The Philippines, which continues to trail many of its regional peers in global competitiveness and ease-of-doing-business metrics, is getting a major push from the Asian Development Bank (ADB) through a $400 million policy-based loan aimed at overhauling regulations, speeding up permits, and digitizing government services for investors.
ADB approved the financing under the Business Environment Strengthening with Technology (BEST) Program Subprogram 1, designed to cut bureaucratic delays that have long been flagged as barriers to investment and innovation, especially for micro, small, and medium enterprises (MSMEs).
In the 2024 global rankings, the Philippines placed 52nd out of 67 economies in the International Institute for Management Development’s World Competitiveness Ranking. It also landed 36th out of 50 economies under the World Bank’s Business Ready operational efficiency pillar, both indicators of persistent regulatory friction, sluggish approvals, and fragmented systems.
Against this backdrop, ADB said the fresh financing will back structural reforms intended to modernize the country’s business environment and improve investor confidence.
“The private sector is an important engine of growth and job creation. Their role in the country’s overall economic development cannot be overstated,” said ADB Country Director for the Philippines Andrew Jeffries.
“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,” Jeffries added.
Streamlining rules, digitizing services
Through the program, the government aims to build stronger legal and institutional frameworks for starting and operating a business: introducing faster permitting, simplified licensing, and clearer rules for new ventures.
The initiative also enhances whole-of-government investment facilitation systems, including updated online investor guidebooks and a consolidated digital repository of business regulations through the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority (ARTA).
Priority sectors such as renewable energy and digital infrastructure are also a focus. Increased investments in these areas not only support economic expansion but also help reduce greenhouse gas emissions.
The loan builds on ADB’s long-standing support for institutional reforms in the Philippines, including previous work under the Public Financial Management Reform Program, Domestic Resource Mobilization Program, and Business and Employment Recovery Program. Complementary technical assistance has also been extended to ARTA, the Department of Trade and Industry-Board of Investments, and the Department of Information and Communications Technology.
Founded in 1966 and owned by 69 member economies, ADB said it remains committed to helping countries like the Philippines pursue inclusive, resilient, and sustainable growth through financial and technical partnerships.