52
The State of Competitiveness and the EODB Act (RA 11032) Guillermo M. Luz American Chamber of Commerce General Membership Luncheon Meeting September 19, 2018
The State of Competitiveness and the
EODB Act (RA 11032)
Guillermo M. Luz
American Chamber of Commerce General Membership Luncheon Meeting
September 19, 2018
WHAT DO WE COMPETE FOR ?
INVESTMENTS TRADE JOBS TOURISTS PEOPLE
REPORT 2018 2017 2016 2015 2014 2013 2012 2011 2010 CHANGE
2010/11 to LATEST
SOURCE TOP 20%
1. Doing Business Report - 113/190 99/190 103/189 95/189 108/189 138/185 136/183 148/183 ↑ 35 International Finance
Corporation 38
2. Economic Freedom Index 61/180 58/180 70/178 76/178 89/178 97/177 107/179 115/179 - ↑ 54 Heritage Foundation 36
3. Corruption Perceptions Index
111/180 101/168 95/168 85/175 94/177 105/176 129/183 134/178 ↑ 23 Transparency International
36
4. Global Competitiveness Report
56/137 57/138 47/140 52/144 59/148 65/144 75/142 85/139 ↑ 29 World Economic
Forum 27
5. Global Enabling Trade Index - 82/136 - 64/138 n/a 72/132 n/a 92/125 ↑ 10 World Economic
Forum 27
6. Travel and Tourism Report 79/136 n/a 74/141 n/a 82/140 n/a 94/139 - ↑ 15 World Economic
Forum 27
7. Global Innovation Index 73/126 73/128 74/128 83/141 100/143 90/142 95/141 91/125 - ↑ 18 World Intellectual
Property Organization
25
8. Global Information Technology Report
- 77/139 76/143 78/148 86/144 86/142 86/138 - ↑ 9 World Economic
Forum 28
9. E-Government Index 75/193 - 71/193 - 95/193 -- 88/191 -- 78/184 ↑ 3 United Nations 39
10. Fragile States Index* 48/178 54/178 54/178 48/178 52/178 59/178 56/177 50/177 - ↓2 Fund for Peace 36
11. Global Gender Gap Report 10/144 7/144 7/145 9/142 5/136 8/135 8/135 9/142 ↑ 1 World Economic
Forum 29
12. World Competitiveness Yearbook
50/63 41/63 42/60 41/60 42/60 38/60 43/59 41/59 - ↓9 International Institute
for Management Development
13
13. Logistics Performance Index 60/160 - 71/160 - 57/160 - 52/155 - 44/155 ↓ 16 World Bank 32
Latest Performance Reached the Top 3rd of the World Rankings
GLOBAL COMPETITIVENESS REPORT CARD
*Reverse Ranking
*with 2016 Results, **reverse ranking (1 as worst)
LATEST PERFORMANCE
*Reverse Ranking (1 as worst)
REPORT 2016/2017 2017/2018 GOAL
(Top 20%) CHANGE
YOY
1.Doing Business Report (IFC) 99/190 113/190 38 ↓ 14
2. Economic Freedom Index (HF)* 58/180 61/180 36 ↓ 3
3. Corruption Perceptions Index (TI) 101/180 111/180 36 ↓10
4. Global Competitiveness Index (WEF) 57/137 56/137 27 ↑ 1
5. Global Enabling Trade Index (WEF) 64/138 82/136 27 ↓ 18
6. Travel and Tourism Report (WEF) 74/141 79/136 27 ↓ 5
7. WIPO- Global Innovation Index (WIPO) 73/128 73/128 25 No Change
8. Global Information Technology Report (WEF) 76/143 77/139 28 ↓ 1
9. E-Government Index (UN) 71/193 75/193 39 ↓ 4
10. Fragile States Index (FFP) ** 54/178 48/178 36 ↓ 6
11. Global Gender Gap Report (WEF) 7/144 10/144 29 ↓ 3
12. World Competitiveness Report (IMD) 41/63 50/63 13 ↓ 9
13. Logistics Performance Index (WB) 71/160 60/160 32 ↑ 11
UPGRADE DOWNGRADE
GLOBAL COMPETITIVENESS REPORT CARD
4
WEF Global Competitiveness Report Philippine ranking, 2011-2018 (n=137)
1
21
41
61
81
101
121
2011 2012 2013 2014 2015 2016 2017 2018
Philippines
65 59
52 47
Source: WEF Global Competitiveness Report
56 Current
85 75
137
57
Bo
tto
m Q
ua
rtile
To
p Q
ua
rtile
Ease of Doing Business Philippine ranking, 2011-2018 (n=190)
0
20
40
60
80
100
120
140
160
2011 2012 2013 2014 2015 2016 2017 2018
Philippines
Source: Philippine Ranking Published Doing Business Report
190
1
138
108 95
103 99
148
136
113 Current
Bo
tto
m T
hir
d
Top
Th
ird
PHILIPPINES vs ASEAN OVERALL (2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 2 2 1 1 1 1 1 1 0 -1
Malaysia 24 23 18 18 6 12 18 21 -1 -3
Thailand 26 46 49 26 18 18 17 19 20 -7
Brunei Darussalam 56 72 84 101 59 79 83 112 16 56
Vietnam 68 82 90 78 99 99 98 78 14 10
Indonesia 72 91 109 114 120 128 129 121 19 49
Philippines 113 99 103 95 108 138 136 148 -14 35
Cambodia 135 131 127 135 137 133 138 147 -4 12
Lao PDR 141 139 134 148 159 163 166 171 -2 30
Myanmar 171 170 167 177 182 NDA NDA NDA -1 11
PHILIPPINES vs ASEAN STARTING A BUSINESS (2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 6 6 10 6 3 4 4 4 0 -2
Thailand 36 78 96 75 91 85 78 95 42 59
Brunei Darussalam 58 84 74 179 137 135 136 133 26 75
Malaysia 111 112 14 13 16 54 50 113 1 2
Vietnam 123 121 119 125 109 108 103 100 -2 -23
Indonesia 144 151 173 155 175 166 155 155 7 11
Myanmar 155 146 160 189 189 NDA NDA NDA -9 43
Lao PDR 164 160 153 154 85 81 89 93 -4 -71
Philippines 173 171 165 161 170 161 158 156 -2 -17
Cambodia 183 180 180 184 184 175 171 170 -3 -13
PHILIPPINES vs ASEAN DEALING W/ CONSTRUCTION PERMITS(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Malaysia 11 13 15 28 43 96 113 108 2 97
Singapore 16 10 1 2 3 2 3 2 -6 -14
Vietnam 20 24 12 22 29 28 67 62 4 42
Lao PDR 40 47 42 107 96 87 80 115 7 75
Thailand 43 42 39 6 14 16 14 12 -1 -31
Brunei Darussalam 48 37 21 53 46 43 83 74 -11 26
Myanmar 73 66 74 130 150 NDA NDA NDA -7 77
Philippines 101 85 99 124 99 100 102 156 -16 55
Indonesia 108 116 107 153 88 75 71 60 8 -48
Cambodia 179 183 181 183 161 149 149 146 4 -33
PHILIPPINES vs ASEAN GETTING ELECTRICITY(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Malaysia 8 8 13 27 21 28 59 - 0 51
Singapore 12 10 6 11 6 5 5 - -2 -7
Thailand 13 37 11 12 12 10 9 - 24 -4
Brunei Darussalam 24 21 68 42 29 29 28 - -3 4
Philippines 31 22 19 16 33 57 54 - -9 23
Indonesia 38 49 46 78 121 147 161 - 11 123
Vietnam 64 96 108 135 156 155 135 - 32 71
Cambodia 137 136 145 139 134 132 130 - -1 -7
Lao PDR 149 155 158 128 140 138 138 - 6 -11
Myanmar 151 149 148 121 126 NDA NDA NDA -2 -25
PHILIPPINES vs ASEAN REGISTERING PROPERTY (2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 19 19 17 24 28 36 14 15 0 -4
Malaysia 42 40 38 75 35 33 59 60 -2 18
Vietnam 63 59 58 33 51 48 47 43 -4 -20
Lao PDR 65 65 66 77 76 74 72 163 0 98
Thailand 68 68 57 28 29 26 28 19 0 -49
Indonesia 106 118 131 117 101 98 99 98 12 -8
Philippines 114 112 112 108 121 122 117 102 -2 -12
Cambodia 123 120 121 100 118 115 110 117 -3 -6
Myanmar 134 143 145 151 154 NDA NDA NDA 9 20
Brunei Darussalam 136 134 148 162 116 115 107 183 -2 47
PHILIPPINES vs ASEAN GETTING CREDIT(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Brunei Darussalam 2 62 79 89 55 129 126 116 60 114
Malaysia 20 20 28 23 1 1 1 1 0 -19
Cambodia 20 7 15 12 42 53 98 89 -13 69
Singapore 29 20 19 17 3 12 8 6 -9 -23
Vietnam 29 32 28 36 42 40 24 15 3 -14
Thailand 42 82 97 89 73 70 67 72 40 30
Indonesia 55 62 70 71 86 129 126 116 7 61
Lao PDR 77 75 70 116 159 167 166 152 -2 75
Philippines 142 118 109 104 86 129 126 128 -24 -14
Myanmar 177 175 174 171 170 NDA NDA NDA -2 -7
PHILIPPINES vs ASEAN PROTECTING MINORITY INVESTORS(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 4 1 1 3 2 2 2 2 -3 -2
Malaysia 4 3 4 5 4 4 4 4 -1 0
Thailand 16 27 36 25 12 13 13 12 11 -4
Brunei Darussalam 40 102 134 110 115 117 122 120 62 80
Indonesia 43 70 88 43 52 49 46 44 27 1
Vietnam 81 87 122 117 157 169 166 173 6 92
Cambodia 108 114 111 92 80 82 79 74 6 -34
Philippines 146 137 155 154 128 128 133 132 -9 -14
Lao PDR 172 165 178 178 187 184 182 182 -7 10
Myanmar 183 179 184 178 182 NDA NDA NDA -4 -1
PHILIPPINES vs ASEAN PAYING TAXES (2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 7 8 5 5 5 5 4 4 1 -3
Thailand 67 109 70 62 70 96 100 91 42 24
Malaysia 73 61 31 32 36 15 41 23 -12 -50
Vietnam 86 167 168 173 149 138 151 124 81 38
Brunei Darussalam 104 89 16 30 20 22 20 22 -15 -82
Philippines 105 115 126 127 131 143 136 124 10 19
Indonesia 114 104 148 160 137 131 131 130 -10 16
Myanmar 125 119 84 116 107 NDA NDA NDA -6 -18
Cambodia 136 124 95 90 65 66 54 57 -12 -79
Lao PDR 156 146 127 129 119 126 123 116 -10 -40
PHILIPPINES vs ASEAN TRADING ACROSS BORDERS (2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 42 41 41 1 1 1 1 1 -1 -41
Thailand 57 56 36 36 24 20 17 12 -1 -45
Malaysia 61 60 49 11 5 11 29 37 -1 -24
Vietnam 94 93 99 75 65 74 68 63 -1 -31
Philippines 99 95 95 65 42 53 51 61 -4 -38
Cambodia 108 102 98 124 114 118 120 118 -6 10
Indonesia 112 108 105 62 54 37 39 47 -4 -65
Lao PDR 124 120 108 156 161 160 168 170 -4 46
Brunei Darussalam 144 142 121 46 39 40 35 52 -2 -92
Myanmar 163 159 140 103 113 NDA NDA NDA -4 -50
PHILIPPINES vs ASEAN ENFORCING CONTRACTS(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Singapore 2 2 1 1 12 12 12 13 0 11
Thailand 34 51 57 25 22 23 24 25 17 -9
Malaysia 44 42 44 29 30 33 31 59 -2 15
Brunei Darussalam 61 93 113 139 161 158 151 159 32 98
Vietnam 66 69 74 47 46 44 30 31 3 -35
Lao PDR 97 88 92 99 104 114 110 110 -9 13
Indonesia 145 166 170 172 147 144 156 154 21 9
Philippines 149 136 140 124 114 111 112 118 -13 -31
Cambodia 179 178 174 178 162 142 142 142 -1 -37
Myanmar 188 188 187 185 188 NDA NDA NDA 0 0
PHILIPPINES vs ASEAN RESOLVING INSOLVENCY(2011-2018)
Source: Published Doing Business Report
Economy 2018 (190)
2017 (190)
2016 (189)
2015 (189)
2014 (189)
2013 (185)
2012 (183)
2011 (183)
Change 2017-2018
Change 2011-2018
Thailand 26 23 49 45 58 58 51 46 -3 20
Singapore 27 29 27 19 4 2 2 2 2 -25
Indonesia 38 76 77 75 144 148 146 142 38 104
Malaysia 46 46 45 36 42 49 47 53 0 7
Philippines 59 56 53 50 100 165 163 153 -3 94
Brunei Darussalam 60 57 98 88 48 46 44 42 -3 -18
Cambodia 74 72 82 84 163 152 149 183 -2 109
Vietnam 129 125 123 104 149 149 142 124 -4 -5
Myanmar 164 164 162 160 155 NDA NDA NDA 0 -9
Lao PDR 168 169 189 189 189 185 183 183 1 15
Why Competitiveness Matters?
-3-2-10123456789
10
2011 2012 2013 2014 2015 2016
Gro
wth
Rat
e in
%
GDP Growth (annual %) PH vs ASEAN (2011-2016)
Source: data.worldbank.org
MY
MN
PH
LA
TH
VN
ID
SG
KH
BN
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
100001
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
GD
P p
er
Cap
ita
GDP per capita (current US$) PH vs ASEAN (1994-2016)
Source: data.worldbank.org
MN
PH
MY
TH
VN
ID
LA
KH
Foreign Direct Investments net inflows(BoP, current US$)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2011 2012 2013 2014 2015 2016P h i l i p p i n e s
1,852 2,449 2,430
5,740 4,937
Source: data.worldbank.org
7,912
US$ Million
0
10000
20000
30000
40000
50000
60000
70000
80000
2011 2012 2013 2014 2015 2016
Fore
ign
Dir
ect
Inve
stm
ents
n
et in
flo
ws
(Bo
P, c
urr
ent
US$
)
Foreign Direct Investments net inflows (BoP, current US$) PH vs ASEAN (2011-2016)
Source: data.worldbank.org
PH
SG
TH
MY
ID
Exports of goods, services and primary income (BoP, current US$)
50000
55000
60000
65000
70000
75000
80000
85000
90000
2011 2012 2013 2014 2015 2016
PhilippinesSource: data.worldbank.org
64.8
75.1 76.2
84.1 81.8 83.5
0
100000
200000
300000
400000
500000
600000
700000
2011 2012 2013 2014 2015 2016Ex
po
rt o
f G
oo
ds
Mill
ion
s Exports of goods, services and primary income (BoP, current US$) PH vs ASEAN (2011-2016)
Source: data.worldbank.org
PH
MN BN
SG
TH
MY VN ID
LA
KH
Unemployment Rate Philippines (2011-2017)
1
2
3
4
5
6
7
8
2011 2012 2013 2014 2015 2016 2017
PhilippinesSource: data.worldbank.org
7% 7.4%
6.8% 6.3%
6% 5.5%
7%
0
1
2
3
4
5
6
7
8
9
10
2011 2012 2013 2014 2015 2016
Un
em
plo
ymen
t R
ate
PH
vs
ASE
AN
Unemployment Rate PH vs ASEAN
Source: data.worldbank.org
SG
TH
MY
PH IN
Poverty Incidence (in %) PH vs ASEAN Source: CIA World Fact Book, World Bank, ASEAN.org
Economy Population
Poverty Incidence Year
Indonesia 261.1 M 10.9 % 2016
Malaysia 27.1 M 3.8 % 2008
Philippines 101.7 M 21.6 % 2015
Thailand 68.7 M 7.2 % 2015
Cambodia 14.7 M 17.7 % 2012
Laos 6.2 M 26 % 2010
Myanmar 49.1 M 32.7 % 2007
Vietnam 90.5 11.3 % 2012
Ease Of Doing Business And Efficient Delivery Of Government Services Act Of 2018 / RA 11032
Addresses Priority # 3 of the 0+10 Socioeconomic Agenda to improve the country’s competitiveness and ease of doing business
Improve and speed up delivery of government services by simplifying the issuance of permits and licenses
Promotes transparency and cuts red-tape.
What is Ease Of Doing Business And Efficient Delivery Of Government Services Act ?
For the Citizens Hassle-free transaction with the government
What are the benefits of the RA 11032 for every Filipino?
For the Business Sector Simple, speedy, and streamlined business transactions
For Public Employees and Officials Transparency & accountability
All government agencies shall comply with prescribed processing time as follows:
3 Working Days Simple Transactions
7 Working Days Complex
20 Working Days Highly Technical Applications
Prescribed Processing Time
S A L I E N T F E A T U R E S
- Unified Business Application Form
- Automation of Business Permits and Licenses
- Establishment of Business One-Stop Shop (BOSS)
- Barangay clearances and permits are now issued at the city or municipality
Streaml ined Issuance of Local Bus iness L icenses , C learances , Permits or Author izat ions
S A L I E N T F E A T U R E S
Bureau of Fire Protection is not allowed to sell or recommend specific brands of fire extinguishers and other fire safety equipment.
Fire safety evaluation clearance (FSEC), Fire Safety Inspection Clearance, and Certification of Fire Incident are now streamlined
BFP shall now be co-located in the Business One-Stop Shop (BOSS) in the city/municipality
Streamlined Procedures for Securing Fire Clearances and Certif icates
S A L I E N T F E A T U R E S
Failure to approve or disapprove an application within the prescribed processing time, the said application shall be deemed approved.
Automat ic Approval
S A L I E N T F E A T U R E S
Zero-Contact Pol icy
No contact in any manner with any requesting party except during submission of documents.
CENTRAL BUSINESS PORTAL DICT to establish a central business portal to receive and capture application data on business-related transactions, and links to online registration of national government agencies
PHILIPPINE BUSINESS DATABANK This shall provide NGAs/LGUs access to data and information to verify the validity, existence of business entities.
INTERCONNECTIVITY INFRASTRUCTURE DEVELOPMENT Processing and approval of licenses for the installation and operation of telecommunication facilities, equipment and service shall be expedited.
S A L I E N T F E A T U R E S
Creation of the Anti -Red Tape Authority & EODB/ART Advisory Counci l
S A L I E N T F E A T U R E S
The Ease of Doing Business and Anti-Red Tape Advisory Council policy and advisory body to the Authority
Monitor compliance of agencies and non-compliant government employees;
Initiate investigation upon receipt of a complaint or file cases for violations and;
Review proposed major regulations of government agencies
2-Strike policy for government officials and employees found in violation of the act
FIRST OFFENSE: Administrative liability with six (6) months suspension.
SECOND OFFENSE: Administrative and criminal liability - Dismissal from service - Imprisonment of 1-6 years - Perpetual disqualification - Fine of P500K –P2M office - Forfeiture of retirement benefits
Penalt ies
S A L I E N T F E A T U R E S
EVOLUTION
REVOLUTION
Design Sprints
Paperless Trail
Can we go from this..?
…TO THIS. CAN WE USE MOBILE PHONES TO
GET SOME PERMITS ?
Thank you
