MANUFACTURING SUMMIT 201822 November 2018 | Philippine International Convention Center

MARY JEAN T. PACHECOASSISTANT SECRETARY

November 28, 2018 2Department of Trade and Industry

Competitiveness BureauWHO WE ARE:

The Temporary Secretariat of theAnti-Red Tape Authority

“We make doing business easier, because competitiveness is our business”

NOW:

Latest Performance

GLOBAL COMPETITIVENESS REPORT CARD

*Reverse Ranking 1 as worst

REPORT 2018 2017 2016 2015 2014 2013 2012 2011 2010CHANGE

2010/11 to LATEST

SOURCETOP 20%

1. Doing Business Report 124/190 113/190 99/190 103/189 95/189 108/189 138/185 136/183 148/183 ↑ 24International Finance

Corporation38

2. Economic Freedom Index 61/180 58/180 70/178 76/178 89/178 97/177 107/179 115/179 - ↑ 54 Heritage Foundation 36

3. Corruption Perceptions Index 111/180 101/168 95/168 85/175 94/177 105/176 129/183 134/178 ↑ 23TransparencyInternational

36

4. Global Competitiveness Report **56/14068/14057/137

57/138 47/140 52/144 59/148 65/144 75/142 85/139↑ 29↑ 12

World Economic Forum

27

5. Global Enabling Trade Index - 82/136 - 64/138 n/a 72/132 n/a 92/125 ↑ 10World Economic

Forum27

6. Travel and Tourism Report 79/136 n/a 74/141 n/a 82/140 n/a 94/139 - ↑ 15World Economic

Forum27

7. Global Innovation Index 73/128 74/128 83/141 100/143 90/142 95/141 91/125 - ↑ 18World Intellectual

Property Organization25

8. Global Information Technology Report

- 77/139 76/143 78/148 86/144 86/142 86/138 - ↑ 9World Economic

Forum28

9. E-Government Index 75/193 - 71/193 - 95/193 -- 88/191 -- 78/184 ↑ 3 United Nations 39

10. Fragile States Index* 48/178 54/178 54/178 48/178 52/178 59/178 56/177 50/177 - ↓2 Fund for Peace 36

11. Global Gender Gap Report 10/144 7/144 7/145 9/142 5/136 8/135 8/135 9/142 ↑ 2World Economic

Forum29

12. World CompetitivenessYearbook

50/63 41/63 42/60 41/60 42/60 38/60 43/59 41/59 - ↓9International Institute for

Management Development

13

13. Logistics Performance Index 60/160 - 71/160 - 57/160 - 52/155 - 44/155 ↓ 16 World Bank 32

**New Methodology

• 2019 Doing Business captured a record of 314

regulatory reforms between June 2, 2017 to May 1,

2018; 13,800 professionals participated.

• 124 economies introduced substantial regulatory

improvements

• Training opportunities for service providers and users

are positively associated with the ease of doing

business score.

• DTF has been changed to “ease of doing business

score” New Zealand remains to be the No. 1 economy

in the 2019 DB Report

• NEW INDICATOR: Data on Contracting with the

Government (Public Procurement) will be posted

by early 2019

2019 DOING BUSINESS SURVEY

UPGRADES AND DOWNGRADESPhilippine EODB Scores 2018-2019

Starting a BusinessFrom 68.66 to 71.97

Dealing with Construction PermitsFrom 66.84 to 68.58

Getting ElectricityFrom 84.31 to 87.45

Registering PropertyFrom 57.55 to 57.56 Getting Credit

From 30.00 to 5.00

Protecting Minority Investor

From 40.00 to 43.33

Paying TaxesFrom 69.27 to 71.8

Trading Across BordersFrom 69.39 to 69.9

Enforcing ContractsEODB Score: 45.96

Resolving InsolvencyEODB Score: 55.22

Source: 2019 Doing Business Report

Ease of Doing Business Philippine ranking, 2011-2019 (n=190)

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016 2017 2018 2019

Philippines

Source: Philippine Ranking Published Doing Business Report

190

1

138

10895 103 99

148136

113

Bo

tto

m T

hir

dTo

p T

hir

d

124Current

Comparison of Global Rank, EODB Scores and EODB Score Changes,2018-2019: Philippines vs ASEAN

8

Position

in ASEANEconomy

Rank

(2019)

EODB

Score

(2019)

Rank

(2018)

EODB Score

(2018)

Rank

2018-2019

EODB Score

Changes

2018-2019

1 Singapore 2 85.24 2 84.57 0 +0.27

2 Malaysia 15 80.60 24 78.43 +9 +2.57

3 Thailand 27 78.45 26 77.44 -1 +1.06

4 Brunei 55 72.03 56 70.60 +1 +1.85

5 Vietnam 69 68.36 68 67.93 -1 +1.59

6 Indonesia 73 67.96 72 66.47 -1 +1.42

7 Philippines 124 57.68 113 58.74* -11 +1.36

8 Cambodia 138 54.80 135 54.47 -3 +0.41

9 Lao PDR 154 51.26 141 53.01 -13 +0.11

10 Myanmar 171 44.72 171 44.21 0 +0.51

Source: 2019 Doing Business Report

*World Bank adjusted the PH EODB Scores to 56.32

HIGHLIGHTS:2019 DB Reform Submission

In promulgating

The Government of the Philippines has accomplished a total of 18 reforms and 1 data correction request across 7 out of 10 topics

measured in the World Bank - International Finance Corporation Doing Business Report.

The reform updates include reductions in the steps, days, cost, payments, and documents required for certain processes; improved access to

information; and provision of supporting documents and data.

HIGHLIGHTS OF REFORM SUBMISSION2019 Doing Business Report

TOPIC REFORM INITIATIVES

STARTING A BUSINESS

SEC Company Registration System

QC-LGU One Stop Shop for Business Permits

BIR Single Window Transaction

DEALING WITH CONSTRUCTION PERMITS

Joint Memorandum Circular (JMC) on Streamlining of Building

Permits

QC-LGU One Stop Shop for Building permits

Quality inspection during Construction

Qualifications of Professionals (BFP)

GETTING ELECTRICITY

Implementation of CXE (Customer eXperience Engine) by

MERALCO.

Setting up of a MERALCO Booth

Implementation of Executive Order No. 11 s 2017

lower system average interruption duration index (SAIDI) and system

average interruption frequency index (SAIFI)

Accepted by World Bank

TRADING ACROSS BORDERSStreamlining of documentary requirements for import and export permits and licensesENFORCING CONTRACTSDeployment of electronic case management system through the eCourts Project

HIGHLIGHTS OF REFORM SUBMISSION2019 Doing Business Report

TOPIC REFORM INITIATIVES

REGISTERING PROPERTY

Implementation of Land Titling Computerization Project

(LTCP)

Land Registration Systems (LARES), uploaded the annual

statistics tracking the number of transactions in their website

to allow public access to the data.

Implementation of Supreme Court's Philippine's Enterprise

Information Systems Plan (EISP)

PROTECTING MINORITY INVESTORS

Issuance of Memorandum Circular requiring that shareholders

approve any change/s in the company's external auditor.

Issuance of Memorandum Circular requiring the boards to

have a separate audit committee exclusively comprised of

board member.

TRADING ACROSS BORDERSStreamlining of documentary requirements for import and

export permits and licenses

ENFORCING CONTRACTSDeployment of electronic case management system through

the eCourts Project

Accepted by World Bank

Indicator

Philippines

Who sets the Frontier?

(2019)

Frontier

EODB

Score

2019 2018

Rank EODB Score Rank EODB Score

Overall 124 57.68 113 56.32* New Zealand 86.59

Starting a Business 166 71.97 173 68.88 New Zealand 99.98

Dealing With

Construction Permits 94 68.58 101 66.84Hong Kong SAR,

China88.24

Getting Electricity 29 87.45 31 84.31 UAE 100

Registering Property 116 57.56 114 57.55 New Zealand 94.89

Getting Credit 184 5.00 142 30.00 2 Economies 100

Protecting Investors 132 43.33 146 40.00 Kazakhstan 85.00

Paying Taxes 94 71.80 105 69.27 Hong Kong SAR, China 99.71

Trading Across Borders 104 69.90 99 69.39 14 Economies 100

Enforcing Contracts 151 45.96 149 45.96 Singapore 84.53

Resolving Insolvency 63 55.22 59 55.22 Japan 93.45

DOING BUSINESS SURVEY:

Who’s up there?

Source: 2019 Doing Business Report

*World Bank adjusted the PH EODB Scores from 58.74

DowngradeUpgrade

Rank Economy EODB Score

120 Egypt, Arab, Rep. 58.56

121 Honduras 58.22

122 Cote d’Ivoire 58.00

123 Ecuador 57.94

124 Philippines 57.68123 Belize 57.13

126 Tajikistan 57.11

127 Uganda 57.06

128 Iran, Islamic Rep. 56.98

129 Barbados 56.78

130 St. Vincent and the Grenadines 56.35

Area Code: 124

Source: 2019 Doing Business Report

Rank Economy EODB Score

100 Sri Lanka 61.22

101 Philippines 61.15102 Dominican Republic 61.12

103 Dominica 61.07

104 Jordan 60.98

105 Trinidad and Tobago 60.81

106 Lesotho 60.60

107 Namibia 60.53

108 Papua New Guinea 60.12

109 Brazil 60.01

110 Nepal 59.63

Area Code: 101

Source: 2019 Doing Business Report

In promulgating

Assessment of the Philippine DB Reforms

POSITIVES (+)

• Built-up Momentum for DB Reforms

• Major Investments Made

• Whole of Government Approach

NEGATIVES (-)

• Reform Implementation• Institutional issues

• Technological birth pain or debugging for reform implementation

• Processing of laws

• Reforms Have Not Been Known and Have Not Been Widely Felt.

• Need to Deepen the Engagement with Respondents.

DB2020 STRATEGIESUndertake the following :

• Regulatory Reforms

Streamline procedures, reduce cost and requirements

Repeal of outdated laws and issuances

• Massive Communication Campaign

Respondents’ Briefing (accounting and law firms, construction industry)

Press Conference (talking heads, briefings with DB Agencies)

Communication Plan for DB2020 (press releases, social media presence, message house)

II. CHANGING THE WAY WE DO THINGS IN GOVERNMENT

Governance/Institutional

arrangements

in a nutshell

Reengineering Government Systems and Procedures

EmbracingCustomer

Centricity / GovTech

Adopting information

communications technologies /

AutomationRegulatory Impact Assessment

RA 11032

Promoting Good Regulatory Practices

Repeal of Outdated, Redundant Laws and Issuances

Setting standards on

Prescribed Processing

Time

Department of Trade and Industry

PROJECT ONE:

Doing Business Design SprintOne Portal, One Form, One Business Number

Department of Trade and Industry

Governance/Institutional

arrangements

in a nutshell

Reengineering Government Systems and Procedures

EmbracingCustomer

Centricity / GovTech

Adopting information

communications technologies /

AutomationRegulatory Impact Assessment

RA 11032

Promoting Good Regulatory Practices

Repeal of Outdated, Redundant Laws and Issuances

Setting standards on

Prescribed Processing

Time

Creation of the Anti-Red Tape Authority (ARTA)*

SECTION

17

COMPOSITION

• DG – Appointed and co-terminus with the President of the Philippines

• DDG – Appointed by the President of the Philippines. The DDG are career officials with a rank equivalent to Undersecretary

• Director General (DG) with a rank of Secretary

• (3) Deputy Directors General (DDG) • DDG for legal, • DDG for operations• DDG for administration and finance.

TENURE & EMPLOYMENT STATUS

*Attached under the Office of the President (OP).

Structure of the EODB/ARTA Advisory Council

SECTION

19Members: Secretaries of the DICT, DILG and Department of Finance (DOF), and two (2) representatives from the private sector

Chairperson - Secretary of the DTI

Vice-Chairperson - Director General of the Authority

National Competitiveness Council will be renamed and reorganized as Ease of Doing Business and Anti-Red Tape Advisory Council, will be the policy and advisory body to the Authority.

COMPOSITION

III. WHAT HAS BEEN DONE?

- Pres. Rodrigo Roa Duterte

“Makiisa para sa isang Mabilis, Malinis, Maasahan at may Malasakit na Pamahalaan — Para sa Maginhawang Pamumuhay ng Mamayang Pilipino.”

STATUS OF THE IMPLEMENTING RULES AND REGULATIONS

• Transmitted copy of the final

draft to the IRR 12 agencies,

Senator Zubiri, Senator Koko

Pimentel, and Congressman

Biron.

• Submitted to the Executive

Secretary last October 22

• UP Law Center provided form

and substance review.

• Drafted by DTI, Civil Service

Commission, DILG, DICT, and

among others.

Department of Trade and Industry

Design Sprint 1:

LGU Wikipedia

July 23-27, 2018

Design Sprint 2:

PhBN

September 3-7, 2018

Design Sprint 3:

End-to-end registration

November 5-9, 2018

PROJECT ONE: ONE FORM, ONE NUMBER, ONE PORTAL

IMPLEMENT ADVOCACY AND MEDIA CAMPAIGN

27

1. Develop and implement Advocacy and Media Campaign (including development of Information, Education, and Communication Materials/Collaterals/Videos)

• 8 AVP and 1 MTV Production• Social Media Strategy• Cinema Placement of AVP – MMFF Season (December 2018)• Printing of Collaterals – December 2018

2.Partnership with the Department of Interior and Local Government for the EODB law roll out, and advocacy and information campaign on EODB law among LGUs.

• To inform the public and private stakeholders and increase awareness on the provisions of RA 11032

28

CATEGORY 1:

RCS/ CABINET

DIRECTIVE (8)

CATEGORY 2:

EXECUTIVE DEPARTMENTS (21)

CATEGORY 3

RA 11032 ROADSHOW

(6)

1. LTO,

2. PAG-IBIG,

3. SSS

4. BIR

5. PSA

6. NBI

7. PHILHEALTH

8. PRC

Economic Cluster:

9. DOT

10. DTI

11. DFA

12. DOF

13. DBM

14. NEDA

Infrastructure Cluster:

15. DPWH

16. DOTr

Agriculture and

Development Cluster:

17. DA

18. DAR

19. DENR

Human Development and

Poverty Reduction Cluster

20. DSWD

21. DEPed

22. DOH

Peace, Justice, and Security:

23. DND

24. DILG

25. DOJ

Energy, Labor, Science

and Technology Cluster:

26. DICT

27. DOLE

28. DOST

29. DOE

30. DENR-EMB,

31. FDA,

32. SEC,

33. BOC,

34. LGU-QUEZON CITY

35. PPA

Promote Regulatory Reforms on Selected Government Agencies

29

• STOCKTAKING OF CITIZENS CHARTERS of Government Agencies (Monitoring compliance of government agencies in the provision of the EODB/Efficient Government Service Delivery Act)

• Implement PROJECT REPEAL (Policy Review and Recommendation for repeal on outdated and redundant existing laws/regulations)

• CAPACITY BUILDING on Regulatory Impact Assessment (RIA) to government agencies, and provide assistance on the re-engineering and streamlining of government services process:

Promote Regulatory Reforms on Selected Government Agencies

Operationalize the Anti-Red Tape Authority (ARTA)

30

1. Establish a conducive working environment for ARTA Operations• Renovation of G/F HPGV Building started on 01 October 2018,

and • Earliest possible date of office transfer is on 15 November 2018• Rental of 24 Units of Desktop for the Current ARTA Staff• Rental of two (2) Motor/Service Vehicles for ARTA• Hired additional nineteen (19) Service Providers as ARTA

Manpower

To operationalize the Anti-Red Tape Authority (ARTA) immediately.

(Sec. 17: To ensure the attainment of the objectives of the

EODB/EGSD Act, there is hereby created the Anti-Red Tape Authority)

- Pres. Rodrigo Roa Duterte

“Makiisa para sa isang Mabilis, Malinis, Maasahan at may Malasakit na Pamahalaan — Para sa Maginhawang Pamumuhay ng Mamayang Pilipino.”

FINAL NOTE

1. Active involvement of the private sectorin identifying pain points .

2. Support whole of government approach

3. Stronger assistance in informationdissemination

4. Be proactive. File a complaint whennecessary.

“Makiisa para sa isang Mabilis, Malinis, Maasahan at may Malasakit na Pamahalaan — Para sa Maginhawang Pamumuhay ng Mamayang Pilipino.”

- Pres. Rodrigo Roa Duterte

Thank you.

www.arta.gov.ph

arta@dti.gov.ph

ARTA Govph @ARTAgovph

DEPARTMENT OF TRADE AND INDUSTRY COMPETITIVENESS BUREAU (DTI-CB)THE TEMPORARY SECRETARIAT OF THE ANTI-RED TAPE AUTHORITY