2018Governance Indicator

Ease of Doing Business Index

Indicator Overview

Created by World Bank, the Ease of Doing Business (EoDB) Index provides rankings that show better regulations for businesses and stronger protections of property rights. It covers 10 sub-indicators:

  1. Starting a business
  2. Dealing with construction permits
  3. Getting electricity
  4. Registering property
  5. Getting credit
  6. Protecting investors
  7. Paying taxes
  8. Trading across borders
  9. Enforcing contracts
  10. Resolving insolvency

Aside from this, the Index calculates a distance to frontier (DTF) score. Using a scale of 100 where 100 is the highest, the DTF score helps assess the absolute level of regulatory performance over time. It measures the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005.

Although this is not an indicator under the Results Matrix of Chapter 5, this is still being monitored to determine efforts on ease of doing business.

Philippine Performance for the Past Few Years

Indicator 2014 2015 2016 2017 2018
No. of Countries 189 190
Overall ranking 108 95 103 99 113
Distance to Frontier 59.92 58.09 57.75 58.32 58.74
Starting a business 170 161 165 171 173
Dealing with construction permits 99 124 99 82 101
Getting electricity 33 16 19 22 31
Registering property 121 108 112 112 114
Getting credit 86 104 109 118 142
Protecting minority investors 128 154 155 137 146
Paying taxes 131 127 126 115 105
Trading across borders 42 65 140 95 99
Enforcing contract 114 124 95 136 149
Resolving insolvency 100 50 53 56 59

 

The Philippines declined by 14 spots this year, the biggest drop since 2012. The most significant drop is found in getting credit (-24 places), dealing with construction permits (-19 places) and enforcing contract (-13 places). Only paying taxes saw an increase, driven by the country’s move to file taxes online. Although other reforms have been rolled out, these may not have been significantly felt by businesses yet. Further, the World Bank said that companies here still face significant regulatory challenges, leaving room for further improvements, especially in the areas of starting a business (from 68.86 to a score of 68.88), enforcing contracts (45.96 score unchanged at 45.96), and protecting minority investors (score unchanged at 40). t is expected that the implementation of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032) will further increase our rankings.

Philippine vs. ASEAN Performance for the Current Year

Country 2018 Overall Ranking* 2018 Distance to Frontier 2017 Overall Ranking Change in Ranking

(2018 vs. 2017)

Brunei 56 70.60 72 +16
Cambodia 135 54.47 131 -4
Indonesia 72 66.47 91 +19
Lao PDR 141 53.01 139 -2
Malaysia 24 78.43 23 -1
Myanmar 171 44.21 170 -1
Philippines 113 58.74 99 -14
Singapore 2 84.57 2 0
Thailand 26 77.44 46 +20
Vietnam 68 67.93 82 +14

* 190 countries

The Philippines is outpaced by our ASEAN neighbors, especially Thailand (+20 places), Brunei (+16 places) and Indonesia (+19 places). Looking at the DTF score, the country’s 58.74 is below the regional average of 65.59. The country also posted the biggest decline (-14 places) vs. the rest of its ASEAN counterparts.

Further Information

Frequency of update: Yearly

Publication of update: 31 October 2017

Period of study: Regulations measured from June through May/June of the same year

Link to the main site: http://www.doingbusiness.org/

Historical data: http://www.doingbusiness.org/data