Taiwan improves ranking in PERC corruption survey

Taiwan is the fifth-cleanest economy in Asia, up one place from last year, a survey compiled by the Hong Kong-based Political and Economic Risk Consultancy (PERC) showed.

In its latest corruption report, PERC rated Taiwan as the fifth best market in which to do business among 14 surveyed countries and territories in Asia, following Singapore, Hong Kong, Japan and Macau, in that order.

The Philippines is perceived by foreign businessmen as Asia's most corrupt economy, PERC said in a summary.

But Philippine President Gloria Arroyo dismissed the survey yesterday, saying the perceptions were outdated. The index, based on the views of nearly 1,500 expatriate businessmen, was based on "old data" that was no longer accurate, she said.

"Our credit ratings are fine," she told Business News Asia magazine. "The political analysis, they work on old data ... They don't work on up-to-date data."

PERC said the poor ratings for the Philippines were more linked to frustration than any actual worsening in corruption.

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

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

"I think there is enough basis for that rating, because there have now been a lot of anti-corruption policies put in place," said Teten Masduki, chairman of Indonesia Corruption Watch.

The report said Thailand's image had worsened last year.

The junta that ousted Thaksin Shinawatra as prime minister last September promised to fight corruption, "but there is no reason to be confident that its behavior will be any cleaner," PERC said.

China and Vietnam bettered their scores, but PERC said the improved perception was because corruption was not being discussed openly.

India was in ninth place. PERC said the Indian government must accelerate reforms, warning that corruption can limit expansion.