Ease of doing business: Philippines shines, Brunei drops most in Southeast Asia

Ease Of Doing Business: Philippines Shines, Brunei Drops Most In Southeast Asia

The new Doing Business Report 2020 issued by the World Bank, which measures 190 global economies on how easy it is to start and conduct a business, show partly significant changes in the rankings of some Southeast Asian economies, while the overall country ranking within the region remained unchanged.

Most notably, the Philippines jumped a whopping 29 notches from to rank 95 from 124, while Brunei dropped by eleven notches to rank 66 and Cambodia slipped by six notches to rank 144. Malaysia moved by three notches to rank 12, the second best in the region, while Thailand and Myanmar both moved up six notches to rank 21 and 165, respectively.

The Philippines’ score improved in the following areas: starting a business, dealing with construction permits, protecting minority investors and paying taxes. Its rating declined in getting electricity and resolving insolvency, the report showed. The scores unchanged from the previous year were in the categories registering property, getting credit, trading across borders and enforcing contracts. The country worsened in the categories getting electricity and resolving insolvency, however.

The Philippines recently set up an Anti-Red Tape Authority, one of the offshoots of an Ease of Doing Business Act that President Rodrigo Duterte signed in 2018.

Brunei, listed fourth in the regional ranking, didn’t actually bad in the categories but has been overtaken by other global economies and thus lost eleven ranks in the list. However, the country keeps doing not so well in the categories of border trading, registering property for companies, as well as protecting minority shareholders and investors. Scores for resolving insolvency and enforcing contracts improved.

The new index puts Cambodia in the 144th spot, a drop of six places from a year ago. The country’s ranking has steadily declined in the last few years despite the government’s efforts to make it easier for foreign businesses to invest here.

“Cambodia made starting a business more expensive by increasing the costs associated with business registration at the ministry of labour and for vocational training,” the report noted. The country is further doing particularly bad in the categories enforcing contracts, getting electricity and dealing with construction permits, while getting credit is the easiest for companies.

Malaysia improved in the starting a business and dealing with construction permits categories, while Thailand also did better in the two and in the resolving insolvency and getting electricity categories. While the score for protecting minority investors remained unchanged, Thailand jumped to third place globally from 15th last year.

Myanmar remains the country in which it is most difficult to do business in Southeast Asia, with particular problems in getting credit, enforcing contracts, resolving insolvency and protecting minority investors, whereby the latter improved over the 2019 ranking. Other improvements were registered in the categories starting a business, dealing with construction permits and registering property.

                                2019                       2020                       Difference

Singapore            2                              2                              –

Malaysia              15                           12                           +3

Thailand               27                           21                           +6

Brunei                   55                           66                           -11

Vietnam               69                           70                           -1

Indonesia            73                           73                           –

Philippines          124                         95                           +29

Cambodia            138                         144                         -6

Laos                      154                         154                         –

Myanmar            171                         165                         +6

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The new Doing Business Report 2020 issued by the World Bank, which measures 190 global economies on how easy it is to start and conduct a business, show partly significant changes in the rankings of some Southeast Asian economies, while the overall country ranking within the region remained unchanged. Most notably, the Philippines jumped a whopping 29 notches from to rank 95 from 124, while Brunei dropped by eleven notches to rank 66 and Cambodia slipped by six notches to rank 144. Malaysia moved by three notches to rank 12, the second best in the region, while Thailand and Myanmar...

Ease Of Doing Business: Philippines Shines, Brunei Drops Most In Southeast Asia

The new Doing Business Report 2020 issued by the World Bank, which measures 190 global economies on how easy it is to start and conduct a business, show partly significant changes in the rankings of some Southeast Asian economies, while the overall country ranking within the region remained unchanged.

Most notably, the Philippines jumped a whopping 29 notches from to rank 95 from 124, while Brunei dropped by eleven notches to rank 66 and Cambodia slipped by six notches to rank 144. Malaysia moved by three notches to rank 12, the second best in the region, while Thailand and Myanmar both moved up six notches to rank 21 and 165, respectively.

The Philippines’ score improved in the following areas: starting a business, dealing with construction permits, protecting minority investors and paying taxes. Its rating declined in getting electricity and resolving insolvency, the report showed. The scores unchanged from the previous year were in the categories registering property, getting credit, trading across borders and enforcing contracts. The country worsened in the categories getting electricity and resolving insolvency, however.

The Philippines recently set up an Anti-Red Tape Authority, one of the offshoots of an Ease of Doing Business Act that President Rodrigo Duterte signed in 2018.

Brunei, listed fourth in the regional ranking, didn’t actually bad in the categories but has been overtaken by other global economies and thus lost eleven ranks in the list. However, the country keeps doing not so well in the categories of border trading, registering property for companies, as well as protecting minority shareholders and investors. Scores for resolving insolvency and enforcing contracts improved.

The new index puts Cambodia in the 144th spot, a drop of six places from a year ago. The country’s ranking has steadily declined in the last few years despite the government’s efforts to make it easier for foreign businesses to invest here.

“Cambodia made starting a business more expensive by increasing the costs associated with business registration at the ministry of labour and for vocational training,” the report noted. The country is further doing particularly bad in the categories enforcing contracts, getting electricity and dealing with construction permits, while getting credit is the easiest for companies.

Malaysia improved in the starting a business and dealing with construction permits categories, while Thailand also did better in the two and in the resolving insolvency and getting electricity categories. While the score for protecting minority investors remained unchanged, Thailand jumped to third place globally from 15th last year.

Myanmar remains the country in which it is most difficult to do business in Southeast Asia, with particular problems in getting credit, enforcing contracts, resolving insolvency and protecting minority investors, whereby the latter improved over the 2019 ranking. Other improvements were registered in the categories starting a business, dealing with construction permits and registering property.

                                2019                       2020                       Difference

Singapore            2                              2                              –

Malaysia              15                           12                           +3

Thailand               27                           21                           +6

Brunei                   55                           66                           -11

Vietnam               69                           70                           -1

Indonesia            73                           73                           –

Philippines          124                         95                           +29

Cambodia            138                         144                         -6

Laos                      154                         154                         –

Myanmar            171                         165                         +6

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