The Business Environment Strengthening with Technology (BEST) Program – Subprogram 1 supports a package of private sector–focused reforms designed to streamline regulatory processes, enhance transparency, and expand digital access to government services.
The initiative also seeks to make it easier for investors to enter and expand in priority sectors.
“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.”
Addressing competitiveness gaps
Despite steady economic progress, the Philippines continues to lag behind regional peers in key competitiveness rankings. In 2024, it placed 52nd out of 67 economies in the International Institute for Management Development’s World Competitiveness Ranking.
It also ranked 36th out of 50 in the operational efficiency pillar of the World Bank’s Business Ready framework.
These rankings underscore persistent regulatory and bureaucratic friction that slows business registration, hampers productivity, and affects innovation—particularly among micro, small, and medium-sized enterprises (MSMEs).
The government has identified these bottlenecks as priority areas for reform to attract more investment and generate quality jobs.
Streamlining regulation, improving investor experience
The BEST Program aims to strengthen legal, regulatory, and institutional frameworks governing business operations.
Planned reforms include faster permitting and licensing procedures, more efficient government approval processes, and improved mechanisms for starting and expanding enterprises.
A major component is the adoption of whole-of-government digital solutions to raise investments and improve investor experience.
The program will build on systems such as the Philippine Business Regulations Information System (PBRIS), launched by the Anti-Red Tape Authority (ARTA), which provides an online database of business regulations and updated investor guidebooks.
The initiative also supports efforts to enhance investment facilitation, ensuring that clearer information, modernized systems, and better coordination help shorten timelines for investors.
Boosting priority sectors for sustainable growth
The reforms also target investments in priority sectors such as renewable energy and digital infrastructure, which are essential for long-term development.
Increased renewable energy capacity and improved digital connectivity are expected to reduce greenhouse gas emissions, widen economic participation, and strengthen resilience.
Building on a strong reform partnership
The program continues the long-standing partnership between ADB and the Philippine government in modernizing public sector management.
It complements earlier initiatives such as the Public Financial Management Reform Program, Domestic Resource Mobilization Program, and Business and Employment Recovery Program.
ADB is one of the region’s major development partners, supporting inclusive, resilient, and sustainable growth through innovative financing and technical assistance. —Ed: Corrie S. Narisma
