The Philippines ranked 56th out of 149 countries in the latest Global Competitiveness Report, while also ranking the 5th most competitive economy in Southeast Asia.
This is according to the report made by the World Economic Forum, whose results are not comparable to previous reports after adopting a new competitiveness index.
In the Association of Southeast Asian Nations, Singapore ranked the most competitive and also the second globally.
It was followed by Malaysia (25th), Thailand (38th), and Indonesia (45th)—all on the world’s top 50 list.
The report looked at 12 pillars, namely: institutions, infrastructure, information and communication technology adoption, macroeconomic stability, health, education and skills, product market, labor market, financial system, market size, business dynamism and innovation capability.
The report suggests that the Philippines needs to exert extra effort to improve business dynamism.
Time to start a business (ranked 115th ), cost of starting a business (97th), and insolvency recovery rates (112th) remain as weak indicators and are still seen as disruptive factors for doing business, MBC said.
“While time and cost of starting a business remain as problematic factors for the business community, it is worthy to note that the Philippines ranks high in e-participation, or the use of online platforms to link government information to citizens,” said MBC chair Edgar Chua.
“With the recently passed Ease of Doing Business Act, we remain optimistic that the government will be able to sustain these gains and address the concerns of efficiency in doing business,” he added. —ROY STEPHEN C. CANIVEL