Philippines slips in competitiveness: 121st --> 126th

[explorer]

Philippines slips in competitiveness rank to 126 from 121

By Doris Dumlao
Inquirer
Last updated 02:39am (Mla time) 09/07/2006

The Philippines slipped in global competitiveness ranking to 126th this year from 121st in 2005, according to a survey of 175 countries by the World Bank.

The country failed to implement enough reforms to enhance its business climate since last year up to April 2006, and fell way behind Southeast Asian neighbors Thailand (18th), Malaysia (25th), Taiwan (47th) and Vietnam (104th). Only Indonesia got a worse rating of 135th, according to "Doing Business 2007: How to Reform," a joint research project of the World Bank and its private sector lending arm, International Finance Corp.

"The good news is that for this particular year, there were no regulations imposed that negatively affected the business climate," IFC country manager Vipul Bhagat said in a media briefing Wednesday.

"The bad news is that no positive reforms were done either and thus the country slipped in its ranking this year," Bhagat added.

The study, the fourth in a series of annual World Bank-IFC reports investigating regulations that enhance business activity and those that constrain it, looked at how countries performed in 10 areas: starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

The study showed that on a scale of one to 10, the Philippines scored only 3 in the index for legal rights protection and 3.3 in the index for investor protection.

The country was also outranked in the legal protection index by Malaysia, Indonesia, Thailand and Vietnam, which scored 8.0, 5.0, 5.0 and 4.0, respectively.

Malaysia, Thailand and Indonesia also scored higher in the investor protection index with respective ratings of 8.7, 6.0 and 5.3.

It was noted to be more cumbersome to start a business (taking 48 days), obtain a license to build a warehouse (197 days), register property (33 days) and enforce a contract (600 days) in the Philippines than in most of its peers across East Asia.

Based on the study, it would take 11 procedures to start a new business in the country compared to only five in Hong Kong, six in Singapore, eight in Taiwan and Thailand and nine in Malaysia.

The Philippines rated high relative to other East Asian economies only in two benchmarks -- ease in trading across borders and enforcement of commercial contracts.

The report showed that it takes 10 days to import in the Philippines and 18 to export, beaten only by Singapore, China and Taiwan.

But what was not included in the report was the significant progress made in fiscal reforms that, in turn, greatly reduced macroeconomic risks, said World Bank country director Joachim von Amsberg.

"Economic performance has been relatively strong which has increased investor confidence. This situation has created the breathing space to now focus on the microeconomic constraints to investment," Amsberg said.

"If the Philippines can effectively address the myriad macroeconomic constraints faced by investors, large and small, it can reach its potential for rapid development," he said.

[Elroi]

too much Red Tape...

[uls]

The Phils. has a reputation in the international business community for a number of years now---- that reputation is that the Phils. doesnt honor contracts and it changes rules in the middle of the game.

that's 1 reason why we are not exactly on top of anyone's list of places to do business.
------------------------------------------

Its discouraging to do business here.

When ur putting up a business and u have to transact with people in govt, they have this PERAHAN-NATIN-ITO mentality. They know ur spending money and they want a piece of the pie.

Locals accept it as part of the process. But when govt people do it to foreigners who are putting up businesses here, they basically tell the whole world what doing business in the Phils. is like. Word spreads fast in the international business community.

--------------------------------------------

We lost our competitiveness coz our leaders failed to make the Phils. attractive to capital.

the Phils. is just one country in a world of more that 150 countries thats competing for capital.

Top-dog decision-makers in offices in New York, London, Tokyo etc... they are asking themselves "which country in Asia will i set up shop?"

They look at Singapore, HK, China, Taiwan, Thailand, Malaysia, Philippines, Indonesia, Vietnam, etc....

And the results are in.

[mikmik316]

we are not competitive because we are a bunch of end users with little to no value added to products & services we produce...

Sobrang hina ng R&D dito kaya kung umalis ang mga multinational na negosyo dito e bokya tayo...

Yung mga magagaling na Pinoy nasa ibang bansa gumagawa ng R&D... kaya ang natitira dito e mga taong wais lang at mga sunod sunuran...

Pangit talaga na pinagmamalaki natin na ma-diskarte tayo kasi pati rules of fair play e dinidiskartehan lang... tsk tsk

[altec]

we are lucky to be in 126th and not even lower.

[CVT]

Yung mga magagaling na Pinoy nasa ibang bansa gumagawa ng R&D... kaya ang natitira dito e mga taong wais lang at mga sunod sunuran...

Hindi ako sumasang-ayon dito. Marami pa ring magagaling na Pilipino ang pumiling manatili sa Pilipinas dahil gusto nilang makatulong sa bansa, sa kanilang maliit na pamamaraan.

Masyadong mapanira at mapangliit na sabihing "ang mga natitira dito e mga taong wais lang at sunod sunuran...". Mali naman yata ito.

Ang R&D ay kailangan ng bansa,- walang tanong dito. Kailangan lang na ang ating pamahalaan ay magbigay ng magandang oportunidad sa ating mga kababayan na magkaroon ng pagkakataong mag-R&D.

Dapat ay maglatag sila ng magandang business climate sa mga investors para sila ay pumunta rito. Magagaling ang mga Pilipinong nandirito sa bansa,- bigyan mo sila ng magandang oportunidad sa Pilipinas, at siguradong bibigyan ka niya ng 'world-class' na resulta.

[rsnald]

The Philippines rated high relative to other East Asian economies only in two benchmarks -- ease in trading across borders and enforcement of commercial contracts.
The report showed that it takes 10 days to import in the Philippines and 18 to export, beaten only by Singapore, China and Taiwan.

ewan kung magandang observation ito...or this could also mean...
madaling mag import dahil nalalagyan at nadadaan sa ander-da-teybol transaction ang customs natin

had an experience with customs once... bumili ako ng isang maliit na gamit from the U.S., less than $100 yata yung value... ay sows! halos nadoble yung presyo dami ng binayan kong official and unofficial taxes... sangkatutak na yung kelangan pumirma para lang marelease yung binili ko. buset :rant:

[altec]

came from australia last week. Had dinner with a pinoy who is now an australian citizen and works for Australian customs. Kwento siya when she came back to visit her hometown a few months ago, pagdating sa customs, sabi ng customs dito na may item siya na dapat i hold for quarantine. So sabi ng balikbayan, o sige, hold mo, bigyan mo ako ng resibo para i claim ko after a few days. Sabi ng RP customs, mahohold ho ito, maaabala pa ho kayo mag claim. Sabi ng balikbayan, sige hold ninyo, ok lang sa akin. Basta bigyan mo ako ng claim stub. Sabi ulit ng taga RP customs, ok, pero ang daming documentation ho. Sagot ng balikbayan, nagtatrabaho ako sa Australian customs, so huwag mo na ako bigyan ng mga ek ek mo, pareho lang naman tayong industriya. Sa Australia, accomodation doesn't have to mean corruption. Ayon, pinalusot na lang din.

Yan, ang customs natin. Yan ang culture na natin.

[uls]

ewan kung magandang observation ito...or this could also mean...
madaling mag import dahil nalalagyan at nadadaan sa ander-da-teybol transaction ang customs natin

had an experience with customs once... bumili ako ng isang maliit na gamit from the U.S., less than $100 yata yung value... ay sows! halos nadoble yung presyo dami ng binayan kong official and unofficial taxes... sangkatutak na yung kelangan pumirma para lang marelease yung binili ko. buset :rant:

Nakakadiscourage diba?

So imagine if ur a foreigner who wants to do business here. And u have to transact with our nice govt people.

[altec]

Nakakadiscourage diba?

So imagine if ur a foreigner who wants to do business here. And u have to transact with our nice govt people.

That's why the customs brokerage business is flourishing. Anyone who succeeds in this type of business means they know how to deal the dirty side of our "nice govt people". In our case, we deal through a brokerage, who charges us their fee, which includes unofficial expenses they incur, yung mga hindi mo malagay sa official receipt.

Why is the philippines like that? I don't know, but it is. What do we do now to correct that? I also don't know. What I do know is that if you don't play the game, your business that needs to go through such different government agencies will not go anywhere.

[5Speed]

Being an OFW myself, I had my share of good and bad encounters with the customs over the years.....actually wala akong maalalang 'good things', sorry kung may taga customs dito or may kamag-anak or kaibigan or kakilala na nagtatrabaho doon, I am just being honest....well kung masasabi nating 'good things' yung mga humurous encounters where an officer is trying to insinuate something but failed miserably due to some quick witty answer, I am sorry but it still not a good thing in my book...

I remember way back in 1998 or 99 my employer wants to open an office in Manila because they are quite impressed with us Filipinos who are working with them...(there is around 10 of us at that time in different fields, performing quite well in each of our specialties....uhmmm I might say still, there is a rotton apple in a crate). They say we are very easy to communicate with, talented, hardworking, very easy to go along and very professional in business manner....

One of our boss went in our country for a feasible area to open a business, talk to some people, interviewed some whose in line with our trade and everything went well, until they started talking about procedures, legalities, paperworks with regards to our governments etc....suddenly, all hell broke loose, everyone want a share of the pie, as big as they can and with their insatiable appetite, our employer, after furthermore study, just back-off and look elsewhere.....They said if they do business in the Philippines, they will already loose millions before they even set foot to our land due to a lot of 'special transactions' and 'special negotations' aside from some 'special accomodations' to speed things up which they say is not fast enough for their timetable.....They say they are not used to these kind of things and rather invest somewhere else....

Now my company is feeding thousands of families whom some members they employed somewhere in China...develop infrastractures, help their local economy.... And they are doing the same in other parts of asia.... except in the Philippines.....

just imagine if some of my countrymen are not so greedy......maybe our company can help our economy a little bit.....

[uls]

Ganito talaga dito... once u let people know ur gonna spending money on a project, they will want a piece of the pie.

Ang tingin kasi mga mga govt people sa mga businessmen (or potential investors) is Walking Wallet.

[Autobeat]

The country failed to implement enough reforms to enhance its business climate since last year up to April 2006, and fell way behind Southeast Asian neighbors Thailand (18th), Malaysia (25th), Taiwan (47th) and Vietnam (104th). Only Indonesia got a worse rating of 135th,

Grabe. Nalampasan na tayo, pati ng Vietnam.

[mikmik316]

Ang R&D ay kailangan ng bansa,- walang tanong dito. Kailangan lang na ang ating pamahalaan ay magbigay ng magandang oportunidad sa ating mga kababayan na magkaroon ng pagkakataong mag-R&D.

Siguro naman sa matagal mo ng experience sa Pinas, you really CANNOT rely that the government will help you in any business endeavor... lalo na't R&D to... what's missing is that people do not innovate enough... buti pa Taiwan at China they have perfected the art of copying technology & have them design, build, market products... e dito nga sa Pinas replica hummers (except yung AMC) nde nga maganda build quality e... where's the innovation in that? kokopya na nga lang nga palpak pa rin... tsk tsk

[CVT]

Being an OFW myself, I had my share of good and bad encounters with the customs over the years.....actually wala akong maalalang 'good things', sorry kung may taga customs dito or may kamag-anak or kaibigan or kakilala na nagtatrabaho doon, I am just being honest....well kung masasabi nating 'good things' yung mga humurous encounters where an officer is trying to insinuate something but failed miserably due to some quick witty answer, I am sorry but it still not a good thing in my book...

I remember way back in 1998 or 99 my employer wants to open an office in Manila because they are quite impressed with us Filipinos who are working with them...(there is around 10 of us at that time in different fields, performing quite well in each of our specialties....uhmmm I might say still, there is a rotton apple in a crate). They say we are very easy to communicate with, talented, hardworking, very easy to go along and very professional in business manner....

One of our boss went in our country for a feasible area to open a business, talk to some people, interviewed some whose in line with our trade and everything went well, until they started talking about procedures, legalities, paperworks with regards to our governments etc....suddenly, all hell broke loose, everyone want a share of the pie, as big as they can and with their insatiable appetite, our employer, after furthermore study, just back-off and look elsewhere.....They said if they do business in the Philippines, they will already loose millions before they even set foot to our land due to a lot of 'special transactions' and 'special negotations' aside from some 'special accomodations' to speed things up which they say is not fast enough for their timetable.....They say they are not used to these kind of things and rather invest somewhere else....

Now my company is feeding thousands of families whom some members they employed somewhere in China...develop infrastractures, help their local economy.... And they are doing the same in other parts of asia.... except in the Philippines.....

just imagine if some of my countrymen are not so greedy......maybe our company can help our economy a little bit.....

Nice one 5Speed!

Sana ang lahat ng sangay ng gobyerno ay tigilan na ang paggawa ng easy money.

Our government system should give all the incentives to the all the investors to entice them to place and maintain businesses in this country,- tax holidays, telecommunication infrastructures, roads, buildings, low-cost electricity etc. Labor and professional talents are not hard to find here.

And then, if they are really keen on making money out of these, and they surely have the money to start business,- they can corner food and distribution, transport services, industrial site maintenance and security, housing development, etc. in the various industrial parks.

It is not easy money and they can proudly say they earned it.

But most importantly, we have jobs for the Filipinos and a lot of families have brighter futures.

[Negus]

Oh, kaya pala yung neighbor namin na nasa customs ay may lexus, landcruiser and lanevo.

Pero ang pinagtataka ko, yung bahay niya punong-puno ng security devices like cameras and alarms. auto-swing na gate at ang tataas ng bakod. puro barb-wire pa. sabi ng ibang neighbor namin nakakatanggap daw ng death threats yung pamilya.....tsk tsk.