A few weeks ago, the Asian Institute of Management’s Rizalino S. Navarro Center for Competitiveness organized a conference called “AIM for Change.” It was borne out of growing concern in the business community that the country is growing less competitive than its regional peers. There’s a sense that the country has fallen adrift and become rudderless, even before the current Middle East crisis started.

Since the outbreak of the flood control scandal and the disclosure of corruption on a grand scale, public trust in government has fallen. Its impact on the economy is beginning to be felt. The economic impact will only grow as the war in Iran stretches on.

In a December 2025 Pulse Asia survey, 94 percent said that corruption was widespread in government, while 71 percent felt it was “very widespread.” The top three examples of corruption were identified as bribery, misuse of public funds, and kickbacks in contracts. At least 74 percent said that the level of corruption had increased over the last year, while 19 percent said that it had stayed the same.

The Philippines has made some improvements in its “ease of doing business” performance, but continues to lag behind most of its Asean neighbors, according to the latest World Bank Business Ready (B-Ready) report. While the World Bank covers 101 economies in 2025, up from 50 in 2024, the Philippines has largely maintained its relative position. We remain in the top 25 percent in terms of regulatory framework, around the midpoint in quality of public services, but in the bottom 20 percent in government efficiency. While individual scores have improved, our relative standing has not. In real terms, this means businesses continue to face the same delays, costs, and uncertainty.