State of philippine competitiveness wef gcr 2012-2013

State of
Competitiveness
Report

State of Competitiveness Report
2012

Our Vision
 To develop more competitive Philippines
 To instill a Culture of Excellence in Governance
 To use Public-Private Sector Partnerships as a
development engine

Our Mission
To build up long-term competitiveness of the
Philippines through –
o policy reforms
o project implementation
o institution-building
o performance monitoring
o goal-setting

Work Program
 Benchmark against key global competitiveness
indices
 Map each indicator to the agency responsible
 Focus on lowest-ranking indicators
 Track city competitiveness and key indicators
 Working Groups concentrate on specific projects
 Link Competitiveness Plan to Philippine
Development Plan, National Budget, LEDAC,
Cabinet Agenda

2011-12 Performance

World Economic Forum GCI +10
IFC Ease of Doing Business -2
(following a +14 re-rating due to methodology change)

IMD World Competitiveness Report -2
Transparency International +5
Millenium Challenge Account Pass
Country Brand Index -25

Where we are today
 WEF Global Competitiveness Report : No. 65 / 142
(2012)
No. 6 of 8 in ASEAN

 IFC Doing Business Survey : No. 136 / 183 (2011)
No. 7 of 8 in ASEAN

 IMD World Competitiveness Report : No. 43/59 (2012)
No. 5 of 5 in ASEAN

 FutureBrand’s Country Brand Index : No. 78 / 113 (2011)
No. 15 of 20 in Asia Pacific

Our target
• WEF Global Competitiveness Report
No. 30 or higher by 2016
• IFC Doing Business Survey
• IMD World Competitiveness Report
• FutureBrand’s Country Brand Index

Impact : Inclusive Growth
o Higher FDI (new investments of 3-4% of GDP), from
US$1.7 billion in 2010
o Double export growth to US$120 billion by 2016 with new
products and services to account for 30% of exports
o GDP Growth of 7-8% per year
o Job Growth / Lower Unemployment
o Lower Poverty Incidence : 26.5% in 2009 to 16.6% by
2015
o Growing C socioeconomic class(currently 8.6%); shrinking
DE class (currently 91%)
Sources: NSCB (Breakdown: 2010 Baseline- US$ 51.39 (goods) US$ 12.27(services) , 2016 Target- US$ 91.5 B (goods) & US$ 28.9 B (services),
Chapter 3 Phil Development Plan (Competitive Industry Sector ), NEDA Targets; Phil. Labor and Employment Plan 2011-2016

Why does it matter?
GDP per capita (US$)
10,000

9,000

8,000

7,000

6,000

5,000 China

4,000
Indonesia
3,000
Philippines
2,000
Vietnam
1,000 Cambodia
0

Source: IMF 2011

Why does it matter?
FDI inflows (US$ million)
14,000
Indonesia
12,000

10,000
Malaysia
8,000 Viet Nam

6,000

4,000

2,000 Philippines

0

-2,000

Source: UN 2011

Where we stand in international metrics
OUR CHALLENGE

WEF-Global competitiveness report
PHILIPPINES
2009-2012 ENTRIES

2012 2011 2010 2009
PHILIPPINES 65 75 85 87

Doing Business Survey:
IFC Ease of Doing Business Report
Philippines vs ASEAN

COUNTRIES 2012 2011 2010 2009
SINGAPORE 1 1 1 1
THAILAND 17 16 12 13
MALAYSIA 18 23 23 20
VIETNAM 98 90 93 92
BRUNEI DARUSSALAM 83 86 96 88
INDONESIA 129 126 122 129
CAMBODIA 138 138 145 135

IFC Ease of Doing Business Report , 2009 – 2012
Philippine Global Ranking

2012 2011 2010 2009
Indicators (183 (183 (183 (181
economies) economies) economies) economies)

Over-all ranking 136 134 144 140

Starting a business 158 155 162 155

Dealing w/ construction 102 98 111 105
permits

Getting electricity 54 57 - -

Employing Workers - - 115 126

Registering Property 117 109 102 97

Getting Credit 126 116 127 123

Protecting Investors 133 131 132 126

Paying Taxes 136 127 135 129

Trading across borders 51 54 68 58

Enforcing contracts 112 114 118 114

Resolving Insolvency 163 161 153 151

IMD World Competitiveness Report
2012 OVERALL RANKING
Country 2012 ranking 2011 ranking change
SINGAPORE 4 3 -1
MALAYSIA 14 16 +2
THAILAND 30 27 -3
INDONESIA 42 37 -5
PHILIPPINES 43 41 -2

IMD World Competitiveness Report
2012 RANKING 2011 RANKING CHANGE
Econ Performance
SINGAPORE 9 5 -4
MALAYSIA 10 7 -3
THAILAND 15 10 -5
INDONESIA 32 32 0
PHILIPPINES 42 29 -13

Gov’t Efficiency
SINGAPORE 2 2 0
MALAYSIA 13 17 +4
THAILAND 26 23 -3
INDONESIA 28 25 -3
PHILIPPINES 32 37 +5

Millenium
Challenge Account
The Philippines is monitored by MCA
on 20 key performance indicators

The performance bar or threshold is
set against a country’s economic
classification

In 2011, the Philippines was classified
a Low Income Country. In 2012, the
classification was raised to Lower
Middle Income Country, reflecting
higher GNI per capita. Thus, the bar
has been set higher.

The Philippines must pass one-half of
all indicators, including Rule of Law
and Control of Corruption.

The country is constantly working on
ways to improve its performance on
these and other competitiveness
indicators.

The Global Competitiveness Index framework

Countries/ economies at each stage of development

PHILIPPINES vs ASEAN

COUNTRIES 2012 2011 change
SINGAPORE 2 2 0
MALAYSIA 25 21 -4
BRUNEI DARUSSALAM 28 28 0
THAILAND 38 39 +1
INDONESIA 50 46 -4
PHILIPPINES 65 75 + 10
VIETNAM 75 65 - 10
CAMBODIA 85 97 + 12

l Other ASEAN Countries not included in the Survey: Laos &
Myanmar

PHILIPPINES vs ASEAN
2009-2012 ENTRIES

Over-all rankings
COUNTRIES 2012 2011 2010 2009
SINGAPORE 2 2 3 3
MALAYSIA 25 21 26 24
BRUNEI DARUSSALAM 28 28 28 32
THAILAND 38 39 38 36
INDONESIA 50 46 44 54
VIETNAM 75 65 59 75
CAMBODIA 85 97 109 110
l Other ASEAN Countries not included in the Survey: Laos &
Myanmar

Philippines: Competitiveness Index
Score
7

6

5
4.16 4.09 4.08 4.23
3.93 3.98 3.99 3.90 3.96
4 3.58 3.55
3.41

3

2

1

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Philippines: Competitiveness Index
Percentile Rank
100

75

upper 45%

50

25

bottom 20%

0
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

WEF-Global competitiveness report 2011 & 2012
PHILIPPINES

12 PILLARS
2012 2011 Change
1st pillar: Institutions 94 117 + 23
2nd pillar: Infrastructure 98 105 +7
3rd pillar: Macroeconomic environment 36 54 + 18
4th pillar: Health and primary education 98 92 -6
5th pillar: Higher education and training 64 71 +7
6th pillar: Goods market efficiency 86 88 +2
7th pillar: Labor market efficiency 103 113 + 10
8th pillar: Financial market development 58 71 + 13
9th pillar: Technological readiness 79 83 +4
10th pillar: Market size 35 36 +1
11th pillar: Business sophistication 49 57 +8
12th pillar: Innovation 94 108 + 14

Competitiveness Performance of the Philippines
2011-2012 GCR 2012-2013 GCR Change
Rank out Rank out
Score of 142 Score of 144 Score Rank
countries countries

GLOBAL COMPETITIVENESS INDEX: Philippines 4.08 75 4.23 65 0.15 10

4.17 100 4.35 80 0.18 20
BASIC REQUIREMENTS SUBINDEX
1st Pillar: Institutions 3.22 117 3.57 94 0.35 23
2nd Pillar: Infrastructure 3.09 105 3.19 98 0.10 7
3rd Pillar: Macroeconomic environment 4.99 54 5.33 36 0.34 18
4th Pillar: Health and primary education 5.38 92 5.31 98 -0.07 -6
4.03 70 4.17 61 0.14 9
EFFICIENCY ENHANCERS SUBINDEX
5th Pillar: Higher education and training 4.13 71 4.30 64 0.17 7
6th Pillar: Goods market efficiency 4.05 88 4.17 86 0.12 2
7th Pillar: Labor market efficiency 3.92 113 4.01 103 0.09 10
8th Pillar: Financial market development 4.02 71 4.25 58 0.23 13
9th Pillar: Technological Readiness 3.47 83 3.63 79 0.16 4
10th Pillar Market size 4.57 36 4.62 35 0.05 1
3.45 74 3.60 64 0.15 10
INNOVATION AND SOPHISTICATION FACTORS SUBINDEX
11th Pillar: Business Sophistication 4.11 57 4.23 49 0.12 8
12th Pillar: Innovation 2.79 108 2.97 94 0.18 14

Sources: Global Competitiveness Reports 2011-2012 and 2012-2013
Note: Scores range from 1 to 7 with 7 as the best possible response except for hard data.

WEF – Global Competitiveness Report 2010 - 2012

INDICATORS 2012 2011 2010
Indicators Indicators Indicators

RED Bottom 20% (115th – 144th) (113th – 142nd) (111th – 139th)
8 21 25
PURPLE Ranked 21 - 40% (86th – 114th) (85th – 112th) (83rd – 110th)
45 36 37
YELLOW Ranked 41 – 50% (72nd – 85th) (71st – 84th) (69th – 82nd)
10 17 20
BLACK Ranked 49% or (1st – 71st) (1st – 70th) (1st – 68th)
higher 48 37 29
TOTAL 111 111 111

PHILIPPINE COMPETITIVENESS RANKING
WEF GLOBAL COMPETITIVENESS REPORT 2011 & 2012
2011 2011 2012 2012
RED – bottom 20% (113th – 142nd) 21 indicators (115th – 144th) 8 indicators
PURPLE – bottom 40-21% (85th – 112th) 36 indicators (86th – 114th) 45 indicators
ORANGE – bottom 50 – 41% (71st– 84th) 17 indicators (72nd– 85th) 10 indicators
BLACK (1st – 70th) 37 indicators (1st – 71st) 48 indicators
111 indicators 111 indicators

INDICATORS RANKING RANKING RANKING CHANGE
(2010) (2011) (2012)
OVER-ALL RANKING 85/139 75/142 65/144 + 10
1st pillar: Institutions 125 117 94 + 23
1.01 Property rights 99 105 74 + 31
1.02 Intellectual property protection 103 102 87 + 15
1.03 Diversion of public funds 135 127 100 + 27
1.04 Public trust of/in politicians 134 128 95 + 33
1.05 Irregular payments and bribes 128 119 108 + 11
1.06 Judicial independence 111 102 99 +3
1.07 Favoritism in decisions of government 131 118 87 + 31
officials
1.08 Wastefulness of government spending 118 109 86 + 23
1.09 Burden of government regulation 126 126 108 + 18
1.10 Efficiency of legal framework in settling 122 115 107 +8
disputes

(2010) (2011) (2012)

1.11 Efficiency of legal framework in 116 118 102 + 16
challenging regulations
1.12 Transparency of government policymaking 123 120 97 + 23
1.13 Government services for Improved - - 51 -
business performance
1.14 Business costs of terrorism 126 130 126 +4
1.15 Business costs of crime and violence 104 112 107 +5

1.16 Organized crime 106 102 97 +5
1.17 Reliability of police services 105 112 100 + 12
1.18 Ethical behavior of firms 129 118 87 + 31
1.19 Strength of auditing and reporting 75 62 41 + 21
standards
1.20 Efficacy of corporate boards 56 52 51 +1

1.21 Protection of minority shareholders’ 80 84 57 + 27
interests
1.22 Strength of investor protection, 0-10 109 111 110 +1
(best)*

(2010) (2011) (2012)
2nd pillar: Infrastructure 104 105 98 +7
2.01 Quality of overall infrastructure 113 113 98 + 15
2.02 Quality of roads 114 100 87 + 13
2.03 Quality of railroad infrastructure 97 101 94 +7
2.04 Quality of port infrastructure 131 123 120 +3
2.05 Quality of air transport infrastructure 112 115 112 +3
2.06 Available airline seat kilometers/week, 28 28 26 +2
millions*
2.07 Quality of electricity supply 101 104 98 +6
2.08 Mobile telephone subscriptions/100 pop* 88 92 95 -3
2.09 Fixed telephone lines/100 pop* 106 103 103 0

3rd pillar: Macroeconomic environment 68 54 36 + 18
3.01 Government budget balance, % GDP* 62 71 36 + 35
3.02 Gross national savings, % GDP* 74 70 47 + 23
3.03 Inflation, annual % change* 73 69 70 -1
Interest rate spread* 75 50 -
3.04 General government debt, % GDP* 102 89 72 + 17
3.05 Country credit rating, 0-100 (best)* 75 63 60 +3

(2010) (2011) (2012)
4th pillar: Health and primary education 90 92 98 -6
4.01 Business impact of malaria 101 101 102 -1
4.02 Malaria cases/100,000 pop* 96 95 95 0
4.03 Business impact of tuberculosis 106 107 116 -9
4.04 Tuberculosis cases/100,000 pop * 117 119 126 -7
4.05 Business impact of HIV/AIDS 83 80 83 -3
4.06 HIV prevalence, % adult pop* 1 1 12 - 11
4.07 Infant mortality, deaths/1,000 live births* 89 95 91 +4
4.08 Life expectancy, years* 84 82 102 - 20
4.09 Quality of primary education 99 110 86 + 24
4.10 Primary education enrollment, net %* 82 81 101 - 20

5th pillar: Higher education and training 73 71 64 +7
5.01 Secondary education enrollment, gross %* 82 81 81 0
5.02 Tertiary education enrollment, gross %* 76 75 76 -1
5.03 Quality of the educational system 69 61 45 + 16
5.04 Quality of math and science education 112 115 98 + 17
5.05 Quality of management schools 61 55 39 + 16

(2010) (2011) (2012)
5.06 Internet access in schools 76 73 73 0
5.07 Availability of research and training 77 62 62 0
services
5.08 Extent of staff training 46 34 32 +2

6th pillar: Goods market efficiency 97 88 86 +2
6.01 Intensity of local competition 65 47 50 -3
6.02 Extent of market dominance 109 117 98 + 19
6.03 Effectiveness of anti-monopoly policy 92 98 84 + 14
6.04 Extent and effect of taxation 77 52 57 -5
6.05 Total tax rate, % profits* 99 93 102 -9
6.06 Number of procedures to start a business* 128 134 137 -3

6.07 Number of days to start a business* 120 112 112 0
6.08 Agricultural policy costs 95 89 76 +13
6.09 Prevalence of trade barriers 89 89 76 +13
6.10 Trade tariffs, % duty* 52 47 53 -6
6.11 Prevalence of foreign ownership 104 72 66 +6
6.12 Business impact of rules on FDI 98 89 69 + 20
6.13 Burden of customs procedures 129 128 126 +2
6.14 Imports as a percentage of GDP* - 96 97 -1
6.15 Degree of customer orientation 42 46 27 + 19
6.16 Buyer sophistication 60 56 57 -1

(2010) (2011) (2012)
7th pillar: Labor market efficiency 111 113 103 + 10
7.01 Cooperation in labor-employer relations 56 55 38 + 17
7.02 Flexibility of wage determination 96 102 117 - 15
Rigidity of employment* 75 79 - -
7.03 Hiring and firing practices 116 113 108 +5
7.04 Redundancy costs, weeks of salary* 114 118 120 -2
7.05 Pay and productivity 82 76 57 + 19
7.06 Reliance on professional management 47 50 38 + 12
7.07 Brain drain 85 91 71 + 20
7.08 Women in labor force, ratio to men* 104 103 109 -6

8th pillar: Financial market development 75 71 58 + 13
8.01 Availability of financial services 49 50 50 0
8.02 Affordability of financial services 37 42 34 +8
8.03 Financing through local equity market 56 44 36 +8
8.04 Ease of access to loans 55 52 46 +6
8.05 Venture capital availability 75 71 62 +9
8.06 Soundness of banks 38 46 41 +5

(2010) (2011) (2012)

8.07 Regulation of securities exchanges 73 64 46 + 18
8.08 Legal rights Index, 0 – 10 (best)* 103 105 99 +6
Restriction on capital flows 64 - - -

9th pillar: Technological readiness 95 83 79 +4
9.01 Availability of latest technologies 62 62 56 +6
9.02 Firm-level technology absorption 59 52 46 +6
9.03 FDI and technology transfer 88 66 40 + 26
9.04 Individuals using internet, %* 112 88 90 -2
9.05 Broadband Internet subscriptions/100 84 90 91 -1
pop*
9.06 International Internet bandwidth, kb/s 101 76 75 +1
per user*
9.07 Mobile broadband subscriptions/100 - - 93 -
pop*

10th pillar: Market size 37 36 35 +1
10.01 Domestic market size Index, 1-7 (best)* 33 31 29 +2
10.02 Foreign market size index, 1-7 (best)* 43 40 40 0

(2010) (2011) (2012)
11th pillar: Business sophistication 60 57 49 +8
11.01 Local supplier quantity 68 52 49 +3
11.02 Local supplier quality 70 71 68 +3
11.03 State of cluster development 55 54 38 + 16
11.04 Nature of competitive advantage 67 74 58 + 16
11.05 Value chain breadth 59 67 66 +1
11.06 Control of international distribution 45 47 54 -7
11.07 Production process sophistication 86 72 64 +8
11.08 Extent of marketing 50 40 41 -1
11.09 Willingness to delegate authority 38 33 27 +6

12th pillar: Innovation 111 108 94 + 14
12.01 Capacity for innovation 80 95 86 +9
12.02 Quality of scientific research Institutions 108 106 102 +4
12.03 Company spending on R&D 85 85 58 + 27
12.04 University-Industry collaboration in R&D 85 83 79 +4
12.05 Government procurement of advanced 129 126 107 + 19
tech products
12.06 Availability of scientists and engineers 96 97 91 +6
12.07 PCT patents, applications/million pop* 71 68 83 - 15

PHILIPPINES
KEY DRIVERS
INDICATORS 2012 2011 Change
1st pillar: Institutions
1.04 Public trust of/in politicians 95 128 + 33
1.01 Property rights 74 105 + 31
1.07 Favoritism in decisions of government officials 87 118 + 31
1.18 Ethical behavior of firms 87 118 + 31

2nd pillar: Infrastructure
2.01 Quality of overall infrastructure 98 113 + 15
2.02 Quality of roads 87 100 + 13
2.03 Quality of railroad infrastructure 94 101 +7

3rd pillar: Macroeconomic environment
3.01 Government budget balance, % GDP* 36 71 + 35
3.02 Gross national savings, % GDP* 47 70 + 23
3.04 General government debt, % GDP* 72 89 + 17

4th pillar: Health and primary education
4.09 Quality of primary education 86 110 + 24
4.07 Infant mortality, deaths/1,000 live births* 91 95 +4

5th pillar: Higher education and training
5.04 Quality of math and science education 98 115 + 17
5.03 Quality of the educational system 45 61 + 16
5.05 Quality of management schools 39 55 + 16

6th pillar: Goods market efficiency
6.12 Business impact of rules on FDI 69 89 + 20
6.02 Extent of market dominance 98 117 + 19
6.15 Degree of customer orientation 27 46 + 19

PHILIPPINES
KEY DRIVERS
7th pillar: Labor market efficiency
7.07 Brain drain 71 91 + 20
7.05 Pay and productivity 57 76 + 19
7.01 Cooperation in labor-employer relations 38 55 + 17

8th pillar: Financial market development
8.07 Regulation of securities exchanges 46 64 + 18
8.05 Venture capital availability 62 71 +9
8.02 Affordability of financial services 34 42 +8
8.03 Financing through local equity market 36 44 +8

9th pillar: Technological readiness
9.03 FDI and technology transfer 40 66 + 26
9.01 Availability of latest technologies 56 62 +6
9.02 Firm-level technology absorption 46 52 +6

10th pillar: Market size
10.01 Domestic market size Index, 1-7 (best)* 29 31 +2

11th pillar: Business sophistication
11.03 State of cluster development 38 54 + 16
11.04 Nature of competitive advantage 58 74 + 16
11.07 Production process sophistication 64 72 +8

12th pillar: Innovation
12.03 Company spending on R&D 58 85 + 27
12.05 Government procurement of advanced tech products 107 126 + 19
12.01 Capacity for innovation 86 95 +9

PHILIPPINES
KEY CONSTRAINTS
2nd pillar: Infrastructure
2.08 Mobile telephone subscriptions/100 pop* 95 92 -3
2.09 Fixed telephone lines/100 pop* 103 103 0

3rd pillar: Macroeconomic environment
3.03 Inflation, annual % change* 70 69 -1

4th pillar: Health and primary education
4.08 Life expectancy, years* 102 82 - 20
4.10 Primary education enrollment, net %* 101 81 - 20
4.06 HIV prevalence, % adult pop* 12 1 - 11

5th pillar: Higher education and training
5.02 Tertiary education enrollment, gross %* 76 75 -1
5.01 Secondary education enrollment, gross %* 81 81 0
5.06 Internet access in schools 73 73 0
5.07 Availability of research and training services 62 62 0

6th pillar: Goods market efficiency
6.05 Total tax rate, % profits* 102 93 -9
6.10 Trade tariffs, % duty* 53 47 -6
6.04 Extent and effect of taxation 57 52 -5

PHILIPPINES

KEY CONSTRAINTS
7th pillar: Labor market efficiency
7.02 Flexibility of wage determination 117 102 - 15
7.08 Women in labor force, ratio to men* 109 103 -6
7.04 Redundancy costs, weeks of salary* 120 118 -2

8th pillar: Financial market development
8.01 Availability of financial services 50 50 0

9th pillar: Technological readiness
9.04 Individuals using internet, %* 90 88 -2
9.05 Broadband Internet subscriptions/100 pop* 91 90 -1

10th pillar: Market size
10.02 Foreign market size index, 1-7 (best)* 40 40 0

11th pillar: Business sophistication
11.06 Control of international distribution 54 47 -7
11.08 Extent of marketing 41 40 -1

12th pillar: Innovation
12.07 PCT patents, applications/million pop* 83 68 - 15

The most problematic factors for doing business

Note: From the list of factors above, respondents were asked to select the five most problematic for doing business in their
country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according
to their rankings.

Philippines Vs. ASEAN: Basic Requirements

Singapore Brunei Malaysia Thailand Indonesia Philippines Vietnam Cambodia
Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score
Global Competitiveness Index 2 5.7 28 4.9 25 5.1 38 4.5 50 4.4 65 4.2 75 4.1 85 4.0
Basic requirements 1 6.3 21 5.6 27 5.4 45 4.9 58 4.7 80 4.3 91 4.2 97 4.1
1. Institutions 1 6.1 31 4.9 29 4.9 77 3.8 72 3.9 94 3.6 89 3.6 73 3.8
2. Infrastructure 2 6.5 57 4.2 32 5.1 46 4.6 78 3.7 98 3.2 95 3.3 104 3.1
3. Macroeconomic environment 17 6.1 1 7.0 35 5.3 27 5.5 25 5.7 36 5.3 106 4.2 91 4.4
4. Health and primary education 3 6.7 31 6.2 33 6.2 78 5.6 70 5.7 98 5.3 64 5.8 102 5.3

Source: Global Competitiveness Report 2012-2013

Philippines Vs. ASEAN: Efficiency enhancers

Singapore Malaysia Thailand Indonesia Philippines Brunei Vietnam Cambodia
Efficiency enhancers 1 5.6 23 4.9 47 4.4 58 4.2 61 4.2 68 4.0 71 4.0 85 3.8
5. Higher education and training 2 5.9 39 4.8 60 4.3 73 4.2 64 4.3 57 4.4 96 3.7 111 3.3
6. Goods market 1 5.6 11 5.2 37 4.6 63 4.3 86 4.2 73 4.2 91 4.1 50 4.4
7. Labor market 2 5.8 24 4.8 76 4.3 120 3.9 103 4.0 13 5.1 51 4.5 28 4.8
8. Financial market 2 5.9 6 5.4 43 4.5 70 4.1 58 4.3 56 4.3 88 3.9 64 4.1
9. Technological readiness 5 6.1 51 4.3 84 3.6 85 3.6 79 3.6 64 4.0 98 3.3 100 3.3
10. Market size 37 4.6 28 4.8 22 5.0 16 5.3 35 4.6 124 2.4 32 4.6 89 3.1


Philippines Vs. ASEAN: Innovation and sophistication

Singapore Malaysia Thailand Indonesia Philippines Brunei Vietnam Cambodia
Innovation and sophistication 11 5.3 23 4.7 55 3.7 40 4.0 64 3.6 62 3.6 90 3.3 72 3.5
11. Business sophistication 14 5.1 20 5.0 46 4.3 42 4.3 49 4.2 65 4.0 100 3.6 74 3.9
12. Innovation 8 5.4 25 4.4 68 3.2 39 3.6 94 3.0 59 3.3 81 3.1 67 3.2


Lowest Ranking Philippine Indicators in ASEAN

Rank Indicator
137 Number of procedures to start a business
126 Business cost of terrorism
126 Burden of customs procedures
120 Quality of port infrastructure
117 Flexibility of wage determination
112 Quality of air transport infrastructure
108 Hiring and firing practices
107 Efficiency of legal framework in settling disputes
107 Business costs of crime and violence
102 Efficiency of legal framework in challenging regulations
102 Total tax rate
102 Quality of scientific research institutions
101 Net primary education enrollment
100 Diversion of public funds
99 Judicial independence
98 Quality of math and science education
94 Quality of railroad infrastructure
87 Favoritism in decisions of government officials
84 Effectiveness of anti-monopoly policy
86 Capacity for innovation


2012 – 13 Plan

o Continuous tracking of global reports and
inclusion in performance evaluation systems

o Regional / Local Competitiveness Councils

o Industry Roadmaps

o National Competitiveness Assessment and Plan

Continuous tracking and
improvements in …

WEF – Global Index IFC Doing Business Report
Governance and Bureaucracy Starting a Business
Infrastructure Construction Permits
Macroeconomic management
Credit information
Education
Enforcing Contracts
Labor Market
Resolving Insolvency
Technological Readiness
Innovation

Regional Competitiveness
Committees
o Create regional / local competitiveness councils composed
of public and private sectors
o Build template of indicators so regions can track their
competitiveness for comparison with national and
international regions
o Involve universities in data-collection and analysis
o Build pipeline for technical training and capacity-building
o 12 committees being set up as of 6/2012

Industry Roadmaps
• As competitive environment is created, industry and
individual firms are drivers of growth and wealth
creation.
• DTI will invite industries to prepare 5 - 10 year industry
roadmaps
• Roadmaps should describe –
– State of industry today
– Other country competitors
– Potential of industry for value and employment growth
– Projected investments by industry players
– Policy environment required by industry (e.g., regulatory,
infrastructure, human resources, financial, etc.)

National Competitiveness
Assessment and Plan
o Annual assessment of performance indicators
o Global performance indicators linked to 6-year Philippine
Development Plan
o Creation of Long-Term Strategic Plan
o Preparation of Annual Operating Plans
o Emphasis on execution and delivery
o Creation of special unit within OP or expansion of PMS
mandate

Building Blocks

National
Competitiveness
Plan

Regional
Industry
Working Groups Competitiveness
Roadmaps
Committees

Maraming Salamat Po!

www.competitive.org.ph Follow Us On:
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State of philippine competitiveness wef gcr 2012-2013

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