Phl competitiveness projected to jump several notches this year

MANILA, Philippines - The Philippines’ ranking in the World Bank-International Finance Corp.’s (IFC) Doing Business Report to be released later this year can jump from 108th to 29th place, if reforms are made in four big impact indicators such as starting a business, registering property, getting credit and protecting investors, the National Competitiveness Council (NCC) said.

Speaking at the Ease of Doing Business Summit 2014 held yesterday, NCC private sector co-chairman Guillermo Luz said this will be possible if the Philippines would strive for reforms in the four big impact sectors.

In terms of starting a business, the reforms needed include reduction in number of days – from the current 35 to 6 – to secure permits from the Securities and Exchange Commission, local government unit, Social Security System, Bureau of Internal Revenue and Philippine Health Insurance Corp., lowering the number of steps from 15 to three, implementing an online business registration and considering removal of the minimum paid-in capital for firms.

For the registering property indicator, the NCC wants the number of steps and days to complete the process and the cost that comes with it to be reduced as well as for the registration process to be automated.

As for the getting credit indicator, reforms being pushed are making credit data on utilities available and undertaking a review of collateral and bankruptcy laws.

The NCC likewise wants a review of the Corporation Code of the Philippines to be conducted to be able to achieve gains in terms of the protecting investors indicator.

The Doing Business Report analyzes regulations that apply to the life cycle of a small and medium-sized business in different countries.

It ranks countries based on 10 indicators: Starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

In the latest edition of the report released in October last year which covered 189 economies, the Philippines was among the 10 economies which made the biggest improvement as its ranking jumped 30 notches.

Luz said that should the Philippines get to the 29th spot in the Doing Business Report to be released in October this year, the country would also see its standing in the Southeast Asian region improve to the fourth spot from sixth place out of the 10 countries.

He said getting to the 29th spot will be possible if other countries do not make significant improvements in the business environment.

As other countries are working to improve their business processes as well, he said a 30-notch jump in the country’s ranking this year may be more possible.

“I think 78 is possible for this year’s report,” he said.

The Philippines is aiming to get to the top third of the rankings by 2016.

In the future, Luz said the country would also want to be among the top three countries in the Southeast Asian region.