MANILA, Philippines — The Marcos administration has been urged to address governance and corruption concerns that may be hampering economic growth and preventing more foreign investments from flowing into the Philippines.
GlobalSource Partners said in a report that the challenge to the Marcos government was “undoubtedly singular, and this is to address the various impediments to economic growth—governance and institutional strength, human capital development both basic and retooling, infrastructure and power.”
The think tank said the Marcos administration should particularly focus on how it will further improve its governance capabilities and public sector effectiveness as measured by the global good governance index, Chandler Good Government Index.
Corruption perception index
In its latest edition, the Philippines fell four spots to 67th place out of 100 countries, making it the country’s worst performance since 2021.
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The report also noted the country’s position in the Corruption Perception Index 2023, in which it placed 115th out of 180 countries. In the report, the watchdog said Southeast Asian countries have struggled to deliver on anticorruption efforts, with the Philippines and Thailand remaining “on the lower end of the spectrum.”
These may be turning off foreign investors as the Philippines has been lagging behind its peers in Southeast Asia in attracting foreign capital despite advantages, including a young and growing population and abundant natural and human resources.
“We cannot overemphasize the roles of foreign investment, whether direct or portfolio, in sustaining the pace of economic growth in developing and emerging countries such as the Philippines,” GlobalSource Partners said.
Data from the Bangko Sentral ng Pilipinas showed that the net inflow of foreign investments grew by just 23 percent year-on-year to $686 million in March, making it the slowest expansion in five months.