NCC gives up 2016 competitiveness target

by Bernie Magkilat | June 13, 2016 (updated)

Trade and Industry Secretary Adrian S. Cristobal yesterday cited the government’s journey towards improving the country’s competitiveness ranking globally but also admitted that achieving the target to be in the top third percentile mark this year may be farfetched.

The many factors of competitiveness get complicated with lots of government agencies’ working to harmonize processes and procedures.

Competitiveness is a mantra among countries because it is a major consideration for foreign investors to pour in their capital in a particular country. The most competitive will get the bigger slice of the pie while the laggards, if any, the crumbs.

The National Competitiveness Council (NCC) tracks surveys on competitiveness. Of these surveys, the Philippines improved on 9 surveys but lost ground on two “Fragile States Index” and Logistics Performance Index. The Philippines also stagnated in the World Competitiveness Report.

There is also the competition with all other countries, which are also working doubly hard to improve their ranking and aiming to also land in the top ranks.

“We have made tremendous improvements. From bottom third we’ve moved up 45 notches over the past 5 years, but we cannot open the Champaign bottle yet,” said Cristobal in a speech at 4th Annual Ease of Doing Business Summit.

“We are still scratching the surface,” said Cristobal, who is also NCC chairman.

Among the surveys, the Philippines has put more importance on the Ease of Doing Business survey by the International Finance Corp. of the World Bank, which surveys 189 countries.

The Philippines, which used to rank 148 or in the lower third percentile bracket among 183 countries in 2010, is now ranked 103 or 45 notches higher.

In 2010, the NCC targeted to move up in the top third by 2016.  This means the Philippines has to be in the top 63 countries to be in top third percentile bracket. At the current ranking of 103, this means the Philippines has to move up considerably this year to hit the 2016 target.

“To reach the upper third is a bit of a stretch we knew it is an ambitious target and we made big strides so hope to continue to land in the upper third but it is quite challenging,” he said.

In the recent IFC survey, Cristobal noted of the country’s steep 34 notches drop in the area of trading borders because of the port congestion issue.

But since the port congestion has been addressed already, the NCC expects huge improvement in this category when the next Ease of Doing Business survey comes out in October this year.

The area of starting a business also went down by 2 notches.

Cristobal stressed there is a need to coordinate with the local government units to set standards since LGUs have various types of procedures in starting a business.

“There is quite a number of LGUs some on their own are adopting same standards and we go around country for information awareness and we set up regional competitiveness across the country,” he said.

The inter-agency Ease of Doing Business (EODB) Task Force has committed to deliver the following improvements to impact the processes measured in the report.

On Starting a Business, business applicants can now obtain all the relevant reference numbers (SEC Registration Number, BIR Tax Identification Number, and Employers Registration Number from Social Agencies such as SSS, Pag-Ibig, and PhilHealth) in just one application from a single location through the Integrated Business Registration System (IBRS). Transactions can be done at the SEC head office and selected satellite offices in malls.

On Paying Taxes and payroll-related payments, PagIBIG and PhilHealth have made it easier for companies employing ten or more workers to pay monthly contributions through online payment system in Landbank and DBP. BIR has also launched electronic tax filing and e-payment through G-cash, where taxpayers can use their mobile phones to remit payments instead of queuing in BIR offices and banks. In addition, with SSS online payment scheme companies with more than ten employees will be able to remit contributions through partner banks (auto debit) and accredited payment centers (Bayad Center, SM Malls, etc.).

For Dealing with Construction Permits, the issuance of the Fire Safety Evaluation Clearance (FSEC) and Fire Safety Inspection Certificate (FSIC) are now integrated with the processes under the Department of Building Official (DBO) through the co-location of Bureau of Fire Protection to the DBO. In addition, through the Department of Public Works and Highways (DPWH), the Building Code with IRR is now available online and can be accessed through their website at www.dpwh.gov.ph.

For Getting Electricity, the client no longer needs to visit QC to request and receive CEI; instead, it’ll be a transaction between Meralco and QC through the online transmittal of Certificate of Electrical Inspection (CEI). Also, with the ERC Rule of 2015, the amount of the security deposit is reduced from P251,770.00 to P231, 661.16.

For Registering Property, BIR developed web-based system with LRA to automate manual processes of preparing Certificate Authorizing Registration Electronic Certificate Authorizing Registration (eCAR).

Several reforms are also being undertaken to ease Trading Across Borders. The Terminal Appointment Booking System (TABS) issued by the Metropolitan Manila Development Authority fast tracks booking of containers, status/updates can all be done through mobile devices anytime-anywhere. Port operators are mandated to implement TABS which aims to reduce the number of trucks during traffic peak periods without affecting the total number of imports and exports going in and out of the ports. In addition, the implementation of the Foreign Ships Co-Loading Act, allows importers and exporters to directly ship their goods to its port of destination. Hence, reducing the shipping costs, creating a more efficient import and export system, and decongests the port of Manila and other major ports in the country.

Ongoing initiatives are being reinforced to further improve court efficiency and ease the process in resolving disputes (Enforcing Contracts). With the revised rules and regulations for Small Claims Courts, the amount has been increased to P200,000 from P100,000 to cover more small claims cases. This allows ordinary Filipinos to litigate on their own money claims by providing them an inexpensive, informal and simple procedure. To initiate a small claims action, there would be no need for intervention of lawyers, and no formal pleading, other than the Statement of Claim/s.

NCC Private Sector Co-Chairman Guillermo M. Luz has underscored the necessity to institutionalize reforms and deeply embed it in the system so it will be irreversible.

He further stressed the need to revolutionize the bureaucracy to sustain the momentum for competitiveness, as other countries continue to reform and constant changes to the report toughens up the competition.

He also called for more engaged citizens in providing feedback for continuous improvement of the systems and commended the Task Force for their continuing efforts but also challenged them to deliver even more large-scale reforms to further ease doing business in the Philippines.

Source: www.mb.com.ph