{"id":19349,"date":"2024-06-19T03:03:50","date_gmt":"2024-06-19T03:03:50","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/phl-competitiveness-still-lags-in-asia-pacific\/"},"modified":"2024-06-19T03:03:50","modified_gmt":"2024-06-19T03:03:50","slug":"phl-competitiveness-still-lags-in-asia-pacific","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/phl-competitiveness-still-lags-in-asia-pacific\/","title":{"rendered":"PHL competitiveness still lags in Asia-Pacific"},"content":{"rendered":"<div>\n<p class=\"p2\">By <b>Justine Irish D. Tabile, <\/b><span class=\"s1\"><i>Reporter<\/i><\/span><\/p>\n<p class=\"p3\">THE PHILIPPINES saw its ranking in an annual global competitiveness report remain unchanged and continued to be one of the laggards in the Asia-Paci<span class=\"s2\">f<\/span>ic region amid a drop in business e<span class=\"s2\">ff<\/span>iciency.<\/p>\n<p class=\"p4\"><span class=\"s3\">In its 2024 World Competitiveness Ranking (WCR) by the Switzerland-based International Institute for Management Development (IMD), the Philippines ranked 52<sup>nd<\/sup> out of 67 economies, unchanged from last year.<\/span><\/p>\n<p class=\"p4\"><span class=\"s4\">It also marked the seventh year that the Philippines remained in 13<sup>th<\/sup> place out of the 14 Asia-Paci<\/span><span class=\"s2\">f<\/span><span class=\"s4\">ic economies included in the report.<\/span><\/p>\n<p><a title=\"Philippines remains Asia's laggard in competitiveness ranking\" href=\"https:\/\/www.flickr.com\/photos\/142608056@N02\/53799900695\/in\/dateposted\/\" data-flickr-embed=\"true\"><img loading=\"lazy\" fetchpriority=\"high\" loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/energybuzz.ph\/staging\/6915\/wp-content\/uploads\/2024\/06\/53799900695_f325f43dc6_o.jpg\" alt=\"Philippines remains Asia's laggard in competitiveness ranking\" width=\"2048\" height=\"1102\"><\/a><script async src=\"\/\/embedr.flickr.com\/assets\/client-code.js\" charset=\"utf-8\"><\/script><\/p>\n<p class=\"p4\"><span class=\"s5\">Singapore topped this year\u2019s list, followed by Switzerland, Denmark, Ireland and Hong Kong. <\/span><\/p>\n<p class=\"p4\">This year, the index expanded its scope to include Ghana, Nigeria and Puerto Rico. In 2023, there were only 64 economies covered by the index.<\/p>\n<p class=\"p4\"><span class=\"s4\">IMD ranked the economies using 336 indicators spread across four competitiveness factors: economic performance, government ef<\/span><span class=\"s3\">f<\/span><span class=\"s4\">iciency, business e<\/span><span class=\"s2\">ff<\/span><span class=\"s4\">iciency, and infrastructure.<\/span><\/p>\n<p class=\"p4\"><span class=\"s4\">Jos\u00e9 Caballero, senior economist at the IMD World Competitiveness Center, said that the factors that have diminished the Philippines\u2019 competitiveness this year are related to government and business e<\/span><span class=\"s2\">ff<\/span><span class=\"s4\">iciency.<\/span><\/p>\n<p class=\"p4\"><span class=\"s6\">Mr. Caballero said that the country saw a decline in measures of business legislation such as the protection of foreign investors (65<sup>th<\/sup>), the transparency of public sector contracts (56<sup>th<\/sup>), the impact of state-owned enterprises (46<\/span><span class=\"s3\"><sup>th<\/sup><\/span><span class=\"s6\">), and new business density (62<\/span><span class=\"s3\"><sup>nd<\/sup><\/span><span class=\"s6\">).<\/span><\/p>\n<p class=\"p4\">Asian Institute of Management (AIM) Rizalino S. Navarro Policy Center for Competitiveness Executive Director Jamil Paolo S. Francisco said the Philippines remained in 52<sup>nd<\/sup> place despite a decline in two factors \u2014 business e<span class=\"s2\">ff<\/span>iciency and infrastructure.<\/p>\n<p class=\"p4\">The Philippines fell three spots to 43<sup>rd<\/sup> on business e<span class=\"s2\">ff<\/span>iciency this year from 40<sup>th<\/sup> in 2023. Signi<span class=\"s2\">f<\/span>icant declines were seen in labor market, <span class=\"s7\">f<\/span>inance, management practices, and attitudes and values.<\/p>\n<p class=\"p4\">\u201cThe drop in business efficiency is particularly worrisome because this was a factor that the Philippines performed relatively well at 10 years ago, and we have observed a steady decline in this factor since 2019,\u201d Mr. Francisco said in an e-mailed statement.<\/p>\n<p class=\"p4\"><span class=\"s3\">For the infrastructure factor, the Philippines slipped three places to 61<sup>st<\/sup> in 2024 from 58<sup>th<\/sup> last year. This as challenges persist in basic infrastructure, technological infrastructure and education.<\/span><\/p>\n<p class=\"p4\">Mr. Francisco said that the country\u2019s drop in the infrastructure factor was a concern, as this has been the Philippines\u2019 weakest area for a very long time.<\/p>\n<p class=\"p4\"><span class=\"s2\">\u201cThis is also worrisome because this means we are really lagging behind in terms of providing the physical, human, technological, and social infrastructure needed by private enterprises to generate employment and create business value,\u201d he added.<\/span><\/p>\n<p class=\"p4\">The Philippines maintained its 40<sup>th<\/sup> rank on economic performance, while it climbed three spots to 49<sup>th<\/sup> on government ef<span class=\"s2\">f<\/span>iciency.<\/p>\n<p class=\"p4\">Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said the country should address basic and transport infrastructure in order to be competitive.<\/p>\n<p class=\"p4\">\u201cWhen you want to be competitive, especially in the industry and service side, you need to have some of the basic infrastructure, such as availability of quality and a<span class=\"s2\">f<\/span>fordable power,\u201d Mr. Barcelon said in a phone interview.<\/p>\n<p class=\"p4\">\u201cThe other one is the availability of mobility or connectivity like roads, seaports, airports, and main corridors for the agriculture sector, which we don\u2019t have,\u201d he added.<\/p>\n<p class=\"p4\">The government should also address the decline in the skills of the country\u2019s workforce.<\/p>\n<p class=\"p4\"><span class=\"s2\">\u201c<\/span>We are not giving them the proper tools\u2026 The technology that\u2019s required now for higher value-added jobs requires more, such as in information technology and in the fourth industrial revolution,\u201d Mr. Barcelon said. \u201cThere are some shortcomings in that. But that can be easily addressed if we beef up more specific or targeted skill sets for certain industries.\u201d<\/p>\n<p class=\"p4\">According to IMD, the Philippines was less competitive in the areas of business legislation (60<sup>th<\/sup>), basic infrastructure (62<sup>nd<\/sup>), and education (63<sup>rd<\/sup>).<\/p>\n<p class=\"p4\">\u201cIn 2024, the Philippines faces signi<span class=\"s2\">f<\/span>icant challenges, including revitalizing economic dynamism and growth trajectory, managing inflation expectations, building sustainable physical, social, and technological infrastructure to improve productivity and reduce vulnerabilities, and addressing territorial disputes in the West Philippine Sea to mitigate economic disruptions,\u201d the AIM center said.<\/p>\n<p class=\"p4\"><span class=\"s3\">Meanwhile, the Management Association of the Philippines (MAP) views the country\u2019s unchanged competitiveness ranking as both good news and a challenge.<\/span><\/p>\n<p class=\"p4\">\u201cInfrastructure is a major consideration, so we all understand our rank, knowing the need to improve our infrastructure, which the administration of President Marcos is working on,\u201d said MAP President Rene D. Almendras in a Viber message.<\/p>\n<p class=\"p4\">\u201cThe other consideration is labor productivity, which is a function of the education and development of the Filipino workforce,\u201d he added.<\/p>\n<p class=\"p4\">Meanwhile, the National Economic Development Authority (NEDA) and the Anti-Red Tape Authority (ARTA) are hopeful that the country will improve its ranking next year as the government ramps up its infrastructure projects.<\/p>\n<p class=\"p4\"><span class=\"s7\">\u201cWith the strict implementation of this Executive Order No. 59 as well as related government programs, we expect our ranking to improve next year,\u201d ARTA Secretary Ernesto V. Perez said.<\/span><\/p>\n<p class=\"p4\">On Tuesday, ARTA launched the implementing guidelines of EO 59, which aim to streamline the permitting process for the government\u2019s infrastructure <span class=\"s7\">f<\/span>lagship projects.<\/p>\n<p class=\"p4\">\u201cHopefully, with the full implementation of EO 59, we could notch a bit higher in the next round. In addition to permitting and processes, I think what is also included are right-of-way (ROW) issues,\u201d said NEDA Undersecretary Joseph J. Capuno.<\/p>\n<p class=\"p4\"><span class=\"s6\">He said that these issues could be addressed by the ROW bill, which is one of the priority bills of Frederick D. Go, the special assistant to the President in charge of investment and economic affairs.<\/span><\/p>\n<p class=\"p4\">For Foundation for Economic Freedom President Calixto V. Chikiamco, the Philippines will be able to achieve a better ranking in the world competitiveness index if it removes protectionism, especially in relation to agricultural products.<\/p>\n<p class=\"p4\">\u201cProtecting the agriculture sector signals no need to improve competitiveness and productivity,\u201d said Mr. Chikiamco in a Viber message.<\/p>\n<p class=\"p4\">He added that the country must forge more bilateral free trade agreements, amend the Labor Code, improve education, and reduce bureaucratic regulations, especially in the grant of mining concessions.<\/p>\n<p class=\"p4\">According to IMD\u2019s Mr. Caballero, economies that reach high levels of competitiveness have focused on strengthening their public and private institutions, entrepreneurship, and innovative capabilities.<\/p>\n<p class=\"p4\">For the Philippines, he said that the country must strengthen its education system to \u201cfacilitate the e<span class=\"s2\">f<\/span>fectiveness of talent development,\u201d as it will also ensure alignment between the country\u2019s available talent and socioeconomic objectives.<\/p>\n<p class=\"p4\">In the report, the country ranked 55<sup>th<\/sup> in total public expenditure on education, 60<sup>th<\/sup> in the quality of primary education, and 63<sup>rd<\/sup> in secondary education in terms of pupil-teacher ratio.<\/p>\n<p class=\"p4\">\u201cFurthermore, the Philippines\u2019 performance in research and development is feeble,\u201d he added, citing that the country ranked deficiently in all measures of expenditure and the total number of researchers and personnel.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<div>THE PHILIPPINES saw its ranking in an annual global competitiveness report remain unchanged and continued to be one of the laggards in the Asia-Pacific region amid a drop in business efficiency.<\/div>\n","protected":false},"author":1,"featured_media":19350,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[14875,14644,3898,15252,11354,1477],"class_list":["post-19349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-asia-pacific","tag-bworldonline","tag-competitiveness","tag-lags","tag-phl","tag-still"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - 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