While this development improves business perception in the country, the administration should step up its fight against corruption, according to an official of the European Chamber of Commerce of the Philippines.

In the latest “Corruption Perceptions Index” released by Transparency International, the Philippines rose to 85th this year from 94th last year and 105th in 2012.

Among Southeast Asian countries, the Philippines outperformed most neighbors, particularly Indonesia (107th), Vietnam (119th), Laos (145th), and Cambodia and Myanmar (tied at 156th). Malaysia ranked 50th, while Singapore ranked 7th.

The improvement is more than just recognition for the Philippines, ECCP president Michael Raeuber said over the phone Thursday.

"It's a reality that there is intensified integrity and less corruption in the Philippines," he said. "It benefits not only business but the whole society because of a clean and level playing field for all," he noted.

Raeuber also shared the move of local and foreign business groups to put up Integrity Initiative Inc., a local version of Transparency International and the World Bank WGI report.

In this round of survey, there were 175 countries covered compared with 177 last year and 176 in 2012.

"We're happy that the Philippines is moving upward [on the index]... From our point of view, government is starting to work with the local government, civil society and the private sector," ECCP vice president for external affairs Henry J. Schumacher told GMA News Online.

The improvement in the index definitely bodes well for the business climate, particularly how foreign investors see the country, he said.

"In order to have a level playing field, reforms should continue while understanding also that we cannot be corruption-free overnight," he said.

The latest improvement in global ranking recognizes "many concerted moves by the government to combat corruption, Management Association of the Philippines president Greg Navarro told GMA News Online via text.

"The challenge is how to sustain these efforts and the need to institutionalize the reforms and provide legislative support," he said. These are in the form of Freedom of Information bill, whistleblower protection and incetives to those who pass Integrity Initiative assessments.

The survey came after the Philippines improved its rankings in the 2013 Worldwide Governance Indicators (WGI) report of the World Bank released Monday. More than 200 countries and territories were covered by the 2013 WGI.

The Philippines climbed in four out of six indicators, showing that the Aquino administration’s agenda on good governance is creating a positive impact on how the world sees the country.

This development recognizes the achievements of the Philippines in the area of governance, Bangko Sentral Governor Amando Tetangco Jr. said in a statement.

'Promoting transparency'

"The BSP is one with the government in promoting transparency and accountability, taking these guiding principles strictly in the conduct of its regulatory role over the financial sector,” he said.

In the report of Transparency International, the Philippines got a score of 38, similar to the scores of India, Peru, and Thailand, with which the Philippines shares the same ranking of 85th.

Transparency International gives scores on corruption perception to countries based on results of surveys it conducts worldwide. The scores range from 1 or highly corrupt to 100 or very clean.

The improvement in the Philippine ranking came with the Aquino administration’s sustained reform agenda, which includes transparency in the budget process and efforts to cleanse government agencies perceived to suffer from corruption.

According to Transparency International, two-thirds of the countries scored below 50, indicating the need to further strengthen anti-corruption efforts across the globe.

Denmark, New Zealand, and Finland are perceived to be the Top 3 least corrupt countries, with scores of 92, 91, and 89, respectively.

On the other hand, Sudan, North Korea, and Somalia are perceived to be the most corrupt, with scores of 11, 8, and 8, respectively.

These improvements in rankings will be the barometer of foreign investors in doing business in the country, Philippine Chamber of Commerce and Industry (PCCI) president Alfredo Yao said in a separate phone interview.

"It's a welcome thing for the Philippines. It will improve perception more of foreign investors. We locals are from here, so we know how it is. But investors coming from outside, they just rely on these reports," he noted. – VS, GMA News

Source: GMA News