Gov’t: Look out world, here comes PH in 2016

THE PHILIPPINES, which has just received a credit rating upgrade, is confident it can make a significant leap in global competitiveness rankings by 2016.

In a report by the government’s Investor Relations Office, the Aquino administration cited its goal of having the Philippines land in the upper 30 percent of competitiveness rankings conducted by key international organizations.

The administration is committed to “transformational leadership, institutional reform, economic stability and inclusive growth,” the government said in the report titled, “The Republic of the Philippines: A Fortified Credit Story,” and distributed to foreign investors at recent international road shows conducted by the country’s economic officials.

The government’s competitiveness target means that by 2016, the Philippines should be ranked 43rd or higher out of 142 economies covered by the annual Global Competitiveness Rankings of the World Economic Forum (WEF).

This would be a jump by at least 32 notches from its latest ranking of 75th in the 2011-2012 rankings by WEF.

WEF ranks countries based on various factors, including strength of government institutions, infrastructure, health and education services, labor and goods market efficiency, market size, technological capacity and sophistication of the business sector.

In terms of the annual World Competitiveness Rankings by the Switzerlandbased academic and research institution IMD, the Philippine target of landing in the upper 30 percent means garnering 18th place or higher by 2016.

This would be a jump by at least 25 notches from the country’s No. 43 spot in this year’s rankings by IMD.

Competitiveness ranking reports serve as guides to foreign investors in deciding where to do business.

The administration said it would focus on supporting five key industries to help boost economic growth, and thus the competitiveness, of the country. The industries, in which the Philippines has a competitive advantage, include tourism, creative industries (advertising, music, digital content), business process outsourcing, agribusiness and infrastructure.

The country, with a population of more than 94 million, has a consumer market size that is attractive to business.

Economists said, however, that the country remained a laggard among emerging Asian economies in terms of cornering foreign direct investments due to insufficient infrastructure, red tape, and perception of unstable regulatory environment, among other things.