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Philippines leaps to 95th spot in Ease of Doing Business
MANILA, Philippines — The Philippines reclaimed its highest ranking in the World Bank’s Ease of Doing Business (EODB) report, jumping a record 29 notches this year to rank 95th out of 190 economies across the globe.
In the previous EODB report, the Philippines was at 124th place. Its overall score went up to 62.8 this year from 57.68 last year.
Trade Secretary Ramon Lopez said the vast improvement in the country’s ranking was triggered by higher scores in the following areas: getting credit, protecting minority investors and dealing with construction permits.
The country improved its ranking under the getting credit indicator from 184th to 132nd; protecting minority investors from 132nd to 72nd; and dealing with construction permits from 94th to 85th.
Lopez said the last time the Philippines ranked 95th, the highest spot the country has held so far, was in 2014.
“This EODB 2020 cycle increase remains the highest recorded improvement of the country since 2010,” he added.
In its report, the World Bank emphasized that the results of this year’s EODB showed that economies were active in launching reforms to make doing business easier for their private sector partners.
The report said governments of 115 economies around the world initiated 294 reforms over the past year.
“The Philippines was cited by the World Bank as one of 42 economies which implemented regulatory reforms which resulted in significant improvements in EODB scores,” Lopez said.
The DTI said 53 Philippine reforms were credited by the World Bank in the latest EODB report.
Lopez said the country is aiming to further improve its ranking in next year’s EODB report, particularly targeting to rank around 70th.
The trade chief expressed optimism in further growing the country’s ranking in future editions of the report, as the country looks to implement more reforms.
“While not all reforms were accepted by the World Bank in this cycle, we are counting on the newly established Anti Red Tape Authority (ARTA) to ensure that the agencies continue the EODB reforms already initiated. These reforms must create a positive impact on our stakeholders,” he added.
The Department of Finance (DOF), meanwhile, said it is confident the Philippines may rank even higher in the next EODB report, especially with the anticipated implementation of a law which will facilitate lending to micro, small and medium enterprises (MSMEs).
In a statement, Finance Secretary Carlos Dominguez said the enactment of Republic Act 11057 or the Personal Property Security Act (PPSA) would help propel the Philippines to a higher ranking in the business index for 2021.
“With the PPSA in place, MSMEs can register their movable assets, such as inventory with the Land Registration Authority (LRA) and use those assets as collateral in accessing formal sources of financing,” Dominguez said. “This is among the reforms we are pursuing to further improve our business climate and empower small entrepreneurs.”
Signed by President Duterte in August last year, RA 11057 aims to increase access to credit, particularly for MSMEs, farmers and fisherfolk, by establishing a unified and modern legal framework for securing obligations with personal property.
Under the law, these sectors will be allowed to secure loans from banks using non-traditional collateral, such as account receivables, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment as well as intellectual property rights.
The EODB report ranks economies based on the ease of doing business by looking at the following: starting a business; dealing with construction permits; getting electricity; registering property; getting credit; protecting minority investors; paying taxes; trading across borders; enforcing contracts; and resolving insolvency.
“Governments can foster market-oriented development and broad-based growth by creating rules that help businesses launch, hire, and expand,” World Bank Group president David Malpass said.
“Removing barriers facing entrepreneurs generates better jobs, more tax revenues, and higher incomes, all of which are necessary to reduce poverty and raise living standards,” he added.
The10 economies where business climate improved the most were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria, the study found. China and Togo appear among the top 10 for the second consecutive year,
In addition, the 10 economies scoring the highest on the ease of doing business rankings were New Zealand, Singapore, Hong Kong SAR China, Denmark, Republic of Korea, United States, Georgia, United Kingdom, Norway and Sweden.
The World Bank said the top performers typically had online business incorporation processes, electronic tax filing platforms, and online procedures for property transfers.
Source: https://www.philstar.com/business/2019/10/25/1963055/philippines-leaps-95th-spot-ease-doing-business#wzjfwRgYslG9cUEO.99