Another Bad Publicity
By Cathy Rose A. Garcia, abs-cbnNEWS.com
Posted at 11/10/2011 8:47 AM | Updated as of 11/10/2011 8:47 AM
MANILA, Philippines – The Philippines is the worst Asian country for business, according to a list compiled by CNBC.com, the website of the US business news channel.
CNBC.com posted a slideshow of “The World’s 10 Worst Countries for Business” last November 3. The Philippines ranked fourth on the list, which was topped by Venezuela.
However, the Philippines was the lowest ranked Asian country, after India and Indonesia.
CNBC.com noted the Philippines has failed to garner any significant investments, attracting only 2.5% of the $76.5 billion foreign direct investment for the Association of South East Asian Nations member countries in 2010.
“Despite having massive untapped mineral wealth, a key geographical location between Southeast and North Asia and a large, growing English-speaking population, the country has fallen behind its neighbors in economic growth,” the website said.
CNBC.com also noted that foreign business is “wary” of the country’s “unstable legal system, violence, and bureaucracy.”
The website said it based its ranking on the World Bank’s “Ease of Doing Business” study, which was released last month. The survey ranked the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, trading across borders and getting electricity.
The study showed the Philippines slipping further, ranking 136 out of 183 countries. This was lower than its 134 ranking last year, and even lagging behind other developing countries such as Bangladesh, West Bank and Gaza, Nigeria and Sudan.
“The country also ranks among the lowest when it comes to starting a business, and resolving insolvency, with the latter taking more than 5 and half years, compared with an average 1 year and 7 months in OECD countries,” CNBC.com said.
However, the website noted President Benigno Aquino’s recent trips to the US, China and Japan to attract investments and to show its commitment to good governance after corruption allegations hounded the previous two administrations.
CNBC.com also cited the fact that the Philippines jumped 10 places to 75th in the World Economic Forum’s global competitiveness index this year.
Eduardo Lacson, president of the Employers’ Confederation of the Philippines (ECOP), said the government procedures have improved significantly since the Aquino administration, although the negative perception of foreign investors continues to prevail.
“Napalaki na po ang improvement ngayon,ang perception na lang ang lead and lag… Medyo nauuna pa rin ang perception na napaka-hirap ng negosyo dito sa atin. Kasi kung ihahambing tayo sa Hong Kong o Singapore, kung saan puede kayo makapagtayo ng ordinaryong negosyo in one day,” Lacson told DZMM.
Top 10 list
CNBC.com’s slideshow list of The World’s 10 Worst Countries for Business can be found here:
“As the U.S. and Europe grapple with slowing growth, more businesses are turning attention to emerging markets for expansion and profits. FDIs into countries such as Brazil, Russia, and Indonesia are at record highs… While it’s difficult to resist the growth opportunities provided by emerging markets, running a successful business in many of these countries is far from easy,” CNBC.com said.