The United States Department of State has described corruption in the Philippines as “pervasive and long-standing,” calling it a major obstacle for foreign investors eyeing opportunities in the country.
In its 2025 Investment Climate Report, the agency said corruption remains deeply rooted in both the public and private sectors, citing the country’s persistent ranking of 114th out of 180 nations in Transparency International’s 2024 Corruption Perceptions Index — a position that has remained largely unchanged since 2019.
The report also highlighted findings from the World Economic Forum identifying corruption as one of the most 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,” the report said, adding that foreign investors view inefficiency and uncertainty in the courts as a major deterrent.
It noted that many investors hesitate to pursue legal remedies because of “slow and complex litigation processes and fears of corruption,” while some stakeholders cited an “inexperienced judiciary” in handling cases involving advanced technologies and scientific issues.
The State Department further disclosed that its embassy in Manila has received complaints from US businesses involving “overly invasive searches, inconsistent customs charges, and solicitations of facilitation fees” from certain customs officials.
Despite these challenges, the report acknowledged that business operations tend to run more smoothly within special economic zones, where bureaucratic hurdles are less pronounced.
Malacañang has yet to issue a comment on the report.
