2. Philippine Economic Performance vs. other countries
Unsatisfactory Investment Unsatisfactory Exports Unsatisfactory
competitiveness Characteristics of PH Economy Reduced Share of
manufacturing sector in countrys GDP Declining gross domestic
investment rate. 3. Year Rank Institution 1994-1999 2000-2007
between 32 to 35 Slipped to 49th International Institutes for
Management and Development (IMD) Global Competitiveness Report
2009-2010 87th out of 133 Last among ASEAN countries WEF Global
Competitiveness Index Ranking 2009 113th Institutions labour market
efficiency 2009 99th innovation 2009 98th (43rd out of 57 countries
and last among 5 ASEAN members) infrastructure 2009 51st economic
performance in the IMD Global Competitiveness Report 2009 139th out
of 180 countries (6th among the ASEAN) Transparency Internationals
Corruption Perception Index 2010 2011 144th among 183 countries
Slipped to 148th the International Finance Corporation/World Banks
(IFC/WB) Doing Business 2010 Report 4. Unsatisfactory Investment
(Why investors are not keen to invest?) inadequate and poor quality
of infrastructure cumbersome business procedure high cost of power
inefficient transport network raises production cost Cost of Doing
Business 5. Investment Challenge The economic situation remains a
challenge for the Philippines, which is seen as falling short of
its true potential for attracting both domestic and foreign
investment, given its human, natural, and capital endowments
Assessment Eliminate inequality Eliminate those policies that
distort competition 6. Micro, Small and Medium Enterprises (MSMEs)
a critical driver for the countrys economic growth. the sector
serves not only as potential supplier and subcontractor to large
enterprises and exporters but is also a part of the support system
for logistics services. 7. Micro, Small and Medium Enterprises
(MSMEs) Challenge The growth of the MSME sector has not been
vigorous enough to propel the economy. The performance of MSMEs was
constrained by various factors. high cost of doing business lack of
access to finance and market information low productivity and
competitiveness Poor business conditions limited resources with
lack of the necessary track record and collateral lack of credit
information limited management and financial capabilities 8.
Unsatisfactory Exports lack of information on the standards of
other countries certification system for exported products is still
not fully in place incomplete and outdated laboratory and common
service facilities costs of ISO certification is high tariffs
reduced, difficulties experienced by manufacturers,
exporters/traders will increasingly pertain to technical barriers
such as standards and conformity assessment 9. Exports 10. BPO
Challenge India continues to be the leader in the global BPO
industry mainly with its strong presence and capacity in
information technology (IT) such as software development. On the
supply side, while the country produces 480 thousand graduates per
annum, the number of available workforce is undersized compared to
Indias 3 million talent pool. Assessment The country would need to
enhance the capability of its professionals in the IT sector Aside
from labour resource, the country also needs to develop suitable
locations to ensure that BPO investments and expansions can be
accommodated. 11. Tourism Challenge Philippines ranked only sixth
in attracting foreign tourists vis--vis its ASEAN neighbours.
Assessment support infrastructure a healthy business environment
transparent and proactive rules and regulations time and cost
needed to start a tourism enterprise 12. Employment 13. Employment
A survey by the Bureau of Labour and Employment Statistics reports
that employers have difficulty filling up vacancies because of a
shortage of applicants with the right job competencies and
qualifications, although two million Filipinos were unemployed. The
countrys low labour productivity due to mismatched or deficient
skills relative to available jobs contributes to the low
productivity in output of goods and services. 14. MSME 2009
Employment Share by Sector 15. Consumer Policy Role of Consumer
Make Rational Purchasing Decisions Maximize Utility Purchase Goods
and Services Economic Performance 16. Unsatisfactory
competitiveness (What is the aim of the Plan?) Promote higher
growth in per capita GDP Boost employment (What is the focus of the
Plan?) To enable the industry and service sectors to contribute to
massive job generation To provide opportunities for Filipinos to
rise from poverty To offer a meaningful choice for Filipinos to
pursue gainful employment here or abroad. 17. Strategic Framework
Improve Business Environment Increase Productivity and Efficiency
Enhance Consumer Welfare Improve Governance Intensify the Culture
of Competitiveness Encourage consumer products and services
satisfaction Strengthen Economic Zones Focus interventions in Key
Industry Areas Improve supply chains of basic and prime commodities
Strengthen National Brand Identity Awareness Enhance Firm-level
Support to MSMEs Expand Industry Cluster Development Increase
Market Access
