EASE OF DOING BUSINESS

Moderator: Guillermo Luz

National Competitiveness Council
28 November 2016
The goal of the New Industrial Policy is to create globally competitive,
value adding, and innovative industries that would generate more and
productive jobs and reduce poverty towards shared prosperity for all.

Chemicals IT BPM

Aerospace
Automotive
parts

Electronics

Shipbuilding Garments

agribusiness Furniture
Breakout Session Goal
• For each area, identify the most binding constraints preventing
industry growth and recommend policy measures to resolve these
constraints that would produce the biggest bang & lead to highly
significant improvement in the overall business and investment
environment
• Competitiveness and innovation
• Labor & HRD
• Physical infrastructure
• Ease of doing business
• MSME Development & inclusive business
• Incentives & other forms of government support
• International Trade & FTAs
 Current State of PH
Competitiveness and Ease of
Doing Business
Global Competitiveness Report Card
GOAL CHANGE
REPORT 2010/2011 2015/2016 (Top 3rd) 4 to 6 yrs

1.Doing Business Report (IFC)* 148/183 99/189 63 ↑ 49

2. Economic Freedom Index (HF)* 115/179 70/178 59 ↑ 45
3. Corruption Perceptions Index (TI) 134/178 95/175 58 ↑ 39
4. Global Competitiveness Report (WEF)* 85/139 57/138 47 ↑ 28
5. Global Enabling Trade Index (WEF) 92/125 64/138 46 ↑ 28
6. Travel and Tourism Report (WEF) 94/139 74/141 46 ↑ 20
7. WIPO- Global Innovation Index (WIPO)* 91/125 74/128 47 ↑ 17
8. Global Information Technology Report (WEF)* 86/138 77/139 46 ↑ 9
9. E-Government Index (UN)* 78/184 71/193 64 ↑ 7
10. Fragile States Index (FFP) * ’ ** 50/177 54/178 118 ↑ 4
11. Global Gender Gap Report (WEF)* 9/142 7/145 47 ↑ 2
12. World Competitiveness Report (IMD)* 41/59 42/60 20 ↓ 1
13. Logistics Performance Index (WB)* 44/155 71/160 53 ↓ 27
REACHED THE TOP THIRD LATEST PERFORMANCE UPGRADE DOWNGRADE

*with 2016 Results, **reverse ranking (1 as worst)

 GLOBAL COMPETITIVENESS REPORT
How far are we from the best? ( 2016 Rankings)
Best in the World
1 2 3 57
Out of 138
Switzerland Singapore United States economies

Best in ASEAN
2 25 34
Singapore Malaysia Thailand
 PHILIPPINE RANKINGS
PILLARS (2010-2016)
2016 2015 2014 2013 2012 2011 2010 Change Change
PILLARS (out of 138) (out of 140) (out of 144) (out of 148) (out of 144) (out of 142) (Out of 139) 2015-2016 2010-2016

OVER-ALL RANKING 57 47 52 59 65 75 85 ↓ 10 ↑ 28
1st pillar: Institutions 91 77 67 79 94 117 125 ↓ 14 ↑ 34
2nd pillar: Infrastructure 95 90 91 96 98 105 104 ↓ 5 ↑ 9
3rd pillar: Macroeconomic environment 20 24 26 40 36 54 68 ↑ 4 ↑ 48
4th pillar: Health and primary education 81 86 92 96 98 92 90 ↑ 5 ↑ 9
5th pillar: Higher education and training 58 63 64 67 64 71 73 ↑ 5 ↑ 15
6th pillar: Goods market efficiency 99 80 70 82 86 88 97 ↓ 19 ↓ 2
7th pillar: Labor market efficiency 86 82 91 100 103 113 111 ↓ 4 ↑ 25
8th pillar: Financial market development 48 48 49 48 58 71 75 0 ↑ 27
9th pillar: Technological readiness 83 68 69 77 79 83 95 ↓ 15 ↑ 12
10th pillar: Market size 31 30 35 33 35 36 37 ↓ 1 ↑ 6
11th pillar: Business sophistication 52 42 46 49 49 57 60 ↓ 10 ↑ 8
12th pillar: Innovation 62 48 52 69 94 108 111 ↓ 14 ↑ 49
RED – bottom 20% PURPLE – bottom 40-21% GREEN– bottom 50 – 41% BLACK – 49% or higher
EODB: PHILIPPINES & ASEAN, 2016-2017
2017 REPORT 2016 REPORT Change
ASEAN
(190 economies) (189 economies) 2016-2017
1 Singapore 2 1 ↓ 1
2 Malaysia 23 18 ↓ 5
3 Thailand 46 49 ↑ 3
4 Vietnam 82 90 ↑ 8
5 Brunei Darussalam 72 84 ↑ 12
6 Indonesia 91 109 ↑ 18
7 Philippines 99 103 ↑ 4
8 Cambodia 131 127 ↓ 4
9 Lao PDR 139 134 ↓ 5
10 Myanmar 170 167 ↓ 3
UPGRADE DOWNGRADE Source: Published DB reports (2016-2017)
DOING BUSINESS INDICATORS
PHILIPPINES (2016-2017)
2017 REPORT 2016 REPORT Change
INDICATORS
(190 economies) (189 economies) 2016-2017
OVER-ALL RANKING 99 103 ↑ 4
1. Starting a Business 171 165 ↓ 6
2. Dealing w/ Construction Permits 85 99 ↑ 14
3. Getting Electricity 22 19 ↓ 3
4. Registering Property 112 112 --
5. Getting Credit 118 109 ↓ 9
6. Protecting Investors 137 155 ↑ 18
7. Paying Taxes 115 126 ↑ 11
8. Trading Across Borders 95 95 --
9. Enforcing Contracts 136 140 ↑ 4
10. Resolving Insolvency 56 53 ↓ 3
UPGRADE DOWNGRADE Source: Published DB reports (2016-2017)
STARTING A BUSINESS
(FR 16 Steps, 28 Days TO 6 Steps, 8 Days)
 3 STEPS AND 3 DAYS

1 2 3

National Government Local Government BIR

Register the company with Barangay Clearance Streamlining
SEC + BIR + SSS + Pag-IBIG + Community Tax
Fund + PhilHealth (All in one
of related
Certificate (CTC)
form and transaction) procedures
+ Mayor’s Permit
Business Permits and Licensing System
OLD vs NEW BPLS STANDARDS
JMC 2010 JMC 2016
New : New :
PROCESSING 10 - 5 days 1 – 2 days
TIME Renewal : Renewal :
5 days or less 1 day or less

NUMBER OF Max of 5 steps for New and Max of 3 steps for New
STEPS Renewal of business and Renewal of business
registration registration

NUMBER OF Unified Form (Print and

Unified Form
FORMS Electronic document)

NUMBER OF Max of 2, Mayor and

Max of 2, Mayor and
SIGNATORIES Treasurer/BPLO with
Treasurer/BPLO
alternatives
LGUs Compliant with New Standards:
JMC 2016

TYPE OF BUSINESS LGUS COMPLIANT

PROCESSING TIME
APPLICATION (OUT OF 1,389)

New Applications 1,017 2 days or Less

Renewals 1,139 1 day or Less

Source: Cities and Municipalities Competitiveness Index 2016

LGUs with BPLS Automation
No Data
LGU Category Automated Not Automated Coverage
Available

3
Highly Urbanized Cities 30 (Las Pinas, San Juan, 1 (Navotas) 34
and Zamboanga)

Component / Independent
Component Cities 77 23 10 110

1st to 2nd Class

Municipalities 241 192 55 488

3rd to 6th Class

Municipalities 229 443 85 757
TOTAL 577 661 151 1,389
Source: Cities and Municipalities Competitiveness Index 2016
Other BPLS Reforms

Bureau of Fire Protection Co-Location

Simultaneous issuance of Mayor’s Permit and

Barangay Permit

Remove Pass-Through Charges

Coordinated Local Traffic Ordinances

GOVERNMENT ONLINE:
New Projects
WHY GO ONLINE
Many NGA and LGU licenses and permits are :
Paper-based; use multiple,
identical forms
Require manual application
Require manual processing
Over-the-counter transactions
Take place in multiple offices
in different locations
Take too long
GOVERNMENT ONLINE
THE GOAL
• Ability to file applications online, anytime, anywhere.
• Online payment via credit card, debit payments, mobile cash,
any form of online payment. Payments can be credited to
appropriate agency.
• License or permit can be issued electronically by agency,
where appropriate.
• Online kiosks to be provided in
government offices to
accommodate those without
access to computers.
GOVERNMENT ONLINE
COVERAGE
Ease of Doing Business- Contains basic licenses and permits for starting,
renewing, and operating businesses at the national and local government
levels.
Portal: www.business.gov.ph

Trade Facilitation- Inter-Agency Business Process Interoperability (IABPI).

Link approximately 55 agencies or units of government involved in
import/export and movement of goods.
Portal: www.trade.gov.ph

National Quality Infrastructure- Focus on the standards, accreditation,

and certification of agricultural, industrial, food, and pharmaceutical
products.
Portal: www.quality.gov.ph
PROJECT REPEAL – Rationale

• Consumers and Businesses are saddled by too

much regulation.
• Regulation happens at Executive, Legislative, Local
Government levels
• Laws date back to Commonwealth period and
includes PDs from Martial Law era.
• Multiple layers of laws, rules, regulations.
• Are they all necessary or relevant ?
PROJECT REPEAL – Participating Agencies

• From 8 Initial Agencies in the 1st Repeal

Day, 74 Additional Agencies have
joined our cause to fight red tape.
PROJECT REPEAL – Updates
STOCKTAKE Total

As of June 13, 2016 17,388

Enrolled for 1st Repeal Day (3,777)

Balance for Review 13,611

Additional Submissions 16,514

As of October 25, 2016 30, 125

Recommendations
Key Recommendations
• Making services available online in terms of securing permits
and other relevant documents.
• Inter-agency operability of government services.
• Amendment of the Corporation Code and the local
government code related to business regulation.
• Push for the passage of the Ease of Doing Business Act of 2016
and the Government Efficiency Office Act.
• Review of the Foreign Investments Act.
• Inventory of ecozones for possible expansion and
establishment of additional ecozones.
 For queries, you may email us at:
doingbusiness@competitive.org.ph