MANILA, PHILIPPINES - The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support government reforms to improve ease of doing business and help position the Philippines as a top investment destination in Asia and the Pacific.

The Business Environment Strengthening with Technology Program (BEST) Subprogram 1 supports private sector development reforms to streamline and improve transparency of regulatory requirements and processes for businesses. It also seeks to facilitate investment in priority sectors with strong development impact and strengthen digital delivery of government services to businesses and investors.

"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."

In 2024, the Philippines ranked 52nd out of 67 economies in the International Institute for Management Development's World Competitiveness Ranking, while it placed 36th out of 50 economies in the operational efficiency pillar of the World Bank's Business Ready framework. The rankings point to regulatory and bureaucratic frictions that hinder new businesses and slow productivity and innovation, particularly for micro, small, and medium-sized enterprises.

The government has prioritized addressing existing barriers in doing business to boost the country's competitiveness and drive increased investments and job creation. The program seeks to establish better legal, regulatory, and institutional frameworks to facilitate starting and operating a business, including faster permit and licensing procedures and government approval of new ventures.

The program supports whole-of-government solutions to raise investments and support sustainable economic growth in the country. It aims to improve investor experience through strengthening investment facilitation. It will also provide clear, updated, and reliable information via online investors' guidebooks and a digital database of business regulations through the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority (ARTA).

The program also focuses on facilitating investments in priority sectors such as renewable energy and digital infrastructure. These sectors are crucial for development, as greater investment in renewable energy generation and enhanced digital infrastructure both help reduce greenhouse gas emissions.

The program builds on the strong ADB-Government of the Philippines partnership in pursuing reforms to strengthen public sector management systems through the Public Financial Management Reform Program, Domestic Resource Mobilization Program, and Business and Employment Recovery Program, among others. ADB provided complementary technical assistance to support the reforms under the program and assist implementing agencies ARTA, Department of Trade and Industry-Board of Investments, and the Department of Information and Communications Technology in developing and rolling out new systems and improved processes.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the planet. Founded in 1966, ADB is owned by 69 members-50 from the region.