CORRUPTION ISSUES surrounding Philippine government projects are dampening US investor interest, according to Philippine Ambassador to the US Jose Manuel “Babe” G. Romualdez.
However, Special Assistant to the President for Investment and Economic Affairs Frederick D. Go insisted the country has not lost any investment pledges due to the ongoing probe into corruption involving flood control projects.
In a Super Radyo DZBB interview on Thursday, Mr. Romualdez estimated that around $100 billion to $150 billion in potential investments — including those linked to President Ferdinand R. Marcos, Jr.’s US engagements — may be at risk unless the corruption scandals are resolved.
“(Foreign investors) want to see that our justice system is efficient… These corruption scandals need to be resolved,” the envoy said in Filipino.
In its 2025 Investment Climate report, the US State department identified corruption as a major barrier to foreign investment in the Philippines. It noted that corruption is “a pervasive and long-standing problem in both the public and private sectors” in the country.
The Marcos administration is intensifying its anti-graft campaign following public outrage over fraudulent infrastructure projects involving lawmakers, public works officials and contractors. The Independent Commission for Infrastructure (ICI) is investigating alleged irregularities in flood control projects.
At a Palace briefing, Mr. Go said the President’s decisive actions demonstrate the government’s resolve to fight corruption and strengthen investor confidence.
“The swiftness and decisiveness of the President show the resolve of the government to clean up corruption, which is good for the economy and builds confidence,” he said, citing the creation of the ICI to probe anomalous public works projects and the appointment of an Ombudsman “with gravitas” to lead the probe.
Mr. Go said the administration’s proactive response to the corruption probe sends a clear signal that the Philippines is “building a future-ready economy anchored on trust and sustainable growth.”
Mr. Go said the corruption controversy is a “short-term issue” that could yield long-term benefits by improving governance and ensuring more efficient public spending.
“This investigation will be good for the country in the long-term because it will address and correct the wrong practices,” he noted.
“The effect of this is that the budget, and we already see it now, will be more efficiently spent and allocated on more productive programs, which will benefit the country and our people,” he added.
Mr. Go said the business community, particularly foreign business chambers, has always flagged corruption and red tape as top concerns.
“This administration sees the fight against corruption and red tape as a core part of its economic strategy,” he said.
The Philippines ranked 114th out of 180 countries in Transparency International’s 2024 Corruption Perceptions Index, a position largely unchanged in recent years.
Josue Raphael J. Cortez, a diplomacy lecturer at De La Salle-College of St. Benilde’s School of Diplomacy and Governance, said the Philippine envoy to Washington’s remarks on corruption and investment reflect an accurate assessment of how political stability influences foreign investor confidence.
Mr. Romualdez’s statement is unlikely to harm Philippine-US relations, as such observations are widely recognized in discussions on foreign direct investment, Mr. Cortez said.
Instead, he said this could encourage the US to support structural reforms and transparency measures that align with its democratic values.
Meanwhile, a South Korean company involved in semiconductors and electronics is set to invest over $1 billion in the Philippines, Mr. Go said.
“We are now transmitting to the Office of the President the approval of the first beneficiary of the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act, which is an investment from a Korean company of over $1 billion,” he said during the same Palace briefing.
“The (Fiscal Incentives Review Board) will be transmitting this to the Office of the President this week.” — Chloe Mari A. Hufana
