Though there has been a minor improvement compared to last year, the Philippines’ distance to frontier (DTF) still falls below East Asia and Pacific countries’ DTF average of 62.7.
This was according to World Bank’s Doing Business 2018 report released Tuesday, which presents an assessment of statutes that positively and negatively affect the business climate of each country, as stated in its website.
The country’s 2018 DTF of 58.74 has shown a small increase from 2017’s 58.32 but it still trails behind other Asian economies’ DTF such as Malaysia’s 78.43 and Vietnam’s 67.93.
The DTF, as the organization described, is measured on a scale of 0 to 100, with 100 representing the frontier. According to The Economic Times, it “uses the ‘regulatory best practices’ for doing business as the parameter and benchmark economies according to that parameter”. Through the DTF, the ease of doing business in a country is measured.
In terms of how easy it is to run a business in the country, the Philippines dropped to rank 113 from last year’s 99th place out of 190. The organization noted, however, that the present ranks may not be compared to the previous as there have been refinements in the methodology.
With regard to other progress, the report cited the Philippines’ improvements on the tax payment system with the rise of electronic methods. Efficient access to electricity for the business industry was also indicated as a development.