Philippines "ease of doing business" improved, but trails behind some ASEAN countries - World Bank
The Philippines' ranking in the "ease of doing business" by World Bank has improved by 29 notches to 95th place this year, according to a World Bank report released on Thursday.
But despite a significant increase on its ranking, compared with its 10 other Southeast Asian neighbors, the Philippines, with a score of 62.8 was behind seven other countries - such as Singapore, which was at 2nd place or a score of 86.2 out of 190 countries included in the report.
Also surpassing the Philippines among its neighboring countries were Malaysia, ranked 12th with a score of 81.5; Thailand, 21st, 80.1; Brunei Darussalam, 66th, 70.1; Vietnam, 70th, 69.8; and Indonesia, 73rd, 69.6.
The Philippines was only ahead of Cambodia, which ranked 144th with a score of 53.8; Lao PDR, 154th, 50.8; and Myanmar, 165th, 46.8.
The Washington-based lending agency said in its "Doing Business 2020," it used a simple method to calculate which economies improved the ease of doing business score the most.
The report covered regulations affecting 12 areas of the life of a business. These include starting business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across border, enforcing contracts, resolving insolvency, employing workers, and contracting with the government.
But employing workers and contracting with the government indicator sets were not included in this year's ranking on the ease of doing business, said World Bank.
This year's report selected the economies that in 2018-19 implemented regulatory reforms making it easier to do business in three or more of the 10 topics included in this year's aggregate ease of doing business score.
The World Bank said 42 economies, including the Philippines, met the criterion.
Specifically for the Philippines, the report cited the improvement in starting a business, dealing with construction permits and protecting minority investors.
"The Philippines made starting a business easier by abolishing the minimum capital requirement for domestic companies," World Bank said.
In dealing with construction permits, it said this process was made easier in the Philippines by "improving coordination and streamlining the process for obtaining an occupancy certificate."
It also noted that Manila strengthened minority investor protections by requiring greater disclosure of transactions with interested parties and enhancing director liability for transactions with interested parties.
Overall, New Zealand ranked first with a score of 86.8 while Somalia was at the bottom with a score of 20.0. Japan was at 29th place, getting a score of 78.0 and China at 31st, with a score of 77.9.
Malacanang welcomed the "remarkable" improvement in the Philippine ranking in Doing Business 2020 report.
Presidential Communications Operations Secretary Martin Andanar noted that the Philippines was the third best improved among the countries covered by the report and got the "highest increase" among ASEAN-member states.
"The latest results of the World Bank's Doing Business 2020 report shows a strong vote of confidence towards President Rodrigo Roa Duterte's no-nonsense approach in wiping out red tape and removing opportunities for corruption," he said.
Andanar said the Palace attributes the improvement in the Philippine ranking from "broad regulatory reforms, such as the Ease of Doing Business Act" signed by Duterte last year.
"We expect even better results in the coming years as the government remains committed to give the Filipino people an easier and more comfortable life, thanks to the President's strong political will to undertake these landmark reforms," he said.
Andanar said the Palace also thanks all government line agencies, state-owned corporations, other branches of government, down to the local level, for "adamantly carrying out the President's directive." Celerina Monte/DMS
