Reawakening the Filipino advantage: What it will take

Recent data from the IMD World Competitiveness Ranking, is a wake-up call: the Philippines ranked 51st out of 69 economies, and continues to rank 13th in Asia-Pacific and, alarmingly, 5th among the five ASEAN nations included. These standings are based on 170 hard data points and 92 from executive-opinion surveys-highlighting systemic weaknesses in our competitiveness.

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Published in the World Competitiveness Yearbook (WCY) by the International Institute for Development (IMD) produced with the Asian Institute of Management (AIM) Rizalino Navarro Policy Center, the report underscored these chronic shortfalls: persistent red tape, faltering infrastructure, uneven regulatory frameworks, and a mismatch between skills and market needs. What's more, these weaknesses didn't emerge overnight-they were forecasted years ago.

So, what are the vital few action points that can truly move the needle?

First: Redefine governance for efficiency and predictability.

Our report card remains poor on government efficiency, with low scores in public finance, business legislation, and institutional frameworks. A reignited Ease of Doing Business reform must aggressively automate permitting, licensing, and approvals; enforce anti-corruption measures with real-time transparency; and deliver predictable tax policies, minimizing sudden regulatory shifts.

Second: Fast-track infrastructure development.