Lifestyle & Features

Ease of Doing Business in the Philippines: A Pathway to Economic Efficiency

by DitoSaPilipinas.com on Mar 15, 2024 | 12:03 PM
Edited: Apr 24, 2024 | 05:04 PM

Republic Act No. 11032, also known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, stands as a landmark legislation under the Duterte administration's agenda to enhance the competitiveness and ease of conducting business in the Philippines. Enacted on May 28, 2018, this law aims to streamline governmental processes and procedures, thereby fostering a more business-friendly environment.

Key Provisions of the Law

The law introduces several noteworthy features aimed at simplifying and expediting government transactions:

Standardized Deadlines: Government transactions are now subject to standardized deadlines, ensuring efficiency. Simple transactions should be processed within 3 days, while more substantial ones within 7 days, and highly technical transactions within 20 days.

Unified Business Application Form: Entrepreneurs are no longer burdened with filling multiple forms for various government agencies. A single unified form incorporating various requirements has been mandated, simplifying the application process.

Business One-Stop Shop: Establishing a "one-stop shop" facilitates business setup by consolidating necessary offices in one location, easing bureaucratic hurdles.

Automated Systems: Local government units are required to automate their processes, including setting up an electronic business one-stop shop within three years of the law's enactment.

Zero-Contact Policy: The law emphasizes a zero-contact policy, minimizing unnecessary interactions between government officers and applicants to reduce corruption.

Central Business Portal and Philippine Business Databank: The Department of Information and Communications Technology (DICT) will establish a central portal for business applications and a data bank for registered businesses, streamlining verification processes.

Ease of Doing Business Over Cha-Cha

Presently, there is a contentious discussion underway regarding the potential revision of the restrictive economic clauses within the 1987 Constitution, aiming to permit up to 100% foreign ownership in industries. However, the Senate is opposed to such amendments.

Senator Cynthia emphasized that attracting foreign direct investments doesn't necessarily require constitutional amendments. Rather, the focus should be on combating corruption and improving the business environment.

Villar asserted that altering specific economic provisions of the Constitution wouldn't significantly impact the economy. She suggested that economic enhancement efforts could be achieved through legislative measures.

"In my discussions with other business leaders, what they truly seek is streamlined business processes and reduced corruption," Villar stated.

Meanwhile, Senator Imee Marcos expressed her reluctance towards Charter Change (Cha-Cha), highlighting that economic liberalization has already occurred without it. She raised concerns about the potential implications for education, questioning whether it would be wise to entrust the future of Filipino children entirely to foreigners.

In addition, Senator Sonny Angara, chair of the subcommittee on Constitutional Amendments and Revision of Codes, emphasized the importance of careful consideration regarding Cha-Cha, stressing that rushing such a significant alteration to the country's highest law should be avoided.


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