2019Ease of Doing BusinessGovernance Indicator

Ease of Doing Business Index 2019

Philippine Performance for the Past Few Years

Indicator 2015 2016 2017 2018 2019
No. of Countries 189 190
Overall ranking 95 103 99 113 124
EODB Score* 55.85 55.52 56.07 56.32 57.68
Starting a business 161 165 171 173 166
Dealing with construction permits 124 99 82 101 94
Getting electricity 16 19 22 31 29
Registering property 108 112 112 114 116
Getting credit 104 109 118 142 184
Protecting minority investors 154 155 137 146 132
Paying taxes 127 126 115 105 94
Trading across borders 65 140 95 99 104
Enforcing contract 124 95 136 149 151
Resolving insolvency 50 53 56 59 63

* Formerly the Distance to Frontier Score; the historical scores have changed due to adjustments in computation from the Doing Business Report for 2019

Latest figures show the country declining further in the world ranking by 11 spots. The steepest drop is observed in getting credit (-42 places), which measures the strength and availability of collateral and bankruptcy laws in facilitating lending. This slump was not cushioned by the greater number of indicators increasing this year compared to last year. The following indicators had higher rankings: protecting minority investors (+14), paying taxes (+11), starting a business (+7), dealing with construction permits (+7), and getting electricity (+2).

The slower pace of EODB reforms compared to other countries may have resulted in this sharp decline. Although the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032) has been enacted, its full implementation is yet to be felt as the Anti-Red Tape Authority is still not yet established, and the Implementing Rules and Regulations have not been approved.

Philippine vs. ASEAN Performance for the Current Year

Country 2019 Overall Ranking* 2019 EODB Score 2018 Overall Ranking* Change in Ranking

(2019 vs. 2018)

Brunei 55 72.03 56 +1
Cambodia 138 54.80 135 -3
Indonesia 73 67.96 72 -1
Lao PDR 154 51.26 141 -13
Malaysia 15 80.60 24 +9
Myanmar 171 44.72 171 0
Philippines 124 57.68 113 -11
Singapore 2 85.24 2 0
Thailand 27 78.45 26 -1
Vietnam 69 68.36 68 -1

* 190 countries

Except for Malaysia and Brunei that increased its ranking, the rest of the ASEAN experienced a decline this year. Lao PDR registered the biggest drop at 13 spots, followed by the Philippines at 11.

The Philippines still maintained its seventh spot amongst the ASEAN, where Singapore has continued its lead followed by Malaysia.

The country also posted far below the regional average on the EODB score at 57.68 vs. 66.11. Despite this, the Philippines earned a higher score in 2019, continuing the momentum since 2017. Nevertheless, the country must double its efforts to catch up with its fast-growing neighbors such as Thailand and Vietnam.

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.

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