US State Department flags corruption as barrier to investment in PH

The United States Department of State has flagged "pervasive" corruption in the Philippines as among the major barriers to foreign investment in the country.

In its 2025 Investment Climate report, the US State Department said "corruption is a pervasive and long-standing problem in both the public and private sector" in the Philippines.

It also cited the country's rank of 114th out of 180 countries on Transparency International's 2024 Corruption Perceptions Index and "remaining around that level since 2019."

The State Department added that the World Economic Forum also flagged corruption as among the top problematic factors for doing business in the Philippines. 

"The Philippines' complex, slow, redundant, and sometimes corrupt judicial system inhibits the timely and fair resolution of commercial disputes," it said.

"Foreign investors describe the inefficiency and uncertainty of the judicial system as a significant barrier to investment. Investors often decline to file cases in court because of slow and complex litigation processes and fears of corruption. Stakeholders report an inexperienced judiciary when confronted with cases involving complex issues such as technology or science," it added.

The State Department also said its embassy in Manila has received multiple reports from US businesses of overly invasive searches, inconsistent customs charges, and solicitations of "facilitation fees" (such as bribes) from some customs officials

"While the Philippine bureaucracy can be slow and opaque, the business environment has been better in special economic zones," it said.

Malacañang did not immediately respond to a request for comment regarding the US Department of State report. — VDV, GMA Integrated News