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BusinessWorld Economy

Ease of doing business seen as key to addressing joblessness

THE GOVERNMENT will focus its job-creation efforts on improving the ease of doing business, through which it hopes to attract more investment, Malacañang said on Wednesday after the unemployment rate rose to 6% in July, its highest level in four years.

Context & Analysis

The policy emphasis is less about a fresh slogan than about an old Philippine constraint: firms often spend more time navigating rules than creating value. Ease of doing business is not simply the number of days needed to register a corporation. It covers permits, licensing, tax compliance, labor regulations, land use, infrastructure access, and the consistency with which local governments enforce requirements. In many cases, the biggest friction comes from having multiple agencies, overlapping standards, and uneven digital systems that make starting or expanding an operation slower than it should be.

For Philippine businesses, this matters because uncertainty has a cost. When registration is slow, permits are discretionary, or compliance rules change without clear guidance, companies delay hiring, postpone projects, or keep operations smaller than their market demand would justify. Investors weigh not only incentives and market size, but also how predictable the operating environment feels. A firm that can open a branch, hire workers, obtain construction approvals, and settle taxes through transparent channels is more likely to scale. That scaling is where durable jobs come from, especially in manufacturing, construction, logistics, digital services, tourism, and agriculture-linked processing.

For consumers, the benefits should show up as better access to goods, lower prices from improved competition, and more formal employment with stable wages. The informal sector often grows when formal entry costs are high, so easing compliance can expand tax bases and improve service quality without necessarily requiring large new subsidies.

The next test is implementation. National policy alone will not solve the problem if local permitting remains fragmented or if online systems do not interoperate across agencies. Watch for practical changes: standardized processing times, clearer checklists, shared digital platforms, faster dispute resolution, and consistent enforcement across cities and provinces. If reforms remain limited to statements and high-level task forces, business confidence will not move much. If they reduce real transaction costs, the policy can become a genuine engine for job creation rather than another cycle of announcements.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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