Phl seen improving competitiveness ranking

MANILA, Philippines - The Philippines may surpass its target to reach the top third quartile in competitiveness rankings amid government’s efforts to improve the business environment and as local companies go global, a trade official said.

“The top third target based on recent developments, is something that is not a stretch target. This target has become quite achievable and that we may even surpass this target quite significantly,” Trade Secretary Gregory Domingo told reporters.

This, as the government continues to work on making improvements in the business environment.

Domingo noted that among the initiatives of the government is the electronic payments system for business registration which would be launched sometime in January.

“E-payments will be a very big leap in terms of the capability for automation because you don’t have to go to the DTI (Department of Trade and Industry) office to register. Using your bank card you can get a name, business, registered at home,” he said.

He also said the move of some local companies to go global is helping improve the country’s competitiveness.

For instance, Del Monte Pacific Ltd., majority owned by the NutriAsia Group in the Philippines, bought the consumer business of US-based Del Monte Foods for nearly $1.7 billion in October this year, while Petron Corp. has entered the oil business in Malaysia by establishing Petron Malaysia.

Domingo said such developments are good for the country.

“We shouldn’t see that as capital going out of the country. We should see that as the increasing confidence and capability of Philippine companies to compete globally and whatever they learn from that, they will bring back here in terms of best practice so that will further enhance the capability and capacity of companies to do better and be better,” he said.

He also said the country is in the position to take-off since it is already ahead of many of its peers based on some business procedures and the legal system in place here.

The Philippines was among the 10 economies which made the biggest improvement in business regulation in the past year based on the World Bank (WB) and International Finance Corp.’s (IFC) Doing Business 2014 report covering 189 countries, released in October.

The WB and IFC’s Doing Business 2014 report showed that the Philippines jumped ranking by 30 notches to 108th from 138th last year as the government implemented regulatory reforms in three areas: dealing with construction permits, getting credit and paying taxes.

National Competitiveness Council private sector co-chair Guillermo Luz said earlier that for next year, the aim is to move up by another 30 notches to reach the double-digit neighborhood.

“For us to get to the top third by 2016, we need to improve at least by an average of 30 notches every year... so we should expect a minimum jump of 30 from the agencies,” he said.

In the World Economic Forum’s Global Competitiveness Report which covered 148 countries released in September, the Philippines’ ranking improved six places to the 59th spot from last year’s 65th spot.

Luz has said that as other countries aim for improved competitiveness rankings, the Philippines has to work even harder.