SINGAPORE - Singapore has moved up a notch in an annual ranking of countries deemed the least corrupt in the world.

It ranked 7th on graft watchdog Transparency International(TI)'s 2016 Corruption Perceptions Index, up from 8th place in 2015.

However, it scored 84 points on the latest index, down from 85 the previous year.

The score runs from zero, which is highly corrupt, to 100, very clean.

The top-ranked countries for 2016 were Denmark and New Zealand, which both chalked 90 points.

They were followed by Finland (89), Sweden (88), Switzerland (86) and Norway (85).

Also in the top 10 were the Netherlands (83), Canada (82) and Germany (81).

Over two-thirds of the 176 countries and territories in this year's index scored below 50 points.

These include Croatia and Malaysia, which were tied in 55th place, with 49 points.

TI said the global average was "a paltry 43, indicating endemic corruption in a country's public sector".

This year's results, it added, highlight the connection between corruption and inequality, "which feed off each other to create a vicious circle between corruption, unequal distribution of power in society, and unequal distribution of wealth".

TI chair Jose Ugaz said: "In too many countries, people are deprived of their most basic needs and go to bed hungry every night because of corruption, while the powerful and corrupt enjoy lavish lifestyles with impunity".

Added TI in a statement on its findings: "The interplay of corruption and inequality also feeds populism. When traditional politicians fail to tackle corruption, people grow cynical."

"Increasingly, people are turning to populist leaders who promise to break the cycle of corruption and privilege. Yet this is likely to exacerbate - rather than resolve - the tensions that fed the populist surge in the first place."

Responding to the TI ranking, Mr Wong Hong Kuan, the director of Singapore's Corrupt Practices Investigation Bureau (CPIB) said the results were a testament to the country's "continued vigilance, commitment and zero tolerance in our fight against corruption".

He said:"This result is consistent with the Political and Economic Risk Consultancy (PERC)’s 2016 Report on Corruption in Asia which ranked Singapore as the least corrupt country in Asia, a position we held since 1995. The CPIB will continue to battle corruption without fear or favour so as to uphold the highest level of integrity and incorruptibility in Singapore."