ECONOMIC GROWTH

Economy of the Philippines

The Economy of the Philippines is the 40th largest in the world, according to
2012 International Monetary Fund statistics, and is also one of the emerging marets in the
world! The Philippines is considered as a newly industriali"ed country, which has #een
transitioning from #eing one #ased on agriculture to one #ased more on ser$ices and
manufacturing! %ccording to the &orld 'an I(P 2011, the estimated 2011 )*P +purchasing
power parity, was -.4/!0 #illion! )oldman 1achs estimates that #y the year 20.0, the
Philippines will #e the 14th largest economy in the world, )oldman 1achs also included
the Philippines in its list of the 2e3t Ele$en economies! %ccording to 41'(, the Philippine
economy will #ecome the 15th largest economy in the world, .th largest economy in %sia and
the largest economy in the 1outheast %sian region #y 20.0!
Primary e3ports include semiconductors and electronic products, transport e6uipment,
garments, copper products, petroleum products, coconut oil, and fruits! Ma7or trading partners
include the 8nited 1tates, 9apan, (hina, 1ingapore, 1outh :orea, the 2etherlands, 4ong
:ong, )ermany, Taiwan, and Thailand! The Philippines has #een named as one of the Tiger
(u# Economies together with Indonesia, Malaysia and Thailand! It is currently one of %sia;s
fastest growing economies! 4owe$er, ma7or pro#lems remain, mainly ha$ing to do with
alle$iating the wide income and growth disparities #etween the country;s different regions and
socioeconomic classes, reducing corruption, and in$esting in the infrastructure necessary to
ensure future growth!
Imports up by 3. percent in !pril "#$% e&pecte' to ()ther p)ce in the ne)r*term
M%2I<% = Imports grew #y /!0 percent in %pril 2014 and is e3pected to e3pand in the coming
months due to fa$ora#le #usiness and consumer outloo, according to the 2ational
Economic and *e$elopment %uthority +2E*%,!
>This e3pectation is #aced #y sur$eys conducted #y the 'ango 1entral ng Pilipinas, which
showed that the o$erall confidence inde3 of #usinesses rose to .0!0 percent in the second
6uarter of 2014 from /0!? percent in the first 6uarter and is e3pected to #e sustained in the
third 6uarter,@ said Economic Planning 1ecretary and 2E*% *irectorA)eneral %rsenio M!
'alisacan!
Payments for imported goods in %pril 2014 reached 81-.!/ #illion, up #y /!0 percent from
81-.!2 #illion in the same period last year, though slower than the 10!5Apercent e3pansion in
the pre$ious month and the 0!5 percent growth in %pril 201/! Total tradeAinAgoods deficit
widened to 81-2!5 #illion in %pril 2014 from 81-1!0 #illion in %pril 201/!
>Imports growth in %pril 2014 was due to higher payments for imported raw materials and
intermediate goods, mineral fuels and lu#ricants and consumer goods! 4owe$er, lower
importation of capital goods slowed the increase in the $alue of imports@ 'alisacan noted!
%ccording to the (a#inet official, an increase in imports of capital goods may #e e3pected in
the nearAterm as a result of the e3pansion plans of #usinesses in the industry sector for the
ne3t two 6uarters!
>The reAfleeting program of airline companies in line with increasing their flight routes
alongside the anticipated rise in purchases of power generating sets to augment the power
supply in the country is e3pected to #oost imports of capital goods,@ 'alisacan said!
'alisacan added that maintaining the fa$oura#le maret sentiment, together with an
accelerated implementation of reconstruction, will #e crucial in inducing pri$ate sector
in$estment in capital goods!
Meanwhile, the Philippine 1tatistics %uthority reported that inward shipments of raw materials
and intermediate goods reached 81-2!1 #illion in %pril 2014, higher #y 10!5 percent from
81-1!0 #illion recorded in the same period a year ago!
>The dou#leAdigit growth rate of raw material and intermediate goods imports was mainly due
to the increase in inward shipments of semiAprocessed raw materials, enough to offset the
20!? percent contraction in unprocessed raw materials inputs! %mong semiAprocessed raw
materials, materials and accessories for electrical e6uipment recorded a 44!5Apercent
growth, indicating a possi#ly much #etter performance of Philippine electronics e3ports in the
coming months,@ 'alisacan added!
The PeopleBs Cepu#lic of (hina remained the top source of the countryBs imports with a 1.!0
percent share, amounting to 81-?//!. million! 1econd was 1audi %ra#ia with a share of ?!4
percent, followed #y 1outh :orea +?!/D,, 9apan +0!5D,, 8nited 1tates of %merica +0!1D,,
1ingapore +5!5D,, )ermany +.!.D,, Indonesia +.!0D,, and Malaysia +4!2D,!
The $alue of imported goods from %1E%2Amem#er trading partners represented 21!/ percent
of Philippine merchandise imports in %pril 2014, e6ui$alent to 81-1!1 #illion worth of
imported goods! En the other hand, the European 8nion +E8, supplied 81-5?1!0 million or
a#out 12!? percent of the countryBs total import re6uirements during the period!
Policies on supply sufficiency% )(ri pro'ucti+ity nee'e' to m)int)in m)n)(e)ble infl)tion
(ro,th - NE.!
M%2I<%FInflation rate slowed to 4!4 percent in 9une 2014 from 4!. percent in May, supporting
a managea#le and withinAtarget outloo for the year, according to the 2ational Economic and
*e$elopment %uthority +2E*%,!
>2E*% e3pects that the countryBs headline inflation rate for full year 2014 will a$erage around
4!4 percent, still within the *e$elopment 'udget (oordination (ommitteeBs full year target of /!0
to .!0 percent,@ said Economic Planning 1ecretary %rsenio M! 'alisacan!
*ecelerating growth in prices of nonAfood items tempered the inflation rate in 9une 2014!
4owe$er, faster growth in food prices pushed up the rate at the higher end of the target!
>Ene of the main reasons for the high price of food is the rather sharp increases in rice prices in
9une 2014 as supply tightness persisted in the maret,@ the (a#inet official said!
'ut despite the outloo of managea#le and withinAtarget inflation growth for 2014, there are
riss along the way such as weather distur#ances, pests and diseases, pending petitions for
ad7ustments in utility rates, and the still ele$ated growth of domestic li6uidity!
>In the short term, the inter$entions can focus on ensuring supply ade6uacy #y allowing
sufficient le$els of imports to augment local production of rice and other ey commodities! The
truc #an policy also needs to #e re$iewed, along with other measures needed to impro$e the
efficiency of distri#ution systems,@ said 'alisacan, who is also 2E*% *irectorA)eneral!
%lso, gi$en the increasing pro#a#ility of El 2ino #eginning the third 6uarter of 2014, 'alisacan
reiterates the need to intensify go$ernment programs to cur# the ad$erse impact of a prolonged
dry spell!
>In the medium term, implementation of programs to increase the producti$ity of agriculture and
the food processing industries need to #e accelerated! The wider use of appropriate technology,
especially in production areas $ulnera#le to drought and floods, also needs to #e encouraged,@
he said!
In line with this, 'alisacan said that Pu#licAPri$ate Partnership programs may #e considered to
put up cold chain systems!
>The concept of using cold chain technologies in the agriculture sector should #e done on a
gradual #asis, from some selected operations and for the whole distri#ution chain,@ he said!
Meanwhile, aside from headline inflation, core inflation which nets out fuel and certain food
items also decreased to 2!? percent in 9une 2014, lower compared to /!1 percent in May 2014!
For the first si3 months in 2014, core inflation a$eraged at /!0 percent!
%lso, inflation rate in the 2ational (apital Cegion +2(C, decreased to /!5 percent in 9une 2014,
slower than the yearAonAyear rate of /!? percent in May 2014! In %reas Eutside 2(C, inflation
rate remained sta#le at 4!0 percent in 9une 2014, the same le$el in May 2014!
E&ports (ro, by ./ percent in !pril 0#$
4igher e3port earnings from total agroA#ased products, petroleum, minerals, and forest products
ept e3ports in a positi$e territory for %pril 2014, according to the 2ational Economic and
*e$elopment %uthority!
The Philippine 1tatistics %uthority +P1%, reported today that the $alue of merchandise e3ports
grew to 81-4!.4 #illion, up #y 0!? percent from 81-4!.1 #illion in the same period last year!
E3ports grew #y 12!4 percent in March 2014!
>This slower e3port growth is not e3pected to persist in the longAterm! E$erall, the gradual
reco$ery of the glo#al economy continues to firm up as demand from the PhilippinesB other
ma7or e3port marets piced up strongly in %pril 2014 particularly for 1ingapore, 4ong :ong,
Thailand, )ermany, Taiwan, and the 2etherlands,@ said Economic Planning 1ecretary %rsenio
M! 'alisacan!
>It is also of note that the 1emiconductors and Electronics Industries of the Philippines +1EIPI,
remains optimistic that the countryBs semiconductor e3ports will #ounce #ac, eeping the .!0
percent growth target in electronics e3ports for 2014,@ he added!
Meanwhile, the first four months of 2014 registered an increase in Philippine merchandise
e3ports, amounting to 81-1?!G #illion, up #y .!4 percent from 81-10!G #illion in the same
period last year!
&ith respect to commodities outside manufactures, re$enue from total agroA#ased products
sustained a strong performance in %pril 2014, with 1?!1 percent growth, amounting to 81-/02!1
million!
>This is attri#uted to higher re$enues from fruits and $egeta#les, coconut products, sugar
products, as well as other agroA#ased products,@ said 'alisacan!
>The strong outturn in outward sales of fruits and $egeta#les was mostly due to increased
receipts from #ananas and pineapple 7uice! 1upporting the o$erall growth of #anana e3ports
was the strong demand from the countryBs main e3port marets such as 9apan, the PeopleBs
Cepu#lic of (hina +PC (hina,, and the Cepu#lic of :orea, alongside the impro$ements in supply
following the reha#ilitation of #anana plantations that were damaged due to Typhoon Pa#lo in
*ecem#er 2012,@ he added!
En a similar note, the e3port of petroleum products su#stantially e3panded #y /?!. percent,
amounting to 81-41!0 million, from 81-/0!1 million in %pril 201/!
>This liely reflected the ramped up domestic oil production in the first 6uarter of 2014 from the
)aloc oil field, in addition to the ele$ated international price of crude oil and a 1/!. percent yearA
onAyear growth in the $olume of petroleum shipments@ said 'alisacan, who is also 2E*%
*irectorA)eneral!
1imilarly, e3ports re$enue from forest products increased from 81-0!4 million in the same
period last year to 81-10!2 million, up #y /0!5 percent!
>This is largely due to higher e3port receipts from lum#er, logs, plywood and other forest
products,@ said 'alisacan!
Mineral products also posted a marginal growth of 0!2 percent, with receipts amounting to
81-/15!0 million in %pril 2014 from 81-/1.!. million the pre$ious year!
>Eutward shipments from this group are dri$en #y iron ore agglomerates which showed a 2/.!5
percent upsurge in e3port 6uantity, followed #y other mineral products,@ said 'alisacan!
>The strong performance of these four commodity groups #uffered the lower o$erseas sales of
manufactures, particularly in the electronics segment,@ he added!
Mitigating the decline in manufactured e3ports are the increased receipts from processed foods
and #e$erages, machinery and transport e6uipment, electronic e6uipment and parts, tra$el
goods and hand#ags, te3tile yarnsHfa#rics, nonAmetallic manufactures, furniture and fi3tures,
garments, and footwear!
9apan remains as the countryBs top e3ports destination, with a total $alue of 81-G/G!2 million,
accounting for 20!0 percent of our total re$enues from merchandise e3ports!
This is followed #y the 8nited 1tates of %merica +81%, with a 15!2 percent share and the PC
(hina with 12!5 percent!
IN12!TION 3PRICE45
Price Infl)tion
%n increase in the price of a standardi"ed goodHser$ice or a #aset of goodsHser$ices o$er a
specific period of time +usually one year,! 'ecause the nominal amount of money a$aila#le in an
economy tends to grow larger e$ery year relati$e to the supply of goods a$aila#le for purchase,
this o$erall demand pull tends to cause some degree of price inflation!
Price inflation can also #e seen in a slightly different form, where the price of a good is the same
year o$er year, #ut the amount of the good recei$ed gradually decreases! For e3ample, you
may notice this in lowAcost snac foods such as potato chips and chocolate #ars, where the
weight of the product gradually decreases, while the price remains the same!
In Philippines, the most important categories in the (onsumer Price Inde3 areI food and
nonAalcoholic #e$erages +/G percent of total weight,J housing, water, electricity, gas and
other fuels +22 percent, and transport +? percent,! The inde3 also includes health +/
percent,, education +/ percent,, clothing and footwear +/ percent,, communication +2
percent, and recreation and culture +2 percent,! %lcoholic #e$erages, to#acco,
furnishing, household e6uipment, restaurants and other goods and ser$ices account for
the remaining 1. percent! This page pro$ides A Philippines Inflation Cate A actual $alues,
historical data, forecast, chart, statistics, economic calendar and news!
EMP2O6MENT
First things first, what is the meaning of EmploymentK Employment according to &iipedia is a
relationship #etween two parties, usually #ased on a contract, one #eing the employer and the
other #eing the employee!
Employee A %n indi$idual who wors partAtime or fullAtime under a contract of employment,
whether oral or written, e3press or implied, and has recogni"ed rights and duties! %lso called
worer!
Employer =% legal entity that controls and directs a ser$ant or worer under an e3press or
implied contract of employment and pays +or is o#ligated to pay, him or her salary or wages in
compensation!
Employment Contr)ct in the Philippines
In the Philippines, pri$ate employment is regulated under the <a#or (ode of the Philippines #y
the *epartment of <a#or and Employment!
Philippines 7nemployment R)te
8nemployment Cate in Philippines decreased to 0!0 percent in the first 6uarter of 2014 from
0!.0 percent in the fourth 6uarter of 201/! 8nemployment Cate in Philippines a$eraged G!01
Percent from 1GG4 until 201/, reaching an allAtime high of 1/!G0 Percent in the first 6uarter of
2000 and a record low of 5!/0 Percent in the third 6uarter of 2000! 8nemployment Cate in
Philippines is reported #y the 2ational 1tatistics Effice of Philippines!
GO8ERNMENT RE1ORM4 7N.ER !97INO
!.MINI4TR!TION
!(r)ri)n Reform !(en')
The (omprehensi$e %grarian Ceform Program e3tension with reforms +(%CPEC, or Cepu#lic
%ct 2o! G000, which was enacted last %ugust 200G, pro$ided go$ernment the muchAneeded
time e3tension for implementing agrarian reform! 4owe$er, it was $ery specific that the land
ac6uisition and distri#ution +<%*, component of the program must #e completed #y 9une /0,
2014! It pro$ided an e3act schedule or >phasing@ for <%*, specifically for the *epartment of
%grarian Ceform +*%C,, the main agency tased to immediately distri#ute large pri$ate
agricultural landholdings! %ccording to former 1en! )regorio 4onasan, former chair of the
1enate %grarian Ceform (ommittee, the schedule pro$ides a definite deadline and mandate for
*%C to complete the <%* component of the program!&hat is lacing from the phasing is the
accounta#ility mechanism should *%C fail to deli$er, including measures that can #e
undertaen against the delaying tactics and resistance of landowners! The #urden seems to #e
resting on the tenacity and a#ility of organi"ed farmers, peoplesB organi"ations, ci$il society, and
ad$ocates pushing for the immediate and effecti$e implementation of (%CPEC on the ground!
)i$en the lacluster performance of *%C a year after (%CPEC was passed +and its historical
performance,, the prospects for completing the <%* component of the program seem grim! %s
of 9une 200G, *%C reported that it was only a#le to distri#ute .5,4G. hectares of the 1,044,...
hectares of their remaining target!
This is a measly fi$e percent of the total target that needs to #e distri#uted in the ne3t fi$e years
or a mere 20 percent if the target +at least 20?, G11 hectares should #e distri#uted per year, will
#e di$ided e6ually into fi$e years!
In the same report, *%C was also a#le to implement leasehold in 12,2G5 hectares of agricultural
lands that secured the tenure status of .,040 agrarian reform #eneficiaries +%C's, in
landownersB retained areas and in areas which ha$e yet to #e co$ered under (%CP!The total
area co$ered under leasehold is 1!5G? million hectares #enefiting 1!1G5 million tenantAfarmers!
*%C was also a#le to install .,?0? uninstalled %C's in 5,G.4 hectares of agricultural lands!
&hile these figures are a welcome de$elopment, the capacity of *%C to install #eneficiaries
remains under 6uestion! The lac of a complete picture on the total num#er of %C's who await
installment is sending the wrong signal and creating dou#ts a#out the agencyBs a#ility to deli$er
on its mandate!
PPP Pro(r)m 3Public*Pri+)te P)rtnership5
The Philippine )o$ernment recogni"es the essential role of the pri$ate sector as the main
engine for national growth and de$elopment! In accordance with this, pertinent incenti$es will #e
pro$ided to stimulate pri$ate resources for the purpose of financing the construction , operation
and maintenance of infrastructure and de$elopment pro7ects normally undertaen #y the
)o$ernment!
The go$ernment is willing, on a pro7ect #asis, to protect in$estors from certain regulatory ris
e$ents such as court orders or decisions #y regulatory agencies which pre$ent in$estors from
ad7usting tariffs to contractually agreed le$els! 1uch regulatory ris insurance could tae the
form of maeAup payments from the go$ernment to PPP in$estors, other guaranteed payments,
and ad7ustments to contract terms! The specifics of the type of protection to #e offered #y the
go$ernment, and the mechanisms through which such protection will #e offered will #e part of
the contract terms for each pro7ect! 1uch protection will only #e offered for solicited pro7ects
which undergo a competiti$e #idding process!
Pri$ate sector in$estors will #e selected through open competition under fair and transparent
terms! %ll interested in$estors will #e gi$en a le$el playing field with reasona#le returns and
appropriate sharing of riss without compromising the protection of pu#lic interests! Through this
program, endAusers will #e pro$ided with ade6uate, safe, efficient, relia#le, and reasona#lyA
priced infrastructure ser$ices!
The )o$ernment is committed to facilitating the appro$al and implementation process for PPP
pro7ects! In accordance with this, solicited proposals will #e processed within si3 +5, months!
Lualified PPP proposals must complete all necessary documents to facilitate the appro$al
process!
&hile the 'ET <aw allows for the go$ernment to process unsolicited proposals, solicited
proposals will #e acti$ely promoted!
To pro$ide a longAterm fund structure to sustain and further promote PPP in the country, the
go$ernment together with $arious Multilateral Ergani"ations +MEs, are woring on esta#lishing
the Philippine Infrastructure *e$elopment Fund +PI*F,!
The P)nt),i' P)mily)n( Pilipino Pro(r)m
Pantawid Pamilyang Pilipino Program is a human de$elopment program of the national
go$ernment that in$ests in the health and education of poor households, particularly of children
aged 0A1? years old!
Patterned after the conditional cash transfer scheme implemented in other de$eloping countries,
the Pantawid Pamilya pro$ides cash grants to #eneficiaries pro$ided that they comply with the
set of conditions re6uired #y the program!
P)nt),i' P)mily)h)s 'u)l ob:ecti+es;
1ocial %ssistanceA to pro$ide cash assistance to the poor to alle$iate their immediate need
+short term po$erty alle$iation,J and
1ocial *e$elopment Ato #rea the intergenerational po$erty cycle through in$estments in human
capital!
P)nt),i' P)mily)helps to fulfill the country<s commitment to meet the Millennium
.e+elopment Go)ls% n)mely;
Eradicate E3treme Po$erty and 4unger
%chie$e 8ni$ersal Primary Education
Promote )ender E6uality
Ceduce (hild Mortality
Impro$e Maternal 4ealth
1et of (oACesponsi#ilities
To a$ail of the cash grants #eneficiaries should comply with the following conditionsI
Pregnant women must a$ail preA and postAnatal care and #e attended during child#irth #y a
trained health professionalJ
Parents must attend Family *e$elopment 1essions +F*1,J
0A. year old children must recei$e regular pre$enti$e health checAups and $accinesJ
5A14 years old children must recei$e deworming pills twice a year!
%ll child #eneficiaries +0A1? years old, must enroll in school and maintain a class attendance of
at least ?.D per month!
Pro(r)m Co+er)(e
Pantawid Pamilyaoperates in0Gpro$inces co$ering14?4municipalities and14/cities in
all10regions nationwide! The program has/,GG5,G50registered households as of 25 Fe#ruary
2014!
= to #" Pro(r)m
The : to 12 Program co$ers :indergarten and 12 years of #asic education +si3 years of primary
education, four years of 9unior 4igh 1chool, and two years of 1enior 4igh 1chool M141N, to
pro$ide sufficient time for mastery of concepts and sills, de$elop lifelong learners, and prepare
graduates for tertiary education, middleAle$el sills de$elopment, employment, and
entrepreneurship!
Responsible P)renthoo'
The fi$eApoint position on responsi#le parenthood of President 'enigno 1! %6uino IIII
I am against a#ortion!
I am in fa$or of gi$ing couples the right to choose how #est to manage their families so that in
the end, their welfare and that of their children are #est ser$ed!
The 1tate must respect each indi$idualBs right to follow his or her conscience and religious
con$ictions on matters and issues pertaining to the unity of the family and the sacredness of
human life from conception to natural death!
In a situation where couples, especially the poor and disad$antaged ones, are in no position to
mae an informed 7udgment, the 1tate has the responsi#ility to so pro$ide!
In the range of options and information pro$ided to couples, natural family planning and modern
methods shall #e presented as e6ually a$aila#le!
4in T)&es
4ouse 'ill .020, or the 1in Ta3 'ill, aims to restructure the e3isting ta3es imposed on alcohol
and to#acco goods! *uties on these products are a potential re$enue source that will help fund
the 8ni$ersal 4ealth (are Program of the administration! <iewise, higher ta3esFand
conse6uently higher costsFare seen as a deterrent to the consumption of >sin@ products, whose
ad$erse effects are mostly #orne #y the poorer segments of society!
Pro7ect 2E%4 +2ationwide Eperational %ssessment of 4a"ards,
Pro7ect 2E%4 is the *epartment of 1cience and TechnologyBs +*E1T, response to the call of
President 'enigno 1! %6uino III for a more accurate, integrated, and responsi$e disaster
pre$ention and mitigation system, especially in highAris areas throughout the Philippines!
The Pro7ect will harness technologies and management ser$ices for disaster ris reduction
acti$ities offered #y the *E1T through P%)%1%, P4IOE<(1, and the *E1TA%d$anced 1cience
and Technology Institute +%1TI,, in partnership with the 8P 2ational Institute of )eological
1ciences and the 8P (ollege of Engineering!
1ree'om of Inform)tion >ill 31OI5
Freedom of Information +FEI, %ct aims to mandate the disclosure of pu#lic documents! The
proposed #ill also outlines the e3ceptions for pu#lic disclosure and the procedures for accessing
pu#lic documents!
!
IN8E4TMENT !N. COMPETITI8ENE44
Oietnam
4!24
:a"ahstan
4!1?
Philippines
4!0?
)eorgia
/!G.
%rmenia
/!?G
Philippines; Economic (ro,th competi+eness in'e&
The )rowth (ompetiti$eness Inde3 +)(I,, aims to 6uantify the 6uality of the macroeconomic
en$ironment, the state of a countrys pu#lic institutions, and its le$el of technological readiness!
4igher competiti$eness scores are more desira#leI
Oery 4igh .!.1 to 0
4igh 4!.1 to .!.0
Moderate /!.1 to 4!.0
<ow A /!01 to /!.0
Oery <ow 0 to /!00
Philippines does not pu#lish official house price statistics! (olliers International has 6uarterly
data of capital $alues in the MaatiA('*! Economics statistics are a$aila#le from go$ernment
agencies A 'ango 1entral ng Pilipinas, 2ational 1tatistical (oordination 'oard and 2ational
Economic *e$elopment %gency!
2(( Pushes for *oing 'usiness Ceforms to Impro$e Philippine (ompetiti$eness
The 2ational (ompetiti$eness (ouncil +2((, laid out its game plan to #oost Philippine
competiti$eness ranings at its second annual Ease of *oing 'usiness 1ummit! *uring the
summit, mem#ers of the interAagency Tas Force on Ease of *oing 'usiness $owed to simplify
#usiness regulations and implement targeted reforms #efore ma7or staeholders from
go$ernment, #usiness, de$elopment organi"ations, diplomatic corps, and media! In attendance
were 'udget 1ecretary Florencio %#ad, Trade and Industry 8ndersecretary 2ora Terrado, and
International Finance (orporation +IF(, Cesident Cepresentati$e 9esse %ng!
The reforms were designed #y the 2((, together with the pu#lic and pri$ate sector Tas Force,
#ased on the *oing 'usiness Ceport of the IF(! The report measures the ease with which a
#usiness undertaes certain processes with $arious go$ernment agencies! <ast year, the
Philippines made headlines #y ad$ancing /0 places from 2o! 1/? to 2o! 10? of 1?G economies
in the report! The country is eyeing to #e in the top third of world ranings #y 2015!
For this year, the Tas Force has pledged to deli$er the following impro$ements in the ten
processes measured in the reportI
% reduction in time to start a #usiness from 1. steps and /. days to ? steps and ? days
% reduction in time to get a construction permit from 2. steps and 00 days to 14 steps and 5.
days
% reduction in time to get an electricity connection from . steps and 42 days to 4 steps and /2
days and a reduction in the security deposit from PhP.1G,540 to PhP225,2.0
% reduction in time to transfer and register property from ? steps and /G days to 0 steps and 15
days
%n increase in score on the strength of legal rights to protect #orrowers and lenders from 4 to 10
out of 10
%n increase in scores measuring minority shareholder protection against the misconduct of a
director from 2 to 0 out of 10 on disclosure, / to G out of 10 on director lia#ility, and ? to 10 out of
10 on shareholder suits
% reduction in ta3 and contri#ution payments re6uired from /5 to 1/ per year
% reduction in the 5 documents and 1. days needed to e3port goods to 4 documents and G days
% reduction in the 0 documents and 14 days needed to import goods to 4 documents and G days
% reduction in time to enforce a commercial contract in court from /0 steps and ?42 days to /0
steps and /50 days
%n increase in the reco$ery rate on insol$ency proceedings from 2G!G to 42!4 cents per dollar
In addition to further streamlining, these impro$ements will #e accomplished through the more
aggressi$e promotion of e3isting go$ernment ser$ices such as e3press registration through the
)reen <ane 8nit of the 1ecurities and E3change (ommission +1E(, and electronic payments
for the Philippine 4ealth Insurance (orporation +Phil4ealth, and PagAI'I) 4ome *e$elopment
Mutual Fund contri#utions! This will encourage more corporations to tae ad$antage of faster
and more con$enient processing!
En the local go$ernment side, the Tas Force has recommended the amendment of E3ecuti$e
Erder 2o! 10A% creating a oneAstop shop for the processing of #uilding permits in Lue"on (ity,
the local go$ernment unit measured #y the *oing 'usiness Ceport, to include warehouses!
Practice in Lue"on (ity ser$es as the prototype for other <ocal )o$ernment 8nits!
For legal issues, the Tas Force will continue to pro$ide documentary support on Philippine laws
and regulations and monitor the status of the eAcourt system! It has also endorsed and
appro$ed the Proposed Cules on 4earing and %d7udicating *isputes, which ha$e #een referred
#y the Effice of the (hief 9ustice to the 1upreme (ourt 1u#Acommittee on the Ce$ision of the
Cules on (i$il Procedure!
2(( Pri$ate 1ector (oA(hairman )uillermo M! <u" stressed the need to re$olutioni"e the
#ureaucracy to sustain the momentum for competiti$eness, especially as other countries
continue to reform! (hanges to the report are also e3pected to toughen up the competition, with
the addition of new cities to #e included in the report and the e3pansion of measures to co$er
not 7ust efficiency #ut also 6uality of #usiness regulations! 4e commended the Tas Force for
their continuing efforts #ut challenged them to deli$er e$en more largeAscale reforms!