THE COUNTRY could finally penetrate the upper rungs of key global competitiveness lists this year, starting with the World Bank’s Ease of Doing Business report, following further simplification of procedures especially for entrepreneurs, public and private sector officials yesterday said in a briefing in Makati City.
A memorandum of understanding was signed by representatives of the National Competitiveness Council (NCC) and of several government agencies — including the Department of Trade and Industry, the Department of Finance, and the Bureau of Internal Revenue — on reforms that will cut the cost of doing business in the country.
The measures specifically relate to the number of days and steps it takes to register a business, as well as to pay social security contributions of employees.
“To make the changes, we started by merging steps and combining them, eliminating steps that are no longer necessary, and then automating them,” NCC co-chairman Guillermo M. Luz said in his speech.
“The old procedure ends today (yesterday). Starting a business is now down to six steps and eight days from 16 steps and 34 days.”
In terms of paying contributions to Philippine Health Insurance Corp. (PhilHealth) and Home Development Mutual Fund (Pag-IBIG Fund), Mr. Luz said the number of steps has been reduced to 13 from 36.
The NCC official noted that the reforms will be implemented starting today — first in Metro Manila and then will be adopted gradually by cities and municipalities outside the capital. The process of setting up a business and paying social security contributions should be simplified nationwide “well before yearend.”
“It’s a significant improvement and we hope the changes will be reflected in the World Bank’s Ease of Doing Business report that will come out in September or October this year,” Mr. Luz said.
“It’s going to be a very big jump but I’m certainly hoping we will be in the top third. But it also depends on what other countries are doing.”
Trade Secretary Gregory L. Domingo agreed, saying the reforms “will dramatically improve our competitiveness rankings.”
“With these, we hope to be in the top third, most likely, in the World Economic Forum’s Global Competitiveness Report.”
The Philippines ranked 95th out of 189 in the Ease of Doing Business Report 2015 released in October last year, up 13 places from the previous list. The country also moved seven notches higher in the Forum’s Global Competitiveness Index 2014-2015 to 52nd out of 144 economies from 59th out of 148 previously. — Daryll Edisonn D. Saclag, Businessworld
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