Big firms, bigger targets? Corruption and Asia's businesses

Corruption remains a costly hurdle for firms worldwide, but Asia is especially vulnerable. According to the World Bank Enterprise Survey, 14.4 percent of firms in East Asia and the Pacific report at least one bribery request—higher than the global average of 11.2 percent. Large companies face the sharpest squeeze, with almost one in five (18.6 percent) targeted. In Asia, it appears, larger firms are the usual targets. The Philippines, for its part, tells a more complex story. On the surface, its averages look better: only 8.3 percent of firms report bribery incidence, and just 5.7 percent of public transactions involve informal payments, both well below regional levels. Firms are also less likely to believe gifts are expected to “get things done” (4.5 percent, versus Asia’s 17.1 percent). However, larger firms also buck the trend. Nearly one in five (18.4 percent) report bribery incidence—almost identical to the regional high. Smaller firms fare better, with bribery rates closer to single digits. This uneven burden suggests that while corruption may not blanket the Philippine business landscape as heavily as in neighboring economies, firm size and visibility come at a price.