Trade and Industry Secretary Peter Favila on Thursday said a change in the Constitution especially in its economic provisions will improve the Philippines' competitiveness in the ASEAN region.

In a press briefing in Malacanang, Favila said amending the Constitution to ease limitations on foreign investments, would enhance the country's competitiveness.

Under the present Constitution, he said there are "limitations for us to engage freely in negotiation. The dynamics of the market will show. It is always in the area of economic limitations which is a major concern among investors. We have to prepare ourselves, and that can be done by amending the Constitution."

The DTI chief said he had informed lawmakers of his pitch for Charter amendments to improve the business climate in the country.

Favila was reacting to the "Doing Business 2009" report of the World Bank and the International Finance Corp. (IFC)., which states that the Philippines ranking in ease of doing business has declined -- down by seven notches.

According to the report, the Philippines ranked 140th out of 181 economies, which compares the regulations that enhance or constrain business activity. This years ranking was a decline from last year, when the country ranked 133rd out of 178 economies.

It further stated that the Philippines was behind most of its Asian neighbors. Singapore, for the third consecutive year, topped the ranking. Thailand and Malaysia landed on the 13th and 14th spot, respectively, while Brunei ranked 88th. Vietnam was on the 92nd spot while Indonesia and Cambodia ranked 129th and 135th, respectively.

However, the WB-IFC reported that the Philippines performed better than Asian neighbors Laos (165th) and East Timor (170th).

As such, Favila said President Gloria Macapagal Arroyo has ordered a review of reforms to improve the country's business climate.

"She (Arroyo) wants to make a review of the initiatives we have undertaken, where we are, where we are lagging," he said.

"President Arroyo will convene on Monday the National Competitiveness Council at the Palace for the review," he added.

The Doing Business 2009 is the sixth in a series of reports that rank economies based on regulations affecting 10 stages of the life of a business -- staring a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

Despite the decline in the country's competitiveness, the WB-IFC report noted that the Philippines implemented "positive" reform in regulating trading across border.

"The Philippines upgraded the risk management and electronic data interchange system for customs, reducing the time to import by a day," it said.

Among the indicators, the Philippines ranked high on trading across border (58th), but very low in closing a business (151). - AsiaPulse via COMTEX
(PNA)