MANILA, Philippines - The Philippines leapfrogged by 30 places to 108th in the global Ease of Doing Business 2014 report published Tuesday by the World Bank.
The massive leap from the previous year's 138th place comes after the country instituted reforms in the areas dealing with construction permits, getting credit and paying taxes. The report covered 189 economies from 2012-2013.
Singapore, Hong Kong, New Zealand, the United States and Denmark dominated the list, while African countries like the Republic of Congo, South Sudan, Libya, Central African Republic and Chad were at the bottom.
The report highlighted the efforts of the Philippines to allow creditors'committees a say in insolvency proceeding decisions and in providing a legal framework for out-of-court workouts in resolving insolvency.
"A good example is the Philippines, the economy that made the biggest improvement in the efficiency of insolvency proceedings in 2012-2013. The new insolvency law that led to this improvement— the Financial Rehabilitation and Insolvency Act of 2010- was adopted in July 2010, but its impact was felt in the resolving insolvency indicators only in 2012-2013," it said.
Overall, the report said 114 economies all over the world significantly stepped up their pace of improving business regulations- an 18-percent improvement from the previous year.
"A better business climate that enables entrepreneurs to build their businesses and reinvest in their communities is key to local and global economic growth. Doing Business shows that economies with better business regulations are more likely to empower local entrepreneurs to create more jobs- another step in the right direction toward ending extreme poverty by 2030," World Bank Group President Jim Yong Kim said.
Senator Paolo Benigno Aquino IV, chair of the Senate Committee on Trade, Commerce and Entrepreneurship, said the report is a good sign for small and medium enterprises (SME) in the country and the government's drive for inclusive growth.
"We still have a long way to go in our goal to be pro-negosyo and the most business-friendly country in the region, but this shows that we're headed in the right direction," he said, adding that he is hoping the Philippines will make it to the top 50 by 2016.
“If agencies work together, with clear and focused targets, we can successfully undertake the necessary reforms that can promote SME development and inclusive growth in the country,†Aquino said.