The Philippines ranked 148th out of 183 countries in terms of ease of doing business in the lastest survey conducted by the World Bank and International Finance Corp.  This ranking was two notches lower from the country's 146th ranking in the previous year.
 
The 267-page report called Doing Business 2011: Making a Difference for Entrepreneurs ranked 183 economies on key aspects of business regulation for domestic firms.  It analyzed regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and closing a business.
 
It said that while the Philippines had some improvements in terms of setting up one-stop shops at the municipal level, it made acquiring construction permits more difficult.
 
The report also said most constructions in the Philippines took place without government approvals.  "By some estimates 60 to 80 percent of building projects in developing economies are undertaken without the proper permits and approvals. In the Philippines, 57 percent of new construction is considered illegal," it said.
 
The country ranked 156th in terms of dealing with construction permits as it requires 26 days to secure all the construction permits.
 
"The Philippines eased business start-up by setting up a one-stop shop at the municipal level. Improvements to its electronic customs systems, including the addition of functions such as electronic payments and online submission of declarations, reduced the time and cost to trade. But updated electricity connection costs made dealing with construction permits more difficult," according to the report.
 
The Philippines lagged behind other Asian countries in the survey.  Singapore topped the global list, followed by Hong Kong at second spot.  Thailand ranked 19th; Malaysia, 21st; Taiwan, 33rd; China, 79th; and Indonesia, 121st.
 
New Zealand, the United Kingdom, and the United States ranked third, fourth and fifth respectively.
 
The report noted that the Philippines introduced a one-stop shop for the municipal license and cut the inspection by the mayor’s office, reducing start-up time by 15 days.
 
Still, the Philippines is among the countries where it is most difficult to start a business.  It requires 15 procedures for a start up company, compared to only 1 procedure in Canada and New Zealand.
 
It is also one of the countries where it is most difficult to close a business, with a recovery rate of just 4.5 percent, compared to a recovery rate of 92.7 percent in Japan and 91.3 percent in Singapore.
 
It takes 5.7 years to close a business in the Philippines, compared to only 0.4 years in Ireland and 0.6 years in Japan.
 
The Philippines, however, is one of the ten countries that improved the most in terms of trading borders.  The country reduced the time and cost to trade by improving its electronic customs systems, adding such functions as electronic payments and online submission of declarations, according to the report.
 
It ranked 61st place in trading across borders.  It takes eight documents and 15 days to export in the Philippines
 
The country ranked 102nd in terms of registering property, as it takes eight procedures and 33 days to register a property.
 
It also ranked 128th in terms of getting credit; 132nd in protecting investors; 124th in paying taxes; 118th in enforcing contracts and 153rd in closing a business.
 
Globally, the report said governments in 117 economies carried out 216 regulatory reforms aimed at making it easier to start and operate a business, strengthening transparency and property rights, and improving the efficiency of commercial dispute resolution and bankruptcy procedures.
 
It said doing business remains easiest in the high-income economies of the Organisation for Economic CoOperation and Development and most difficult in Sub-Saharan Africa and South Asia.
 
In the past year, 66 percent reformed business regulation, up from 34 percent six years earlier.
 
In the past five years, about 85 percent of the world’s economies have made it easier for local entrepreneurs to operate, through 1,511 improvements to business regulation.
 
“New technology underpins regulatory best practice around the world,” said Janamitra Devan, Vice President for Financial and Private Sector Development for the World Bank Group. “Technology makes compliance easier, less costly, and more transparent.”