PH set to draw more investors as ease of doing business improved, says GBCI 2024

The Philippines has seen a slight easing in business restrictions, according to the 11th edition of the Global Business Complexity Index (GBCI) published by TMF Group, a global leader in compliance and administrative services.

“The business culture in the Philippines is a blend of Western and Eastern influences, where keeping face, conflict-avoidance and patriarchal hierarchy are still mostly observed. Data shows that the Philippines is being positioned as an ideal hub for manufacturing, innovation, and research and development, as well as a center for training and education,” said TMF Group’s Managing Director for Vietnam and the Philippines, Vo Ngoc Thuy An.

He added that while economic growth in the Philippines is expected, strong fiscal and monetary policies are needed to address inflation and other external challenges.

The Philippines now ranks 34th out of 79 jurisdictions in terms of business complexity, a modest improvement from last year’s position at 31st. This shift is expected to make the country increasingly attractive to investors, especially with recent legislative changes aimed at facilitating business operations.

Two recent laws—the Ease of Paying Taxes (EOPT) Act and the Internet Transactions Act (ITA)—are poised to enhance the ease of doing business in the Philippines.

The EOPT Act, passed in 2023, focuses on modernizing the country’s tax administration system by simplifying processes and strengthening taxpayer rights, making compliance less burdensome.

The ITA, also enacted in 2023, establishes a structured framework for the e-commerce sector, fostering trust, transparency, and safety, which are essential for digital businesses and investors looking to enter the Philippine market.

TMF Group produces the GBCI by analyzing 292 indicators across 79 jurisdictions, accounting for 93% of the world’s GDP and 88% of net global FDI flows. With 11,000 experts across 87 jurisdictions, TMF Group’s insights, including the annual GBCI, highlight global and regional business trends, providing valuable data for investors and corporations worldwide.