Indonesia has the most corrupt economy in Asia, according to a survey of 1,000 expatriate business executives.

The survey, conducted by the Hong Kong-based Political and Economic Risk Consultancy (PERC), said Indonesia had achieved its worst score since the study was first carried out in 1995.

"It is hard to believe that the problem of corruption in Indonesia could grow worse, but that is what is happening. The entire national legal system is in shambles, so the courts do not offer much protection," the survey said.

Singapore, Japan and Hong Kong were awarded the distinction of having the least corrupt economies in Asia, but PERC said corruption remains high in the rest of the region.

The survey, which covered 12 countries, said corruption could become difficult to stop as Asian governments and companies cite the collapse of US energy giant Enron Corp as an excuse to defy demands from the West for greater transparency.

Singapore was for the second year running perceived as being the least corrupt of the 12 Asian economies covered, followed by Japan and Hong Kong. The three were the only economies to have above-average scores.

"With the exception of a couple of countries in Asia, the problem of corruption remains far too high for comfort," the survey said.

"What is particularly interesting is that in almost every country the range of grades was very narrow. There was a broad consensus on the magnitude of corruption as a problem for business."

On a scale of one to ten, with one being the best possible score, Singapore was graded 0.9, followed by Japan (3.25), Hong Kong (3.33), Malaysia (5.71), South Korea (5.75), Taiwan (5.83), China (7), the Philippines (8), Vietnam (8.25), India (9.17), and Indonesia (9.92).

"Of the countries covered here, only Singapore really stands out as having a reputation that matches or even surpasses that of developed Western economies like the US, the UK and Australia," the survey said.

Poor governance

PERC said the problem in Malaysia "has been more one of poor corporate governance than outright corruption".

It said there had been a "marked improvement" in the Philippines after President Gloria Arroyo took over from Joseph Estrada last year, but the score was still well below the average.

Asia could defy Western pressure for reforms by pointing out the deficiencies of corporate America, as seen in the Enron bankruptcy case. "The US is certainly not going to stop pressuring Asian governments to adopt certain standards and practices, but if the US starts being viewed like an emperor with no clothes telling everyone else how to dress, this could be deeply resented by those coming under this pressure," the report said.

Indonesia was in 2001 ranked the fourth most corrupt country in the world, by independent corruption watchdog Transparency International.

Transparency International since 1995 has been issuing an annual Corruption Perceptions Index (CPI). On the CPI scale, 10 indicates a perfectly clean country, whereas 0 refers to a country where business transactions are entirely penetrated by corruption involving immense sums in kickbacks, extortion and fraud.

Indonesia in 2001 scored 1.9, coming in ahead of Uganda, Nigeria and Bangladesh.

Graft at all levels and improper business deals flourished during ex-president Suharto's 32-years in power. The problem persists, despite the resignation of Suharto in May 1998.

Analysts say corruption remains rife in virtually all major political parties, government departments, conglomerates and the courts. (GVNN)