RI most plagued by corruption, PERC says<\/p>\n
Agence France-Presse, Singapore<\/p>\n
Corruption is the major obstacle to investment and business
\ngrowth in Asia's developing economies with Indonesia suffering
\nthe most, a poll of foreign executives showed on Monday.<\/p>\n
In contrast, Hong Kong and Singapore -- two of the most
\ndeveloped Asian economies -- are rated as the places where graft
\nis most under control, the Political and Economic Risk
\nConsultancy (PERC) said.<\/p>\n
Singapore topped the survey of 96 leading foreign executives
\nbased in the region with a score of 0.89 where the best grade is
\nzero and the worst is 10.<\/p>\n
Arch economic rival Hong Kong was second at 1.22 while
\nIndonesia was the worst with a score of 9.44, PERC said in its
\nsurvey of 12 regional economies.<\/p>\n
Japan was third, followed by South Korea, Malaysia, Taiwan,
\nThailand, China, India, the Philippines and Vietnam.<\/p>\n
The gradings by Singapore and Hong Kong reflect confidence in
\nthe judiciary system which is why the former British colonies
\nhave remained big recipients of foreign investment despite lower
\nlabor costs elsewhere, PERC said.<\/p>\n
"Labor is usually much less expensive in neighboring
\ncountries, and except for the excellent harbors, world class
\nphysical infrastructure facilities and educated labor forces,
\nneither Hong Kong nor Singapore has many natural resources to
\ndraw investors," it said.<\/p>\n
"However, foreign companies find it easier and more
\nstraightforward to do many types of business in Asia's two island
\neconomies, which is one of the main reasons they have attained
\n"regional business center" status.<\/p>\n
"The low level of corruption and victims' ability to seek
\nlegal redress though the local legal system when they do
\nencounter graft are major attributes of Hong Kong and Singapore
\nthat enhance the quality of the overall business environment."<\/p>\n
In Indonesia, graft is seen a major drawback for foreign
\ninvestors but they are encouraged by President Susilo Bambang
\nYudhoyono's drive to stamp out corruption, the survey showed.<\/p>\n
"The legal system in that country remains highly suspect, but
\nPresident Susilo Bambang Yudhoyono has stepped up the fight
\nagainst graft," PERC said,<\/p>\n
"There have been a few high profile examples of officials
\nbeing arrested and prosecuted, and these anecdotes are raising
\nhopes that one of the biggest barriers to doing business in
\nIndonesia, namely, corruption, is being reduced."<\/p>\n
Similarly in China, investors like efforts by Beijing to
\npunish corrupt government officials, PERC said, adding that being
\na member of the World Trade Organization (WTO) has helped the
\nanti-graft drive.<\/p>\n
"China stands out as the country where the trend seems to be
\nimproving the most," it said.<\/p>\n
In Malaysia, graft is seen as a problem but it is not as
\nsevere as in most neighboring economies, like the Philippines
\nwhere the problem is not improving and the government is seen as
\nnothing about it, the survey said.<\/p>\n
Meanwhile, executives recognize Thai authorities have changed
\nlaws and regulations but consider it to benefit large businesses,
\nmany of which have close links with influential politicians, the
\nsurvey said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-most-plagued-by-corruption-perc-says-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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