Goh Chok Tong, the prime minister, said members of parliament with the long-ruling People's Action party must submit annually a list of their directorships and the total fees and stock options they receive.

PAP MPs have found company directorships a lucrative sideline, with some sitting on as many as 11 boards and receiving fees of up to S$70,000 ($41,000, €34,000, £23,000) from each company.

There are suggestions that private companies have sought the MPs as board members to gain influence with the PAP, which has ruled Singapore since 1959 and holds all but two seats in parliament.

Mr Goh warned that "some companies may do so, hoping that this will facilitate their business inter-actions with the government or lend respectability to their operations".

But some analysts believe private companies have little choice in currying favour with government MPs to gain a foothold in an economy dominated by state-owned companies.

The PAP's political dominance and the high salaries offered for government posts to discourage corruption has drawn Singapore's brightest to the public sector and ruling party, depriving private business of the best talent.

Mr Goh said the new guidelines on MPs' involvement in business would help improve transparency and draw a clear line between political duties and private interests.

"The MP should also consider the possible impact that the directorship may have on his political life," the guidelines stated.

There are suggestions that the PAP should place limits on the number of directorships an MP can hold.

A survey by the Singapore Straits Times newspaper found that a large number of PAP MPs had been approached for board directorships and demand was rising due to an increased number of initial public offerings.

The guidelines said MPs should not solicit for directorships as they may appear to be using their political position for personal gain. But the guidelines appeared to fail to address the close involvement of government MPs and other officials in state-owned companies, or government-linked companies (GLCs) as they are known in Singapore.

Current or former PAP MPs have often been appointed as executives or directors of GLCs, while GLCs have also served as recruitment grounds for the PAP.

Senior government officials and military commanders have also secured posts in the GLCs after retirement.

Mr Goh, for example, was managing director of Neptune Orient Lines, the state-owned shipping line, before he entered politics, while David Lim, a former government minister, was recently named as NOL chief executive.

This has led critics to suggest that the government is reluctant to privatise GLCs because it could hurt the employment and ownership interests of people closely connected to it.

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