The Philippine Online Chronicles

The Philippines has been deemed the “worst country to do business” in Asia by US-based business news network CNBC.

“Foreign businesses are wary of the Philippine’s unstable legal system, violence, and bureaucracy,” said CNBC.

The report took 10 business environment indicators into account, including ease of starting a business, getting construction permits, paying taxes, and investor protection laws.

It noted that the country's World Bank (WB) 'Ease of Doing Business' ranking fell from 134th place to 136th out of 183 economies in 2010.

CNBC added that although the Philippines' competetiveness has increased, as seen in its jump from 85th to 75th place in the World Economic Forum's World Competitiveness Report, the country still lags behind other countries in the Asia-Pacific region.

“Despite having massive untapped mineral wealth, a key geographical location between Southeast and North Asia and a large, growing English-speaking population, the country has fallen behind its neighbors in economic growth,” CNBC added.

It also pointed out that the Philippines only attracts 2.5 percent of the $76.5 billion in foreign direct investment to the 10 member-nations of the Association of Southeast Asian Nations.

On a global scale, the Philippines ranks 4th worst place in the world to do business, with Algeria coming in third, Ukraine in second, and Venezuela in first. The rest of the top 10 include Argentina, Russia, Brazil, Indonesia, India and Nigeria.

The National Competitive Council of the Philippines (NCCP) is set to meet on November 18 to address the findings of the WB report on which the CNBC ranking was based on.

“We’re really studying and dissecting the issue para ma-isolate natin ang dapat gawin," said executive director for public sector Virgilio Fulgencio.

He added that President Benigno Aquino III has also recently invited Chinese investors to invest in the Philippines.