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.

economic-freedom-of-the-world-2025-annual-report_1.pdf

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Source: Business World

Philippines falls in Global Attractiveness Index

The Philippines slipped two places to 62nd out of 146 countries in the latest edition of the Global Attractiveness Index (GAI) by The European House – Ambrosetti.

With an overall score of 34.1 out of 100, the country was categorized under “medium attractiveness.”

The index measures the attractiveness of countries using key performance indicators under four subindices: positioning, dynamicity, sustainability, and future orientation.

Source: Business World

10 Trends as Home Attainability Remains Constrained

ULI Asia Pacific has released its 2025 Asia Pacific Home Attainability Index, revealing persistent challenges to affordable or accessible housing across the region. The fourth edition of the report assesses 51 market segments across 41 major cities.

Home attainability in the context of this report means median home prices which are no more than five times median annual household income and median monthly rents which are no more than 30 percent on median monthly income.

“Four years of ULI analysis paint a consistent and concerning picture: attaining affordable and adequate housing remains out of reach for far too many across our dynamic region,” said Alan Beebe, CEO, ULI Asia Pacific. “While rental markets offer a crucial lifeline, the fundamental challenge of purchasing a home persists, particularly in major economic hubs. This year’s Index reinforces that solving this requires government policy, innovative financing, embracing new construction technologies, and practical public-private partnerships focused on delivering diverse housing options at scale.”

“Home attainability remains constrained across the region, despite income growth and price dips in some markets,” said Mark Cooper, Senior Director, Thought Leadership, ULI Asia Pacific and lead author of the report. “This year’s report underscores a deepening divide, with rental housing offering significantly more relief than home purchase, and major cities becoming increasingly exclusive. Hong Kong apartments are still the second most unattainable in the region.”

10 Trends: Asia Pacific’s Housing

1. Home attainability remains constrained across the region: Only seven market segments out of 51 offered home attainability to buyers—homes priced at five times median income or less—in 2024. This is the same number as in 2023. Furthermore, no city in the report scores below four for purchase attainability. Across such a large and diverse region, a crude average of segment attainability scores for 2024 and 2023 is more or less identical (2024: 11.68, 2023:12).

2. Major cities are the most expensive: Only three market segments in major cities across the region offer homes at or less than five times median income: Singapore HDB apartments and apartments in Melbourne and Kuala Lumpur. Singapore is the only capital city to offer attainable homes for purchase.

3. Rental housing is more attainable region-wide: rental homes are considerably more attainable than for-sale properties; 41 out of 51 market segments offer rental homes at below 30% of monthly income. The more expensive segments for rental tend to be in first tier cities in both developed and developing nations, although there are exceptions, such as apartments in Tokyo’s 23 Wards, also known as Tokyo Ku, where rents are only 17% of median income.

The drivers of housing attainability remain the same. Factors affecting demand include population growth, population age profile, household formation, urbanisation, immigration, income growth, the cost and availability of financing, and transaction costs. Factors affecting supply include government provision of housing for sale or rent, the availability and cost of land, the construction materials and labour costs, and the cost and availability of financing, planning regulations, and infrastructure development.

4. Hong Kong scores worst for home attainability: Falling property prices in Hong Kong have made apartments marginally more affordable, they were 23.4 times median annual household income in 2024, compared with 26.5 times in 2022. However, Hong Kong apartments are still the second most unattainable in the region. Meanwhile, average rents are 72% of median monthly income, up from 70% in 2022 and 69% in 2023, as rents have continued to rise.

5. China price drops have boosted attainability, but provided little comfort for buyers: China has seen prices fall in major cities in recent years, but they remain above 10 times household income in all cities covered in this report and above 20 times in Beijing, Shanghai and Shenzhen. Furthermore, the prospect of prices falling further has kept buyers out of the market.

6. Interest rate cuts have boosted attainability in some markets: Lower interest rates in markets including Australia, Korea and China have made buying a home more attainable. However, the interest rate outlook for the region and the world has become more uncertain in 2025, so the cost of borrowing may remain elevated in many markets. Furthermore, lower interest rates are a double-edged sword, as they also drive higher prices.

7. Government policy leads the way: While the private sector is responsible for delivering the bulk of housing in most markets, the single biggest driver of market conditions is government legislation and regulation. This means boosting housing attainability requires public-private partnerships.

8. The Affordability-Accessibility Divide: In developed markets, homes are unattainable because they are too expensive, however in larger developing markets such as India and Indonesia, there remains a shortage of basic housing for millions of people. The Indonesian government estimates that one-third of households do not have access to adequate housing. There, a public housebuilding programme has not been able to keep pace with population growth.

9. Multifamily Housing’s Untapped Potential: The multifamily residential sector is relatively undeveloped in the Asia Pacific region (except Japan), though growing in China and Australia. This report shows that rental housing is more attainable, thus boosting supply will improve attainability. Furthermore, renting remains very affordable in many markets, with rents less than 25% of monthly income. This suggests potential for the real estate industry to deliver more rental properties and the potential for boosted returns.

There is also increasing demand for related rental residential sectors, such as senior living, co-living, and student accommodation. These could provide additional opportunities for real estate investors and developers, which may contribute to overall housing attainability.

10. Tech’s Promise: Adoption of modular construction, 3D printing, and other proptech lags in housing development but holds significant potential to reduce costs and construction times in the future.

Generational Impact

There are also particular demographics in Tier I cities with greater challenges, particularly younger people and young families. In a city such as Hong Kong, where both rents and prices are high, it is difficult for younger people to save enough to buy a home. Meanwhile, in many cities, elderly people find housing just as unattainable as their younger fellow citizens. There is clearly potential for further investigation of the housing challenges which face different generations.

ULI HAI Report 2025_Finalised_9 July.pdf

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Source: Urban Land