Last week, the World Bank released a study called Doing Business 2009. In it, Singapore took the top spot in the rankings on the ease of doing business, New Zealand was 2nd, and the U.S. was 3rd.
Hong Kong was 4th; Japan, 12th; Thailand, 13th; and China 83rd.
The Philippines? 140th.
The study monitored countries as to the ease with which businesses can do the following: start a business, deal with construction permits, employ workers, register property, get credit, protect investors, pay taxes, trade across borders, enforce contracts, and close a business.
I’ve heard many tales from business people of red tape and corruption, which slow down business growth. A woman I know had a hard time getting the occupancy permit for her school due to red tape. Another friend asked around for anyone who could help her friend get a business permit the right way. It turned out her friend was being asked to give P20,000 as grease money.
But don’t let these scary stories discourage you from doing business in the Philippines. There are some rotten eggs in the basket, but the good ones outnumber the bad ones. Know the proper way of doing things and stick to it—ditch those fixers!
Not that easy doing business in RP
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I wish you could write more about those bad eggs that pulling Philippines economy that making us in that very low spot. I wish to contribute my experience. I was once working and managing our small oil company a year ago for 4 years, the business is doing good(because I learned to corrupt people not just ordinary people but executive of big companies and goverment) because brutal setting of doing and running business in our country I was discourage (deep inside I hate corruption and I want fair things). So I decide to work outside the country instead. If your In into constructive criticizing of those people I will give you a tip to uncover thier secrets. Viva Filipinas.
Eto ang mga bagay na hindi na pinagtataulnan
dahil walang kaduda duda ang kabulukan
kitang kita ang ebidensya!
meron pa bang didisagree?
Business ethics does not exist in the Philippines. The Government encourage corruptions as evidenced by the ZTE deal. It is a follow the leader thing!
This kind of comments should make one think very carefully particularly the one's from overseas wanting to help the Philippine economy progress through putting in money in some kind of business. Anyone with good intentions will now have second thoughts whether it would be worth the venture to risk one's money in pursuit of helping others through employment creation and training while all these unethical practices are existing. It's really time for the Philippines to do away with buearucracy and do the right thing by following the legitimate, ethical and correct practices and processes when obtaining and issuing permits to start up a business in our country. No one should encourage this disgusting practice of "ünder the table"! Otherwise, we will continue to fall behind while other neighboring countries are moving forward and reaping the benefits offered by allowing foreign investment into their country and clearly steering away from the practice of heavy corruption.
It is really true!! It is really hard to do business in the Philippines. Here in Pasig City las July I applied for excavation permit paid and submitted the requirment in 3 days. Manila Water installed the pipe and the water meter within 3 days. When it is Pasig City turn to cement or asphalt the excavated pipeline. Mahabagin dyos September na they have not done their job 100%. We went 4 times to Pasig City's excavation section to complain all we heard from them is they will schedule the work. We asked for the exact date they cannot answer us. When you schedule something you should be able to figure out the exact date. But this is happening in Pasig City.
I consider this as lack of interest on the part of Pasig City to help their constituents. Sobrang bagal ng servicio nila. Magaling lang sila pag maniningil ng excavation permit fee. Sa kapupunta lang namin sa Pasig to inform the excavation dept to finish the concreting malaki laki rin ang oras at gastos na nasayang sa amin.
This is not news to me. "Grease money" runs the country. Unnecessary paper work just to get a permit slow down the growth of small business . Even in the business of tourism (which should be encourage by the govern- ment), the presence of bad apples indeed frustrates me. I will not cite specific examples, since this might affect my small project in PI, but the above news really irks me.. To survive, I follow the principle " When in Rome do what the Romans are doing". Sad, but that is the reality in the Philippines.
I wish the Philippine Government will do something about this. I've worked in countries like Singapore and the U.S. I know how easy it is to do business in these countries as long as you follow the law. This is a bad reflection of those who want to do business the right way.
It's really not that easy. I used to go to the city hall almost every day just to follow up on the building permit for my dad. I don't want to give "grease money" so I had to patiently wait and monitor where my application goes. As people get to know you and you understand how the procedure goes, it will become easy. "Grease money" is to make life easier but the people who are working are not really asking for it. However, there is like an "SOP" mentality that we need to give them something before they will do it.
Yes, as an owner of several retail shops in Manila. I can say that it is extremely hard to do business with all the corrupt government officials. From importation, to business permits, to stupid fire extinguishers that you need to buy from them or else is not of their quality, to all the other dumb permits and insurances that you need to get from them where they skim money off of you. Then the BIR comes along and asks for merchandise and money as well. All corrupt dirty officials that need to be cleaned up before the PH can ever move forward.
Yes, i must admit that it is really hard to have a business in the Philippines. You need to have permit on almost every agency and government institutions from local govt to the SSS, DTI, Barangay, City Hall. Well watta challenge for small time owners. How can an OFW start a business with these so many requirement and LAGAY! Ang hirap and its no wonder many Filipinos would just want to go abroad than be an entrepreneur! PHilippines please wake up.
Corruption is by no means the only problem. It's important to consider another important reality that doesn't get much if any attention. Simply put, people don't know how to do their jobs and to function in their environments. Getting a business permit took us a long time because the bureaucrats didn't know the details of their own processes and often had conflicting ideas about the steps involved. We had to repeat steps because agency staff were misinformed and out of sync with each other. One runs into the same reality in many situations - a bank teller who doesn't know bank policy for cashing foreign currency, a sales clerk who doesn't know the department store's policy for using credit cards, etc. Symptomatically, at a basic level in this society, one finds people who don't know how elevators work - pushing the "up" button when they want to go down, standing inside instead of exiting when the door opens on the ground floor, etc. It's no wonder that doing business is difficult in such a society. Underdevelopment doesn't just mean poverty.
I still have high hopes for the Philippines. It's true, there are corrupt people in government, but there are good ones too. May this blog post and your comments be a wake up call for the people in power to do something about this.
It's really hard doing business here due to red tape and corruption from your barangay hall, police to city hall. But the business environment here is quite good compared to other countries these days.
we are also having a hard time too. the new dti business permit process is much worse than before. before you can get your permit on the same day of your application. now you have to wait for the permit to be mailed to you. i registered on the first week of march... and i'm still waiting for it. the ayala mall inspector is already bugging us because we don't have the barangay, etc. permits yet. all of this because of this crappy dti process.
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