Philippines most corrupt: foreign business

The Philippines is perceived by foreign businessmen as Asia’s most corrupt economy, according to a survey that also found other countries failing to tackle the problem decisively.

Singapore and Hong Kong were seen as the cleanest economies, while China, Indonesia and Vietnam posted improvements, the Hong Kong-based Political and Economic Risk Consultancy (PERC) said in a summary made available to AFP yesterday.

Perceptions of corruption in Thailand worsened, with the junta that seized power last September seen as little better than the government it ousted.

“The Philippines has the distinction of being perceived in the worst light this year,” PERC said after polling almost 1,500 expatriate business executives in 13 countries and territories across the region in January and February.

In a grading system with zero as the best possible score and 10 the worst, the Philippines got 9.40, down sharply from its grade of 7.80 last year. Indonesia was deemed Asia’s most corrupt country in 2006.

President Arroyo, also an economist, dismissed the survey results, saying PERC was using “old data” and noting that the country’s international credit ratings had improved on her watch.

PERC, which provides advice to private firms and governments, said the figures showed a deterioration of perception rather than a change in the actual situation in Manila.

“Our credit ratings are fine,” Arroyo told Business News Asia magazine. “The political analysis, they work on old data.”

“They don’t work on up-to-date data.”

“It is bad and has been bad all along,” PERC said in its report. “People are just growing tired of the inaction and insincerity of leading officials when they promise to fight corruption.”

Constancia de Guzman, head of an anti-graft commission that works for Arroyo’s office, insisted the Philippines was taking action.

“The government is doing something,” she told journalists, “but the people want to see actual results like convictions, dismissals and the like.”

In contrast, Indonesia — bottom of the pile last year — was pleased that its image had improved. It now lies in joint 11th place with Thailand.

“Of course we are happy,” said Johan S.P. Budi, spokesman for Indonesia’s National Anti-Corruption Committee. “At least it shows the seriousness of the government in its efforts to improve its image and in curbing corruption.”