The Philippines' business improvement has scope for improvements based on the results of the World Bank's inaugural Business Ready (B-Ready) report.
The country's scores across the three pillars and 10 topics covered by the report ranged as high as the first, or top, quintile and as low as the fifth.
Overall, the B-Ready report assesses a country's "business environment by focusing on the regulatory framework and the provision of related public services directed at firms and markets, as well as the efficiency with which firms can comply with regulations and access public services," the World Bank said.
The 10 topics, meanwhile, "correspond to various stages of the life cycle of a firm and its participation in the market while opening, operating (or expanding) and closing (or reorganizing) a business."
Economies in the top quintile "demonstrate the highest performance," the World Bank said, while those in the second "have above-average scores ... but also show potential for improvements."
Third quintile members, meanwhile, "exhibit a mix of strengths and weaknesses," those in the fourth "grapple with a challenging business environment," and the bottom quintile comprise economies that "face significant challenges."
The Anti-Red Tape Authority (ARTA) said it welcomed the Philippines' "inclusion in the top 40 percent." The report, however, did not present an overall ranking of the 50 economies studied.
The World Bank instead divided countries into five equal groupings, or quintiles, based on their scores in terms of the three pillars and topics.
The Philippines posted its highest score of 70.68, in a scale of zero to 100, in the regulatory framework pillar, enough to put it in the second quintile or 16th out of the 50 economies.
It was in the middle of the pack, or the third quintile, in the public services pillar with a score of 50.80 for 24th.
The country was 36th in terms of operational efficiency, scoring 57.95, which placed it in the fourth quintile.
"Economies of varying income levels can adopt strong regulatory frameworks," the World Bank said, noting that while high-income countries dominated this pillar (Hungary was 1st), it also included a lower-middle-income economy such as the Philippines.
As for public services, "high-income economies tend to provide higher quality public services to support businesses, but all income levels are represented across top quintiles," it added.
Estonia topped this category.
With regard to the third pillar, where Singapore came first, "economies across all income levels can facilitate operational efficiency for firms."
By topic, meanwhile, the Philippines was in the first quintile (6th) in terms of labor, in the second with regard to international trade (17th); and in the bottom fifth in terms of business entry (42nd).
It was in the third quintile for the remaining seven topics: business location (30th), utility services (23rd), financial services (29th), taxation (22nd), dispute resolution (21st), market competition (28th) and business insolvency (29th).
The ARTA said that the Philippines' 16th place in the regulatory framework pillar underscored progress in improving the country's business environment.
This, it added, showed the government's success in "establishing clear and effective rules and regulations that support business operations from startup to closure."
As for the public services and operational showings, the ARTA said that it acknowledged the "need for further improvement."
With regard to the topic results, it said that the Philippines posted a "strong performance" in the areas of labor, international trade and utility services.
"It highlights significant advancements made in improving labor conditions, digitalizing trade processes and providing transparent utility services, it added.
The key areas for improvement, meanwhile, were said to be business entry, business location, market competition and business insolvency.
"ARTA is confident that the country's ranking will continue to improve with the full implementation of the government's efforts that are designed to enhance the delivery of government services," the Office of the President-attached agency said.
"We recognize the need for a whole-of-nation approach that underscores the significance of coordinated and harmonized alignment of relevant service delivery from the government to the stakeholders."
The B-Ready report, it also said, "may not yet fully capture the impact of the government's recent initiatives, [but] we are optimistic about the continued improvements in the country's business environment moving forward."
The World Bank said that the B-Ready report was still being refined in terms of process and methodology. Next year will see coverage expand to 112 economies, while the 2026 list will grow to 184.
Source: Manila Times
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