The government is committed to cracking down on corruption and reducing red tape, which the United States cited as impediments to the Philippines’ efforts to attract foreign investments.
Trade Secretary Cristina Roque told The STAR yesterday that the government is committed to fighting corruption to clean up the system and restore public trust, acknowledging that recent corruption issues exposed in flood control projects undermine reforms aimed at boosting investor confidence.
In this light, the Department of Trade and Industry (DTI) sees the creation of the Independent Commission for Infrastructure as a major step in uncovering the misuse of public funds and ensuring accountability.
The DTI is also doing its part to help build a government that the public can trust.
‘We believe that honest and transparent service is key to earning the trust of our people and our business community. That’s why we’re going digital, cutting red tape and making sure our processes are clear and fair,’ Roque said in a Viber message.
Roque’s comments were made following the release of the US Department of State’s 2025 Investment Climate Statement on the Philippines, which cited challenges faced in attracting foreign investments, as well as recent moves to improve the overall investment climate and promote economic growth.
According to the report, the Philippines’ efforts to attract foreign investments have been hampered by corruption, poor infrastructure, high power and logistics costs, regulatory inconsistencies and a cumbersome bureaucracy.
‘Corruption is a pervasive and long-standing problem in both the public and private sector,’ the report said.
It also highlighted the lack of progress in addressing corruption since 2019, with the Philippines placing 114th out of 180 countries in Transparency International’s 2024 Corruption Perceptions Index.
In addition, the report said various organizations, including the World Economic Forum, have cited corruption among the top problematic factors for doing business in the Philippines, with the Bureau of Customs still considered as one of the most corrupt agencies.
‘The Philippines’ complex, slow, redundant and sometimes corrupt judicial system inhibits the timely and fair resolution of commercial disputes,’ the report said.
The traffic in major cities and congestion in the ports was also cited as barriers to doing business.
‘While the Philippine bureaucracy can be slow and opaque, the business environment has been better in special economic zones,’ the report said.
The report said recent reforms aimed at attracting new investors were also put in place, such as the CREATE MORE Act, which expanded incentives.
The law extended the period for tax exemptions up to 27 years, clarified value-added tax zero-rating rules and streamlined local tax policies.
American Chamber of Commerce of the Philippines executive director Ebb Hinchliffe said in a Viber message that the US report reflects investors’ top concerns.
While investors are encouraged by recent reforms such as the CREATE MORE, Ease of Paying Taxes Law and the executive order on green lanes for streamlined processing of permits, he said businesses are pushing for other measures to strengthen the country’s investment climate.
‘We continue to advocate for structural reforms that promote transparency and business efficiency. These include the passage of the Freedom of Information Act, National Single Window System Act and amendments to the Bank Secrecy and Electric Power Industry Reform Acts,’ Hinchliffe said.
According to Hinchliffe, streamlining travel requirements for foreign tourists and reviewing Revenue Memorandum Circular 5-2024, which covers the tax treatment of cross-border services, are also critical steps to boost investor confidence and position the Philippines as a competitive destination for global investment.
‘Equally important is the consistent implementation of existing laws such as the Ease of Doing Business Act and CREATE MORE,’ he said.