The Philippines strengthened business regulations by enhancing access to credit and cutting corporate income taxes in 2008/2009, joining most economies in East Asia and the Pacific in helping to increase opportunities for local firms, the Doing Business 2010 report of the International Finance Corporation (IFC) and the World Bank (WB)shows.

Between July 2008 and June 2009 a record 131 of 183 economies around the globe reformed business regulation, according to “Doing Business 2010: Reforming Through Difficult Times” the seventh in a series of annual reports published by IFC and the World Bank.

In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis. Three economies from the region – Singapore, New Zealand, and Hong Kong (China), in that order – led the world in ease of doing business.

The Philippines enhanced access to credit with a new credit information law that regulates the operations and services of a credit information system. The government also cut the corporate income tax rate from 35 to 30 percent and promoted company reorganization procedures by introducing pre-packaged reorganizations. Overall, the Philippines ranked 144th among 183 economies surveyed for the ease of doing business, little changed from 141st last year.

“Important reforms are ongoing in many areas in the Philippines such as in Metro Manila and other cities, in national legislation, the judiciary, and several national agencies,” said William Beloe, IFC’s Head of Advisory Services in the Philippines. “However, Doing Business only measures reforms once they are benefitting small and medium-size domestic enterprises. Therefore, we encourage the government to maintain the momentum generated this year and to further improve the Philippines’ business climate and its competitive position. IFC is prepared to support the Philippines in bringing these efforts to fruition.”

Kim S. Jacinto-Henares, IFC/World Bank Senior Private Sector Development Specialist, said the ongoing effort of Metro Manila cities to standardize business registration and permitting processes would encourage the informal sector to enter the official market because these processes would be predictable, consistent, and accessible to all who need to use them.