PowerPoint Presentation

www.competitive.org.phGood Governance Summit 2014

GAMEPLAN 2.0MR.GUILLERMO M. LUZPrivate Sector Co-Chair,NCCE a s e of D o i n g B u s i n e s s

January 15-17, 2013Report2013Rank2012 Rank2011 RankChangeASEANNext ReportSourceTarget1. WEF Global Competitiveness Index59/14865/14475/142 Up 66 of 10Sep-14WEF492. IFC Ease of Doing Business108/189138/185136/183Up 306 of 10Oct-14IFC633. IMD World Competitiveness Report38/6043/5941/59Up 54 of 5May-14IMD204. TI Corruption Perception Index94/177105/179129/183 Up 114 of 10Dec-13Transparency International605. Economic Freedom Index97/177107/179115/179Up 105 of 7Jan-14Heritage Foundation596. Global Information Technology Report86/14486/14286/138no change6 of 7Apr-14WEF477. Travel and Tourism Report82/140n/a94/139Up 127 of 8Mar-15WEF468. Global Innovation Index90/14295/14191/125Up 57 of 9Jul-14WIPO479. Logistics Performance Index--52/15544/155 Down 84 of 9Feb-14World Bank5110. Failed States Index59/17856/17751/177Up 37 of 10Jun-14Fund for Peace118www.competitive.org.ph GLOBAL COMPETITIVENESS REPORT CARD

2ReportChange 2013 vs 2012Change over 3 years1. World Economic Forum Global Competitiveness Index+ 6+ 262. IFC/WB Ease of Doing Business Report+ 30*+ 283. IMD World Competitiveness Report+5+34. Transparency International Corruption Perceptions Index+11+355. Economic Freedom Index+10+186. Global IT Report (WEF)0 07. Travel and Tourism Report (WEF)+12+128. Global Innovation Index+5+17

GLOBAL COMPETITIVENESS PERFORMANCEwww.competitive.org.phPercentile Rank EASE OF DOING BUSINESS REPORT PHILIPPINES (2009-2014)Philippines200920102011201220132014Rank141144134136138108No. of Economies183183183183185189Percentile rank 333227262543

www.competitive.org.ph100Based on Percentile Rank EASE OF DOING BUSINESS REPORT PHILIPPINES (2009-2014)

www.competitive.org.ph2013 EODB PHILIPPINE REPORT OVERVIEWwww.competitive.org.phSource: The World Bank

Indicators2014(189)Variance 2013-20142013(185)2012 (183)Over-all ranking108+301381361. Starting a business170-91611582. Dealing w/ construction permits99+11001013. Getting electricity33+2457534. Registering Property121+11221205. Getting Credit86+431291276. Protecting Investors128--1281247. Paying Taxes131+121431368. Trading across borders42+1153569. Enforcing contracts114-311110910. Resolving Insolvency100+65165166

www.competitive.org.ph7WORLD RANKING OF ASEAN COUNTRIES 2012-2014ASEAN2014(out of 189)2013(out of 185)CHANGE2012(out of 183)CHANGE1. Singapore110102. Malaysia61261423. Thailand1818017-14. Brunei Darussalam5979208345. Vietnam999909906. Philippines10813830136-27. Indonesia120128813028. Cambodia137133-414189. Lao PDR1591634166310. Myanmar*182NDA0NDA0*Myanmar is one of the four new economies measured in the report together with Libya, San Marino and South Sudan.

www.competitive.org.ph782014 TOP TEN MOST IMPROVEDIN TERMS OF RANKING Economy 2013 2014 CHANGE1Philippines138108302 Ukraine137112253 Rwanda5232204 Brunei Darussalam7959205 Russian Federation11292206 Burundi159140197 Guatemala9379148 Brazil130116149 Iraq1651511410 Kosovo988612

www.competitive.org.phThe Philippinesranking from lowest to highest across indicators:

1) Resolving Insolvency/Closing a Business (163)2) Starting a Business (158)3) Paying Taxes ( 136)4) Protecting Investors (133)5) Getting Credit( 126)6) Registering Property ( (117)7) Enforcing Contracts ( 112)8) Dealing with Construction Permits ( 102)9) Getting Electricity ( 54)10) Trading Across Borders ( 51)

892012 to 2014 MOST IMPROVEDECONOMIESEconomy20142013Variance2012VarianceCumulative Change 2012-20141Kosovo869812 126 28402Ukraine11213725 152 15403Burundi14015919 172 13324Poland455510 74 19295Philippines10813830136-2286Russian Federation9211220 118 6267Brunei Darussalam597920 83 4248Uzbekistan1461548 168 14229Costa Rica1021108 122 122010Guatemala799314 98 519

www.competitive.org.phThe Philippinesranking from lowest to highest across indicators:

1) Resolving Insolvency/Closing a Business (163)2) Starting a Business (158)3) Paying Taxes ( 136)4) Protecting Investors (133)5) Getting Credit( 126)6) Registering Property ( (117)7) Enforcing Contracts ( 112)8) Dealing with Construction Permits ( 102)9) Getting Electricity ( 54)10) Trading Across Borders ( 51)

9

JULY 2012NCC crafts Gameplan for Competitive-nessSEPTEMBER 2012Economic Development Cluster approves Gameplan

DECEMBER 2012FEBRUARY 2013

Public-Private DialoguesDECEMBER 2012Videoconferences with IFC WashingtonJANUARY 2013Meeting with PH Embassy in Washington

MARCH 2013Targetvalidation workshopsMAY 2013Work teams commit to implement targets at Ease of Doing Business SummitMAY 2013President Aquino signs Administrative Order No. 38 creating an inter-agency Ease of Doing Business Task Force

JUNE 2013Submitted reform inventory to IFC

JULY 2013OCTOBER 2013Task Force convenes TIMELINEOCTOBER 2013Release of 2014 Doing Business Report1234567891011National Competitiveness Council - Philippines

10

GAMEPLAN 1.0Simplification Flowchartwww.competitive.org.phIndicator: Starting a BusinessNumber of Days, 2012-13

36Number of Steps, 2012-13

16

www.competitive.org.phNumber of Days, 2013-14

11Number of Steps, 2013-14

11

Indicator: Starting a Businesswww.competitive.org.phSTARTDeposit paid-up capital and obtain bank certificate.Notarize articles of incorporation and treasurer's affidavit.Verify and reserve company name with SEC.Register the company with SEC and receive pre-registered TIN.Obtain barangay clearance.Pay annual community tax and obtain community tax certificate.Obtain business permit from BPLO.Apply and pay for Certificate of Registration and obtain TIN at BIR.Pay registration fee and documentary stamp taxesObtain authority to print receipts and invoices from BIR.Buy special books of account at bookstore.Print receipts and invoices.Have books of accounts and Printer's Certificate of Delivery stamped by BIR.Register with SSS.Register with PhilHealth.Register with Pag-IBIG.END

Indicator: Starting a Businesswww.competitive.org.phSTARTDeposit paid-up capital and obtain bank certificate.Notarize articles of incorporation and treasurer's affidavit.Verify and reserve company name with SEC.Register the company with SEC and receive pre-registered TIN.Obtain barangay clearance.Pay annual community tax and obtain community tax certificate.Obtain business permit from BPLO.Apply and pay for Certificate of Registration and obtain TIN at BIR.Pay registration fee and documentary stamp taxesObtain authority to print receipts and invoices from BIR.Buy special books of account at bookstore.Have books of accounts and Printer's Certificate of Delivery stamped by BIR.ENDRegister with SSS.Register with PhilHealth.Register with Pag-IBIG.Print receipts and invoices.

Indicator: Starting a Businesswww.competitive.org.phwww.competitive.org.phGAMEPLAN 1.0:ACCOMPLISHMENT REPORT

Starting A Business

www.competitive.org.ph

Dealing with ConstructionPermits

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Getting Electricity

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Registering Property

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Getting Credit

LEGEND: Credit Info = Depth of Credit Information Indez; Legal Rights = Strength of Legal Rights Index

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Protecting Investors

LEGEND: D = Extent of Disclosure Index DL = Extent of Director Liability Index SS = Ease of Shareholder suits IndexGAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Paying Taxes

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Trading Across Borders

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Enforcing Contracts

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTwww.competitive.org.ph

Resolving Insolvency

GAMEPLAN 1.0:ACCOMPLISHMENT REPORTEFFECTS OF REFORMS ON SPECIFIC INDICATORS AND WORLD RANKINGBase: 2014 Report

www.competitive.org.phGAMEPLAN 2.0Country

Starting a BusinessDealing w/ Construction PermitsGetting ElectricityRegistering PropertyGetting CreditProtecting InvestorsPaying TaxesTrading Across BordersEnforcingContractsResolving InsolvencySingapore1 --3 3 6 28 3 2 --5 --1 -- 12 --4 Malaysia6 16 43 21 35 1 --4 --36 5 30 42 Thailand18 --91 14 12 29 73 12 70 24 22 58 --Brunei59 137 46 29 --116 55 115 20 39 161 48 Vietnam99 --109 29 156 51 42 157 149 65 46 149 --Philippines10817099 33 121 86 128 -- 131 42 114 100 Indonesia120 175 88 121 101 86 52 137 54 147 144 Cambodia137 184 161 134 118 42 80 65 114 162 163 Laos159 85 96 140 76 159187 119 161 104 189 Myanmar182 --189 --150 --126 --154 --170 --182 --107 --113 --188 --155 --302014 WORLD RANKING OF ASEAN COUNTRIES PER INDICATOR

www.competitive.org.phThe Philippinesranking from lowest to highest across indicators:

1) Resolving Insolvency/Closing a Business (163)2) Starting a Business (158)3) Paying Taxes ( 136)4) Protecting Investors (133)5) Getting Credit( 126)6) Registering Property ( (117)7) Enforcing Contracts ( 112)8) Dealing with Construction Permits ( 102)9) Getting Electricity ( 54)10) Trading Across Borders ( 51)

30 Economy Procedures (number) Time (days) Cost (% of income per capita) Paid-in Min. Capital (% of income per capita) RANK 1 Singapo