PH is Asia's laggard in competitiveness

MANILA - The Philippines suffered the steepest decline in Asia in terms of competitiveness after it dropped nine places in the annual ranking published by Switzerland-based think tank International Institute for Management Development (IMD).

Out of 63 nations ranked by the IMD World Competitiveness Center, the Philippines landed in 50th spot from 41st last year.

The Philippines now lags behind its peers in Asia. Hong Kong and Singapore, ranked 2nd and 3rd after the United States, lead the Asian region. Taiwan is ranked 17th, followed by Malaysia (22nd), Japan (25th), South Korea (27th), Thailand (30th), Indonesia (43rd) and India (44th).

Of the 14 Asia-Pacific countries, the Philippines ranks 11th.

Its rank across all four subfactors fell in terms of economic performance (50th from 26th), government efficiency (44th from 37th), business efficiency (38th from 28th), and infrastructure (60th from 54th).

The IMD attributed the Philippines' sharpest drop to "decline in tourism and employment, the worsening of public finances, and a surge in concerns about the education system."

It also noted that this year, the Philippines faced challenges when it comes to "investing in quality infrastructure, increasing investment in human capital (health and education), strengthening institutions, increasing digital competitiveness, and mitigating political risks."

Presidential Spokesperson Harry Roque Jr. said Duterte's office acknowledged the IMD ranking and was taking steps to address the "key" challenges being faced by the country.

"We take note of the results of the Internatiosnal Institute for Management Development's World Competitiveness Rankings 2018, citing that the Philippines ranked 50th out of 63 economies," he said in a statement.

"The Duterte administration is already addressing these issues," he added.

In a bid to improve the country's economy, the government had already rolled out projects beneficial to the Filipino people, such as the "Build, Build, Build" infrastructure program, K-12 program, and free medicine for the poor, the Palace official said.

Roque also emphasized that the current administration was now seeking the entry of a new telecommunications player to improve Internet services, and prioritizing the shift to federalism to spur regional development and lessen political risk.

From 2014 to 2017, the Philippines' rank fluctuated between 41 and 42.

A country's competitiveness refers to its government's ability to generate prosperity for its citizens, the IMD said.

The IMD World Competitiveness Center publishes the rankings every year based on 258 indicators, including employment and trade statistics as well as executive opinions on corruption, environmental concerns and quality of life. Ruth Abbey Gita/SunStar Philippines