Investment News Analysis Reforms

Credit out of reach

Doing Business 2017_Part 5: Getting Credit
Doing Business 2017_Part 5: Getting Credit

Entrepreneurs wanting to start a business in the Philippines have less access to credit than their counterparts in any other part of the Association of Southeast Asian Nations region with the exception of the frontier economy of Myanmar, as the following infographic shows. In a global sense, out of 190 countries ranked by the World Bank in its 2017 Doing Business report, the Philippines comes in 118th place in terms of accessing credit. Simply put, Filipino entrepreneurs are disadvantaged by the inaccessibility of credit information and the country’s poor collateral laws. To put that in perspective, Singapore – often quoted as the model economy for the Philippines – scores 7 (maximum: 8) in the report’s “Depth of credit information index,” and 8 (maximum: 12) in the “Strength of legal rights index”. The Philippines’ scores respectively are 5 and 3. Innovative Filipino entrepreneurs are not in short supply – they never have been – but they may as well be with this lack of support. What a waste!

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