Philippine Competitiveness and the Ten-point Agenda Arangkada Philippines Forum 14 September 2017 Mariott Hotel

Transcription

1 Philippine Competitiveness and the Ten-point Agenda Arangkada Philippines Forum 14 September 2017 Mariott Hotel GUILLERMO M. LUZ Private Sector, Co-Chairman

2 10 Point Socioeconomic Agenda 1. Continue and maintain current macroeconomic policies. 2. Institute progressive tax reform and more effective tax collection. 3. Increase competitiveness and the ease of doing business. 4. Accelerate annual infrastructure spending to account for 5 percent of GDP, with Public-Private Partnerships playing a key role. 5. Promote rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism. 6. Ensure security of land tenure. 7. Invest in human capital development (e.g., education, health) 8. Promote science, technology and the creative arts. 9. Improve social protection programs. 10. Strengthen implementation of the Responsible Parenthood and Reproductive Health Law..

3 GLOBAL COMPETITIVENESS REPORT CARD *with 2016 Results, **reverse ranking (1 as worst) REPORT 2010/ /2017 GOAL (Top 3rd) CHANGE 4 to 6 yrs 1.Doing Business Report (IFC) 148/183 99/ Economic Freedom Index (HF)* 115/179 58/180* Corruption Perceptions Index (TI) 134/ / Global Competitiveness Index (WEF) 85/139 57/ Global Enabling Trade Index (WEF) 92/125 64/ Travel and Tourism Report (WEF) 94/139 79/36* WIPO- Global Innovation Index (WIPO) 91/125 73/128* Global Information Technology Report (WEF) 86/138 77/ E-Government Index (UN) 78/184 71/ Fragile States Index (FFP) ** 50/177 54/ Global Gender Gap Report (WEF) 9/142 7/ World Competitiveness Report (IMD) 41/59 41/63* Logistics Performance Index (WB) 44/155 71/ REACHED THE TOP THIRD LATEST PERFORMANCE UPGRADE DOWNGRADE *with 2017 Results, **reverse ranking (1 as 3 worst)

4 GLOBAL COMPETITIVENESS REPORT Percentile Rank Upper 1/ Reached Top Third Target: #46 (Top Third) 50 Middle 1/3 Bottom 1/ Current Ranking TOP THIRD

5 GLOBAL COMPETITIVENESS REPORT PHILIPPINES and ASEAN Economy 2016 (out of 138) 2015 (out of 140) 2014 (out of 144) 2013 (out of 148) 2012 (out of 144) 2011 (out of 142) 2010 (Out of 139) Change Change Singapore Malaysia Thailand Indonesia Philippines Vietnam Lao PDR n/a n/a n/a Cambodia Myanmar n/a n/a n/a Brunei Darussalam 58 n/a n/a

6 Top 4 Gains Since 2010/ No. 58 from No No. 99 from No No. 101 from No. 134 Economic Freedom Index No. 57 from No. 85 Corruption Perception Index Doing Business Report Global Competitiveness Report

7 Cities and Municipalities Competitiveness Index (CMCI)

8 Cities and Municipalities Competitiveness Index (Cmci)

9 The CMCI Framework ECONOMIC DYN AMISM GOVERNMENT EFFICIENCY SUSTAINABLE COMPETITIVENESS INFRASTRUCTURE RESILIENCE

10 C M C I C o v e r a g e o v e r t h e y e a r s CITIE S MUNICIP 136 CITIE S MUNICIP 142 CITIE S 978 MUNICIP 144 CITIES 1245 MUNICIP Out of 1,634 local governments in the Philippines 145 CITIES 1342 MUNICIP 2017

11 To view the full rankings go to:

12 To view the full rankings go to:

13 Building local competitiveness is critical to enhancing long-term national competitiveness

14 Ease of Doing Business REGULATORY FOCUS

15 Doing Business Report: Philippines #20 by 2020 (target) Current Philippines Source: Published Doing Business Report

16 UPGRADES & DOWNGRADES Philippine Rankings ( ) Resolving Insolvency +97 From 153 to 56 Dealing with Construction Permits +71 From 156 to 85 Getting Electricity +32 From 54 to 22 Paying Taxes +11 From 124 to 115 Getting Credit +10 From 128 to 118 Trading Across Borders -34 From 61 to 95 Enforcing Contracts -18 From 118 to 136 Starting a Business -15 From 156 to 171 Registering Property -10 From 102 to 112 Protecting Minority Investors -5 From 132 to 137

17 PHILIPPINES vs ASEAN ( ) Economy 2017 (190) 2016 (189) 2015 (189) 2014 (189) 2013 (185) 2012 (183) 2011 (183) Change Change Singapore Malaysia Thailand Brunei Darussalam Vietnam Indonesia Philippines Cambodia Lao PDR Myanmar NDA NDA NDA Source: Published Doing Business Report

18 EODB Improvements Integrated Business Registration System For Starting a Business, registration numbers from the SEC, BIR, SSS, Pag-IBIG, and PhilHealth can be generated in a single transaction at the SEC. Online Access to Building Code and other Requirements for Getting a Construction Permit For Dealing with Construction Permits, requirements for obtaining a building permit under the Building Code are now made accessible online free at

19 EODB Improvements Online Application for Electric Service In Getting Electricity, apply for electric service online through MERALCO ( for both home and business applications in Meralco service area. Terminal Appointment Booking System To address port congestion in Manila, the Terminal Appointment Booking System (TABS) is an electronic platform for booking container movement in international ports of Manila, creating more organized in- and out-flow of containerized cargoes from both terminals.

20 Reforms in Doing Business SSSnet, Philhealth, Pag-Ibig SSS introduced SSSnet to make filing and payment of social contributions easier. This automates transfer of data and funds and facilitates members access to benefits. Philhealth and Pag-Ibig payments move online. Land Titling Computerization Project For Registering Property, LRA developed the Land Titling Computerization Project to upgrade all manually-issued titles into e-titles. LRA Aksyon-Agad Center One-stop interactive support system that receives inquiries and concerns from the public, and gives updates on status of transactions and complaints at the Land Registration Authority. It also allows the public to report misconduct, corruption, and poor service delivery at the agency.

21 MAYOR S PERMIT : OLD VS NEW STANDARDS

22 Nationwide Compliance Rate Revised BPLS Standards Maximum of 2 days or less 72% (1,150) While 28% process it in 2 days or more DAYS / TIME PROCEDURES Maximum of 3 procedures or less 47% (745) While 53% has 4 procedures or more Use of single unified form 79% (1,260) While 19% has used 2 forms or more UNIFIED FORM SIGNATORIES Maximum of 2 signatories or less 79% (1,258) While 21% has 3 or more signatories

23 SB 1311 : Expanded Anti-Red Tape Act of 2017 HB 5031 : AN ACT ESTABLISHING A NATIONAL POLICY ON EASE OF DOING BUSINESS

24 Background February 1, 2017, the Senate Committee on Trade, Commerce and Entrepreneurship and Senate Committee on Civil Service, Government Reorganization and Professional Regulation submit Senate Committee Report Number 33 recommending SB 1311 as substitute for SB 866 (Fast Business Permit Act), taking into consideration Senate Resolutions Number 23 (Government Plans and Strategies to Promote Ease of Doing Business in the Country) and 54 (Strengthening the E- Commerce Transactions in Government). Senate Bill No approved on Third Reading by Senate, August 22, HB 5031 Pending with the Committee on Trade and Industry since Feb 2, 2017

25 OBJECTIVES OF SB 1311, HB 5031 Promotes development of the Micro, Small, and Medium Enterprises (MSME s). To realize freedom from the unjustified cost of doing business and to promote integrity, accountability, proper management of public affairs and property. Adoption of simplified requirements and procedures for business and non-business related transactions Strengthens the Government s Anti-Red Tape Program

26 KEY FEATURES OF SB 1311, HB 5031 Prescribes processing period of maximum 3 three working days for simple applications involving MSMEs and 7 seven working days for complex applications from the time the application is received. For special types of businesses that require clearances, accreditation and/or licenses issued by government agencies, processing time is set at maximum 20 working days. Automatic approval of application if agency fails to take action (which includes informing applicant of errors, omissions and/or additional documents required for submission) and provided that applicant has complied with all required documents and fees. The bill allows prescribed processing period to be extended once for highly technical applications or such cases where extraordinary due diligence in reviewing the qualifications and merits of an application is required.

27 KEY FEATURES OF SB 1311, HB 5031 To make the application process for business permits and other documents faster and more convenient, the bill requires national and local agencies to set up an Electronic Business One-Stop Shop (E-BOSS) business permit and licensing system in cities and municipalities nationwide. A single or unified business application form shall be used in processing new applications for business permits and business renewals. New form would consolidate all information of the applicant by various local government departments, such as but not limited to the local taxes and clearances, building clearance, sanitary permit, zoning clearance, and other specific local government unit requirements as the case may be, including the fire clearance from the Bureau of Fire Protection.

28 SB 1280, HB 0877, HB 1324, HB 2917 AND HB 5970 AN ACT THE CORPORATION CODE OF THE PHILIPPINES

29 NCC Recommendations Introduction of the One Person Corporation (Section 73). Currently, corporations require five incorporators for registration at the SEC. Simplification of Name Registration. NCC proposes that only identical names be rejected and that applicants otherwise are allowed to proceed with their applications. The process can then be stopped if corporations who own previously-filed names register a complaint against new names.

30 NCC Recommendations Lifespan of the corporation. NCC supports the proposal that this be extended to perpetuity, unless shortened at the option of the corporation. Abolish the minimum capital requirements for registration. This significantly simplifies the process of incorporation, especially for small businesses and entrepreneurs. Free access to corporate information. NCC recommend free access to corporate information rather than paid access. Online registration. An online system will enable entrepreneurs everywhere to register anytime, anywhere. It will benefit entrepreneurs not only because of speed but also because of access.

31 PROJECT REPEAL Launched March 2016 Government-wide regulatory reform initiative which aims to repeal outdated rules and reduce the cost of doing business. Mission is to review irrelevant, burdensome, and unnecessary laws/issuances imposed on businesses and citizens that affect the country s global competitiveness ranking and investment climate.

32 RATIONALE Consumers and Businesses are saddled by too much regulation Regulation happens at Executive, Legislative, Local Government levels Laws date back to Commonwealth period and includes PDs from Martial Law era Multiple layers of laws, rules, regulations Are they all necessary or relevant?

33 OBJECTIVE Reduce cost of compliance for people and businesses; generate savings

34 REVIEWING WHAT TO REPEAL Executive Department Orders/Circulars Executive Orders & Administrative Orders Legislation LGU Ordinances*

35 JOURNEY TO GOOD REGULATORY PRACTICE Repeal Cost Accounting (Quantifying the Savings) Regulatory Impact Assessment (Cost vs Benefit) Better Regulatory Delivery

36 INCREASED PARTICIPATION FROM NATIONAL GOVERNMENT AGENCIES AND ACADEME

37 STATUS OF REVIEW Since launch, 4,837 policy issuances have been reviewed. *Removal of invalid rules and regulations from a government website and roster of active issuances.

38 Government Online BUSINESS-FRIENDLY FOCUS

39 The Goal File online, anytime, anywhere Pay online License or permit issued electronically, where possible (a la airline tickets).

40 Getting Started Priority Permits to Take Online or Automate Incorporation : Starting a Business Business (Mayor s) Permits Construction Permits Occupancy Permits BIR and Social Agencies (SSS, Philhealth, Pag- IBIG) Fire Safety Inspection Certificates (FSIC) Import/Export Traderelated National Quality Infrastructure (FDA, BPS, DA) standards and certification

41 Let s Create Portals Ease of Doing Business - Trade Facilitation - National Quality Infrastructure -

42 How? Let private sector develop and own the apps. Pay them per transaction Crowd-sourced app (cheaper, faster than traditional procurement) Hackathon

43 Benefits to Government Faster, lower development costs Lower hardware costs Quicker turnarounds for upgrades

44 CAN WE GO FROM THIS?

45 TO THIS? ONE WINDOW SERVING ALL TRANSACTIONS

46 TO THIS. CAN WE USE MOBILE PHONES TO GET SOME PERMITS?

47 THANK YOU Fb.com/compete.philippines

48 competitive.org.ph