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.
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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.

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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.

[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:

[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.

[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

[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.