Reflecting continuing high business confidence in the country, a recent survey among American companies shows the Philippines having the most improved business climate in Southeast Asia.
The ASEAN Business Outlook Survey 2014, taken from May 10 to June 10 among 475 American firms in the 10 member states of the Association of Southeast Asian Nations, also showed that 39 of the companies doing business in the Philippines registered the biggest increase in satisfaction over the local business environment from 2008 to 2013.
The survey, taken by the US Chamber of Commerce and the American Chambers of Commerce in the ASEAN, showed satisfaction with the Philippines improving in 14 out of 16 business factors including the availability of low-cost labor, trained personnel and raw materials. Improvements were also noted in the fight against corruption, housing costs and new business incentives. The biggest improvement was registered in the stability of the government and political system. The survey also showed the companies projecting higher profits this year and in 2014.
After giving itself a pat on the back, the government should address the key concerns of the companies, which are not new. These include the tax structure, inadequate infrastructure, laws and regulations, the ease of moving goods through Customs, and yes, corruption. While the Philippines is deemed to have shown the most improvement, the country continues to lag behind many of its neighbors in attracting foreign direct investment. The FDI is needed to create the jobs that will make economic growth inclusive — something that has eluded the government despite positive economic performance.
The survey is just the latest reaffirmation of the fruits of reforms. These gains must be sustained as more changes are implemented. In a highly competitive global environment, there is no room for complacency.