Philippines declines a spot in economic freedom index

The Philippines slipped one spot in a global index on economic freedom, despite improvements in some areas, according to the Canada-based think tank Fraser Institute.

The country ranked 62^nd out of 165 economies in conservative think tank’s Economic Freedom of the World report, which uses 2023 data. In the previous year’s index, the Philippines ranked 61^st place.

This was the Philippines’ lowest placement in the index in two years, or since it ranked 68^th in 2021.

Despite the lower ranking, the country’s score inched up to 7.05 out of 10 in 2023 from 7.01 in 2022.

Among Asia-Pacific jurisdictions, the Philippines lagged behind Hong Kong (8.55), Singapore (8.50), New Zealand (8.33), Australia (8.03), Taiwan (8.03), Japan (7.83), Malaysia (7.56), South Korea (7.53), Thailand (7.10), and Brunei Darussalam (7.09).

However, the Philippines was ahead of Indonesia (6.96), Mongolia (6.83), Cambodia (6.79), Vietnam (6.21), China (6.13), Papua New Guinea (6.09), Fiji (6.08), Timor-Leste (5.97), Laos (5.65), and Myanmar (4.46).

The index measures the degree to which citizens are allowed to make their own economic choices through five areas: size of government, legal system and property rights, sound money, freedom to trade internationally, and regulation.

The Philippines had its highest score in the sound money category with 9.01, ranking 34^th out of the 165 countries, slightly lower than its previous score of 9.04.

The country’s score in size of government went up to 7.88 from 7.77 previously. Its current ranking was at 21^st place from 26^th previously.

Manila’s score in regulation also went up to 6.65 (64^th) from 6.55 (67^th) previously.

However, the country yet again performed worst in the legal system and property rights area with a score of 4.57, ranking 109^th. Its score slightly improved from 4.55 previously.

Meanwhile, its score in freedom to trade internationally stood at 7.15, ranking 86^th from 87^th previously.

Foundation for Economic Freedom President Calixto V. Chikiamco said that the Philippines continues to underperform in the areas of legal system and property rights and trade freedom.

“Particularly in agricultural trade. We are still protecting our agricultural sector with quotas, high tariffs, and other forms of restrictions,” he said in a Viber message.

Meanwhile, Mr. Chikiamco said that the previous administration’s unilateral cancellation of the contracts with the private water concessionaires and refusal to abide by the decision of arbitration proceedings have impacted the country’s overall ranking.

“That and other instances where contracts aren’t honored cause low ratings of the country [in legal system and property rights],” he added.

However, Mr. Chikiamco said that the slight dip in the country’s ranking may also be attributed to improvements in other countries.

“The Philippines can fare better by dismantling agricultural protectionism, reforming an inefficient and corrupt judicial system, removing the Filipino First and Filipino Only provisions in the Constitution, and forging more free trade agreements with more economies,” he added.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the results of the index suggest that the Philippines is making progress, but “other economies are reforming faster and more comprehensively.”

“We continue to lag in critical areas like rule of law, regulatory quality, judicial independence, and most especially corruption control, which weigh down its overall ranking,” he said in a Viber message.

To improve, he said that there is a need for the Philippines to strengthen its institutional frameworks.

“It must also enforce property rights, simplify regulations, and promote a more transparent and predictable policy environment to boost investor confidence and economic dynamism,” Mr. Rivera said.

According to the Fraser Institute, economic freedom has been declining since the pandemic.

“Global economic freedom peaked in 2019 but has declined in each of the four years since then, which hasn’t happened since we began measuring economic freedom more than 25 years ago,” Matthew Mitchell, a senior fellow at the Fraser Institute, said in the report.

Hong Kong topped the latest index, followed by Singapore, New Zealand, Switzerland, the United States, Ireland, Australia and Taiwan (tied for 7^th), Denmark, and the Netherlands.

However, the Fraser Institute expects US President Donald J. Trump’s tariffs to further depress US economic freedom.

“When countries move to restrict trade freedom, other areas of economic freedom, such as size of government, sound money, and regulatory freedom, often soon follow,” it added.

Meanwhile, the lowest scoring economies on the index were Venezuela, Zimbabwe, Sudan, Algeria, Iran, Myanmar, Argentina, Syria, Libya, and Chad.

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Source: Business World

PH firms less upbeat amid tariff worries

Business sentiment fell in the second quarter, the Bangko Sentral ng Pilipinas (BSP) reported late on Friday, primarily due to worries over unilateral tariffs ordered by US President Donald Trump.

The overall confidence index (CI) in the BSP’s latest Business Expectations Survey dropped to 28.8 percent from 31.2 percent three months earlier.

The primary concern raised by survey respondents, the BSP said, “was the potential economic effects of a 17-percent reciprocal tariff on Philippine exports to the US.”

“Although the higher tariff rate has been paused for 90 days and reverted to 10 percent, businesses still view this as a sign of rising global trade uncertainty,” it added.

“Businesses also expect fewer clients and orders in Q2 2025 due to the expected slowdown in business activity after the May midterm elections and the sugar off-milling season,” the BSP continued.

Sentiment was also lower with regard to the following quarter and the next 12 months, with the CIs for the two periods falling to 39.3 percent and 51.0 percent, respectively, from 45.4 percent and 56.4 percent.

For the third quarter, respondents cited global trade tensions that may be triggered by the US tariffs and also said that demand could drop due to the rainy season.

The more cautious year-ahead outlook, meanwhile, was attributed to the above factors and “expectations of fewer clients and orders due to expiring contracts and softer market conditions...”

Second-quarter sentiment was more upbeat among construction (38.2 percent from 35.8 percent), but declined for services (31.7 percent from 35.9 percent), wholesale and retail (31.8 percent from 34.1 percent), and industry (17.9 percent from 18.3 percent) sectors.

Anticipated projects during the summer lifted the construction sector outlook, the BSP said.

For the wholesale and retail trade and services sectors, the lower optimism was said to be “primarily due to concerns over US tariffs.”

“Additionally, weaker demand from rental contract expirations and client losses to competitors, further weighed on their sentiment,” the central bank added.

As for the next quarter, construction and services firms were less optimistic. The industry sector was more upbeat, meanwhile, while wholesale and retail trade sentiment was little changed.

Over the next 12 months, long-term confidence dipped in most sectors, with construction the exception.

Companies said that cash positions and credit access would remain tight in the second quarter while the hiring and expansion outlooks for the third quarter and the next 12 months remained positive but were lower compared to three months earlier. 

The peso is expected to strengthen against the dollar over all three periods, averaging P57.09:$1, P57.12 and P57.14, respectively, during the second quarter, third quarter and the next 12 months.

Inflation could rise due to election-related spending, US tariffs, fuel prices, agricultural losses due to bad weather and supply constraints, among other factors, but expectations remained within the government’s 2.0- to 4.0-percent target.

“Within-target inflation supports investments and job creation,” the BSP said.

Source: Manila Times

Results-as-a-Service: The next evolution in business

We are entering an era where instant results are no longer a luxury but a necessity. Businesses and consumers alike demand speed, efficiency, and guaranteed outcomes, leading to a fundamental shift in how services are delivered. Where Software-as-a-service (SaaS) revolutionized software access and Infrastructure-as-a-service (IaaS) and Platform-as-a-service (PaaS) streamlined IT operations, the next evolution is here: Results-as-a-service (RaaS).

Unlike traditional service models that provide tools and infrastructure, RaaS is built entirely around delivering measurable and guaranteed outcomes. Instead of paying for subscriptions, software, or support with no guaranteed success, companies now pay only for results — whether that's qualified leads, cybersecurity protection, AI-driven insights or business growth. This shift is redefining industries, ensuring that businesses invest in performance-driven solutions rather than uncertain processes.

At its core, RaaS is outcome-based. Businesses no longer need to invest in tools, technology or expertise; instead, they partner with providers who guarantee specific results. This model creates an alignment of incentives, where service providers are as committed to success as their clients — an answer to one's skin in the game.

Imagine RaaS happening in key business areas, such as sales and marketing, cybersecurity, and AI-powered decision-making. For the first one, traditional agencies charge for campaigns regardless of performance. In contrast, RaaS marketing models focus on delivering actual sales or leads, ensuring companies only pay for tangible revenue growth.

For cybersecurity, instead of purchasing software and hiring IT teams, businesses can opt for RaaS-based cybersecurity, where they only pay if threats are prevented or resolved. Finally, companies can leverage AI-driven insights without buying expensive software. They simply pay for actionable recommendations and successful implementations. Companies are increasingly getting into this model.

Scorpion, a marketing and lead generation RaaS provider, offers digital marketing for businesses in law, health care and home services. Instead of paying for ad placements or marketing tools, businesses pay based on the actual leads and revenue generated.

DoNotPay offers AI-powered legal services that help users dispute parking tickets, cancel subscriptions and resolve small claims cases. Instead of charging for software access, users pay only when they successfully resolve a case, making it a prime example of legal RaaS. Mobavenue, an AdTech company focusing on acquiring relevant users through acquisition or retargeting, only charges per successful app download, for example.

The adoption of RaaS brings several significant benefits for businesses. One of the primary advantages is cost efficiency; by paying only for results rather than investing in tools or services upfront, organizations can allocate their resources more effectively.

This model allows companies to concentrate on their core competencies while outsourcing non-core functions to specialized providers, enhancing their overall focus. Additionally, RaaS facilitates scalability, enabling businesses to expand their operations without the burden of substantial upfront investments in technology or personnel.

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However, while the benefits of RaaS are compelling, organizations must also navigate potential challenges. One concern is the dependency on external providers for critical functions, which can create vulnerabilities if those partnerships falter. Quality control is another important consideration; ensuring that service providers consistently meet agreed-upon outcomes necessitates robust oversight mechanisms. Additionally, sharing sensitive data with external partners raises significant concerns regarding privacy and security.

As industries continue to evolve toward RaaS models, both businesses and employees must embrace this transformation. The emphasis on measurable outcomes over traditional service models represents a substantial shift in how success is defined in the marketplace.

The rise of RaaS signifies a fundamental change in business operations — one that prioritizes results over processes. As organizations navigate this new landscape, they must remain agile and innovative while aligning their strategies with the principles of performance-driven success. Ultimately, the future belongs to those who can adapt to this new paradigm and leverage it for sustainable growth and competitive advantage.

As RaaS gains momentum, employees must adapt or risk obsolescence. This model shifts job roles from task execution to strategic thinking and results-driven contributions. Those who thrive in a RaaS-driven economy will adopt a performance mindset, develop versatile skill sets, and commit to lifelong learning, given the need to stay ahead of industry trends and emerging technologies.

The transition to RaaS marks a new era in business — one where success is measured not by tools or processes but by tangible, real-world impact. As industries shift toward this model, both businesses and employees must embrace the change, innovate and align themselves with the future of results-based success.

Source: Manila Times