The Asian Development Bank (ADB) approved a $400 million policy-based loan to back government reforms that improve ease of doing business and help position the Philippines as a top investment destination in Asia and the Pacific, ADB said. The Business Environment Strengthening with Technology Program (BEST) Subprogram 1 supports private sector development reforms to streamline and improve transparency of regulatory requirements and processes for businesses. It also aims to facilitate investment in priority sectors with strong development impact and strengthen digital delivery of government services to businesses and investors.
ADB Country Director for the Philippines Andrew Jeffries said the private sector is a key engine of growth and job creation. “Their role in the country’s overall economic development cannot be overstated,” Jeffries noted. “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.”
In 2024, the Philippines ranked 52nd out of 67 economies in the International Institute for Management Development’s World Competitiveness Ranking and placed 36th out of 50 economies in the operational efficiency pillar of the World Bank’s Business Ready framework. The rankings point to regulatory and bureaucratic frictions that hinder new businesses and slow productivity and innovation, especially for micro, small, and medium-sized enterprises.
The government has made tackling these barriers a priority to boost competitiveness and drive more investment and job creation. The program aims to set up better legal, regulatory, and institutional frameworks to make starting and running a business easier, including faster permit and licensing procedures and government approval of new ventures. It supports whole-of-government solutions to raise investments and support sustainable economic growth. It will improve investor experience by strengthening investment facilitation and provide clear, updated, and reliable information through online investors’ guidebooks and a digital database of business regulations via the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority.
The program also focuses on facilitating investments in priority sectors such as renewable energy and digital infrastructure. These sectors matter for development, as greater investment in renewable energy generation and better digital infrastructure both help reduce greenhouse gas emissions. The program builds on the strong ADB–Government of the Philippines partnership in pursuing reforms to strengthen public sector management systems through the Public Financial Management Reform Program, Domestic Resource Mobilization Program, and Business and Employment Recovery Program, among others. ADB provided complementary technical assistance to support the reforms under the program and assist implementing agencies—the Anti-Red Tape Authority, Department of Trade and Industry-Board of Investments, and Department of Information and Communications Technology—in developing and rolling out new systems and improved processes.
