Contacts in Manila:
Art Cariaga (632) 848-7333
acariaga@ifc.org
Dave Llorito (632) 917-3047
dllorito@worldbank.org
Kitchie Hermoso (632) 917-3013
mhermoso@worldbank.org MANILA, September 9, 2009 —The Philippines strengthened business regulations by enhancing access to credit and cutting corporate income taxes in 2008/2009, joining most economies in East Asia and the Pacific in helping to increase opportunities for local firms, the Doing Business 2010 report of IFC and the World Bank shows. Between July 2008 and June 2009 a record 131 of 183 economies around the globe reformed business regulation, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis. Three economies from the region – Singapore, New Zealand, and Hong Kong (China), in that order – led the world in ease of doing business. The Philippines enhanced access to credit with a new credit information law that regulates the operations and services of a credit information system. The government also cut the corporate income tax rate from 35 to 30 percent and promoted company reorganization procedures by introducing pre-packaged reorganizations. Overall, the Philippines ranked 144th among 183 economies surveyed for the ease of doing business, little changed from 141st last year. “Important reforms are ongoing in many areas in the Philippines such as in Metro Manila and other cities, in national legislation, the judiciary, and several national agencies,” said William Beloe, IFC’s Head of Advisory Services in the Philippines. “However, Doing Business only measures reforms once they are benefitting small and medium-size domestic enterprises. Therefore, we encourage the government to maintain the momentum generated this year and to further improve the Philippines’ business climate and its competitive position. IFC is prepared to support the Philippines in bringing these efforts to fruition.” Kim S. Jacinto-Henares, IFC/World Bank Senior Private Sector Development Specialist, said the ongoing effort of Metro Manila cities to standardize business registration and permitting processes would encourage the informal sector to enter the official market because these processes would be predictable, consistent, and accessible to all who need to use them. IFC is actively supporting the League of Cities of the Philippines and the Departments of Trade and Industry (DTI) and of the Interior and Local Government (DILG) in implementing this initiative. IFC is the member of the World Bank Group focused on private sector development. Elsewhere in East Asia, Indonesia – the region’s most active reformer this year – moved up to 122 from 129 on the rankings. It cut the time required to start a business by 16 days and the time to transfer a property by 17 days. Singapore is the top-ranked economy for the fourth year in a row, with New Zealand as runner-up. Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers. Doing Business ranks 183 economies based on 10 indicators of business regulations that track the time and cost needed by domestic companies to meet business regulations such as starting and operating a business, trading across borders, paying taxes, or closing a business. It does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems. XXX About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org. For more information about the Doing Business report series, please visit: www.doingbusiness.org. For more information on Doing Business 2010, please contact: Nadine Ghannam + 1 (202) 473 3011
E-mail: nsghannam@ifc.org
Rebecaa Ong +1 (202) 458 0434
E-mail: ROng@worldbank.org Contacts for region-specific queries on Doing Business 2010: East Asia and the Pacific
Hannfried von Hindenburg +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Mohamad Al Arief + (202) 458 5964
E-mail: malarief@worldbank.org |
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