flows, corruption and economic offences not only plague individual companies but are also permeating in the global financial network.

Economic crime is nothing new. The term "White Collar Crime" was coined in 1939. The timing is significant because it describes the growing trend of fraud and financial deception towards the end of the Great Depression.

Today, we are experiencing what many economists regard as the worst global recession since the 1930s. The current financial crisis has unearthed corporate crimes of an unprecedented scale.

In the wake of the worst financial crisis of our time, and after a spate of corporate failures in recent years, this symposium is a timely and important discussion platform. Perhaps most important, it highlights the need for greater international co-operation in tackling corruption in our global village.

Under-the-table deals and a lack of transparency erode trust, competitiveness and economic vibrancy. Our collective challenge is to identify the best strategies to combat increasingly sophisticated forms of corruption.

Acting Chief Executive Henry Tang gave this address at the 4th ICAC Symposium at the Hong Kong Convention & Exhibition Centre.