ARANGKADA Third Anniversary Assessment

Fe ruary
Makati Shangri-La
iv
ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT
2011 Rating
Completed Substantial Progress Started Not Ongoing Backward / Regression No Longer Relevant
2012 Tally
11 74 205 134 25 13
2013 Tally
19 94 213 94 26 17
Tally
5 36 191 168 51 11
Percentage
1.08% 7.79% 41.34% 36.36% 11.04% 2.38%
Percentage
2.38% 16.02% 44.37% 29.00% 5.41% 2.81%
Percentage
4.11% 20.35% 46.10% 20.35% 5.63% 3.68%
Tally 232
2011 Percentage 51.44%
Tally 290
Tally 326
Tally 219
Tally 159
Tally 120
Progress Steady Declined Improved
Tally 285 50 112
Percentage 63.33% 11.24% 25.17%
vi
SE TIO
St
SP
Steady
Declined
Improved
Active
Dormant
Part
ro ing Too Slo
Part
Becoming More
ompetitive
Agri usiness
Business Process Outsourcing BPO
reative Industries
Manufacturing
Logistics
Mining
Tourism Medical Travel and etirement
Infrastructure Policy
Infrastructure Airports
Infrastructure Po er
Infrastructure
oads
ails
Infrastructure Seaports
Infrastructure Telecommunications
Infrastructure
ater
Business
osts
Environment and atural Disaster
Foreign E uity and Professionals
overnance
udicial
La or
Legislation
Local
overnment
Macroeconomic Policy
Security
Social Services Education
Social Services Health and Population
Social Services Poverty
TOTAL
vii
Second Anniversary Assessment
esults
First Anniversary Assessment
esults
viii
OVERALL TALLY
Third Anniversary Assessment 2013
Completed Substantial Progress Started Not Ongoing Backward / Regression No Longer Relevant 19 94 213 94 26 17 (4.11%) (20.35%) (46.10%) (20.35%) (5.63%) (3.68%)
Second Anniversary Assessment 2012 Completed Substantial Progress Started Not Ongoing Backward / Regression No Longer Relevant 11 74 (2.38%) (16.02%)
First Anniversary Assessment 2011 Completed Substantial Progress Started Not Ongoing Backward / Regression No Longer Relevant 5 36 (1.08%) (7.79%)
205 (44.37%) 134 (29.00%) 25 13 (5.41%) (2.81%)
191 (41.34%) 168 (36.36%) 51 11 (11.04%) (2.38%)
2013 2012 2011
326 (73.26%) 290 (64.59%) 232 (51.44%)
120 (26.97%) 159 (35.41%) 219 (48.56%)
PROGRESS OF RATINGS
Steady 63.33% Deteriorated 11.24% Improved 25.17%
ix
xi
xii
xiii
2013 2012 2011
Active Active Active
Dormant Dormant Dormant
2013 2012 2011
Active Active Active Dormant
Dormant
2013 2012 2011
2013 2012 2011
xiv
2013 2012 2011
2013 2012 2011
2013 2012 2011
2013 2012 2011
Dormant Dormant
xv
2013 2012 2011
Dormant Dormant
2013 2012 2011
Active Active Active Dormant Dormant
Dormant
2013 2012 2011
Dormant Dormant
2013 2012 2011
xvi
2013 2012 2011
xvii
2013 Philippine Competitiveness Rankings

Survey 1. Best Countries for Business 2. Failed States Index
1
Year 2013 2013 2013 2013 Year 2013 2013

2013 2013 2013 2013 2013 2012 2013 2013 2013 2010 2013 2013
2012 Ranking 87 of 141 56 of 177 107 of 179

2012 43 of 59 Ranking
2013 Ranking 90 of 145 59 of 178
Trend Deteriorated Improved
Previous ASEAN-6 Ranking 5 of 6 6 of 6
2013 ASEAN6 Ranking 5 of 6 6 of 6
Trend Stable Stable Stable Stable Trend Improved Stable

Stable Improved Stable Stable Stable -Improved Stable Improved --
Date of Previous Press Release Dec. 2013 Jun. 24, 2013 Jan. 10, 2013
Date of Previous May 30, 2013 Press Release
(Est.) Date of Next Release Dec. 2014 Jun. 2014 Jan. 2014
(Est.) Date of May 2014 Next Release
Competitiveness 8. E-Government Yearbook Survey5 Readiness 5. International 6 9. Doing Business Property Rights Index 6. Corruption 10. Investing Across 7 Perception Index Borders 7. Human Development 11. Paying Taxes12 Report
3. Index of Economic Freedom 4. World Competitiveness Survey Yearbook 5. 1. International Best Countries for Property Business Rights Index 6. 2. Corruption Failed States Index1 Perception Index 3. Index of Economic 7. Human Development Freedom Report 4. World
2013 Philippine Rankings 97 of 177 Improved Competitiveness 4 of 6 4 of 6

2013 38 of 60 Ranking
Improved Trend
Previous 5 of 52 ASEAN-6 Ranking
20135ASEANof 52 6 Ranking 54 ofof 66 6 of 3 of 66 4 of 6 4 of 6 5 of 52 46 ofof 66 3 of 6 --
87 of of 141 130 87
56 of 105 of177 174 107 112 of of 179 187 43 of 59 88 of 190 87 of 136 of130 183
77of of145 131 Deteriorated Improved 90

59 94of of178 177 97114 of 177 of 186 38 of 60 -Improved Improved Improved Deteriorated Improved -Improved Deteriorated Improved -Deteriorated Deteriorated
of663 55of
6 of 4 of 66 44of of664 (2011) 5 of 52 4 of 6 56 ofof 636 4 of 6 -4 of 6 5 of 6 (2011)
4
Sept. 20, 2013 Dec. 2013

Jun.Dec. 24, 2013 2013 Jan. 10, 2013 Mar. 14, 2013 May 30, 2013 Mar. 6, 2012 Sept. 20, 2013 Oct. 23, 2012 Dec. Jul. 2013 7, 2010
Sept. 2014 Dec. 2014

Jun. 2014 Dec. 2014 Jan. 2014 Mar. 2014 May 2014 Mar. 2014 Sept. 2014 Oct. 2013
of 77138 of 131 185

94 of --177 114 143of of 186 185
87174 105 of countries 112 of 187 135 of 183
Before end of Dec. 2014 2012

Mar. 2014 Nov. 2013
4 of 66 6of
Stable Mar. 14, 2013 Deteriorated Nov. 21, 2012
The Environmental Performance Index is a biennial report, previously published in 2010, first released in 2006. Based on the New Series of Environmental Performance Index. Based on the 2012 report, but latest data is 2010; this series was revised and is not comparable to the data released in A Failed States Indexdue ranking closer to 0 means closer to complete state failure. 2006, 2008 and 2010 to methodological refinements 2 12 The 2012 and 2013 World Competitiveness Yearbook did not include Vietnam. is published on 2012. The latest is Paying Taxes 2014published on Nov. 19, 2013, Philippines rank 131. 3 Paying Taxes for 2013 Progress Data Sources 12. Global 4 The 2013 IPRI stated that the Philippines was at par with Vietnam. 12. Global 2013 65 of 144 59 of 148 Human Improved 5 of 6 5 of 6 Stable Magazine Sept. 4, 2013 Sept. 2014 Improved Rankings (both 2012 and THE UNDP, as per its database, did not publish a 2012 Development 1 Forbes 2013 65 of 144 59 ofReport. 148 Improved 5 of 6 5 of 6 Stable Sept. 4, 2013 Sept. 2014 Competitiveness Report 8 5 The UN E-Governance Readiness Survey is a biennial report previously published in 2010. Competitiveness Report 2013) 2 Foreign Policy Magazine / The Fund for Peace 6 13. Global Enabling The 2013 Report was published in October 2012. The latest is the Doing Business 2014 which published on Oct. 2013, Philippines rank 108 of 189. 13. Global Enabling 2012 of 132 -- before Improved 6 report of 6 was published--May 23, 2012 Street Journal May 2014 7 8 0 Stable Rankings 3 Heritage Foundation / Wall Investing Across Borders is a72 biennial report due out end of 2012; previous in 2010. 2012 72 the of 132 -Improved 6 of 6 --May 23, 2012 May 2014 Trade Report 8 8 TradeTrade Report The Global Enabling Report is a biennial report. The previous report was published in 2010. It does not include 4 all 6 major ASEAN economies. International Institute of Management Development 4 Deteriorated Rankings 14. Travel 9& Tourism 72 of 139 The World Economic Forums Travel and Tourism Competitiveness Report is supposedly a biennial report first published in 2007(with the exception in 2008 when a report was published). 14. 2013 Travel & Tourism of 139 5Deteriorated 82 of 140 72 Deteriorated 4 of 6 6 of 6 Mar. 7, 2013 Mar. 2015 Property Rights Alliance 9 10 2013 report, previously published 82 of 140 Deteriorated 6 of 6 Deteriorated Mar. 7, 2013 Mar. 2015 Competitiveness (2011) The Environmental Performance Index is a biennial in 2010, first released in 2006. 4 of 6 9 Competitiveness 3 (2011) Unreleased (2013) 6this Transparency International 11 Based on the New Series of Environmental Performance Index. Based on the 2012 report, but latest data is 2010; series was revised and is not comparable to the data released in 15. Environmental 11 7 United Nations Development Programme Environmental 2012 42 of 163 --3 of 6 --Jan. 25, 2012 Jan. 2014 2006, 2008 2010 due to methodological refinements 11 10and15. 12 Index 2012 of 163 --- 19, 2013, Philippines 3 of 6 --Jan. 25, 2012 Jan. 2014 Performance 10 2012. The Paying Taxes Performance for 2013 is published latest 42 is Paying Taxes 2014published on Nov. 131. Nations 8rankUnited Public Administration Network Indexon
11 1
12. Global 8. E-Government 2013 65 of of 190 144 59 of Improved 5 of 5 of 6 Stable Sept. 2013 Sept. 2014 2012 88 -- 148 -4 of 6 6 -Mar. 6, 4, 2012 Mar. 2014 5 1 Competitiveness Report Readiness Survey A Failed States Index ranking closer to 0 means closer to complete state failure. 2 The 2012 and 2013 World Competitiveness Yearbook did not include 13. Global Enabling 138 of Vietnam. 6 3 2012 136 72 of -Improved of -May 23, 2012 May 2014 9. Doing Business 2013 183 Deteriorated 66 of 66 6 of-6 Stable Oct. 23, 2012 Oct. 2013 The 2013 IPRI8stated that the Philippines was at132 par with Vietnam. Trade Report 185 4 THE UNDP, as per its database, did not publish a 2012 Human Development Report. 5 10. Investing Across 87 Before end of 14. Travel & TourismReadiness 72 139 report-The UN E-Governance Survey is of a biennial previously published 2010 -- in 2010. --of 6 -Jul. 7, 7, 2010 7 2013 82 of 140 Deteriorated 4-of 6 6 Deteriorated Mar. 2013 Mar. 6 9 Borders countries 2012 2015 The 2013 Report was published in October 2012. The latest is the Doing Business 2014 which published on Oct. 2013, Philippines rank 108 of 189. Competitiveness (2011) 7 Investing Across Borders is a biennial report due out before the end of 2012; previous report was published in 2010. of 8 15. 11 The 143 TheEnvironmental Global Enabling Report is a biennial report. previous report was -published in 2010. It does all 6 major ASEAN economies. 11. Paying Taxes12 Trade 2013 135 of163 183 Deteriorated 53 of 6 6of 6 Deteriorated Nov. 21, 2012 Nov. 2013 2012 42 of -of 6 not include --Jan. 25, 2012 Jan. 2014 10 9 185 Performance IndexForums The World Economic Travel and Tourism Competitiveness Report is supposedly a biennial report first published in 2007(with the exception in 2008 when a report was published).
10
World Ranking
6 Stable Rankings Progress Data Progress Data 2 Deteriorated Rankings Improved Rankings (both 2012 and 8 (both 2012 and Improved Rankings 2013) 4 Unavailable 2013) 0 Stable Rankings Stable Rankings 4 Deteriorated Rankings Deteriorated Rankings 3 Unreleased (2013) Unreleased (2013)
World Ranking 3 Improved Rankings 6 Stable Rankings 2 Deteriorated Rankings Deteriorated Rankings 4 Unavailable Unavailable Improved Rankings Stable Rankings ASEAN-6 Ranking
ASEAN-6 Ranking
Improved Rankings
World Ranking
8 0 4 3 3 6 2 4
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
9 World Bank 10 World Bank 11 World Bank Sources Sources 12 World Economic Forum Forbes Magazine 1 Forbes Magazine 13 World Economic Forum Foreign Policy Magazine / The Fund for Peace 2 Foreign Policy Magazine / The Fund for Peace 14 World Economic Forum Heritage Foundation / Wall Street Journal 3 Heritage FoundationLaw / Wall Street Journal 15 Yale Center for Environmental and Policy International Institute of Management Development 4 International Institute of Management Development Property Rights Alliance 5 Property Rights Alliance Transparency International 6 Transparency International United Nations Development Programme 7 United Nations Development Programme United Nations Public Administration Network 8 United Nations Public Administration Network World Bank 9 World Bank World Bank 10 World Bank World Bank 11 World Bank World Economic Forum 12 World Economic Forum World Economic Forum 13 World Economic Forum World Economic Forum 14 World Economic Forum Yale Center for Environmental Law and Policy 15 Yale Center for Environmental Law and Policy
ASEAN-6 Ranking
xviii ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT
There is no other time in our history where so many favorable factors are converging in our favor: our economy is robust and getting stronger, we have a young and dynamic citizenry, the entire investment world is focusing on us and giving us favorable marks, unlike the attitude in past years it is a rare time in our history.
- Ramon del Rosario Jr., Chairman, Makati Business Club, February 11, 2014
xix
PART 1
Growing Too Slow
Recommendations: 8
2013 2012 2011
Dormant Dormant
Progress: 2 Improved Rating: 0 4

No Longer Relevant Started
0 0 3
Declined
6 1 0
Steady
Backward/Regression Substantial Progress
Not Ongoing Completed
PART 1
GROWING TOO SLOW

While the macroeconomic fundamentals of the Philippines have been impressive, its share of foreign direct investments pales in comparison with those of other countries in the region. If we do not make our economy attractive for foreign investments, we would not be able to maximize the benefits from economic integration. Investments will pour in and factories will be built in our neighboring countries, and they will be exporting goods to us while we export our workers to them to run their factories... a most sorry scenario.
- Speaker Feliciano R. Belmonte Jr., Meeting with Joint Foreign Chambers and Philippine Business Groups, February 12, 2014
The three biggest challenges facing the Philippine economy are to move up to a higher level of sustained growth, create more and better jobs, and make growth inclusive. After two decades (1980-2000) of negligible per capita GDP growth, per capita income has steadily increased from 2000 onwards as population growth eased and OFW remittances accelerated. Of the ASEAN-6, for the past five decades, the Philippines had the lowest GDP and PCI growth, but from 1999 to 2013, real GDP growth improved, averaging 5.1% and tracking closely to Indonesia, Singapore, and Thailand. From 2010 to 2013, GDP growth fell from 7.6% (2010) to 3.6% (2011),
Philippine Historical GDP and GNI Real Growth Rates, 1980-2013
15% 10% 5% 0% -5% -10% -15%
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP GNI
BOP & Power crises/ Coup

EDSA 1
Asian Financial Crisis
EDSA 2
Fiscal crisis
Global Financial Crisis
Aquino, C
Ramos
Estrada
Arroyo
Aquino, B
Sources: NSCB (new linked series); Bernardo and Tang (2008)
then rose to 6.8% (2012) and 7.2% (2013). This achieved the distinction of being the fastest growing of the ASEAN-6 economies for two successive years. This is the first time in our data series (beginning 1960) that the Philippines has placed first, hopefully the start of extended catching up with the other regional economies. The Philippines has also lagged in job-creating FDI within ASEAN, no matter what measures are usedabsolute, per capita, or percent of GDP . 2013 saw a signifcant increase to a record level of $3.1 billion in the first nine months, for an estimated annual figure of $4.1 billion, almost 50% higher than the $2.8 billion in 2012, and over twice the $1.8 billion in 2011. This development places Arangkadas target of $7.5 billion a year within arms reach.
Recommendation 1
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Substantial Progress
Average Real GDP Growth Rates, % ASEAN-6, 1960-2013

12% 10% Indonesia Vietnam Philippines Malaysia Singapore Thailand
8%
6% 4% 2% 0%
1960-1970
1970-1980
1980-1990
1990-2000
2000-2010
2010-2013
Sources: World Bank; 2012 data - Country statistics offices (Philippines, Singapore and Vietnam); Media releases (Indonesia and Thailand) and authors estimates (Malaysia)
PART 1: GROWING TOO SLOW
Average Real GDP Per Capita Growth, % ASEAN-6, 1980-2012

7% 6% 5% 4% 3% 2% 1% 0% -1% -2% 1980-1990 1990-2000 2000-2012 Vietnam Indonesia Thailand Singapore Malaysia Philippines
Source: IMF WEO Database (April 2012)
Recommendation 2
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Recommendation 3
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
Recommendation 4
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Total Philippine Exports, 1990-2012, US$ Bn

75 60 Services, lhs Goods, lhs YOY growth 50% 40%
45
30 15 0 -15 -30
30%
20% 10% 0% -10% -20%
Source: BSP (BOP concept)

Recommendation 5
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 6
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
Domestic Investments, % of GDP , ASEAN-6, 1990-2012

Countries
Indonesia Malaysia Philippines Singapore Thailand Vietnam 1990-1999 27.8 36.3 25.2 33.8 36.3 23.7 2000-2009 25.0 23.0 20.2 24.0 25.9 35.8 2010-2012 33.5 24.1 20.2 23.9 27.0 32.9 2011 32.8 23.6 21.7 22.4 26.5 32.6 2012 35.3 25.5 18.5 27.0 28.5 27.2
Sources: ADB, Country Statistics Office (Malaysia and Thailand)
Recommendation 7
2011 Rating
2012 Rating
2013 Rating
Started
Gross Fixed Investments, % of GDP , ASEAN-6, 1990-2012

50% 45% 40% 35% 30%
25%
20% 15% 10% 5% 0% Indonesia Vietnam Thailand Singapore Malaysia Philippines
Sources: ADB and NESDB (Thailand QGDP series)
Recommendation 8
2011 Rating
2012 Rating
2013 Rating
Started
Started
Real GDP Growth Rates, ASEAN-6, 1990-2013

20%
15%
10% 5% 0%
-5%
-10% -15%
Philippines Indonesia Thailand Malaysia Vietnam Singapore
Sources: World Bank; 2012 data - Country statistics offices (Philippines, Singapore and Vietnam); Media releases (Indonesia and Thailand) and authors estimates (Malaysia); 2013f are from WEO forecast except for actual figures for Philippines and Singapore.
PART 2
Becoming More Competitive
Recommendations: 3
2013 2012 2011

0 0 2
Declined
3 0 0
Steady
PART 2
BECOMING MORE COMPETITIVE

Myanmar is opening up, Indonesia is making progress on infrastructure, and you have the Philippines, which is a real bright spot in the region right now,... Thailand risks losing its international competitiveness. Thats the real worry.
- Euben Paracuelles, Southeast Asia economist, Nomura, quoted in International New York Times, January 31, 2014
While Filipinos are highly competitive in the world job market, the countrys domestic competitiveness has much room for improvement. Global rating surveys abound with ever-expanding coverage stimulated by the globalization of investment, trade, and information. The Philippines was on a downward trajectory in international competitiveness rankings in the last decade but in recent years has reversed direction, making significant gains in closing gaps with several of its comparable regional economies, especially in measures of corruption, governance, and infrastructure. This improvement can be credited to more systematic efforts undertaken by the Philippine Government through the National Competitiveness Council for several years to regain competitiveness. However, these efforts must be sustained and accelerated to produce more encouraging results faster.
Changes in 15 PH International Competitiveness Rankings, 2008-2013
12 10 8
No. of Rankings
Expon. (Improved Rankings )
6 4
Expon. (Deteriorated Rankings)
2
0
Improved Rankings Deteriorated Rankings Stable Rankings Unreleased
2008 3 5 4 3
2009 2 10 1 2
2010 6 6 1 2
2011 5 6 0 4
2012 7 3 2 3
2013 9 1 2 3
Source: JV Pimentel, AmCham-TAPP , 2014
10
10 Lessons on Competitiveness by Guillermo M. Luz (Private Sector Co-Chair, National Competitiveness Council - NCC)
1. Transparency leads to competitiveness. 2. Work in progress is not good enough. 3. Execution and delivery matter. 4. Teamwork is important. 5. We need to work on multiple fronts. 6. The competition never sleeps. 7. The bar always rises. 8. Speed to reform is important. 9. Maintaining momentum is important. 10. We need to institutionalize change.
Recommendation 1
2011 Rating
2012 Rating
2013 Rating
PH Competitiveness Rankings, 2008-2013

Survey 2008
1. Best Countries for Business1 2. Failed States Index2 3. Index of Economic Freedom 4. World Competitiveness Yearbook 5. International Property Rights Index 91 of 121 59 of 177 98 of 156 40 of 55 62 of 115
Ranking 2009
84 of 127 53 of 178
Trend 2012
87 of 141 56 of 177
Sources
2010
91 of 128 (2010) 51 of 177
2011
87 of 134 (2011) 50 of 177
2013
90 of 145 59 of 178 97 of 177 38 of 60 77 of 131 94 of 177 Deteriorated Stable Improved Improved Improved Improved Stable Deteriorated Improved ----Forbes Magazine Foreign Policy Magazine / The Fund for Peace Heritage Foundation / Wall Street Journal International Institute of Management Development Property Rights Alliance Transparency International United Nations Development Programme United Nations Public Administration Network World Bank World Bank World Bank
104 of 178 109 of 178 115 of 179 107 of 179 43 of 57 74 of 115 39 of 58 80 of 125 41 of 59 87 of 129 43 of 59 87 of 130
6. Corruption Perception 141 of 180 139 of 180 134 of 178 129 of 182 105 of 174 Index 7. Human Development Report 8. e-Government Readiness Survey5 9. Doing Business 10. Investing Across Borders6 11. Paying Taxes 90 of 177 66 of 182 105 of 182 ----97 of 169 (2010) 78 of 183
112 of 187 112 of 187 114 of 186 (2011) ----88 of 190 -----
141 of 183 146 of 183 134 of 183 136 of 183 138 of 185 108 of 189 (2008-09) (2009-10) (2010-11) (2011-12) (2012-13) (2013-14) 87 countries ----87 countries ----87 countries -----
126 of 178 129 of 181 135 of 183 124 of 183 135 of 183 143 of 185 Deteriorated
PART 2: BECOMING MORE COMPETITIVE
11
Survey 2008
12. Global Competitiveness Report 13. Global Enabling Trade Report7 14. Travel & Tourism Competitiveness8 15. Environmental Performance Index9 71 of 134
Ranking 2009
87 of 133
Trend 2012
65 of 144
Sources
2010
85 of 139
2011
75 of 142
2013
59 of 148 Improved World Economic Forum
82 of 118 81 of 130 41 of 132
82 of 121 86 of 133 42 of 132
92 of 125 ----41 of 132
----94 of 139 -----
72 of 132 ----41 of 132
----82 of 140 -----
Improved Improved Stable
World Economic Forum World Economic Forum Yale Center for Environmental Law and Policy
Recommendation 2
2011 Rating
2012 Rating
2013 Rating
Areas of Dissatisfaction %, Philippines, 2003-2013

100% 90% 88% 84%
80%
70% 60% 50% 40% 30% 20% 10% 0%
79%
73%
Corruption Laws and regulations 59% 54% Infrastructure Local Protectionism Ease of moving products
40%
Source: AmCham Gallup Surveys
12
Recommendation 3
2011 Rating
2012 Rating
2013 Rating
Started
Started
World Competitiveness, Percentile Rankings, Selected ASEAN Countries, 2001-2013
100
90
80 70
60
50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Singapore Malaysia Thailand Indonesia Philippines 43rd 38th
Sources: International Institute for Management Development and authors calculations
PART 2: BECOMING MORE COMPETITIVE
13
Corruption Perceptions Index, Percentile Rankings, ASEAN-6, 1998-2013

100 90 80 70 60 50 94th
40
30
105th 129th
20
10 0
Singapore
Malaysia
Thailand
Philippines
Indonesia
Vietnam
Sources: Transparency International and authors calculations
Ease of Doing Business, Percentile Rankings, ASEAN-6, 2006-2014

100 90 80 70 60 50 40 30 108th
20
10 0
138th
2006
Singapore
2007
2008
2009
Malaysia
2010
2011
2012
Indonesia
2013
2014
Philippines
Thailand
Vietnam
Source: World Bank Note: 2014 data contains 2013 data; this one-year advanced reporting applies to the rest of previous reports
Global Competitiveness, Percentile Rankings, ASEAN-6, 2001-2013

100 90 80 70 60 50 40 30 20 10 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Singapore Malaysia Thailand Indonesia Philippines Vietnam 87th 85th 75th 61st 59th
Sources: World Economic Forum, authors calculation
14
PART 3 SEVEN BIG WINNER SECTORS
Agribusiness
Recommendations: 18
2013 2012 2011
Dormant

0 0 1
Declined
14 3 0
Steady
15
AGRIBUSINESS
With over one million Filipinos entering the labor force each year, the service sector alone cannot absorb them all... No surprise, then, that poverty has barely declined in recent years or that the countrys per capita GDP is the lowest among ASEANs core five. To reverse these trends, the country has to create jobs for semi- and unskilled workers in manufacturing and agriculture. But doing that, in turn, will require attracting more foreign investment, which for the Philippines is currently among the lowest in Asia...
- Karen Brooks, former Asian Affairs Director, US National Security Council, Foreign Affairs, JanuaryFebruary 2014
Although 32% of employed Filipinos worked in agriculture in 2012, Philippine food exports were less than 5% of the ASEAN-6 total that year. By contrast, Vietnam has tripled its share of the ASEAN total since 1997, while the share of the Philippines actually declined. Growth in Philippine agricultural export value has been very slow, while such exports of Indonesia, Malaysia, Thailand, and Vietnam skyrocketed 5-to 8-fold in the past two decades. Nevertheless, the Philippines has very high potential to export large quantities of specialized food products exploiting a multitude of new market opportunities from present and future Free Trade Agreements (FTAs). Filipino farmers face high domestic transport, labor, and other costs, and the Philippines lags in integrating small farms into larger enterprises. Mindanao has great potential, both to feed Luzon and to export. Long-standing farm infrastructure requirements need investment. The Comprehensive Agrarian Reform Program Extended with Revisions (CARPER), which ends in mid-2014, has greatly discouraged corporate farming.
16
Recommendation 1
2011 Rating
2012 Rating
2013 Rating
Started
Not Ongoing
Started
Share in ASEAN-6 Agricultural Exports, 1990-2012

60% 50% 40% 30% 20% 10% 0% Indonesia Thailand Malaysia Vietnam Singapore Philippines
Source: WTO; No data for Vietnam before 1997
Recommendation 2
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
PART 3: SEVEN BIG WINNER SECTORS: AGRIBUSINESS
17
Agricultural Products Exports, ASEAN-6, 1990-2012, US$ Billion

60 Indonesia Thailand 50 Malaysia Vietnam 40 Singapore Philippines
30
20
10
19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012
Source: WTO; No data for Vietnam before 1997
Recommendation 3
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
18
Agricultural Goods and Food Exports, ASEAN-6, 2012, US$ Billion

Countries Agricultural goods Agricultural food exports, % of total agricultural exports Agricultural Area, in (000 Ha), 2009
Exports Indonesia Malaysia Philippines Singapore Thailand Viet Nam 45.0 33.9 5.1 9.9 42.0 25.0
Imports Trade Balance 20.9 21.4 7.2 14.0 16.8 13.7 24.1 12.5 -2.2 -4.1 25.2 11.3 0.7 0.8 0.9 0.9 0.7 0.8 54500.0 7870.0 12100.0 0.7 21060.0 10842.0
Sources: WTO and FAO (for agricultural land area as of 2009)
Recommendation 4
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Recommendation 5
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
19
Recommendation 6
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 7
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
20
Agriculture and Forest Products Exports Distribution, 2012

Forest Products, 1.6% Other Agro-Based Products, 22.4% Coconut Products, 37.8%
Other Fruits and vegetables, 15.4%
Source: NSO
Bananas, 17.9%
Sugar and Related Products, 4.9%
Recommendation 8
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
Recommendation 9
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
21
Recommendation 10
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 11
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 12
2011 Rating
2012 Rating
2013 Rating
Started
22
Recommendation 13
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 14
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
23
Recommendation 15
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
Recommendation 16
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Recommendation 17
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
24
Recommendation 18
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Not Ongoing
25
Business Process Outsourcing
Recommendations: 30
2013 2012 2011
Dormant Dormant

6 1 8
Declined
15 2 3
Steady
27
BUSINESS PROCESS OUTSOURCING (BPO)

Business Process Outsourcing (BPO) has become an important business sector because of its large size, high growth rate, and long-term potential to provide several million quality jobs and earn high service export revenue. The Philippines has clear advantages: a large workforce of educated, English-speaking talent with a strong customer-service orientation, a close cultural affinity to North America, highly reliable low-cost international telecommunications, diverse and inexpensive site locations, and strong government support. Drivers for success are being strengthened, while new reforms are also being sought to realize the high growth potential. A better industry legal framework requires retaining fiscal incentives, fixing labor legislation that makes it more difficult to compete in the global market, and reducing the high number of paid holidays which cost the industry tens of millions of dollars of unbudgeted expenses for every new holiday declared. The Labor Code should be amended to allow subcontracting and to make it easier to terminate employees.
Offshoring and Outsourcing Industry Revenues, BN US$, 2004-2016F
30 Revenues, lhs YOY growth, rhs 70% 60% 50% 40% 15 30% 10 20% 10% 0%
25
20
2004
2005
2006
2007
2008
2009
2010
2011
2012
2016F
Sources: BPA/P
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Offshoring and Outsourcing Industry Employment, in 000, 2004-2016F

1400 1200 1000 800 600 400 200 0 Employment level, lhs YOY growth, rhs 80% 70% 60% 50% 40% 30% 20% 10% 0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2016F
Source: BPA/P
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Creative Industries
Recommendations: 16
2013 2012 2011
Dormant

1 0 1
Declined
8 2 2
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CREATIVE INDUSTRIES
Creative industries are very diverse, including advertising, animation, architecture, broadcast arts, crafts, culinary arts, cultural/heritage activities, design, film, literature, music, new media, performing arts, content development, mobile TV, publishing, and visual arts. Filipinos enjoy a well-deserved reputation for creativity. However, to better understand the sector, Philippine Creative Industries should be mapped and developed. There are legal issues that work against full development, such as limiting the practice of foreign professionals, the ban on any foreign equity in media, and the limit of 25% foreign equity in advertising. The landmark Philippine Design Competitiveness Act of 2013 was enacted in 2013 to spur further development of the sector.
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Examples of Creative and Knowledge Workers, 2013

Clustered Industries Utilizing Creative Workers: Advertising Architecture Crafts Design Fashion Film and video Literature Music Performing and visual arts Publishing Television and radio Video and computer games Clustered Industries Utilizing Knowledge Workers: Business Process Outsourcing Engineering Design Financial Services Hardware and Systems Design Legal Services Medical and Healthcare Services Research and Development Consulting Services Software Development (non-entertainment Mobile Phone Applications) Website Development
Source: UNESCO-UNDP , Creative Economy Report: Special Edition [http://www.unesco.org/culture/pdf/creative-economyreport-2013.pdf] (New York: UN, 2013)
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PART 3 SEVEN BIG WINNER SECTORS - INFRASTRUCTURE
Policy
Recommendations: 25
2013 2012 2011
Dormant Dormant

3 0 7
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PART 3 SEVEN BIG WINNER SECTORS INFRASTRUCTURE:
POLICY
"What we can expect in the years to come: airports and ports to facilitate commerce and tourism; roads to ensure that we all reap the maximum benefit from these big-ticket projects; power plants that will generate enough energy and fuel the development of industry. All the infrastructure projects that are being and will be constructed will give rise to a society teeming with opportunity. This is the framework from which other initiatives will branch out, creating even greater opportunities for Juan and Juana de la Cruz."
- State of the Nation Address of President Benigno S. Aquino III to the Congress of the Philippines, Batasang Pambansa Complex, Quezon City, July 22, 2013
What is wrong with Philippine infrastructure? To my mind, the problem boils down to three things: one, we dont have enough of them; two, they are not integrated and coordinated; and three, they are improperly distributed. As a result, our competitiveness as an economy is severely handicapped.
- Cielito Habito, economist, January 6, 2014, No Free Lunch: Our Infrastructure Handicap
The Philippines significantly underinvests in physical infrastructure, with spending averaging 2% to 3% of GDP for the last 10 years, far below regional norms. However, for the Aquino Administration, poor infrastructure is a key inhibitor to higher investment. In the WEF Global Competitiveness Report, the countrys overall infrastructure quality ranks below Singapore, Malaysia, Thailand, and Indonesia and close to Vietnam. Arangkada contains lists of Quality of Overall Infrastructure Rankings, ASEAN-6, 2008-2014 major projects completed, 1 1 under construction, or 21 21 being financed as well as future projects all 41 41 Singapore Singapore from 2001 to 2020. Malaysia Malaysia 61 61 Thailand Recommendations concern Thailand Indonesia Indonesia overall infrastructure 81 81 Philippines Philippines policy and are followed Vietnam Vietnam 101 101 by specific sub-sections for Airport, Power, Roads 121 121 and Rail, Seaports, 141 141 Telecommunicaitons, and 2008-09 2009-10 2010-11 2011-12 2008-09 2009-10 2010-11 2011-12 2012-13 2012-13 2013-14 2013-14 Water. Source: WEF Global Competitiveness Reports;
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National Governments Infrastructure Spending and Other Capital Outlays, 1990-2013, Bn Php
450 400 350 300 250 200 150 100 50 0 Other capital outlays, lhs Infrastructure, lhs Total capital outlays, % of GDP, rhs Infrastructure spending, %of GDP, rhs 4% 3% 2% 1% 0% 5% 6%
Sources: DBM and authors calculations; Note: Other capital outlays include capital transfers to LGUs (20% of IRA allocation for development projects), special shares to LGUs and other capital outlay items not classified elsewhere but net of corp equity (all in obligation basis)
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Key Infrastructure Indicators, ASEAN-6, 2010-2012

Household electrification rate, 2010 Quality of electricity supply score (WEF) 2012 Paved Road Share of Share of Mobile Distribu- Main fixed roads density populapopulaphone tel lines tion losses as % of tion with Population tion with subs per per 100 as % of total road per km access to inhabit- 100 inhab- access to total net improved improved of road2, network2, itants, ants, 2011 gen2011 2011 sanitation, water 2011 eration1, sources, %, %, 2010 2010 2010
Indonesia Malaysia Philippines Singapore Thailand Vietnam
73.0 99.4 83.3 100.0 87.7 97.6
3.9 5.9 3.7 6.7 5.5 3.1
9.9 6.9 12.1 7.3 6.7 10.1
15.9 14.7 7.2 38.9 9.7 11.5
97.7 127.0 92.0 149.5 113.2 143.4
82.0 99.7 92.5 100.0 95.7 94.8
54.1 95.7 73.9 100.0 95.7 75.9
488 184 431 1,519 607 298
63.1 81.1 23.5 100.0 94.5 64.4
Sources: US EIA, ITU, WHO-UNICEF JMP , UN Stats Div, ASEAN-Japan Transport Partnership, ASEAN Secretariat, World Bank & authors calculations 1 - Derived using data from World Energy Outlook Database 2012 (IEA) 2 - This refers to the entire road network; Vietnam data - 2010
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Airports
Recommendations: 15
2013 2012 2011
Dormant
Dormant

2 1 4
Declined
6 0 2
Steady
AIRPORTS
The past five years have been one of lost opportunities and meandering drift for most in the aviation business due to restrictive sanctions imposed on us. In many ways, CAAPs loss of credibility as a regulator among the international civil aviation community has affected the manner by which most of you have conducted and planned your operations... I say, innovation and diligence are the answers. We need to keep our sector, on average, at par with global norms and, at best, ahead of international standards.
- Director-General William Hotchkiss, Civil Aviation Authority of the Philippines (CAAP) at the 1st Philippine Aviation Safety and Good Corporate Governance Symposium, Pasay City, August 30, 2013
for Airports cover (option 1)
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2010-139; 2012-144; 2013-148 Source: WEF 2011-142; Global Competitiveness Reports; Note: Number of countries evaluated - 2008-134; 2009-133; 2010-139; 2011-142; 2012-144; 2013-148.
With its archipelagic character, the Philippines depends on air and sea transport much more than continental countries do. Since affordable airfares have stimulated domestic tourism, Filipinos are flying in record numbers. But the Philippines does not build airport and terminal capacity before demand as do competing economies. New terminals and modern equipment are badly needed, as are more direct international flights to secondary cities. The absence of a modern international gateway airport restricts tourism, trade, and investment - in short, it is a major turnoff for international visitors. Clark and Subic have great potential for passenger and cargo operations. In many Asian airports - Beijing, Jakarta, Kuala Lumpur, Seoul, and Singapore - terminal capacity is being increased. Quality of Air Infrastructure Rankings, ASEAN-6, ASEAN-6, 2008 to 2013 Quality ofTransport Air Transport Infrastructure Rankings, 2008 to 2013 Mumbai has 1 opened a spectacular US$2 21 billion terminal 41 at Chhatrapati Singapore S h i v a j i Malaysia 61 International Thailand Airport. The high 81 Indonesia standards being Vietnam 101 set by these Asian Philippines neighbors should 121 be emulated by 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 the Philippines. Source: WEF Global Competitiveness Reports; Note: Number of countries evaluated - 2008-134; 2009-133;
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Domestic Air Transport Passengers Domestic Air Transport Passengers, 1990-2013

21 14 7 0 -7 -14 -21 30% 20% 10% 0% -10% -20% -30%
Passengers, Mn Growth 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 2013 - H1
Source: CAB. 2013 figures are not comparable as they only cover H1.
Source: CAB. 2013 figures are not comparable as they only cover H1.
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Shenzhens new airport terminal Source: http://www.theverge.com/2013/11/28/5154484/baoan-international-airport-terminal-3-studio-fuksis-design
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Power
Recommendations: 25
2013 2012 2011

4 4 0
Declined
7 3 0
Steady
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POWER
Today many questions have been raised on whether EPIRA was a success. I submit that, while there has been a delay, a fair call is so far, so good. EPIRA has provided the framework for the restructuring of the Electric Power Industry, including privatization of National Power Corp.s assets, defining the responsibilities of various government agencies and the private sector, and transitioning to a functioning competitive structure. The end goal was to make sure we had an ample and reliable supply of electricity, at reasonable and competitive rates. A common complaint has been that under EPIRA, power rates have actually gone up faster, and that, as a consequence, we now have the highest power rates in the region. While it is true that our rates are higher than our neighbors, this is because substantial subsidies have been removed as mandated under EPIRA so that true cost of power is adhered to while our neighbors continue to subsidize. On the recent suspension of payments to Meralco and operators of Gencos -- this is a gift to the Filipino people as headlined only if the law of supply and demand has been suspended in the Philippine islands. What actually needs to be done is to de-risk the sector from political and regulatory uncertainty to make the market work and encourage more investments, yielding more competition, ample supply and reasonable, less volatile tariffs.
- Romeo L. Bernardo, BusinessWorld, January 26, 2014
The Philippines is completing a decade-long transition from an inefficient public sector power generation monopoly to a private sector-led open access competitive environment with enhanced regulatory oversight. Electricity prices are among the highest in Asia and there are actual or potential supply shortages in all three grids. Unreliable, expensive electric power is a major deterrent to investment. Under the open access policy, rates in the medium term should go down after more efficient generating plants are commissioned that are profitable at lower costs. With the five conditions precedent to open access met, the longawaited reform began in mid-2013. However, only one large baseload plant
70
has opened in Luzon in the the last decade. Underinvestment in power is likely to continue unless there is a clear and stable energy policy, without legislative or judicial interference. Blackouts could occur in Luzon if more plants are not built soon. Renewable energy and nuclear technology offer excellent prospects for diversifying power sources. It is essential that the transmission and distribution network expands in line with generation and growth in demand.
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Installed Generating Capacity, 2012

Natural Gas, 16.8% Non-conventional, 0.9%
Power Generation by Source, 2012

Natural Gas, 26.9% Oil-Thermal, 1.0% Diesel, 0.5% GasTurbines, 0.3%
Diesel/Oil, 18.1%
Non-conventional, 0.4%
Hydro, 14.1%
Coal, 32.7%
Geothermal, 14.1%
Hydro, 20.7%
Coal, 38.8%
Geothermal, 10.9%
Source: DOE
Source: DOE
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Estimated subsidy Paid by consumers
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Estonia Malaysia Thailand Bulgaria US (average) South Korea Taipei, China Indonesia South Africa
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Average Retail Electricity Tariffs, June 2012, Selected Asian Countries, USc/kWh
30 Estimated subsidy 25 20 15 10 5 0 Paid by consumers
Japan Philippines, Singapore Sri Lanka Hong Kong, Malaysia (Kansai) Manila China
Thailand
South Korea
Taipei, China
Indonesia
Source: DOE
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Required reserve margin and peak demand estimates, Luzon, in MW

18000 16500 15000 13500 2015 2014 2013 Projects Projects 12000 Projects 10500 9000 7500 6000 4500 3000 1500 0 2017 Projects Peak demand Required reserve margin
Required Reserve Margin and Peak Demand Estimates, Luzon, in MW, 2013-2030
Available Capacity Available Capacity + Commited Projects
Fig76 - Updated
Started
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Source: Note: 2013 Projects (Mariveles Bataan Expansion Project Phase 2(600MW) in May, Maibarara in Oct), Source: DOE; DOE; Note: 2013 Projects (Mariveles Bataan Expansion Project Phase 2(600MW) in May, Maibarara Geo (20MW) in Geo Oct), (20MW) 2014 Projects ( 2014 Putting Bato Phase 1 (135MW) in (135MW) Aug, Pililia Wind (67MW) in Wind Sept, SJCI Biomass (9.9MW) inBiomass Nov, Southwest Luzon (150MW) in Dec), 2015 Projects Projects (Putting Bato Phase 1 in Aug, Pililia (67MW) in Sept, SJCI (9.9MW) in 1 Nov, Southwest Luzon 1 (150MW) (Southwest Luzon 2 (150MW) in Mar, Luzon Isabela 2 Biomass (20MW) in Mar, Putting Bato Phase 2 (135MW) in Nov); 2017 Projects Bataan in Dec), 2015 Projects (Southwest (150MW) in Mar, Isabela Biomass (20MW) in Mar, Putting Bato Phase(Mariveles 2 (135MW) in Nov); 2017 Expansion Project Phase 2(600MW) in Dec) Projects (Mariveles Bataan Expansion Project Phase 2(600MW) in Dec)
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Required reserve margin and peak demand estimates, Visayas, in MW, 2013-2030
Peak demand 4000 3500 3000 2500 2000 1500 1000 500 0 2016 2014 2015 Projects Projects Projects Required reserve margin Available Capacity
Required Reserve Margin and Peak Demand Estimates, Visayas, in MW, 2013-2030
Available Capacity + Commited Projects
Source: DOE; Note: 2014 2014 Projects (Villasiga(Villasiga HEP (8MW) in Mar, Nasuloin Geo (50MW) in Jun, Toledo Expansion MW in Sept), 2015 Projects (Sn. Source: DOE; Note: Projects HEP (8MW) Mar, Nasulo Geo (50MW) in (82) Jun, Toledo Expansion (82) MW in Sept), 2015 Projects Biomass (16MW) in 2016 Mar,Projects ASIAN (Concepcion Biomass (3.6MW) in Jun), 2016 Projects (Concepcion Carlos Biomass (16MW) in(Sn. Mar, Carlos ASIAN Biomass (3.6MW) in Jun), Coal 1 (135MW) in Jul, Concepcion Coal 2 (135MW) in Coal 1 (135MW) in Jul, Concepcion Coal 2 (135MW) in Sept) Sept)
Required Reserve Margin and Peak Demand Estimates, Mndanao, in MW, 2013-2030 Required reserve margin and peak demand estimates, Mndanao, in MW, 2013-2030
Peak demand 3500 3000 2500 2000 1500 1000 500 0 2015 Projects 2016 Project Required reserve margin Available Capacity Available Capacity + Commited Projects
Fig80- Updated
2013 Projects
Source: DOE; Note: 2013 2013 Projects (EEI HFO(EEI (15MW) in Aug, Mapadalad (15MW) in Oct), 2015 Projects (Therma South (300MW) in Mar, (Therma Sarangani Coal Source: DOE; Note: Projects HFO (15MW) in Aug, Mapadalad (15MW) in Oct), 2015 Projects South (200MW) in in Sep), 2016 Project (Mt Coal Apo (50MW) in Jun)in Sep), 2016 Project (Mt Apo (50MW) in Jun) (300MW) Mar, Sarangani (200MW)
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Roads and Rails
Recommendations: 9
2013 2012 2011

0 0 4
Declined
6 2 1
Steady
81
ROADS AND RAILS

Rush hour, 5:30 p.m. Ayala MRT [Metro Rail Transit] station, north-bound. Queue 15 minutes to turnstiles. 10 Minutes wait and then one train comes, too crowded, only five people in front of me get in. Next train after five minutes, but announcement is made: train is defective, no passengers can ride. Wait for next train. Comes after three minutes. Meanwhile the platform is bursting with people because trains come too few and far between. I finally get in. Ride to Cubao takes 12 minutes. MRT is such a MESS! Fix those trains, add at least another five more per hour between 5 and 7 p.m., both directions.
- Carol Singson, Veteran MRT-3 commuter
Modern, efficient ground transportation infrastructure facilitates the efficient movement of goods and people, while its absence increases transport cost and ultimately harms country competitiveness. Unfortunately, this race to improve public transport before traffic gridlock worsens is being lost. Although DPWH greatly increased its budget in the final years of the previous administration, too much went into barangay roads built for political purposes. Meanwhile, the national road network barely increased in two decades as traffic on national roads multiplied. The current Administration has corrected this and is implementing an ambitious national highway and bridge program. There are seven limited-access toll roads operating or under construction, all in Central Luzon, totaling some 300 kilometers. Another 300 kilometers are planned by 2020. This acceleration of road investments led to a sharp improvement in the Philippine rank in the WEF quality of roads ranking, from the lowest of the ASEAN-6 in 2009-10 to 4th in 2012-2013 and 5th in 20132014. The Philippines ranks a distant last among the ASEAN-6 for the WEF quality of railroad infrastructure. There is only one heavy rail line in operation. DOTC has sought unsuccessfully for two decades to restore rail service north of Manila; the PRC-supported North Rail project turned into a major white elephant. Three light rail lines operate in Metro Manila, often at overcapacity. Planned new lines take a decade or more to implement. The current Administration is unlikely to see any new rail project, which it initiated, completed during its term. If this slow pace of implementation continues, the urban centers will become increasingly choked and unattractive to private sector investment.
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PART 3: SEVEN BIG WINNER SECTORS: INFRASTRUCTURE: ROADS AND RAILS
85
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86
DPWHs Budget and Actual Spending, 2005-2013p

Budget, lhs 200 Budget expenditure, lhs DPWH budget, % of national, rhs DPWH budget spending, % of national, rhs 150 10% 8% 100 16% 14% 12%
6%
4% 2% 0 0%
50
2005
2006
2007
2008
2009
2010
2011
2012
2013p
Source: DBM (Total obligations; Adjusted-Budget; Actual-Expenditure)
Quality of Roads Rankings , ASEAN-6, 2008-2014

1
21
41 Singapore 61 Malaysia Thailand 81 Philippines Indonesia Vietnam
101
121
141
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF Global Competitiveness Reports; Note: Number of countries evaluated - 2008-134; 2009-133; 2010139; 2011-142; 2012-144; 2013-148.
Light Rail Ridership (LRT-1, MRT-2 & MRT-3), 2002-2012

180 160 140 120 100
LRT-2 LRT-1 MRT-3 Total YOY growth,rhs
60% 50% 40% 30%
80 60 40 20 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20% 10% 0%
Sources: LRTA and Metrostar Express; Note: MRT-2 and MRT-3 only started operating in April 2003 and December 1999, respectively. Latest data available for MRT is only from February to April 2012. PART 3: SEVEN BIG WINNER SECTORS: INFRASTRUCTURE: ROADS AND RAILS
87
Following is an assessment, separate of the original recommendations in Arangkada, that provides more detailed recommendations on Institutional Reforms and Railway Expansion projects for the rail sector. This assessment compliments the infrastructure subsection Roads & Rails.
PARAMETER/INDICATOR
Institutional Reforms 1.1 Organization of a railway regulatory authority A recommendation of the 1997 Philippine Transport Strategy Study and 1999 Transport Infrastructure and Capacity Development Study, both funded by ADB. DOTC invited consultancy proposals in March 2013; nothing has been heard since. Detailed recommendations from the 2009 JICA Study, discussed and accepted by inter-agency technical committee. No action since then. The Php1.5 Billion capitalization of PNR, set in 1975, is inadequate and impaired by years of losses. Fares on rails have been stagnant since 2003. Three attempts proposed since 2011 were rejected by the President. This would have negative impact on rail PPPs. Public consultations announced December 2013. Several Bills have been filed (and refilled) in Congress in the last 15 years. None has moved beyond 2nd reading. One of the low-hanging fruits proposed for immediate execution in 2010. Failure of bidding in October 2013. DOTC has set new bid submission for April 2014. Delayed by 16 months, based on original schedule. Award to sole pre-qualified engineering firm reset to December 2013, more than 6 months behind schedule. Budget for new railway cars released in November 2011 and awarded to a Chinese rail manufacturer, the sole bidder selected by DOTC, made in October 2013, for 48 additional railcars. This was supposed to be phase 2 of the north-south rail linkage project funded via Korean ExIm Bank. Phase 1 was completed in 2009. No action made in last 3 years. This was the Northrail project whose contract with Sinomach was terminated in 2012. Arbitration proceedings are in a snail pace mode. Reconfiguration to pure commuter line is on hold. Five pre-qualified firms have submitted bids in November 2013. The contract was awarded in January 2014, 6 months behind original timetable. Several packages were to be tendered by LRTA - starting January 2012. DOTC took over responsibility. Two packages that were awarded were declared illegal. Scope now folded into the LRT-1 Extension to Cavite. This refers to the common station to serve platform transfers of passengers. Issue has been debated fo 3 years. Decision made in November 2013, bid award for construction is Q2 2014, according to DOTC. Construction was supposed to be in January 2013 but was put on hold pending proof-of-concept by DOTC. Nothing has been heard since. In November 2013, NEDA approved issuance of performance guarantee (equivalent to a financial guarantee) to concessionaire. Contract was signed in 2009, but no financial closing was possible without the guarantee. 0 = No activity +1
PROGRESS/ACCOMPLISHMENTS
RATING
1.2
Financial restructuring of Light Rail Transit Authority Re-capitalization of the Philippine National Railways Fare adjustments relative to other transport modes
1.3 1.4
0 +1
1.5
Legislation on railway reforms Railway Expansion
2.1
LRT-1 Extension to Cavite, approx. 12-km length. Three previous attempts failed LRT-2 Extension to East. approx 4 km without ROW problem Additional Railcars for MRT-3
-1
2.2 2.3
-1 +1
2.4
Rehab and improvement of PNR South Commuter to Calamba Construction of the MalolosTutuban (North) Commuter Line Common Ticketing System for All Railway Lines Rehabilitation of existing LRT-1 assets (cars, tracks, power lines) Completion of MRT3-LRT1 Linkage
2.5
2.6
+1
2.7
-1
2.8
+1
2.9
Construction of Metro Cebu BRT System Construction of MRT-7 on Commonwealth Avenue
2.10
+1
Notes on Rating: -1 = Retrogress
+1 = Some progress or Movements
Best score is +5
88
Seaports
Recommendations: 20
2013 2012 2011

5 1 1
Declined
10 9 0
Steady
89
SEAPORTS
Because the archipelagic Philippines depends on seaports to move most domestic and international commerce, efficiency of marine transport is critical to national competitiveness. Its high cost has long been an impediment to more commerce. Tourism growth is also influenced by seaport quality. Improving maritime safety is important given the high loss of life from long-standing negligence of ship owners and government agencies. The volume of international container shipments is small compared to Asias larger export economies and the lowest of the ASEAN-6. Although it has improved in the past two years, the Philippines ranks 116th of 148 countries in Quality of Port Infrastructure of the WEF Global Competitiveness Reportthe lowest among the ASEAN-6 countries. Manila ranked 35th worldwide in tonnage volume and 26th in container traffic. Over the last decade, there have been significant investments in the international ports of Batangas, Davao, PHIVIDEC, and Subic, almost doubling their combined capacity. Bangkok and Ho Chi Minh have capped their old city ports in favor of new deep-water ports. Manila remains the most congested port, and Batangas and Subic remain underutilized. The RoRo Nautical Highway, with three routes connecting Luzon-Visayas-Mindanao, can be expanded and made more efficient. Regional ports need modernization with feeder links.
Quality of Port Rankings, ASEAN-6, 2008-2014
1 21 41
Singapore
61 81 101 121 141
Malaysia Thailand Indonesia Vietnam
Philippines
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF Global Competitiveness Reports; Note: Number of countries evaluated 2008-134; 2009-133; 2010-139; 2011-142; 2012-144; 2013-148.
90
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100 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT
Telecommunications
Recommendations: 25
2013 2012 2011

2 0 0
Declined
8 7 0
Steady
101
TELECOMMUNICATIONS
Reform in this area has been considered. In a decade, Philippine telecommunications advanced from being monopolistic, high-cost, and inefficient to having considerable competition, enabling a majority of the population and businesses to communicate at home and abroad at much reduced cost. While fixed line penetration is lowest of the ASEAN- , mobile phone penetration is high ( ), and digital fiber connections are robust. However, the percentage of Internet use, which stood at . of the population in , remains a challenge. Broadband Internet is also very limited, with fixed broadband penetration at only for every persons and mobile broadband at for every persons. Only of cities and municipalities in the country have broadband access (Broadband Commission, ). The next new technology for the country is high-speed wireless broadband. Within a few years, many millions can have cheap Internet access on G and G mobile phones. The benefit for national competitiveness from these changes could be considerable. Filipinos will be able to avail of global SMS, email, and Internet on mobile devices and leap over the low household computer penetration level (ITU statistics, ). In the UN E-Governance Readiness Survey, Philippine ranking has been declining from in to in (UN E-Government Survey, ). For ICT, two non-fiscal laws (Data Privacy and Anti-Cybercrime) have been enacted, while the DICT law, despite advancing near final passage in the th Congress, was opposed by the Executive.
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Access to Information and Communication Technology Indicators, Selected Countries, 2012

Population, in mn Main fixed tel lines, mn Mobile Main ProporProporMobile Estimatphone fixed tel tion of tion of phone ed total lines per subscrip- subs per househouseinternet 100 in- tion, mn1 100 in- holds with holds with users, mn habitants computer internet habitants
20.6 2.5 15.5 15.7 4.1 37.8 9.1 11.4 1112.2 864.7 282.0 41.3 103.0 8.1 85.0 134.1 81.3 68.7 115.2 140.9 106.8 153.4 120.3 149.4 88% 67% 41% 27% 18% 17% 15% 11% 88% 65% 37% 19% 16% 18% 7% 10% 571.3 155.6 37.9 19.2 35.0 3.9 18.5 35.1
Internet users per 100 inhabitants

42.3 12.6 15.4 65.8 36.2 74.2 26.5 39.5
China India Indonesia Malaysia Philippines Singapore Thailand Vietnam
1350.7 1236.7 246.9 29.2 96.7 5.3 69.8 88.8
278.2 30.9 38.3 4.6 4.0 2.0 6.4 10.1
Sources: ITU and World Bank (population) Notes: 1 - Includes both pre-paid and post-paid accounts
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Estimated Number of Internet Users, per 100 Inhabitants, 1998-2012
80 70 60 50 40 30 20 10 0
Singapore Malaysia Philippines Thailand Vietnam Indonesia
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sources: UN and ITU
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105
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UN e-Governance Readiness, Percentile Rankings, 2003-2012

100 90 80 70 60 50 40 30 20 10 0 2003 2004 2005 2008 2010 2012
Sources: UN Public Administration Programme and authors calculations
Singapore
Malaysia
Vietnam
Philippines
Thailand
Indonesia
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107
Mobile Phone Subscriptions, in Millions, 1998-2012

300 250 200 150 100 50 0 Indonesia Vietnam Philippines Thailand Malaysia Singapore
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Sources: UN and ITU
2012
Water
Recommendations: 9
2013 2012 2011

0 0 0
Declined
8 1 0
Steady
109
WATER
Water, water, everywhere... Nor any drop to drink.
- Samuel Taylor Coleridge, The Rime of the Ancient Mariner
Freshwater needs will grow by 20% in mature economies and by 50% in new economies by 2025. As populations grow and cities expand, it is essential to prevent flooding and provide clean and affordable water for consumption. Cities are where water is not always available but where people need it. Cities need to make their water smarter, more efficient, safe and available.
- Schneider Electric, 2013
The Philippines is endowed with abundant water resources, but is currently confronted with difficulties in meeting its water needs, expansion of capacity, and connecting poor households to the water supply system. Rapid population growth, economic development, urbanization, and industrialization have taken their toll on the countrys water services and resource base. The problem, moreover, extends to other quality of life dimensions: deficiencies in water resource management, water supply and sanitation services, solid waste and wastewater management impact on water quality and peoples health.
- Philippine Water Supply Sector Roadmap
Dependable supply and distribution of water for cities and agriculture is critical for growth and everyday life. The Philippines is challenged to store and deliver sufficient water and dispose of wastewater without damaging the environment and public health. Prospective investors note the lack of an economic regulator and the inadequate capacity of a resource regulator. Disrespect for contracts in Laguna Lake and the MWSS concessionaires highlights risks for private firms. There is a need for an Executive Order and eventually a Water Reform Act to create an institutional and legal framework to guide private and public cooperation in developing water sources. The present framework of some 30 agencies with varying jurisdictions must be rationalized, as it discourages new entrants. The supply situation in Metro Manila and eight other urban centers have been described as critical. Immediate solutions to cope with anticipated water deficits should be identified and implemented. Angat Dam currently supplies 97% of Metro Manilas water supply and water for irrigation and power. Additional dams are needed very soon, both Laiban and smaller ones, but the obstacle is the seeming lack of urgency to pursue
the development of alternative water sources for Metro Manila. The ideal option is to bid out such projects; some progress is expected in 2014. DPWH has a long-term Php350 billion flood control plan for the NCR. Despite being the biggest consumer of water, the agriculture sector does not pay irrigation fees. Public sector irrigation systems, while poorly maintained and inadequate, are being improved, but privatization is impractical in the absence of increased farmer productivity. Flooding is common in deforested and low-lying areas of the archipelago and is worsening with uncontrolled urbanization and climate change.
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115
Regional Water Supply/Demand Situation: 2005-2025 (in TCM)
Source: Tabios, G. and R. Villaluna. (2011). Status, Challenges and Proposed National Water Management Superbody for the Philippine Water Resources Sector Development Plan.
1
Manufacturing
Recommendations: 17
2013 2012 2011

4 3 4
Declined
8 1 0
Steady
117
MANUFACTURING
From a lackluster average annual growth of 3% in 2004 to 2009, manufacturing output has surged at an average of 7.5% in the last three years. If this keeps up, we may yet resume the industrialization that we missed in the last two decades as China assumed the role of factory of the worlda role now compromised by rapidly rising wages. (TAPP note: Manufacturing surged even faster in 2013 by 10.5%)
- Cielito F. Habito, PhD, Economist and former NEDA Secretary, Philippine Daily Inquirer , February 5, 2013
Asias developed economies had strong growth from their industrial sectors and large shifts of agriculture and services workers into manufacturing and exports. This has yet to take place in the Philippines, which has benefitted less than Malaysia, Singapore, Thailand, and Vietnam from the globalization of trade and manufacturing. Unlike these four economies, which are strong exporters, for the Philippines its exports percentage of GDP has been falling, from 51% in 2000 to 31% in 2012. Without electronics, exports of manufactured goods would have grown very slowly as garments exports have severely contracted. Another industry subsector declining in recent years is automotive manufacturing, undermined by used car imports and the higher cost of local car assembly. The high percentage of exports made up of electronics is a failure to develop a diversified mix of manufactured exports. This create risks should the viability of electronics manufacturing decline. Domestic manufacturing faces many challenges, such as high business costs, low import duties, and extensive technical smuggling. As long as smuggling provides better profits than manufacturing, the economy will be one of traders and smugglers rather than manufacturers. When Arangkada was drafted, there was no strong, unifying policy that manufacturing is a key component of economic and technological development. Since then, almost 30 industry roadmaps have been drafted, and DTI is making an increasing commitment to their success.
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Manufacturing Value and Volume of Production Index, Average YOY Growth Rate, 2007-Nov 2013
30.00 25.00 VaPI VoPI
20.00
15.00
10.00
5.00 0.00 -5.00 -10.00 -15.00 -20.00
Sources: NSCB
2007
2008
2009
2010
2011
2012
Jan-Nov 2013
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Distribution of Manufacturing GVA by Subsector, 2013

Others, 11.9% Non-metallic mineral products, 2.8% Basic and other metal products, 2.9% Textile and wearing apparel, 5.1% Food and Beverage, 48.6% Chemical & chemical products, 11.5%
Petroleum and other fuel products, 5.7% Radio, television & communication equipment, 11.6%
Source: NSCB
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Manufacturing GVA, BN Php, 1990-2013

2400 1800 1200 600 0 -600 -1200
Value, current prices, lhs YOY growth, rhs
16% 12% 8% 4% 0% -4% -8%
Source: NSCB; Old series (1997-back) New series (1998-onwards). No YOY growth provided between 1997-98 due to change in series.
Industry Sector Distribution per Segment, 2013

Construction, 20.0%
Electricity,Gas and Water Supply, 11.3% Manufacturing, 65.6% Mining & Quarrying, 3.1%
Source: NSCB
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125
Manufacturing Labor Productivity, mfg GVA per Person Engaged (Constant 2005 $US)
180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Singapore, lhs
25,000
Malaysia, rhs
Thailand, rhs Philippines, rhs Indonesia, rhs Vietnam, rhs 20,000
15,000
10,000
5,000
Sources: UNSD (GVA); ADB & ILO (Labor) and authors calculations
Manufacturing Labor Productivity Index (1980=100)

900
800 700 Singapore Malaysia Indonesia
600
500 400 300 200 100
Thailand
Vietnam Philippines
Source:s ILO, UNSD, ADB and authors calculations Notes: This is based on Mfg GVA per person engaged at constant 2005 $US, This measure shows the level of productivity changed relative to 1980 level.
126 ARANGKADA PHILIPPINES 3
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
For further reading: http://www.investphilippines.info/arangkada/manufacturing-policy-brief/
rd
ANNIVERSARY ASSESSMENT
Logistics
Recommendations: 22
2013 2012 2011

4 4 7
Declined
10 4 0
Steady
127
LOGISTICS
We are trying to restrain government intervention but we might just have to come into this in a calculated manner...We are calibrating our way and talking with all stakeholders so that they are aware if this is going to hit them and they can prepare.
- DOTC Secretary Joseph Emilio A. Abaya on plans to decongest Manila seaports, April 29, 2013
Batangas and Subic have highly underutilized port infrastructure that can lower international shipping costs for CALABARZON and support an Asian regional freeport at Subic, respectively. Batangas is slowly being connected to the feeder ports of Singapore and Kaohsiung. The country is well located for storage and distribution of goods to Asia, North America, and to Europe through the Middle East. The Subic-Clark-Tarlac Corridor, if Subic is a true freeport, could create a regional distribution hub with cost advantages over the other Asian freeports of Singapore and Hong Kong. Container export cargo should begin transfering to Batangas and Subic to reduce traffic and port congestion in Manila. A GPH decision is needed to cap international cargo at Manila. Turning Subic into a real freeport means allowing traded goods to enter and leave uncontrolled, except for controlled egress into Philippine customs territory. Using available air capacity of Middle East carriers, the Philippines is well located to act as a sea-air or air-air transshipment hub to the Middle East. Customs, Immigration, and Quarantine (CIQ) overtime charges have been removed, while other logistic costs should be rationalized and reduced. Logistics operations should be opened more to international investors. Cargo deconsolidation should be allowed at PEZA bonded warehouses. Product transformation in the Philippines would enable tax and duty free distribution in ASEAN. Facilitate Importer of Record (IOR) services for Internet sales fulfillment. It is about 40% cheaper to transship a container from Manila to Cagayan de Oro via Hong Kong or Kaohsiung than to ship directly from Manila. Foreign companies are not allowed to provide domestic maritime transport services. The domestic shipping industry is not competitive due to the predominant use of small ships and heavy taxes and regulatory restrictions.
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TEU Capacity and Utilization, Ports of Batangas, Manila, and Subic, 2001 to 2013
Capacity
Manila International Container Terminal Subic Bay International Terminal Corp. (NCT-1, NCT-2) Batangas International Port 400,000 16,800 4.2 2013 2,500,000 600,000
Traffic
1,826,000 33,600
Utilization rate, %
73.0 5.6
Year
2012 2011
Sources: DOTC, PPA, www.mictweb.com, www.sbma.com, www.asianterminals.com.ph, PAC-Atlantis Group. Note: Data include domestic and international cargo traffic
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Mining
Recommendations: 32
2013 2012 2011

3 1 4
Declined
20 13 2
Steady
137
MINING
SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect. The DENR may continue to grant and issue Exploration Permits under existing laws, rules and guidelines.
- Executive Order No. 79, July 6, 2012.
With an estimated $1.4 trillion in reserves, Philippine mining potential ranks fifth in the world, covering an estimated 9 million hectares, but less than 2% of these have mining permits. After long stagnation, the sector began coming back after a 2005 SC decision affirming RA 7942, considered a world-class legal framework for sustainable development. Minerals development should be a government priority and has great potential for jobs and revenue. Government has identified over 60 priority PPP mining projects. Mining can support poor rural areas through high quality jobs, local tax payments, and community development. The national government receives substantial royalty and tax payments. Government revenue from mining has more than doubled to PhP 22.2 billion in 2011 from PhP 10.4 billion in 2007. Full development of the sector, however, continues to face significant challenges. Lengthy tedious approvals for Exploration Permits (EPs) continue to impede investment. Several LGUs have closed their provinces to mining. Industry is concerned that the Writ of Kalikasan might disturb lawful activities. An investor cannot tell easily if land is ancestral land. Skilled Mines and Geosciences Bureau (MGB) personnel often leave public service. EO 79 has imposed a moratorium on new mining permits, pending the passage of a new law on the revenue sharing scheme between industry and government. Designation of no-go areas may undervalue areas closed to mining for minor tourist or agricultural value. The immediate future for the growth of the mining sector is not positive.
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PART 3: SEVEN BIG WINNER SECTORS: MINING
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141
Mining and Quarrying Gross Value Added (GVA), 1990-2003

160
Gross Value Added YOY Growth, rhs 80%
120
60%
80
40%
40
20%
0%
-40
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-20%
Source: NSCB; Old series (1997-back) New series (1998-onwards)
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Mineral Products Exports , 1990-Nov 2013

4.0 Value, in Bn US$, lhs 3.0 Series2 150% 200%
2.0
100%
1.0
50%
0.0
0%
-1.0
-50%
-2.0
-100%
Source: NSO
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Mining Goods Exports Distribution, Jan-Nov 2013

Iron Ore Agglomerates, 3.3% Gold, 2.2% Chromium Ore, 0.5%
Copper Metal, 19.9%
Others, 60.6%
Copper Concentrates, 13.6%

Source: NSO
145
Share in ASEAN-6 Total Mineral Products Exports, 1995-2012
60% 50% 40% 30% 20% 10% 0%
Indonesia Thailand Singapore Malaysia Philippines Vietnam
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: UNCTAD; Includes ores, metals, precious stones and non-monetary gold
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Tourism, Medical Travel, and Retirement
Recommendations: 32
2013 2012 2011

7 1 6
Declined
17 9 2
Steady
151
TOURISM, MEDICAL TRAVEL, AND RETIREMENT

"You don't get on the radar unless you dress up for the party...This is the paradigm shift in tourism. We are determined to be competitive."
- DOT Secretary Ramon R. Jimenez, Jr. at the 2013 Arangkada Philippines Forum, Makati City, February 26, 2013
Tourism can have strong poverty reduction and job creation effects. For every foreign tourist that spends US$1,000, one Filipino job for one year is supported. The range of direct and indirect income effects on tourism is enormous, involving agriculture, industry, and services. Travel and tourism is currently the fourth largest source of foreign exchange reveues in the Philippines. International arrivals were already up by 11.2% to 3.867 million for January to October 2013 from the same period last year. Hopefully, this means the Philippines cornered a larger share of tourist arrivals to Southeast Asia compared to 2011 when only about 4% of 81 million international tourists visited the Philippines. Domestic travel, the backbone of Philippine tourism, is resilient during times of external vulnerabilities and reached 20.6 million in 2012 and was already at 10.8 in the first half of 2013. Medical travel and retirement by foreign nationals are subsectors where the Philppines has high Figure 132. Distribution per Country of International Tourist Arrivals in potential for success. These are Distribution the ASEAN Region, 2011 per Country of International Tourist Arrivals high yield markets since visitors in the ASEAN Region, 2011 stay longer and spend more. Thailand, 23.5% The government has offered a Vietnam, 7.4% foreign retiree program for several Brunei Darussalam, decades, and in recent years the 0.3% Cambodia, 3.5% number of new participants has increased to 2,000-3,000 a year. Singapore, 16.2% The low cost of living, excellent Indonesia, 9.4% weather, world-class medical care, recreational options, and warmth of Lao PDR, 3.4% Filipinos are plus factors supporting Philippines, 4.8% the high potential of the retirement Myanmar, 1.0% subsector. The key to unlocking the job creation potential of tourism Malaysia, 30.4% is investment mobilization by both Source: ASEAN Secretariat Source: ASEAN Secretariat public and private sectors.
F132
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PART 3: SEVEN BIG WINNER SECTORS: TOURISM, MEDICAL TRAVEL, AND RETIREMENT
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155
Travel and Tourism Competitiveness Indicators, Philippines, 2007-2013, Rank

Category
Overall country ranking T&T regulatory framework Policy rules and regulations Property rights Business impact of rules on FDI Time required to start a business Cost to start a business T&T Business environment and infrastructure Air transport infrastructure Quality of airport infrastructure Airport density International air transport network Ground transport infrastructure Quality of roads Quality of railroad infrastructure Quality of port infrastructure Quality of ground transport network Tourism infrastructure Price competitiveness Tickets and airport charges Extent and effect of taxation Hotel price index Total Number of countries evaluated
2007
86 80 61 70 78 --79 72 76 94 62 91 86 96 87 92 93 7 14 40 -124
2008
81 83 58 75 92 106 83 84 72 62 79 65 85 91 86 102 74 97 9 17 57 9 130
2009
86 85 72 92 97 114 94 89 73 89 86 76 90 94 85 100 115 96 16 17 65 12 133
2011
94 98 70 99 98 111 101 95 90 112 87 83 114 114 97 131 131 98 20 20 77 15 139
2013
82 79 53 83 103 94 15 89 69 110 88 88 89 86 92 118 115 92 24 17 54 36 140
Source: WEF, Travel and Tourism Competitiveness Reports
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Estimated Economic and Employment Contribution of Travel and Tourism Industry, Figure 136. Estimated Economic and Employment Contribution of Travel 1990-2012 and Tourism Industry, 1990-2012
20 18 16 14 12 10 8 6 4 2 0 Direct economic contribution, Bn US$, lhs Total economic contribution, Bn US$, lhs Direct employment contribution, million, rhs Total employment contribution, million, rhs 7.0 6.0 5.0 4.0 3.0 2.0
1.0
0.0
Source: WTTC; Updated and revised series Source: WTTC; Updated and revised series
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163
Figure 133. Government's Travel & Tourism Expenditure, ASEAN-6, 1990-2012, Bn US$
1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Indonesia Singapore Thailand Philippines Malaysia
Governments Travel and Tourism Expenditure, ASEAN-6, 1990-2012, Bn US$
Vietnam
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: WTTC; Updated and revised series

Source: WTTC; Updated and revised series
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PART 4 GENERAL BUSINESS ENVIRONMENT
Business Costs
Recommendations: 16
2013 2012 2011

1 3 1
Declined
13 4 0
Steady
BUSINESS COSTS
Ill-conceived was President Aquinos declaration today, Chinese New Year, as a public holiday. Congress already set the national holidays in a 2007 law. There are already too many in that RA 9492: 16 days a year. Thats 16 days of no-work-no-pay for majority daily-wage earners, while factory owners must pay employees double for the same work. Thats 16 stay-home days for schoolchildren, apart from when theres storm, flood, or local holiday.
- Jarius Bondoc, The Philippine Star, January 31, 2014
According to a recent USAID study, the fastest growing component of electricity rates is taxes -- zoomed by a compound annual growth rate of 65% from 2004-11. Once stripped of this and other adjustments, electricity rates only grew by 5.3% annually during this period, around the same as general inflation and cost of fuel. That is to say, tariffs net of taxes stayed constant in real terms, and for many under open access, actually dropped. For example, Indonesia, Malaysia and Thailand have large oil and natural gas deposits and do not charge royalty on local sales. In contrast, the Philippines collects a royalty of about Php1.46 per KWH of our own natural gas... Boo Chanco estimated that around Php3 of the average Meralco electricity charge is on account of government take.
- Romeo L. Bernardo, BusinessWorld, January 26, 2014
Php2.4-BILLION TRAFFIC Congested streets and traffic jams cost the country as much as Php2.4 billion a day in lost productivity and potential income, according to a study by the Japan International Cooperation Agency. Jica has been tapped by the government to come up with a transportation development road map for the Philippines. JOAN BONDOC
Competitive business costs in the Philippines are important to both domestic and foreign investors, more so with globalization and the approach of the AEC. Since 2006, the IFC has ranked global economies on factors related to the ease of doing business. Of the ASEAN-6, the Philippines was the lowest ranked for five years but moved up to pass Indonesia in 2013 and just below Vietnam. This subsection includes the following. (1) Minimum wages: they are higher in the Philippines than in several competing regional economies. (2) Holidays: the Philippines had the highest number (21 days) among the ASEAN-6 economies in 2010. (3) Office rentals:
Manila is a relative bargain. (4) Power costs: at least twice as much as competing economies, which subsidize electricity. (5) Telecommunications costs: including broadband are higher than other ASEAN-6 economies, China, and India. (6) Transportation: poor public transport, heavy traffic, dilapidated ports, government taxes and rules, and small ships make ground and inland marine transport inefficient and costly; domestic air for both passengers and cargo is inexpensive. (7) Red tape: the Philippines has a reputation for excessive and corrupt bureaucratic impositions. In the 2012-2013 WEF Global Competitiveness Reports measure of the Burden of Government Regulation, the Philippines ranked 108th of 144 countries, 5th of the ASEAN-6. For Burden of Customs procedures, it ranked 126th of 144 countries and the lowest of ASEAN-6. (8) Expatriate living costs: the Philippines compares well. Manila is one of the least expensive major cities in Asia.
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Total Wage (%),2012-2013 2012-2013 Total wageIncrease increase Rates rates (%),
Indonesia Myanmar Pakistan Vietnam India Bangla China Cambo Thailand Malaysia 6.4 5.4 5.0 4.3 4.2 3.8 2.4 5 10 15 20 25 30 9.2 9.0 10.4
24.7 12.8
12.3 12.1 11.5
Philippi Korea Hong Singap

Taiwan 0 Source : JETRO Source: JETRO
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173
Burden of government regulation, rank, 2009-2014

1 21 41 Singapore Malaysia
61
81 101 121 141
Indonesia
Thailand Philippines
Vietnam
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF ; Total number of countries evaluated: 2009 (133), 2010 (139), 2011 (143); 2012(144)
Environment and Natural Disasters
Recommendations: 14
2013 2012 2011
Dormant

2 0 0
Declined
12 2 0
Steady
175
ENVIRONMENT AND NATURAL DISASTERS

"Extreme or unusual weather is the new normal; there is no excuse not to prepare for it. The weather disturbance that was Agatona low-pressure area that developed into the years first tropical depression, and then after three days weakened into an LPA againis more proof that weather patterns are changing. Our disaster response strategies must change as well. "
- Philippine Daily Inquirer editorial, January 22, 2014
The Philippine environment has been under assault for decades from a fast-growing population and practices that degrade the countrys air, land, and water. Over half the countrys population live in urban areas, where polluted air is a silent killer and solid waste management and sanitation are highly inadequate. There has been growing recognition of problems such bad habits have created and an increasing desire to introduce sound practices. With inadequate disposal capacity, Metro Manila faces a solid waste crisis. Despite passage of the Clean Air Act, vehicles spewing noxious fumes still ply Metro Manilas streets due to weak enforcement. However, over half of the 30,000+ taxis in Metro Manila have converted to LPG, and La Mesa watershed has been reforested. Extensive deforestation over a century contributed immensely to environmental degradation. Improved protection of watersheds, rivers, and estuaries is essential. Philippine urban areas have developed with little planning to mitigate the effects of natural disasters, despite their frequency. Storms and floods become worse in terms of frequency and number of people affected as shown dramatically in 2009 (Ondoy in Manila), 2011 (Sedong in N. Mindanao), 2012 (Pablo in E. Mindanao), and 2013 (Yolanda in the Visayas). Earthquakes and volcanic eruptions have been less frequent except for the Bohol/Cebu earthquake in 2013. As the worlds second largest archipelago, the countrys shores and estuaries are predicted to be inundated gradually as seas rise from global warming.
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PART 4: GENERAL BUSINESS ENVIRONMENT: ENVIRONMENT AND NATURAL DISASTERS
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Urban Population, % of Total Population, 1950 to 2050 (Forecast)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Asia Malaysia Philippines Indonesia Thailand Vietnam
Source: UN World Urbanization Prospects 2011 Revised
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179
Philippines Forest Cover, 1990 to 2010

25 Forest cover, Mil Ha, lhs 20 % of total land area, rhs 100% 90% 80% 70% 15 60% 50% 10 40% 30% 5 20% 10% 0 1900 1934-41 1970 1975 1980 1988 1990 2000 2005 2010 0%
Sources: DENR, WB CEA 2009 and 2010 FAO Global Forest Resources Assessment Philippines Country Report
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Total Damage of Natural Disasters, Philippines, 1970 to September 2013, US$ Million
6000 5000 4000 3000 2000 1000 0
Others
Flood
Storm
1970-1979
1980-1989
1990-1999
2000-2009
2010-Sept 2013
Source: EM-DAT, The International Disaster Database; Note: Others include earthquakes, epidemics, extreme temp incidents, insect infestations, wet & dry mass movements, volcanic eruptions, and wildfires.
Total Number of People Affected by Natural Disasters, Philippines, 1970 to September 2013, in Million
40
35
30
Others
Flood
Storm
25
20
15
10
1970-1979
1980-1989
1990-1999
2000-2009
2010-Sept 2013
Source: EM-DAT, The International Disaster Database; Note: Data include people injured, rendered homeless, displaced, evacuated and given external assistance. Others include earthquakes, epidemics, extreme temp incidents, insect infestations, wet & dry mass movements, volcanic eruptions, and wildfires.
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183
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Foreign Equity and Professionals
Recommendations: 12
2013 2012 2011

2 0 2
Declined
7 3 0
Steady
185
FOREIGN EQUITY AND PROFESSIONALS

I think our leaders should seriously assess why foreign investors continue to bypass the Philippines... They should look at the real constraints to foreign direct investments (and) having identified the constraints, the government should address each and every constraint with vigor, focus, and perseverance.
- Former DBM Sec. Benjamin E. Diokno, BusinessWorld, February 14, 2013
Reforms allowing more foreign equity participation in restricted sectors of the economy were not a government priority until 2013. The Philippines significantly lags behind the ASEAN-6 in openness to foreign investment and ranks at the bottom third of all countries surveyed by the WB in having a regulatory regime favorable to foreign investment. The Philippine constitution is quite unique in containing foreign equity restrictions on certain business activities; two presidential commissions have recommended their removal as have Congressional leaders and leading business groups. The only significant change in the Foreign Investment Negative List (FINL) since limited foreign investment in retail trade was allowed in 2000 was the opening of gambling casinos to majority foreign equity in 2010. The Philippines is also restrictive of foreign professionals practicing. The constitution states the practice of all professions shall be limited to Filipino citizens, save in cases prescribed by law. There are 46 laws governing the practice of specific professions, and 42 contain reciprocity provisions allowing foreigners to practice. A SC rule limits legal practice to Philippine nationals, but only four of the 46 laws limit their professions to nationals. Few foreign professionals take exams or apply to the PRC, thus few are approved. It should be in the Philippine interest to seek reduced restrictions on professionals in other countries, e.g. in the WTO General Agreement on Trade in Services and the ASEAN Framework Agreement on Services, and to have more foreign professionals in the country who can bring new skills and connections to global networks, create more jobs for Filipinos, and support sunrise sectors like Research and Development, Medical Travel, and Retirement.
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Business Impact of Rules on FDI,Rank

1 21 41 61 81 101 121
Singapore Malaysia Thailand Philippines Indonesia Vietnam
2009-10
2010-11
2011-12
2012-13
2013-14
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Table 1. Maximum Share of Foreign Equity Ownership Allowed

Indonesia Japan Korea, Rep. 49 49 49 49 49 40 100 49 100 100 30 40 100 49 100 100 49 40 100 49 100 100 30 40 100 49 100 100 49 51 49 51 Malaysia Philippines Singapore Thailand United Kingdom United States Vietnam Average
Sector
India
TELECOM 49 49 65 65 100 33 100 100 67 69 63 71
Fixed-line infrastructure Fixed-line telephony
74
74
74
Wireless/mobile infrastructure Wireless/mobile services ELECTRICITY 95 95 95 95 95 95 95 100 95 49 49 49 49 49 0 0 100 20 0 100 100 100 49 30 33 49 33 49 33 100 100 100 100 100 100 30 100 100 100 70 100 100 70 40 40 40 40 40 40 40 0 0 100 49 30 40 100 49 30 40 100 100 100 100 100 100 49 5 5 49 5 100 100 30 40 100 100 100 30 40 100 49 49 49 49 49 49 49 49 49 49 49 25 30 100 100 30 100 100 49 100 100 30 100 100 49 100 100 30 100 100 49 100 100 100 100 100 100 100 100 100 100 49 49 100 100 100 100 100 100 100 100 100 100 100 100 100 100 25 100 100 100 25 100
74

100 100 100 100 100 0 0 100 0 49 49 49 100 100 0 0 89 89 89 83 83 69 69 87 78 65 54 56 77 68 36 45
100
100
100
100
Power generation coal Power generation hydro Power generation biomass Power generation solar Power generation wind Power transmission
100
100
Power distribution
100
MINING, OIL, AND GAS
Mining
100
Oil and gas
100
TRANSPORT
Railway freight
Domestic air
49
International air
49
Airport operation
100
Port operation
100
MEDIA
Television broadcasting Newspaper
100
26
Source: Investing Across Borders Database (World Bank, 2010)
Governance
Recommendations: 16
2013 2012 2011

1 0 0
Declined
12 2 0
Steady
193
GOVERNANCE
The people are not here to be at the mercy of processes, especially when these processes have already become obsolete and counterproductive. After all, government exists precisely to improve the lot of the people they swore to serve and from whom they received their mandate. And so, we continue to ask ourselves these questions: How do we further plug leaks in systems to prevent graft and corruption? How do we make our processes that much more efficient?
- President Benigno S.C. Aquino III at the Good Governance Summit 2014, Pasay City, January 15, 2014
100% 80% 60% 40% 20% 0% -20% -40% -60%
Net Satisfaction Ratings of Philippine Presidents, (1986 2013)
100% 90% 80% 70% 60% 50% 40% 30% 20%
-80% 1986
Aquino, C 1992
Ramos 1998
Estrada 2001 2004
Arroyo 2010
10% Aquino, B 0%
Source: SWS; Latest survey conducted: Dec 8-11, 2012
Napoles was a fixer who made corruption nearly invisible, shielded from liability by her powerful clients. But greed and arrogance led her to take for grated the small people who assisted her. They are the whistle-blowers.
- Randy David, Philippine Daily Inquirer, February 9, 2014
... in this country, the corrupt always have their cake and eat it, too. Politics, which when used properly should empower the masses and lead to inclusive growth, in our case empowers only a miniscule few. In our society, one rises by birthright rather than merit.
- Ana Marie Pamintuan, Philippine Star, February 10, 2014
Filipinos and foreigners agree that many problems of the country could be turned around with better governance. The reputation for political instability and widespread corruption persists. Of the ASEAN-6, it ranks 5th for Political Stability and Absence of Violence. After a decade of falling, the Philippines Transparency International rating dropped to
134th place out of 178 countries in 2010placing it second to the last of 14 Asian and South Asian Countriesbefore rebounding to 105th in 2012 (out of 176 countries) and then 94th in 2013 (out of 177 countries) for a 40-position advance in the Aquino Administration. In global competitive surveys, corruption is often cited as the top factor harming business. Smuggling is a major concern to business because it weakens the domestic market for manufacturers and for importers who pay duties and taxes and robs the government of revenue. Domestic automotive production has been undercut for a decade by used car imports, negating the industry development plan. Huge sums that could build schools and provide better health care have been stolen by government officials and their private sector co-conspirators through under-declaration of import volumes of various products, notably oil and rice. The Philippines does not yet adequately protect Intellectual Property Rights (IPR). While the law is sound, sale of counterfeit goods remains widespread because of inadequate enforcement despite increased GPH efforts. The OMB lacks resources. Government procurement practices should be more transparent. GOCCs should be reformed and rationalized.
Transparency International Corruption Perceptions Index, Selected East and South Asian Countries, 2001-2012
2005
Rank 5 15 21 32 39 40 59 78 88 107 117 137 144 158 Country/ Territory Singapore Hongkong Japan Taiwan Malaysia South Korea Thailand China India Vietnam Philippines Indonesia Pakistan Bangladesh CPI Score 9.4 8.3 7.3 5.9 5.1 5.0 3.8 3.2 2.9 2.6 2.5 2.2 2.1 1.7 Rank 1 13 17 33 39 56 78 78 87 110 116 134 134 143
2010
Country/ Territory Singapore Hongkong Japan Taiwan South Korea Malaysia China Thailand India Indonesia Vietnam Bangladesh Philippines Pakistan CPI Score 9.3 8.4 7.8 5.8 5.4 4.4 3.5 3.5 3.3 2.8 2.7 2.4 2.4 2.3 Rank 5 14 17 37 45 54 80 88 94 105 118 123 139 144
2012
Country/ Territory Singapore Hongkong Japan Taiwan South Korea Malaysia China Thailand India Philippines Indonesia Vietnam Pakistan Bangladesh CPI Score 87 77 74 61 56 49 39 37 36 34 32 31 27 26 Rank 5 15 18 36 46 53 80 94 94 102 114 116 127 136
2013
Country/ Territory Singapore Hongkong Japan Taiwan South Korea Malaysia China Philippines India Thailand Indonesia Vietnam Pakistan Bangladesh CPI Score 86 75 74 61 55 50 40 36 36 35 32 31 28 27
Source: Transparency International; Number of countries: 2005=158; 2010=178; 2012=176; 2013=177.
2011 Rating
2012 Rating
2013 Rating
Started
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PART 4: GENERAL BUSINESS ENVIRONMENT: GOVERNANCE
195
It appears that the corruption crusade of the present Administration is losing steam. Lifestyle checks, previously recognized by the World Bank as a very potent weapon against corrupt government officials in the Philippines, are being conducted infrequently. Also, whatever lifestyle checks are conducted appear not to target senior government officials and are only being conducted by the Department of Finance. Fortunately, the recent exposure of the PDAF scam and the declaration of nullity of the PDAF by the Supreme Court have awakened the public about the extremely grave problem of corruption. With these developments, hopefully, the Daang Matuwid crusade will have a second wind.
Extent of Corruption in the Public Sector
100 90 80 70 60 50 40 30 20 10
2000
Source: 2013 SWS Survey of Enterprises on Corruption
A Lot
2001
Some
2002
A Little
2003
None
2005
2006
2007
2008
2009
2012
2013
2011 Rating
2012 Rating
2013 Rating
Started
Started
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Not Ongoing
Started
197
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Enterprises Solicited for a Bribe, by Type of Transaction, 2000-2013

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Collecting receivables from gov't Getting nat'l gov't permits/licenses Any of the 7
Obtaining local gov't permits/licenses
Assessment/Payment of taxes
Related to import regulations & duties
Supplying gov't with goods/services
2000
2001
2002
2003
2005
2006
2007
2008
2009
2012
2013
Availing gov't incentives
Source: 2013 SWS Survey of Enterprises on Corruption
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
199
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
No Longer Relevant
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Control of Corruption, ASEAN-6, Point Estimates, 1996-2011

2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 1996 1998 2000 2002 2003 2004 2005 2006 Singapore Thailand Vietnam 2007 2008 2009 Malaysia Indonesia Philippines 2010 2011
Source: World Banks World Governance Indicators; 0 (vertical axis) represent the mean point estimate of all countries evaluated
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
201
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Started
Judicial
Recommendations: 12
2013 2012 2011

0 0 2
Declined
8 5 0
Steady
203
JUDICIAL
If the wheels of justice are to grind faster in this country, reforms should start at the top. The Supreme Court, which has supervision over the judiciary, should lead the way and set the pace... The system is broken and in dire need of fixing. Repair work must start at the top.
- Philippine Star Editorial, January 9, 2014
In the past decades, the failure to send crooks to prison, compounded by the atrociously slow pace of justice, reinforced perceptions that stealing from public coffers pays in this country. The bigger the amount stolen, the greater the chance of getting away with the crime.
- Ana Marie Pamintuan, Philippine Star, February 10, 2014
Supreme Court Decisions with Negative Impact on Business

Year
2013
Case
Meralco price hike TRO San Roque TCC refund
Impact
A 60-day TRO declared on December 23, 2013 against the countrys largest DU passing on to consumers high WESM clearing price rates, induced by unanticipated generation shortages, created uncertainty over the reliability of Philippine power policy. Supreme Court denied a motion for reconsideration by a large foreign hydropower operator that had applied prematurely for refund of PHP 560 million in taxes and duties paid on imported capital equipment otherwise eligible for government refund. This decision adds to uncertainty about the countrys investment climate. Supreme Court reversed 75 years of Philippine jurisprudence on foreign ownership in a case involving PLDT shareholders. The high court upheld in October 2012 this decision despite an appeal from PLDT. Supreme Court ruled that an agent of a life insurance company was an employee and not an independent contractor, which is the standard practice internationally. Upon the motion for reconsideration by Manulife the court changed its decision. Supreme Court sustained an LGU decision rezoning an oil storage area from industrial to commercial and forcing its relocation. Supreme Court reversed its 2000 decision that a shipyard is a public utility; in a 2003 SC Resolution it upheld that a shipyard is not a public utility and reaffirmed this decision in 2005. 1st decision prevented needed foreign capital from investing; 2nd decision in Dec 2004 reversed previous decision and allowed foreign investment in large-scale mining via FTAA. Disallowed a 20-year old accounting practice; ordered retroactive refunds that impair creditworthiness of the countrys largest distribution utility; discouraged foreign bank lending to power projects. Voided a government contract of a consortium, involving US$350 million German investment, which built the new passenger terminal, leaving it largely unused and deteriorating. Asserted foreign-hired and local-hired employees should receive same salaries, citing UN Universal Declaration of Human Rights. Declared a shipyard a public utility and awarded contract to losing bidder 5 years after it awarded to Singaporean-led Keppel group (with foreign equity above 40% minimum for public utilities). Nullified a competitive tender for the privatization of a government-owned hotel awarded to a foreign investor, declared the hotel national patrimony, leaving the award of the contract to the only domestic bidder. Overruled the approval by the Board of Investments of foreign investor group project originally in Bataan then moved to Batangas; the proponents abandoned the US$1 billion project losing US$25 million.
2013
2011
Gamboa/PCSI
2008
Manulife
2008 2003/05 2004 2003
Pandacan terminal LGU spot zoning Subic Shipyard Mining Act of 1995 Meralco
2003 2002 2000 1997
PIATCO International School Manila Subic Shipyard Manila Hotel
1991
Taiwan Naptha Cracker Plant
Reforms in administration of justice should be intensified. Among challenges are clogged dockets, rulings that negatively impact on the business climate, the use of courts and sheriffs for legal harassment, and questionable TROs. Increased judicial salaries helped reduce the vacancy rate slightly from 27% in 2012 to 26% in 2011. Furthermore, after peaking in 2000, the caseload for all courts declined to 1.04 million in 2012 from 1.08 million in 2011. The Alternative Dispute Resolution Act of 2004 encouraged more parties to arbitrate. The volume of new cases is down, and there is a 54.2% increase in their resolution. Caseload per judge has declined by 4.5%. With more judges handling fewer cases, the backlog should shrink and also the delay of justice. The number of graft and corruption cases filed before the Sandiganbayan has fallen since 2002, but the percentage of convictions increased. The Philippines ranking in the Global Competitiveness Report for efficiency of legal settlement has improved to 76th in 2013-14 from 123rd in 2009-10, but it is still the second lowest in ASEAN-6. SC appears to have become more cautious about its decisions harming the business climate. Its rulings supportive of the economy should be recognized. SC should more often request amicus curiae advice in business-related cases. The SC docket is crowded with some 7,000 cases divided among 15 justices. SC uses computers to track the status of cases, but lower courts do not yet. Greater selectivity would decrease the caseload and help SC meet the constitutional requirement to reach decisions within 24 months. The US SC only accepts some 150 of 10,000 petitions it receives each year.
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Backward/Regression
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
PART 4: GENERAL BUSINESS ENVIRONMENT: JUDICIAL
205
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Efficiency of Legal Framework in Settling Disputes, ASEAN-6, Rankings, 2009-2014

1 21 41 61 81 101 121 141 Singapore Malaysia Thailand Indonesia Vietnam Philippines
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF ; Total number of countries evaluated: 2009 (133), 2010 (139), 2011 (143); 012(144); 2013 (148)
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
207
Number of Judges and Average Case Load per Judge, 2000-2012

2,000 Number of judges Case load per judge 1,200 1,000 1,500 800 600 400 500 200 0
1,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Sources: Supreme Court of the Philippines Annual Reports, NSCB and authors calculations.
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
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2012 Rating
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Backward/Regression
Backward/Regression
Not Ongoing
2011 Rating
2012 Rating
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Started
Not Ongoing
Started
209
Labor
Recommendations: 9
2013 2012 2011

0 3 4
Declined
7 0 1
Steady
LABOR
From a government that treats its people as an export commodity and a means to earn foreign exchange, disregarding the social cost to Filipino families to a government that creates jobs at home, so that working abroad will be a choice rather than a necessity; and when its citizens do choose to become OFWs, their welfare and protection will be the governments priority.
- President Aquino, A Social Contract with the Filipino People, Official Gazette [http://www.gov.ph/ about/gov/exec/bsaiii/platform-of-government/], July 25, 2010
A record 868,700 people did apprenticeships in Britain last year, up 77 percent from three years ago. The government committed 1.57 billion to the training last year, about half of that to programs for 16- to 18-year-olds.
- Kimiko de Freytas-Tamura, The New York Times. January 21, 2014
The Philippine economy does not create enough high quality jobs for the growing population and to improve economic growth. Of a labor force of 41 million, unemployment reached as high as 7.3% and underemployment at over 22% during the year 2013. Some 10 million Filipinos would like to work more or would like to have some full or part time work. Over the past decade, an annual average of 846,000 persons entered the workforce. As the economy does not create enough jobs, many go abroad and some remain unemployed. Without the overseas market, unemployment and underemployment rates could be two to three times higher. With the highest unemployment rate of the ASEAN-6, it is not surprising that the Philippines also has the fastest rate of brain drain among the ASEAN-6 nations. Much needs to be done to match educational and training curricula to available jobs. More young Filipinos need to acquire specialized fields related to the Seven Big Winner sectors proposed by the Joint Foreign Chambers. DOLE is undertaking Project Jobs Fit to identify the new and emerging employment sectors as well as the skills needed. The Philippine Labor Code is almost 40 years old and out of tune with regional developments. Disruptive labor action, however, is infrequent. The economy has been unable to raise labor productivity. Of the ASEAN-6, only the Philippines has not significantly increased labor productivity over the last three decades.
2011 Rating
2012 Rating
2013 Rating
Started
Started
Labor Market Key Indicators, 1991 to 2013

50 40 30 20 10 0 -10 Labor force, in Mn, lhs Labor force growth rate, rhs Unemployment rate, rhs Underemployment rate, rhs 21% 14% 7% 0% -7% 28% 35%
Source: NSO; Note: Definition changed in April 2005
Backward/Regression
1991
2011 Rating
1992
1993
1994
1995
1996
1997
1998
1999
Backward/Regression
2000
2012 Rating
2001
2002
2003
2004
2005
2006
2007
PART 4: GENERAL BUSINESS ENVIRONMENT: LABOR
2008
2009
Backward/Regression
2010
2013 Rating
2011
2012
2013
213
New Entrants to the Labor Force, 2001 to 2012
1,400 1,200 1,000 800 600 400 200 0 985 793 818 869 890 865 887 745
New Entrants Employed Unemployed
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
761
762
828
912
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: DOLE-BLES
2011 Rating
2012 Rating
2013 Rating
Completed
Completed
Completed
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
215
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Backward/Regression
Backward/Regression
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Backward/Regression
Backward/Regression
Unemployment Rates, ASEAN-6, 1990-2012

16% 14% 12% 10% 8% 6% 4% 2% 0% Philippines Indonesia Malaysia Vietnam Singapore Thailand
Sources: ILO, ADB and respective national statistics offices; Note: no data for Vietnam before 1997; Philippines revised the definition of unemployed in April 2005
2011 Rating
Workers Involved in Actual Strikes and Mandays Lost, 1990-2012, in 000

80 70 60 50 40 30 20 10 0 Workers involved, in '000 Mandays Lost, in '000 1600 1400 1200 1000 800 600 400 200 0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: BLES-DOLE
1990
1991
1992
1993
1994
1995
1996
1997
1998
2012 Rating
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2013 Rating
2010
2011
2012
217
2011 Rating
2012 Rating
2013 Rating
Started
Labor Productivity Index, ASEAN-6, 1980-2012

Vietnam 400 350 300 250 200 150 100 50 0 Thailand Malaysia Singapore Indonesia Philippines
Source: The Conference Board; Note: Labor productivity per person employed is defined as GDP per person in constant 1990 US$ converted ar GK$ PPP . GK stands for the originators of this PPP formula, Geary Khamis.
Pay and Productivity Rankings, ASEAN-6, 2009-2014

1 11 21 31 41 51 61 71 81 91 2009-10 2010-11 2011-12 2012-13 2013-14 Singapore Malaysia Vietnam Thailand Indonesia Philippines
Source: WEF
Legislation
Recommendations: 13
2013 2012 2011

0 0 4
Declined
11 4 0
Steady
219
LEGISLATION
We, (House and Senate leaders) agreed on a list of bills that we will vigorously pursue in the two chambers. There are vast similarities between the list of priority measures that we agreed on and the list of the priority measures of the Joint Foreign Chambers and the Philippine Business Groups. The reform measures that we were able to institute together were borne out of our dialogues during the 15th Congress. This is by no measure a modest gain. I fully believe that we are capable of accomplishing more.
- House Speaker Feliciano R. Belmonte, Jr., meeting with JFC and PBG, February 12, 2014
Both chambers are aware of several pending measures that need urgent legislative action, and the failure of Congress to enact them promptly would be detrimental to the cause being advocated by the government and to the welfare and overall development of the nation and the Filipino people, who would primarily benefit from these measures. We have a lot of promising legislation, which once passed would promote heightened transparency and accountability in public office and implement long-sought reforms in the delivery of justice. We are looking at several measures aimed at ensuring better macroeconomic and fiscal sustainability and at improving the countrys overall competitiveness and business climate.
- Senate President Franklin M. Drilon, February 7, 2014
While the Philippines has many excellent laws, there is continual need to update old ones and legislate for new developments. Usually, the legislative process moves very slowly. There were 42 significant business and economic reforms enacted in the 12th, 13th, and 14th Congresses. In the 15th Congress alone, there were 34 such laws. Speeding the enactment of new laws and amending old ones should be a higher priority for the Executive Branch. With strong leadership, the 15th and 16th Congresses can move twice as fast and pass many bills that improve the Philippine economy and competitiveness. A group of Philippine business groups and JFC members recommended to the president and Congress 41 reforms for consideration in the 15th and 16th Congresses. The list is organized into eight categories according to the Seven Big Winners and General Business Environment of Arangkada. Ten were enacted in the 15th Congress. The private sector must be vigilant and oppose market-unfriendly legislative proposals early in the legislative process, since presidential vetoes are rare. LEDAC was used very effectively during the Ramos Administration and can be an excellent management tool for achieving the legislative agenda.
2011 Rating
2012 Rating
2013 Rating
Started
Not ongoing
Not ongoing
2011 Rating
2012 Rating
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Started
Business and Economic Reforms Laws, by Congress, Philippines

LAW TITLE 12th Congress (2001-2004) 1 2 3 4 5 6 7 8 9 10 Alternative Dispute Resolution Anti-Money Laundering Act of 2001 (AMLA) AMLA Amendments Clean Water Act Documentary Stamp Tax Rationalization Domestic Shipping Development Act Dual-Citizenship Act Electric Power Industry Reform Act Government Procurement Reform Act Judiciary Compensation Rationalization Act RA 9285 RA 9160 RA9194 RA 9275 RA 9243 RA 9295 RA 9225 RA 9136 RA 9184 RA 9227 2-Apr-04 29-Sept 7-Mar-03 22-Mar-04 17-Feb-04 3-May-04 29-Aug-03 8-Jun-01 10-Jan-03 23-Oct-03 LAW NO. DATE ENACTED
PART 4: GENERAL BUSINESS ENVIRONMENT: LEGISLATION
221
LAW TITLE 12th Congress (2001-2004) 11 12 13 14 1 2a 2b 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Optical Medical Act Restructuring Exercise Tax on Automobiles Securitization Act Special Purpose Vehicle Act 13th Congress (2004-2007) Anti-Red Tape Act Bases Conversation and Development Authority (BCDA) Amendments Amnesty for Business in Special Economic Zones and Freeports Biofuels Act Expanded Value Added Tax Lateral Attrition Act Special Purpose Vehicle Act extension 14th Congress (2007-2010) Anti-Camcording Act Bureau of Food and Drugs Act amendments Civil Aviation Authority of the Philippines Act Cooperatives Code Credit Information System Act Customs Brokers Act amendments Documentary Stamp Tax Exemption (PSE) Financial Rehabilitation and Insolvency Act Individual Income Taxes Rate Exemption JPEPA Ratification Magna Carta for MSMEs Act amendments National Grid Corporation Franchise National Tourism Policy Act Personal Equity Retirement Account (PERA) Act Philippine Deposit Insurance Corp. amendments Pre-need Code Real Estate Investment Trust (REIT) Act Renewable Energy Act Residential Free Patent Act Revised Kyoto Convention (RKC) Ratification Tax Information Exchange Act Tax on Life Insurance Premiums 15th Congress (2010-2013) Agricultural and Fisheries Mechanization Law Anti-Enforced or Involuntary Disappearance Act Anti-Money Laundering Act amendments Anti-Money Laundering Act amendments Common Carriers Tax/ Gross Philippine Billings Tax Conciliation-Mediation for Dispute Settlement Cybercrime Prevention Act Data Privacy Act Domestic Workers Act Early Years Act of 2013 Enhanced Basic Education Act of 2013 Excise Tax on Alcohol, Cigarettes, and Tobacco Expanded Anti-trafficking in Persons Act Extending Implementation of the Lifeline Rate Financial Rehabilitation and Insolvency Act Firearms and Ammunition Regulation Act GOCC Governance Act Intellectual Property Code amendments Kindergarten Education Act National Health Insurance Act of 2013 People Survival Fund Philippine Design Competitiveness Act Regulating Profession - Environmental Planning Repeal of Nightwork Prohibition for Women Responsible Parenthood and Reproductive Health Act Revised AFP Modernization Act amendments Rural Bank Act amendments Strengthening Tripartism Terrorism Financing Prevention and Suppression Act Philippine Statistical Act Insurance Code Amendments Food Safety Fast-Tracked S&T Scholarship Act of 2013 Rural Farm Schools Act
LAW NO. RA RA RA RA 9239 9224 9267 9182
DATE ENACTED 10-Feb-04 28-Aug-03 19-Mar-04 23-Dec-02 2-Jun-07 20-Mar-07 20-Mar-07 12-Jan-07 24-May-05 25-Jan-05 25-Jul-05 13-May-10 18-Aug-09 4-Mar-08 17-Feb-09 31-Oct-08 15-Dec-09 30-Jun-09 18-Jul-10 17-Jun-08 8-Oct-08 23-May-08 1-Dec- 08 12-May -09 22-Aug- 08 29-Apr-09 3-Dec-09 17-Dec-09 16-Dec-08 9-Mar-10 1-Feb-10 8-Mar-10 23-Feb-10 5-Jun-13 21-Dec-12 18-Jun-12 15-Feb-13 7-Mar-13 16-Mar-13 9-Sept-12 15-Aug-12 18-Jan-13 26-Mar-13 15-May-13 20-Dec-12 6-Feb-13 20-Jun-11 18-Jul-10 29-May-13 6-Jun-11 28-Feb-13 20-Jan-12 19-June-13 16-Aug-12 15-May-13 27-May-13 21-Jun-11 21-Dec-12 11-Dec-12 24-May-13 14-Mar-13 18-Jun-12 12-Sep-13 15-Aug-13 23-Aug-13 23-Aug-13 3-Sep-13
RA 9337 RA 9400 RA 9399 RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA 9367 9337 9335 9343 10088 9711 9497 9520 9510 9853 9648 10124 9504 9501 9511 9593 9505 9576 9829 9856 9513 10023
RA 10021 RA 10001 RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA RA 10601 10353 10167 10365 10378 10396 10175 10173 10361 10410 10533 10351 10364 10150 10142 10591 10149 10372 10157 10606 10174 10557 10587 10151 10354 10349 10574 10395 10168 10625 10607 10611 10612 10618
BusinessBusiness and Economic Reform Laws, Laws, by Congress, Philippines, and Economic Reforms by Congress, 2001-2013 2001-2013
35 30 25 20 15 10 5 0 14 34
22
12th (2001-2004)
13th (2004-2007)
14th (2007-2010)
15th (2010-2013)
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
2013 Rating
Started
223
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Backward/Regression
Started
2011 Rating
2012 Rating
2013 Rating
Started
225
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Legislation Policy Brief
For further reading: http://www.investphilippines.info/arangkada/arangkada-legislation-policy-brief/
227
Local Government
Recommendations: 15
2013 2012 2011
Dormant Dormant

0 1 7
Declined
15 1 0
Steady
LOCAL GOVERNMENT
I believe [tracking LGU competitiveness] will, aside from providing businessmen with information about a city or municipality, also transform the way LGUs will manage themselves. Data collection will now provide cities with a means of regularly measuring their performance. Measurement, in turn, will enable local governments to better manage themselves. It will enable them to focus on the things that matter to their constituents and to develop ways of improving city performance.
- National Competitiveness Council Co-Chair Guillermo Luz, Philippine Daily Inquirer, July 26, 2013, Business Matter: Introducing the City/Municipality Competitiveness Index
LGUs should be supportive of investors who bring jobs and revenue to their communities. Complaints are rare when LGU processes are transparent, efficient, fast, honest, and do not burden investors. When they are not, investors complain, and the image of the Philippines is harmed. Surveys of domestic and foreign investors have scored corruption as the top business problem, with inefficient government bureaucracy the second. A solution for bureaucratic corruption is reducing the number of signatures and using e-governance. Ratings of LGU competitiveness can encourage cities and provinces to improve themselves. When LGUs impose taxes or fees contrary to national policy or ban mining, they can harm the investment climate. This is a serious issue requiring attention.
The 2013 SWS Survey of Enterprises on Corruption: Sincerity Ratings (%) 30 of Bureau of Customs in Fighting Corruption
20 10 0 -10 -20 -30 -40 -50 -60 -70 -80 -90 -75 -74 -63 -68 -72 -69 -46 2005
2006
2007 2008 2009 2012 2013
Source: as stated
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
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Started
2011 Rating
2012 Rating
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Started
PART 4: GENERAL BUSINESS ENVIRONMENT: LOCAL GOVERNMENT
231
2011 Rating
2012 Rating
2013 Rating
Started
Most Competitive Cities and Municipalities in the Philippines, 2013

Top 5 Cities - Overall Competitiveness Rank
1 2 3 4 5
LGU
Cagayan de Oro City Iloilo City San Fernando City Butuan City Bacolod City
Region
Northern Mindanao Western Visayas Central Luzon CARAGA Western Visayas
Score
72.09 68.23 67.89 63.07 61.62
Top 5 Municipalities - Overall Competitiveness Rank

1 2 3 4 5
LGU
San Francisco Guagua Carmona Daet General Trias
Region
CARAGA Central Luzon CALABARZON Bicol Region CALABARZON
Score
54.86 54.18 53.18 51.45 51.22
Source: NCC 1st Cities and Municipalities Competitiveness Index
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
Started
233
2011 Rating
2012 Rating
2013 Rating
Satisifaction with Your City Government in Promoting a Good Business Climate, 2007-2013
Dissatisfied Undecided Satisfied
64
64
63
64
67
16 19 2007
15 20 2008
16 21 2009
17 19 2012
17 17 2013
Source: SWS 2013 Survey of Enterprises on Corruption. Note: No data provided for 2010-2011.
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started - Substantial Progress
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
235
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Backward/Regression
Backward/Regression
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Macroeconomic Policy
Recommendations: 27
2013 2012 2011
Dormant Dormant

3 2 10
Declined
17 5 1
Steady
237
MACROECONOMIC POLICY
TPP is by aspiration, not invitation. The United States wants the Philippines to be part of TPP , but membership involves taking on obligations to implement market liberalizing measures. It will take a resolute commitment by the Philippine Government to meet the agreements standards.
- US Ambassador Philip S. Godberg. February 5, 2014
The Philippines economic performance has entered a structural shift to higher growth, accompanied by low inflation... The positive outlook reflects the expectation of continued economic outperformance by the Philippines relative to peers, which, in turn, would further support debt consolidation and associated improvements in debt affordability and sustainability. Moreover, sustained political stability points to better prospects for reform over the second half of the current presidential administration.
- Moodys Investor Service on its decision to upgrade the Philippines credit rating, October 3, 2013
Macroeconomic management of the economy has generally been sound after 1986 with the exception of short periods of very large deficits and high inflation. Since the 2008 to 2009 financial crisis, the biggest fiscal challenges have been deficits and weak tax collections. The tax effort peaked in 1997 at 17% and in 2013 was only 13.4%. In the WEF Global Competiveness Report, among the ASEAN-6, the Philippines placed 5th in the rankings for overall macroeconomic environment. In recognition of sound management, Philippine sovereign ratings have steadily advanced to investment grade. Within ASEAN-6, the Philippines has among the highest corporate income tax. In WEFs 2013-14 rankings for the category Burden of Government Regulation, the Philippines placed 98 of 148 countries, the second lowest among ASEAN-6. Investors seek a stable and predictable policy environment with low risk. New FTAs are creating great opportunities to develop new export markets. The Philippine economy could be disadvantaged if not included in the EU bilateral FTAs in ASEAN or in the TransPacific Partnership (TPP). The GPH is moving toward a bilateral FTA with the EU and membership in the TPP , both of which will bring new opportunities but also challenges to the Philippine economy.
2011 Rating
2012 Rating
2013 Rating
Started
Macroeconomic Environment/Stability, ASEAN-6 rankings, 2009-2014

1
21 Singapore 41 Indonesia Thailand 61 Malaysia Philippines Vietnam 101
81
121
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF
Gross International Reserves, 1990 to 2012, US$ Billion

90 80 70 60 50 40 30 20 10 0 2 0 10 8 6 4 GIR (billion USD), lhs Import cover, no. of months, rhs 14 12
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: BSP
PART 4: GENERAL BUSINESS ENVIRONMENT: MACROECONOMIC POLICY
2012
239
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
2013 Rating
National Government Cash Position, 1990 to September 2013

800 20%
600
15%
400
10%
200
5%
0 Fiscal balance,lhs Revenue effort, rhs Tax effort, rhs Deficit ratio, rhs
0%
-200
-5%
-400
-10%
Source: Bureau of the Treasury
2011 Rating
2012 Rating
2013 Rating
Started
Started
241
2011 Rating
2012 Rating
2013 Rating
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Completed
Tax Effort, ASEAN-6, 1990-2012

35% 30% 25% 20% 15% 10% 5% 0% Vietnam Thailand Malaysia Singapore Philippines Indonesia
Sources: ADB, NSCB (Philippines, GDP linked series) and NESDB (Thailand QGDP series)
243
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
245
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Backward/Regression
Ease in Paying Taxes, Overall and per Sub-Category, ASEAN-6, Rankings, 2009-2013
Overall ease of paying taxes Country/Year
Indonesia Malaysia Philippines Singapore Thailand Vietnam 10 130 23 124 4 91 124 11 130 28 135 4 97 151 12 131 15 143 5 96 138 13 137 36 131 5 141 149 10 158 40 149 6 83 102
Tax payments
11 162 46 155 7 84 107 12 169 53 162 7 80 108 13 176 56 135 7 82 113 10 107 43 70 15 106 181
Time to comply
11 112 40 72 15 111 181 12 111 38 71 13 114 182 13 114 39 76 15 116 185 10 77 58 118 28 78 54
Total tax rate

11 67 62 129 32 84 95 12 66 24 131 33 88 66 13 60 84 128 35 49 79
Source: Paying Taxes series by World Bank, PriceWaterhouseCoopers and IFC Total number of economies evaluated: 2010-183; 2011-183; 2012-185; 2013-189
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
247
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Backward/Regression
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
249
Gross Domestic Savings Ratio, ASEAN-6, 1990-2012

80% 70% 60% 50% 40% 30% 20% 10% 0% Singapore Malaysia Indonesia Thailand Vietnam Philippines
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Sources: ADB, NSCB (Linked series Philippines), NESDB (QGDP series Thailand) and authors calculations
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not ongoing
Started
Started
2012
Extent and Effect of Taxation, ASEAN 6, Rankings, 2009-2014

1 21 41 61 81 101 121
Singapore Malaysia Indonesia Thailand Philippines Vietnam
2009-10
2010-11
2011-12
2012-13
2013-14
2011 Rating
2012 Rating
2013 Rating
Not ongoing
Not ongoing
Not Ongoing
251
2011 Rating
2012 Rating
2013 Rating
Not ongoing
Not ongoing
Started
Prevalence of Trade Barriers, ASEAN-6, Rankings, 2009 to 2014

1 21 41 61 81 101 121 141 Singapore Malaysia Thailand Indonesia Philippines Vietnam
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF
Security
Recommendations: 15
2013 2012 2011
Dormant

1 0 5
Declined
10 1 0
Steady
253
SECURITY
In 1986, there were an estimated 250,000 policemen and soldiers protecting a total of 55 million Filipinos. Today, we still have an estimated 250,000 policemen and soldiers, who protect 95 million Filipinos. Our population has almost doubled, while the number of our protectors has not changed.
- President Benigno S.C. Aquino III, State of the Nation Address, Batasang Pambansa Complex, Quezon City, July 22, 2013
Investing in peace is so much cheaper than waging war.

- DBM Secretary Florencio Abad, JFC luncheon, February 6, 2014.
Security issues are a serious investment climate concern, especially in some rural areas (for mining and tourism), and in parts of Mindanao. This section contains recommendations concerning: external security, internal security (insurgency, terrorism, and warlordism), military extra-constitutional actions, crime, defense and police capabilities, economic development of Mindanao/Sulu, and foreign government travel warnings. The WB measure, Political Stability and the Absence of Violence and Terrorism, shows the Philippines is no longer the lowest-ranked among ASEAN-6; Thailand is ranked slightly lower. In the WEF Reliability of Police Services the Philippines showed steady improvement from 6th to 4th position. However, in the WEF Global Competitiveness Index the Philippines still ranks the lowest among the ASEAN-6 for Business Costs of Crime and Violence. For Business Costs of Terrorism, it ranks very close to Indonesia and Thailand near the bottom. At 1.2% of GDP , military spending in 2012 was the second lowest of the ASEAN-6. As such, solutions for Mindanao/ Sulu include: (1) better governance and economic growth that reduce the appeal of local combatants, (2) an implementable political settlement with the Moro Islamic Liberation Front (MILF), and (3) military/police action against the Abu Sayyaf Group (ASG). Mindanao infrastructure, the unreliable supply of power, inadequate ground transport, and high domestic shipping costs, need urgent attention.
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Started
Political Stability and Absence of Violence/Terrorism, ASEAN-6, Percentile Rankings, 1996-2012

100 90 80 70 60 50 40 30 20 10 0 1996 1998 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Singapore Vietnam Malaysia Indonesia Thailand Philippines
Source: World Banks World Governance Indicators
2011 Rating
2012 Rating
2013 Rating
Started
PART 4: GENERAL BUSINESS ENVIRONMENT: SECURITY
255
2011 Rating
2012 Rating
2013 Rating
Business Costs of Terrorism, ASEAN-6, Rankings, 2009-2014

1 21 41 61 81 101 121 141 2009-10 2010-11 2011-12 2012-13 2013-14 Malaysia Singapore Vietnam Thailand Indonesia Philippines
Source: WEF
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
257
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
Started
Philippines Defense Expenditure, % of GDP , 1990 to 2012, PhP Billion

120 Level, Bn PhP, lhs % of GDP, rhs 100 1.4% 1.2% 1.0% 0.8% 60 0.6% 40 0.4% 0.2% 0.0%
80
20
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Sources: ADB and NSCB (for the GDP; linked series)

2012
259
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Reliability of Police Services, ASEAN-6, Rankings, 2009-2014

1 21 Singapore 41 61 81 101 121 Malaysia Vietnam Indonesia Philippines Thailand
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
261
Business Costs of Crime and Violence, ASEAN-6, Rankings, 2009-2014

1
21 Singapore 41 Malaysia Vietnam 61 Thailand Indonesia Philippines 101
81
121
2009-10
2010-11
2011-12
2012-13
2013-14
Source: WEF
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Not Ongoing
Education
Recommendations: 12
2013 2012 2011
Dormant Dormant

0 0 2
Declined
11 2 0
Steady
263
EDUCATION
Education determines the quality of tomorrows workforce. Appropriate skills are essential for a middle-income economy trying to increase its knowledge-based sectors. Philippine education needs both policy reform and greatly increased resources. All educational levels have deteriorated over several decades, faced with a young population that has outstripped resources. There has been a significant reversal in the previous decline in the WEF Global Competitiveness Report for quality of the education system rating from 69th out of 139 countries in 2010 to 40th out of 148 countries in 2013. The Philippines is now fourth of the ASEAN-6 behind Singapore, Malaysia, and Indonesia instead of the bottom-ranked. Philippine public expenditure per student as a percent of GDP was the least among Indonesia, Thailand, and Malaysia in 2011. Graduates perform poorly. The 10-year basic education cycle the shortest in the Asian region, is being corrected as part of the ambitious but essential K+12 reform. High school and college graduates must be better prepared for employment. Dropout rates are high; only 12% finish college. Classrooms in basic education are overcrowded but the backlog is being met. The pupil-teacher ratio is higher than most Asian countries. The WEF rating for quality of math and science education ranks the Philippines as 96th of 148 countries in 2013, a reversal of the downward trend in this rating. Competitors, such as China, are moving much faster. For example, over the last decade China has nearly tripled the share of GDP devoted to education. In the Philippines, the GDP share declined during the same period. The Philippines should prevent further deterioration of English in public schools and weakening its main competitive advantage, its large English-speaking workforce.
2011 Rating
2012 Rating
2013 Rating
Started
Started
National Government Education Expenditure as % of GDP , ASEAN-6, 1995-2011

1
21
Singapore
41
Malaysia Indonesia
61
Vietnam Thailand Philippines
81
101
121
2009-10
2010-11
2011-12
2012-13
Sources: ADB, NSCB (Philippines, GDP linked series) and NESDB (Thailand QGDP series). Note: No data for Vietnam; Gaps indicate absence of data
Public Expenditure per Pupil as a % of GDP per Capita, ASEAN-6, 2008-2011

All levels
Indonesia Malaysia Philippines Singapore Thailand Viet Nam
Source: UNESCO
Primary
10.5 16.1 9.0 12.3 24.4 19.4
Secondary
8.8 22.6 9.1 18.8 15.4 17.0
Tertiary
23.1 62.9 9.6 27.1 17.6 60.6
12.2 23.3 10.0 18.6
PART 4: GENERAL BUSINESS ENVIRONMENT: SOCIAL SERVICES: EDUCATION
265
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Quality of Educational System, ASEAN-6, Rankings, 2009-2013

1 11 21 31 41 51 61 71 81 91 Singapore Malaysia Philippines Indonesia Vietnam Thailand
2009-10
2010-11
2011-12
2012-13
Source: WEF
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
Quality of Math and Science Education, ASEAN-6, Rankings, 2009-2013

1
21
Singapore
41
Malaysia Indonesia
61
Vietnam Thailand Philippines
81
101
121
2009-10
2010-11
2011-12
2012-13
Source: WEF
267
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
269
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
271
Health and Population
Recommendations: 9
2013 2012 2011

1 1 3
Declined
6 2 0
Steady
HEALTH AND POPULATION

The RH (Reproductive Health) law is 14 years too late but its enactment is giving us a chance to stop maternal deaths and put an end to an epidemic of ignorance that disempowers women and men alike. We must not allow the ill-founded, desperate and unreasonable attempts of a few groups to squander that chance.
- Risa Hontiveros, Former Akbayan Representative
Good public health is a significant concern for the business community. Healthy employees are more productive, have lower absenteeism, and cost less for healthcare premiums. Healthier children are able to benefit from education and eventually contribute to the economy. Good health promotes increased labor productivity, which supports higher wages. The poorest segment of Philippine society, with the least access to healthcare services, has serious health problems. The Aquino Administration is introducing Universal Health Care. Population growth and age structure determine the size of the workforce; population policy strengthens the freedom of parents to choose family size. The debate about whether the Philippines is overpopulated and how many people the resource base, environment, and government can support remains intense. A large, well-educated, and healthy population will provide the Philippines the demographic dividend for higher economic growth for the next several decades. RH policy should be everyones concern in the context of responsible parenthood toward fostering truly dignified and fulfilling human development. It affects whether parents are well-informed in exercising their right to choose among alternative methods of determining family size and their ability to raise children to become good and productive citizens.
2011 Rating
2012 Rating
2013 Rating
Started
Started
General Government Expenditure as % of GDP , 1995-2011

3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Thailand Vietnam Malaysia Singapore Philippines Indonesia
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: WHO
PART 4: GENERAL BUSINESS ENVIRONMENT: SOCIAL SERVICES: HEALTH AND POPULATION
275
F237 -D2hp philhealth

2011 Rating 2012 Rating 2013 Rating
Started Started Started
PhilHealth Membership, 1997-2012

30
PhilHealth Membership, 1997-2012

80%
Principal members, in mil, lhs 25 20 15 10 5 0 Members as % of labor force, rhs
70% 60% 50% 40% 30% 20% 10% 0%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: PhilHealth Insurance Corporation
Source: PhilHealth Insurance Corporation
2011 Rating
2012 Rating
2013 Rating
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
Number of Hospitals in the Philippines, 1985-2010

2,500 Private Government Private, yoy growth, rhs Gov't, yoy growth, rhs 20% 15% 10% 5% 0% 1,000 -5% -10% -15% 0 -20%
2,000
1,500
500
Source: DOH
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
277
Average Annual Population Growth, ASEAN-6, 1962-2012

3.5%
3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%
Average Annual Population Growth, ASEAN-6, 1962-2012
F254 - forD5ph pop (option 2)

1962-72 1972-82 1982-92 1992-02 2002-12
Source: World Bank

Singapore Malaysia Fertility rate, total (births per woman)
Fertility Rate, Total (Births per Woman), 1960-2011
Philippines
Indonesia
Vietnam
Thailand
Pakistan Philippines India Malaysia Bangladesh Indonesia Vietnam Thailand China Japan Korea, Rep. Singapore
Source: World Bank 8

7 6 5 4 3 2 1 0 1960 1970 1980 1990 2000 2011
Source: World Bank

Source: World Bank
2011 Rating
2012 Rating
2013 Rating
51 for D7hp-congress (optio

Started Substantial Progress Backward/Regression
2011 Rating
2012 Rating
2013 Rating
Philippine Population Projections in Mn, Various Rates, 2011-2050 Philippine Population Projections in Mn, Various Rates, 2011-2050
250 Official data UN ESA 200 2% annual growth 1.5% annual growth 150 1% annual growth 0.7% annual growth 100
50
Sources: NSO, UN ESA and author's calculations
Sources: NSO, UN ESA and authors calculations
Contraceptive prevalence, among women aged 15-19 (%)
Unmet need for family planning, among women aged 15-19 (%)
Unmet need for family planning (%)
Contraceptive prevalence (%)
Period
Cambodia China India Indonesia Korea, Rep of. Malaysia Pakistan Philippines Singapore Thailand Vietnam
40 84.6 56.3 61.4 80 54.5 27 50.7 62 81.1 79.5
20.8 13 46.8
6.7 25.9
22.8
2005 2006 2006 2007 2009 1994 2008/2007 2008 1997 2006 2008/2002
25.1 2.3 12.6 8.8
25.7 27.1 9.8
24.9 22.3 3.1 4.8
20 35.8
13.4
2005 2001 2006 2007 2009 2010 2007 2008 2010 2006 2002
Source: WHO
Period
1903
Reproductive Health Indicators, Selected Asian Countries, 1994-2008
1918
1939
1948
1960
1970
1975
1980
1990
1995
2000
2007
2010
2015
2020
2025
2030
2035
2040
2045
2050
279
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
No Longer Relevant
No Longer Relevant
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
Poverty
Recommendations: 4
2013 2012 2011

0 0 2
Declined
2 2 0
Steady
281
POVERTY
The truth is that, when the government boasts about impressive economic growth, it really means growth for business and industry. In a Utopian world, the increased profits are supposed to translate into jobs and benefits for the masses. But it doesnt happen in the real world. Most certainly, not in the Philippines.
- Greg Macabenta, columnist, Business World, January 14, 2014
With the recent man-made and natural calamities that hit the Philippines in the second half of 2013, the emerging consensus is that poverty will get worse before it gets better.
- Benjamin Diokno, Economist and Former Budget Secretary, Business World, January 14, 2014
As a percent of total population, poverty is decreasing albeit very slowly. The governments poverty ratios have fallen from levels recorded roughly twenty years ago and yet the figures-however improved--remain staggering: one of every four Filipinos and one in every five families fell below the official povery line in 2012. Further, eighteen percent of the popuation live on less than the US$1.25 a day threshold. Among the ASEAN-5, the Philippines has had the most persistent incidence of poverty (< US$1.25 a day). While Malaysia and Thailand have almost eliminated the poverty of this low cohort and Indonesia and Vietnam have reduced theirs by two thirds in the last two decades, the Philippines has made smaller strides, primarily due to frequent natural disasters, high population growth rate, and slow economic growth. The poor are often hungry, their diet inadequate, their children malnourished, and their access to family planning limited. A 2013 SWS poll counted 3.3 million families who claim having had nothing to eat at least once in three months, a figure that does not yet reflect the aftermath of typhoon Haiyan. In 2009, the Philippines had the highest percentage (40%) of Poverty Rate at US$1.25 a day (PPP) Benchmark, % of Population. slum population as ASEAN-5, 1991-2010 a percent of urban 70% population among six 60% Asian countries. With Universal Healthcare, 50% the poor will begin Philippines to have PhilHealth 40% Indonesia insurance and have Vietnam 30% improved access to Thailand health care. CCTs as 20% Malaysia a means of reducing 10% future poverty have been greatly expanded in the 0% 1991-1994 1995-1998 1999-2002 2003-2006 2007-2010 Aquino Administration.
Source: World Bank; The plotted data represent the latest data given the indicated time interval. Gaps indicate absence of data
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Backward/Regression
Not Ongoing
Poverty in the Philippines, 1991-2012

Poor population, in Mn, 2003 definition, lhs 60 50 40 30 20% 20 10 0 10% 0% -10% Poor population, in Mn, 2009 definition, lhs Poverty incidence, 2003 definition, rhs Poverty incidence, 2009 definition, rhs 60% 50% 40% 30%
1991
2003
2006
2009
2012
Sources: NSO and NSCB; The government recently revised the methodology in measuring poverty (regional food bundles were replaced by provincial food bundles). Poverty as measured by the 2003 definition was no longer available in 2012.
2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Not Ongoing
PART 4: GENERAL BUSINESS ENVIRONMENT: SOCIAL SERVICES: POVERTY
283
Degree of Self-Rated Hunger in Households, Philippines, 1998-2013

25% Total Moderate Severe 15%
20%
10%
5%
0%
Source: SWS
2011 Rating
2012 Rating
2013 Rating
Started
Started
2011 Rating
2012 Rating
2013 Rating
ACKNOWLEDGEMENTS
285
SPONSORS
nited States Agency for International Development oint Foreign ham ers of the Philippines F SAID
American Chamber of Commerce of the Philippines, Inc. (AmCham) Australian - New Zealand Chamber of Commerce of the Philippines, Inc. Canadian Chamber of Commerce of the Philippines, Inc. (CanCham) European Chamber of Commerce of the Philippines, Inc. (ECCP) Japanese Chamber of Commerce of the Philippines, Inc. (JCCIPI) orean Chamber of Commerce of the Philippines ( CCP) Philippine Association of Multinational Companies Regional Headquarters, Inc. (PAMURI) overnment Partners Board of Investments (BoI) Department of Tourism (DOT) Department of Trade and Industry (DTI) Philippine Economic Zone Authority (PEZA) Tourism Promotions Board (TPB) Platinum Sponsor First Philippine Holdings Corporation old Sponsors Metro Pacific Investments Corporation R.G. Manabat & Co., the Philippine member firm of PMG International Silver Sponsors Blue Cross Insurance, Inc. Filinvest Alabang, Inc. Megaworld Corporation Pilipinas Shell Petroleum Corporation SGV & Co. Filinvest Alabang TeamAsia (Hamlin-Itturalde Corporation) Bron e Sponsors Capital One Philippines Support Services Corporation Manila Water Company, Inc. MIESCOR (Meralco Industrial Engineering Services Corporation)
287
Patron Sponsors Aboitiz Power Corporation Chrysler JRS Express PLDT ALPHA Enterprise Supply Chain Management Association of the Philippines (SCMAP) Social Security System (SSS) Villaruz, Villaruz & Co., CPAs Assessment Document Minor Sponsors D.M. Consunji, Inc. Philips Electronics & Lighting, Inc. Official Text-in Partner Technology Partner Official Internet Provider Token Sponsor Delegate Bag Sponsor Hospitality Partner Lanyard Sponsor Department of Tourism (DOT) Tourism Promotions Board (TPB) Media Partners ANC (The ABS-CBN News Channel) Business World Publishing Corporation Oxford Business Group Philippine Daily Inquirer Rappler Other Forum Partners Confederation of Garment Exporters of the Philippines (CONGEP) Employer's Confederation of the Philippines (ECOP) Financial Executive Institute of the Philippines, Inc. (FINEX) Makati Business Club, Inc. (MBC) Management Association of the Philippines, Inc. (MAP) Philippine Chamber of Commerce and Industry, Inc. (PCCI) Philippine Constructors Association, Inc. (PCA) Philippine Exporters Confederation, Inc. (PhilExport) GiveMe Unlimited, Inc. Integrated Computer Systems, Inc. PLDT ALPHA Enterprise AirAsia Zest Viajero Rent-A-Car Corporation The E-Hotel Makati
Events Management Partner TeamAsia (Hamlin-Itturalde Corporation)

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Fe ruary

ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

2011 Percentage 51.44%

2012 Percentage 64.59%

2013 Percentage 73.26%

2011 Percentage 48.56%

2012 Percentage 35.41%

2013 Percentage 26.97%

Progress Steady Declined Improved

Tally 285 50 112

Percentage 63.33% 11.24% 25.17%

ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

ro ing Too Slo

Business Process Outsourcing BPO

Tourism Medical Travel and etirement

Environment and atural Disaster

Foreign E uity and Professionals

Social Services Education

Social Services Health and Population

Social Services Poverty

Second Anniversary Assessment

First Anniversary Assessment

ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

205 (44.37%) 134 (29.00%) 25 13 (5.41%) (2.81%)

191 (41.34%) 168 (36.36%) 51 11 (11.04%) (2.38%)

2013 2012 2011

326 (73.26%) 290 (64.59%) 232 (51.44%)

120 (26.97%) 159 (35.41%) 219 (48.56%)

ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

2013 2012 2011

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ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

2013 2012 2011

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