Philippines Climbs in List of Business-friendly Economies
The Philippines tallied big gains in terms of being more business-friendly as permits and requirements have been relaxed, according to the World Bank.
The Philippines climbed to the 95th spot in the global lender's latest Ease of Doing Business report, improving from 124th place last year. The country's raw score improved to 62.8 from 57.68 previously, with the World Bank citing three game-changers for new businesses. The index compares the business climate across 190 economies in terms of starting a business. The list saw New Zealand, Singapore, Hong Kong, Denmark, and South Korea as the most business-friendly locations, little changed from 2018 results.
The report factored in changes implemented between May 2018 and May 2019, taking note which of these reforms made business transactions simpler. Quezon City was used as the benchmark for the Philippines. The World Bank said the removal of the minimum capital requirement for local firms made it easier for startups. Meanwhile, tighter rules that mandate the disclosure of transactions with interested parties and enhanced director liability have protected minority investors better, the World Bank said.
The latest report covers 10 areas affecting companies, with the Philippines faring relatively better than other states in terms of getting electricity (32nd), resolving insolvency (65th), protecting minority investors (72nd), dealing with construction permits (85th), and paying taxes (95th).
The country lags in terms of trading across borders (113th), registering property (120th), getting credit (132nd), enforcing contracts (152nd), and starting a business (171st). Two other metrics on employing workers and contracting with the government were not measured in the latest review.
World Bank President David Malpass said the latest Doing Business results bared that developing economies are catching up with developed nations, but noted that legal rights remain the weakest among low and middle-income areas.
“The target in the Philippine Development Plan for 2020 is to rank in the top 40 percent, which would be around rank 76,” Lopez said. In a separate statement, Finance Secretary Carlos Dominguez III said implementing the Personal Property Security Act to aid small-scale companies would boost the country's chances to rise in the Doing Business ranks.
Source: CNN Philippines