This year's survey by the Political and Economic Risk Consultancy showed perceptions of corruption improved sharply in China and Thailand and slightly in several other countries compared to their last poll in 2003.

Using a scale with zero the best possible grade and 10 the worst, PERC asked more than 1000 expatriate businessmen and women in the region to rate how bad they viewed the problem of corruption in the country where they are working, as well as in their home countries.

Singapore was voted the least corrupt country with a score of 0.50, although this was a slight deterioration from its grade of 0.38 last year.

Japan was at a distant second with 3.50, and Hong Kong was in third place with a score of 3.60.

Taiwan came in fourth with a grade of 6.10 and South Korea followed with

China, Malaysia, and Thailand were tied at sixth place with scores of 7.33, trailed by the Philippines at 8.33 and Vietnam at 8.67.

India, with a score of 8.90, and Indonesia, which got a grade of 9.25, rounded up the worst performers.

For comparison, the survey included the United States, which got a grade of 2.45 while Australia had 2.17.

"Perceptions have improved in the past year in the majority of Asian countries covered by our survey of expatriate businessmen conducted in January and February of this year," the Hong Kong-based risk consultancy said.

"Some of the biggest improvements has been registered in countries like China and Thailand, which have long had poor reputations, while perceptions in three of the four worst rated countries for corruption, Vietnam, India and Indonesia, are slightly better this year than last," it said.

China's score improved one point from last year, and Thailand's grade was better by 1.42 points.

Although the worst, Indonesia's grade was an improvement from last year's 9.33. India's grade improved from last year's 9.30 and Vietnam's rating bettered its 8.83 score in 2003.

"The Philippines was the only country ranking near the bottom of the list where the problem of corruption is seen to have intensified in the past year," the report said. Manila's score worsened by 0.66 points.

Malaysia's grade also sharply deteriorated from 6.00 to 7.33.

But PERC clarified this was largely due to the willingness of the government under Prime Minister Abdullah Badawi to admit that the problem of corruption exist, compared with the rule of former prime minister Mahathir Mohamad.

"It does not mean that corruption has actually increased this much in the past year but the latest grade is a correction from underestimates in earlier years," PERC said.

The consultancy held Malaysia as an example of a country where the perception grade has worsened but the problem of corruption is being addressed more decisively.

It took a different view of Thailand, whose perception rating has improved sharply "but the problem of corruption has not improved in fact and might even have deteriorated."

"Our guess is that expatriates working in Thailand know full well of improprieties that take place but these abuses are not seen to be hurting the business of expatriates.

"After all, Thailand is the best performing economy in Southeast Asia these days," it said.

PERC said this shows that perceptions of corruption are related to the performance of an economy.

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