PH competitiveness ranking up by 10 notches

First time country is in top 50% of world ranking


Welders and construction workers are seen on a metal frame as they work on an access road to the Ninoy Aquino International Airport Terminal 3 in this file photo. The Philippines leaped by 10 notches in the global competitiveness ranking for 2012 to 65th out of 144 countries. AFP PHOTO/Jay DIRECTO

Enjoying a favorable economic performance and having a government that claims to put premium on its anticorruption drive, the Philippines leaped 10 notches in the global competitiveness ranking for the year to 65th spot out of 144 countries.

The country’s latest performance followed a similar 10-notch jump to the 75th spot last year, resulting in an overall 20-notch jump so far under the Aquino administration.

“The Philippines makes important strides this year in improving competitiveness—albeit often from a very low base—especially with respect to its public institutions,” The World Economic Forum (WEF) said in its 2012-2013 Global Competitiveness Report, which was released Wednesday worldwide.

The WEF said the Philippines was one of the few countries that registered a double-digit improvement in ranking this year.

The Philippines landed on the 65th spot after it registered an overall score of 4.23 points (out of 7 points) across all 12 categories considered by businesses as major areas for determining a country’s competitiveness.

Guillermo Luz, cochairman of the Philippines’ National Competitiveness Council (NCC), said at a press conference Wednesday that this year was the first time the country landed on the upper 50 percent of countries ranked in the global competitiveness survey.

He said the NCC was targeting the Philippines to join the upper one-third of the global competitiveness rankings by 2016, the end of the Aquino administration.

12 pillars

The survey on global competitiveness, which taps businesses as respondents, grades countries based on the following 12 categories or “pillars.”

These are the following: [government] institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

Luz said the Philippines registered improvements in 11 out of the 12 categories.

Huge gain in institutions

The Philippines gained the most in the “institutions” category, where it jumped 23 places to the 94th spot from last year’s 117th.

In the “infrastructure” category, the country improved its ranking by seven places to 98th; for “macroeconomic environment,” up 18 places to 36th; for “higher education” and training, up seven places to 64th; for goods market efficiency, up two places to 86th; for labor market efficiency, up 10 places to 103rd; for financial market development, up 13 places to 58th; for “technological readiness,” up four places to 79th; for “market size,” up one place to 35th; for “business sophistication,” up eight places to 49th; and for “innovation,” up 14 places to 94th.

Drop in health, primary education

The only category where the Philippines registered a slippage was in “health and primary education,” where it fell six places to 98th.

The country’s favorable performance in the “institutions” category reflects the success of the Aquino administration in convincing the business sector that there has been an improvement in governance, Luz said.

Of the 15,000 businesses that responded to the global competitiveness survey for this year, 132 came from the Philippines.

On macroeconomic environment, Luz attributed the country’s improved ranking to the country’s favorable economic performance.

The Philippine economy grew 5.9 percent in the second quarter from a year ago, making the country one of the fastest-growing economies in Asia. This brought its average growth rate for the first semester to 6.1 percent, making the government’s full-year growth target of 5 to 6 percent attainable.

Infra spending low


But Ramon del Rosario Jr., chairman of the Makati Business Club, said a lot of work still had to be done in several areas to help ensure that the Philippines reaches the upper-third rankings in 2016.

To reach the upper upper third, the country must improve significantly on infrastructure development and market efficiency, particularly labor market efficiency, Del Rosario said.

Despite increases in government spending on infrastructure this year, infrastructure investment in the Philippines remains one of the lowest in the region.

Infrastructure spending in the country is estimated to be equivalent to less than 3 percent of its gross domestic product, below the 5 percent average for Southeast Asia.

“Despite these very positive trends, many weaknesses remain to be addressed. The country’s infrastructure is still in a dire state, particularly with respect to sea and air transport, with little or no progress achieved to date,” Del Rosario said at the press conference.

He said businesses considered infrastructure a vital area in deciding whether to invest in a country.

With its improved performance this year, the Philippines has beaten Vietnam, which enjoyed better rankings in the previous years. This year, Vietnam ranked 75th.

The Philippines, however, continues to lag behind other major Asian economies in the competitiveness rankings.

Hong Kong ranked 9th, Taiwan 13th, South Korea 19th, Malaysia 25th, China 29th, Thailand 38th, Indonesia 50th and India, 59th.

Singapore remained the highest ranking among Asian countries, landing on the second spot, the same as its last year’s ranking.

Switzerland was again named the most globally competitive country.

Originally posted at 09:55 pm | Wednesday, September 05, 2012

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  • Guest

    Reading closer, I stumbled on this: “The only category where the Philippines registered a slippage was in
    “health and primary education,” where it fell six places to 98th.”

    Hopefully, next year, that category won’t slip further because a deterioration in education has, as anyone should know, long term implication for the competitiveness of a country. Not only the mass, but the class of the people is important.

  • joboni96

    kung wala lang mga mapag samantalang
    intsik switik at dayuhan

    mas pumapayagpag pa sana
    ang bayan natin

    stop all pilipino wealth leaks

  • michael

    Congragulations, not just to his excelency President Aquino, who did a great Job

    But also to the millions of hard working, honest, inteligent, creative and skilled filipinos who are working round the clock to make this nation great,

    If you’re one of them, and your reading this, then this is for you. I pray that God bless you

    Keep it up, we have a long way to go, but we are closer there now than we we were yesterday thanks to you


  • Jerome

    we should focus on things that are validated by facts. carelle mangaliag and rr herrera of trainstation claim that they are the best consultants in town. yet they have nothing except gimmickry to prove their grandiose claims. clients should do their background checks first before they engage suppliers. check on the credentials and check on their personal lives as well.

  • Bad_Ong

    If this is one of Noynoying effect so be it and please do more of it PNoy! 

    However don’t expect everyone will be happy with it. Negativistic Lolo Amado Donorilla and his likes will never appreciate it rather they’ll deny this to death! Yes, some are already here.

  • Jianne Garcia

    Truly, there is no other way but to to move forward!

    Iba talaga kapag hindi corrupt ang isang presidente. Saludo ako sayo PNoy. So far, you have made a lot of improvements to our country in a matter of two years! ‘Yan ang tunay na pag-asenso. Should this trend continue for the rest of your term, I will continue looking forward for a brighter future for our beloved country.

    Sana nga lang, ang mga susunod na mga presidente ay maging katulad mo. Yun tipong totoo sa kanilang effort na labanan ang corruption at focused for the betterment of our country. But for now, as a citizen of the Philippines, let’s do our job and help our country move forward by voting for the right leaders to lead us. Even so, we must not rely on our government for everything for there are things that only us can do. If we want to see a better Philippines, change must start from within- from ourselves. As the saying goes- “Ako ang simula ng pagbabago”.

    Cheers for a brighter future!

  • aofosersd

    Our government is doing its part in impoving the economic standing of our country. This should be great news to us. Let’s do away with our “crab mentality” and all pessimism. The government does not have all the answers to each and every Filipino (especially the underpriviledged ones). How about you? What are you doing to contirbute to nation building and uplifting of our fellow Filipino’s economic standing. Instead of focusing your energies to useless nagging and negativity, get up, go to work and do your part!


    Iba talaga pag hindi corrupt ang presidente. Walang lagay para sa malacanang. walang tong-pats para sa presidente.

    Sarap ng pakiramdam na hindi corrupt ang presidente!!!!

    God bless the Philippines.

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