6. STATISTICS AND INFORMATION

The statistics and information given in the previous section about numbers of cases of insolvency are important. They should be a valuable indicator of economic trends (both in the wider economy and industry based) and are relevant to ascertaining the impact of commercial practices on different sections of the commercial community. Statistics can also be a helpful guide in determining the possible need for reform.
The ADB report noted that very little information and statistics were available in many of the RETA economies. In part, this could be due to the fact that new and reformed insolvency procedures and practices had only been recently introduced into some of the RETA economies. It was also evident that this might also explain the surprisingly low incidence of cases of formal insolvency.
There was also an alarming absence of knowledge and information concerning insolvency generally and, in particular, the application and operation of both formal and informal rescue and workout practices.

6.1 Evaluation of the statistical information in the five economies
The statistical information has undoubtedly improved (at least in some areas, notably the structured informal area) but the quality of the statistical and other information falls considerably short of what might be expected and required for useful analysis. Bare numbers are helpful. However (and even though it cannot be expected that the identity of the corporations and their precise detail dealt with under informal processes should be divulged), there is an absence of relevant, non-invasive information such as industry type, overall level of assets/liabilities, causes of financial difficulty/insolvency, and the nature and expected results of rescue or reconstruction plans.
On another level, informed opinions and comments on the operation of both the formal and informal processes are disappointingly scarce. There is very little legal, accounting, commercial or academic writing on the subject. In Malaysia the detailed reports published by Danaharta of its activities are helpful. In the Philippines a considerable number of published writings have been generated in response to proposals for the reform of the reorganisation process by the SEC. This type of 'open' information is extremely valuable in making any assessment of the effect and in the critical evaluation of both formal and informal processes.
6.2 Suggestions for improvement
With the exception of Korea, all the local consultants agree that insolvency statistical and other related information systems must be improved. A summary of their views is as follows:
Thailand: A system has been established through the Legal Execution Department of the Ministry of justice to gather information concerning statistics of incidence and results of formal insolvency cases. Searches can be quickly made. However, the system does not extend to gathering information concerning values of assets and liabilities, areas of business, causes of financial failure and so forth. This information would be of considerable benefit.
Malaysia: It is suggested that statistics might be best maintained by the Central Bank, since this would cover statistics of formal and informal cases and also banks are in a position to maintain their own statistics.
Philippines: The Philippines consultant proposes that the Investment and Research Department of the SEC should continue its compilation of petitions filed with the SEC. If there is a reversion to court jurisdiction in insolvency cases, the relevant courts should compile and forward information and statistics to the Supreme Court.
Indonesia: The level of available information is very small. An 'on-line' system to provide access to bankruptcy decisions, together with information on the financial position of the debtor, causes of insolvency or financial difficulty and areas of business, is required.

6.3 Conclusions and proposals
-The process of gathering and recording statistical insolvency information should be encouraged in a number of the economies. This information should not be limited to formal 'public' cases of insolvency but should be extended to informal processes, particularly those that are under the guidance of central bank or other government agencies.
-The need for 'anonymity' in informal processes can and should be respected, but general information on aggregate numbers, assets and liabilities, industries and causes of financial difficulty might be easily provided in the form of an annual report.
-Banks and other financial institutions might also be encouraged to provide relevant broad and anonymous data to the same effect, since they will be involved in many more 'private' informal workouts.
-There is a need for reports, writings, opinions and critical analyses of the operation of the insolvency law system.