EASE OF DOING BUSINESS Moderator: Guillermo Luz National Competitiveness Council 28 November 2016
The goal of the New Industrial Policy is to create globally competitive, value adding, and innovative industries that would generate more and productive jobs and reduce poverty towards shared prosperity for all.
Shipbuilding
Electronics
AutomotiveAerospace
parts
Chemicals
Garments
agribusiness Furniture
IT BPM
Breakout Session Goal
• For each area, identify the most binding constraints preventing industry growth and recommend policy measures to resolve these constraints that would produce the biggest bang & lead to highly significant improvement in the overall business and investment environment • Competitiveness and innovation
• Labor & HRD
• Physical infrastructure
• Ease of doing business
• MSME Development & inclusive business
• Incentives & other forms of government support
• International Trade & FTAs
Global Competitiveness Report Card
REACHED THE TOP THIRD LATEST PERFORMANCE
*with 2016 Results, **reverse ranking (1 as worst)
REPORT 2010/2011 2015/2016GOAL
(Top 3rd)CHANGE
4 to 6 yrs
1.Doing Business Report (IFC)* 148/183 99/189 63 ↑ 49
2. Economic Freedom Index (HF)* 115/179 70/178 59 ↑ 45
3. Corruption Perceptions Index (TI) 134/178 95/175 58 ↑ 39
4. Global Competitiveness Report (WEF)* 85/139 57/138 47 ↑ 28
5. Global Enabling Trade Index (WEF) 92/125 64/138 46 ↑ 28
6. Travel and Tourism Report (WEF) 94/139 74/141 46 ↑ 20
7. WIPO- Global Innovation Index (WIPO)* 91/125 74/128 47 ↑ 17
8. Global Information Technology Report (WEF)* 86/138 77/139 46 ↑ 9
9. E-Government Index (UN)* 78/184 71/193 64 ↑ 7
10. Fragile States Index (FFP) * ’ ** 50/177 54/178 118 ↑ 4
11. Global Gender Gap Report (WEF)* 9/142 7/145 47 ↑ 2
12. World Competitiveness Report (IMD)* 41/59 42/60 20 ↓ 1
13. Logistics Performance Index (WB)* 44/155 71/160 53 ↓ 27
UPGRADE DOWNGRADE
GLOBAL COMPETITIVENESS REPORTHow far are we from the best? ( 2016 Rankings)
Switzerland
1 2Singapore
3United States
Best in the World
Best in ASEAN
2
Singapore
25 34
Malaysia Thailand
57Out of 138
economies
RED – bottom 20% PURPLE – bottom 40-21% GREEN– bottom 50 – 41% BLACK – 49% or higher
PHILIPPINE RANKINGS PILLARS (2010-2016)
PILLARS 2016 (out of 138)
2015 (out of 140)
2014 (out of 144)
2013 (out of 148)
2012 (out of 144)
2011 (out of 142)
2010(Out of 139)
Change 2015-2016
Change2010-2016
OVER-ALL RANKING 57 47 52 59 65 75 85 ↓ 10 ↑ 281st pillar: Institutions 91 77 67 79 94 117 125 ↓ 14 ↑ 342nd pillar: Infrastructure 95 90 91 96 98 105 104 ↓ 5 ↑ 9
3rd pillar: Macroeconomic environment 20 24 26 40 36 54 68 ↑ 4 ↑ 48
4th pillar: Health and primary education 81 86 92 96 98 92 90 ↑ 5 ↑ 9
5th pillar: Higher education and training 58 63 64 67 64 71 73 ↑ 5 ↑ 15
6th pillar: Goods market efficiency 99 80 70 82 86 88 97 ↓ 19 ↓ 2
7th pillar: Labor market efficiency 86 82 91 100 103 113 111 ↓ 4 ↑ 25
8th pillar: Financial market development 48 48 49 48 58 71 75 0 ↑ 27
9th pillar: Technological readiness 83 68 69 77 79 83 95 ↓ 15 ↑ 1210th pillar: Market size 31 30 35 33 35 36 37 ↓ 1 ↑ 611th pillar: Business sophistication 52 42 46 49 49 57 60 ↓ 10 ↑ 812th pillar: Innovation 62 48 52 69 94 108 111 ↓ 14 ↑ 49
EODB: PHILIPPINES & ASEAN, 2016-2017
Source: Published DB reports (2016-2017)
ASEAN2017 REPORT
(190 economies)2016 REPORT
(189 economies)Change
2016-2017
1 Singapore 2 1 ↓ 1
2 Malaysia 23 18 ↓ 5
3 Thailand 46 49 ↑ 3
4 Vietnam 82 90 ↑ 8
5 Brunei Darussalam 72 84 ↑ 12
6 Indonesia 91 109 ↑ 18
7 Philippines 99 103 ↑ 4
8 Cambodia 131 127 ↓ 4
9 Lao PDR 139 134 ↓ 5
10 Myanmar 170 167 ↓ 3
UPGRADE DOWNGRADE
DOING BUSINESS INDICATORSPHILIPPINES (2016-2017)
Source: Published DB reports (2016-2017)
INDICATORS2017 REPORT
(190 economies)2016 REPORT
(189 economies)Change
2016-2017
OVER-ALL RANKING 99 103 ↑ 4
1. Starting a Business 171 165 ↓ 6
2. Dealing w/ Construction Permits 85 99 ↑ 14
3. Getting Electricity 22 19 ↓ 3
4. Registering Property 112 112 --
5. Getting Credit 118 109 ↓ 9
6. Protecting Investors 137 155 ↑ 18
7. Paying Taxes 115 126 ↑ 11
8. Trading Across Borders 95 95 --
9. Enforcing Contracts 136 140 ↑ 4
10. Resolving Insolvency 56 53 ↓ 3
UPGRADE DOWNGRADE
3 STEPS AND 3 DAYS
National Government Register the company with SEC + BIR + SSS + Pag-IBIG Fund + PhilHealth (All in one form and transaction)
BIR
Streamlining of related
procedures
Local Government
Barangay Clearance + Community Tax
Certificate (CTC) + Mayor’s Permit
1 2 3
Business Permits and Licensing System
OLD vs NEW BPLS STANDARDS
New :
10 - 5 days
Renewal :
5 days or less
New :
1 – 2 days
Renewal :
1 day or less
Max of 2, Mayor and
Treasurer/BPLO
Max of 2, Mayor and
Treasurer/BPLO with
alternatives
Unified FormUnified Form (Print and
Electronic document)
Max of 5 steps for New and
Renewal of business
registration
Max of 3 steps for New
and Renewal of business
registration
JMC 2010 JMC 2016
PROCESSING
TIME
NUMBER OF
STEPS
NUMBER OF
FORMS
NUMBER OF
SIGNATORIES
LGUs Compliant with New Standards:JMC 2016
Source: Cities and Municipalities Competitiveness Index 2016
TYPE OF BUSINESS APPLICATION
LGUS COMPLIANT(OUT OF 1,389)
PROCESSING TIME
New Applications 1,017 2 days or Less
Renewals 1,139 1 day or Less
LGUs with BPLS Automation
Source: Cities and Municipalities Competitiveness Index 2016
LGU Category Automated Not AutomatedNo Data
AvailableCoverage
Highly Urbanized Cities 303
(Las Pinas, San Juan,
and Zamboanga)
1 (Navotas) 34
Component / Independent
Component Cities77 23 10 110
1st to 2nd Class
Municipalities241 192 55 488
3rd to 6th Class
Municipalities229 443 85 757
TOTAL 577 661 151 1,389
Other BPLS Reforms
Bureau of Fire Protection Co-Location
Simultaneous issuance of Mayor’s Permit and Barangay Permit
Remove Pass-Through Charges
Coordinated Local Traffic Ordinances
GOVERNMENT ONLINE:New Projects
WHY GO ONLINEMany NGA and LGU licenses and permits are :
Paper-based; use multiple,identical formsRequire manual applicationRequire manual processingOver-the-counter transactionsTake place in multiple officesin different locationsTake too long
GOVERNMENT ONLINE
THE GOAL• Ability to file applications online, anytime, anywhere.
• Online payment via credit card, debit payments, mobile cash,any form of online payment. Payments can be credited toappropriate agency.
• License or permit can be issued electronically by agency,where appropriate.
• Online kiosks to be provided ingovernment offices toaccommodate those withoutaccess to computers.
GOVERNMENT ONLINE
COVERAGEEase of Doing Business- Contains basic licenses and permits for starting,renewing, and operating businesses at the national and local governmentlevels.
Portal: www.business.gov.ph
Trade Facilitation- Inter-Agency Business Process Interoperability (IABPI).
Link approximately 55 agencies or units of government involved inimport/export and movement of goods.
Portal: www.trade.gov.ph
National Quality Infrastructure- Focus on the standards, accreditation,and certification of agricultural, industrial, food, and pharmaceuticalproducts.
Portal: www.quality.gov.ph
PROJECT REPEAL – Rationale
• Consumers and Businesses are saddled by toomuch regulation.
• Regulation happens at Executive, Legislative, LocalGovernment levels
• Laws date back to Commonwealth period andincludes PDs from MartialLaw era.
• Multiple layersof laws, rules, regulations.
• Are they allnecessaryor relevant?
PROJECT REPEAL – Participating Agencies
• From 8 Initial Agencies in the 1st RepealDay, 74 Additional Agencies havejoined our cause to fight red tape.
PROJECT REPEAL – Updates
STOCKTAKE Total
As of June 13, 2016 17,388
Enrolled for 1st Repeal Day (3,777)
Balance for Review 13,611
Additional Submissions 16,514
As of October 25, 2016 30, 125
Key Recommendations
• Making services available online in terms of securing permitsand other relevant documents.
• Inter-agency operability of government services.
• Amendment of the Corporation Code and the localgovernment code related to business regulation.
• Push for the passage of the Ease of Doing Business Act of 2016and the Government Efficiency Office Act.
• Review of the Foreign Investments Act.
• Inventory of ecozones for possible expansion andestablishment of additional ecozones.