The Asian Development Bank (ADB) has approved a $400-million policy-based loan to support government reforms aimed at improving the ease of doing business and positioning the Philippines as a top investment destination in Asia and the Pacific.
The loan, under the Business Environment Strengthening with Technology Program (BEST) Subprogram 1, will support private sector development by streamlining regulatory requirements and improving transparency.
It also aims to facilitate investment in key sectors and strengthen the digital delivery of government services to businesses and investors.
ADB country director for the Philippines Andrew Jeffries said the private sector is “an important engine of growth and job creation” whose role “cannot be overstated.”
“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,” Jeffries said.
The Philippines ranked 52nd out of 67 economies in the 2024 International Institute for Management Development’s World Competitiveness Ranking and 36th out of 50 in the World Bank’s Business Ready framework’s operational efficiency pillar.
The rankings highlight regulatory and bureaucratic frictions that impede new businesses and slow productivity, particularly for micro, small and medium-sized enterprises.
The government has prioritized addressing these barriers to boost the country’s competitiveness and drive investment 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.
It will improve the investor experience by strengthening facilitation and providing clear, updated and reliable information through online investors’ guidebooks and a digital database of business regulations. The database, known as the Philippine Business Regulations Information System, was launched by the Anti-Red Tape Authority (ARTA).
The program will also focus on facilitating investments in priority sectors such as renewable energy and digital infrastructure. These sectors are critical for development, as investments in both help reduce greenhouse gas emissions.
The program is a continuation of the strong partnership between the ADB and the Philippine government, which has pursued reforms through programs like the Public Financial Management Reform Program, Domestic Resource Mobilization Program and Business and Employment Recovery Program.
The ADB also provided technical assistance to implementing agencies: ARTA, the Department of Trade and Industry-Board of Investments and the Department of Information and Communications Technology.
 has approved a $400 million loan to the Philippines to finance the BEST Subprogram 1, aimed at improving the country's ease of doing business, streamlining regulatory processes, and boosting investment in key sectors like renewable energy and digital infrastructure.){kind=link}