EDITORIAL - Lower half

From 47 days, it now takes an average of just 22 days to start a business in the Indonesian capital Jakarta. Last year Brunei also implemented six key reforms, mainly in its energy sector, and reduced the number of days for starting a business from 56 to 35.

Indonesia and Brunei are among the top 10 improvers in global rankings in the World Bank Group-International Finance Corp.’s latest annual report on ease of doing business. Among the top 10 globally, four economies are in East Asia and the Pacific: top ranked New Zealand, second placer Singapore, Hong Kong (fourth) and South Korea (fifth).

The World Bank-IFC noted improvements in the Philippines, particularly in transparency in building regulations and in the introduction of an online system for filing and paying health contributions. The government has also allowed online corporate income tax and VAT returns to be completed offline. But it still takes an average of 28 days to start a business in the Philippines – lower than the global average of 21 days. The World Bank also noted continuing challenges in enforcing contracts and protecting minority investors.

Despite improving by four notches in its ranking, the Philippines remains in the lower half among the 190 economies covered by the study. At 99th place this year, the Philippines was ahead only of Cambodia, Laos and Myanmar among the Southeast Asian states.

President Duterte had included reducing red tape among his priorities when he assumed power. He continues to remind all government agencies that he wants processing time for obtaining ordinary public documents reduced to no more than three working days. This is still a work in progress, and there is resistance in local government units including barangays, which are among the worst designers of red tape, either because of corruption or plain inefficiency.

The World Bank-IFC study showed the country slipping in terms of starting a business, getting electricity, resolving insolvency, registering property and trading across borders. President Duterte’s promise to eliminate red tape, level the playing field and create a more business-friendly environment has been among the most applauded in his agenda. He must lean harder on all agencies and units of government to ensure the fulfillment of his promise.