The Philippines sharply improved its ranking in the annual business regulation review of the World Bank on the back of higher scores in the areas of getting credit, dealing with construction permits and protecting minority investors.

WB ranked the country 95th out of 190 economies in the 2020 cycle of the Doing Business study from 124th out of 190 economies previously. As proof of improvement, the score in the list was higher at 62.8 compared to 60.9 last year.

The country was represented by Quezon City in the study due to the city’s high population count. The study measured the business environment of 190 economies through 12 key business areas.

The ranking this year matched a 2014 high, which was achieved prior to the passage of Republic Act 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The law, which seeks to cut down the processing time for government transactions, is currently seen as the game-changer in the Philippine business environment.

“The jump comes from what the surveyed users felt. There were reforms that others haven’t felt, that’s why they weren’t counted. Other reforms took place at the end of the survey period, around May and June. (That’s why) the reforms (should be) finished by the end of the year and experienced in the period of February to May — that’s the survey period,” Department of Trade and Industry Secretary Ramon Lopez said.

The World Bank said the Philippines did well in the field of starting a business that was made easier by abolishing the minimum capital requirement for domestic companies.

It was also credited on dealing with construction permits where coordination improved and the process for obtaining an occupancy certificate was streamlined.

The Philippines also strengthened minority investor protections by requiring greater disclosure of transactions with interested parties and enhancing director liability for transactions with interested parties, according to the WB review.

Presidential spokesman Salvador Panelo said the Office of the President welcomes the 149-page study of the World Bank, “Doing Business 2020: Comparing Business Regulations in 190 Economies.”

In a statement, Panelo said the drive for good governance is paying off.

Many would recall that then Davao City Mayor Duterte vowed that there will be “no more waiting” on the part of our citizens when he campaigned for the presidency in 2016, he said.

“Thus, when he assumed the highest office of the land, he made good his promise to cut red tape and corruption in the bureaucracy,” Panelo recalled.

“A responsive and efficient government is truly what our people deserve and the Duterte administration made sure that the results of its efforts would be tangible in this respect,” he added.

Also proving that he is a man of his words, President Duterte signed into law Republic Act 11032, or the Ease of Doing Business Act, thereby requiring government agencies to act on applications within three days for simple transactions, seven days for complex ones and 20 days for those which are classified as highly technical.

“We reiterate that the government cannot move forward alone. We therefore request the public not to enable or initiate corruption to skirt red tape in their transactions with the government, and instead ask them to report any form of irregularity or suspicious actions undertaken by government personnel to the 8888 Citizens’ Complaint Hotline, the Presidential Complaint Center, the Anti-Red Tape Authority or to the Presidential Anti-Corruption Commission,” he said.

House leaders were in high spirits, saying the improved ranking was a testament to the rising business confidence in reforms instituted by President Rodrigo Duterte.

“This signifies the business community’s confidence in the structural reforms being implemented by the Duterte administration to propel our economy to greater heights,” House Majority Leader Martin Romualdez said.

The Leyte 1st District lawmaker said the improvement will definitely lead to more investments, “which translate to more jobs for our people. Hopefully, these jobs will not benefit only the urban areas, but also the rural communities in far-flung villages.”

Albay 2nd District Rep. Joey Salceda shared Romualdez’s sentiment. “The numbers, taken with ratings of Filipino’s trust, appear to be a vote of confidence on our leaders, especially the President and Speaker Alan Peter Cayetano, who have been the most active in pursuing reforms,” he said in a separate statement.

The chair of the House Committee on Ways and Means said the improved WB ranking also showed that the reforms aimed at thrusting the country into a more competitive economy are now “surely and quickly” gaining traction.

“The significant improvement is the logical conclusion of the government’s efforts to create a business environment that truly encourages good business,” Salceda said.

“We give the President due credit for his resolute determination to prepare a national business landscape that will enable growth for generations to come,” he added.

The government last year contested the decrease in the Philippines’ ranking in the study’s 2019 cycle to 124th from 113th the prior year, due to a decline in getting the credit indicator which the government said the WB “got wrong.”

Following this, the DTI said it is “relieved” to get a more realistic assessment of the country’s credit environment this year. In getting credit criteria alone, the rank rose to 132nd out of 190 economies from 184th out of 190 economies in the previous cycle.

For the 2021 cycle, the DTI said the government is prioritizing the establishment of online systems, including the Philippine Business Portal, the Online Corporate registration system, the unified employee reporting system for Social Security agencies, the property registration portal and the modern collateral registry.

“Around 70 (in ranking) will be the target. That’s harder because as you get closer to one, your scores are almost the same but we have no choice, we just have to do it.

Because even if our scores improve, sometimes when your improvement’s weak other countries will still be ahead of you in terms of ranking,” Lopez boldly shared.

Presidential Communications Operations Office (PCOO) Secretary Martin Andanar welcomed the remarkable improvement in the world ranking.

“We welcome the remarkable improvement in the Philippines’ ranking in World Bank’s Doing Business 2020 report where it jumped 29 spots to rank 95th out of 190 economies, getting the third best improvement among the countries covered, and the highest increase among ASEAN-member states,” Andanar said.

“The latest results of the World Bank’s Doing Business 2020 report shows a strong vote of confidence towards President Rodrigo Roa Duterte’s no-nonsense approach in wiping out red tape and removing opportunities for corruption,” he added.

“We thank all government line agencies, state-owned corporations, other branches of government, even down to the local level, for adamantly carrying out the President’s directive,” Andanar went to say.