The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support the Philippine government’s reforms aimed at significantly improving the ease of doing business and positioning the country as a top investment destination in Asia and the Pacific.
The funding supports the Business Environment Strengthening with Technology Program (BEST) Subprogram 1, which focuses on private sector development reforms across three main areas:
Streamlining Regulations and Processes: Improving the transparency and efficiency of regulatory requirements for businesses.
Facilitating Priority Investments: Encouraging investment in critical sectors with strong development impact.
Digitalizing Government Services: Strengthening the digital delivery of government services for businesses and investors.
ADB Country Director for the Philippines, Andrew Jeffries, highlighted the importance of the private sector in the country’s economic future.
“The private sector is an important engine of growth and job creation. Their role in the country’s overall economic development cannot be overstated,” said Mr. Jeffries. “We are committed to assisting the Philippines in finding innovative ways to create an enabling environment that would spur a more dynamic business sector—one that will help drive faster economic growth.”
The program directly addresses regulatory and bureaucratic frictions that have been identified in international rankings, such as the Philippines’ 52nd place out of 67 economies in the 2024 International Institute for Management Development’s World Competitiveness Ranking. These barriers especially hinder micro, small, and medium-sized enterprises (MSMEs).
The reforms are designed to create a better legal, regulatory, and institutional environment for starting and operating a business:
Faster Approval Processes: Implementing faster permit and licensing procedures and accelerating government approval of new ventures.
Enhanced Investor Experience: Improving investment facilitation and providing clear, updated, and reliable information via online investor guidebooks.
Digital Information Access: Creating a digital database of business regulations through the Philippine Business Regulations Information System (PBRIS), which was launched by the Anti-Red Tape Authority (ARTA).
Targeted Sector Support: Facilitating investments in priority sectors crucial for sustainable development, including renewable energy and digital infrastructure. Increased investment in these areas is expected to enhance economic growth and help reduce greenhouse gas emissions.
The BEST program is built on ADB’s long-standing partnership with the Philippines, complementing previous reform programs such as the Public Financial Management Reform Program and the Domestic Resource Mobilization Program.
ADB also provided complementary technical assistance to support the reforms, aiding implementing agencies like ARTA, the Department of Trade and Industry-Board of Investments, and the Department of Information and Communications Technology in developing and rolling out new systems and improved processes.
