World Bank Ranks Philippines 161st in Starting a Business

The World Bank ranks the Philippines 95th in ease of doing business, 161st   in starting a business, 124th in dealing with construction permits, 108th  in registering property, 104th in getting credit, 127th   in paying taxes, 124th   in enforcing countries, 65th in trading across borders, and 50th   in resolving insolvency. There are 189 countries in the world, give or take, depending on your source.overcrowded jeepney in the Philippines

Every time a businessman tries to start a business in the Philippines he will find himself forced to face a massive mountain of red tape, graft and corruption.

Among the six major Association of Southeast Asian Nations, or ASEAN, countries, the Philippines has received the smallest or lowest foreign direct investments—in amounts and as a percentage of GDP.

BizNewsAsia founder, president, chairman and CEO Antonio “Tony”Lopez states:  “It is bad to start a business in the Philippines. It is bad to do business in this country.  Investors shy away.”

The guy has been a professional business journalist for 50 years. He does have some street cred.

In the starting a business game, the Philippines has, in fact, deteriorated. Last year, it was ranked 154th. This year, the Philippines lost 11 rungs becoming the worst country in Asean for starting a business.

According to the World Bank Doing Business Report 2015, it takes 16 steps and 34 days to start a business in the Philippines.

In Malaysia, starting a business takes just three steps and 5.5 days, Thailand four steps and 27.5 days, and Vietnam 10 steps and 34 days. The best in the world is New Zealand where it takes only one step and half a day to start a business.

It is also very expensive to start a business in the Philippines.  It takes 16.6 percent of the business’ income per capita, compared with 5.3 percent in Vietnam, 5.7 percent in Laos, 6.6 percent in Thailand, and 7.2 percent in Malaysia.

For a specific activity like getting a construction permit, the Philippines has also one of the worst regulations in the world. Getting a permit to build a house or a building takes 24 steps and 94 days (more than three months). That makes the Philippines 124th  best in the world or 65th   worst among 189 economies or countries.

I cannot begin to count the steps involved in obtaining the building permit for our new home in the Philippines. Our brother-in-law took care of that red tape. It took around three months and it was not an easy process by any means. My brother-in-law has more patience than Job.

Hong Kong has the best system globally, getting a construction permit only takes five steps and one day. In Malaysia, getting a building permit takes 13 steps and 74 days; Thailand seven steps but 113 days; Vietnam 10 steps in 114 days.

In the entire Asean, the Philippines has the worst red tape—24 steps to secure a construction permit.  Our neighbors make do with half of the procedures.

In registering property, the Philippines (nine steps in 35 days) is worst in Asean. Indonesia takes five steps and 27.4 days to register property; Malaysia eight steps in 13.5 days; Vietnam four steps in 57 days; Laos five steps and 98 days; and Thailand, the best globally, two steps in two days.

In cost (as a percentage of the value of the property), it is 4.3 percent for the Philippines, 10.8 percent for Indonesia, 6.3 percent for Thailand, 3.3 percent for Malaysia, 1.1 percent for Laos, and 0.6 percent for Vietnam.  It is generally expensive to register one’s property in the Philippines.

(Source: The Standard) Your best source of the REAL TRUTH regarding the Philippines. My blurb. Not theirs.

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