Davao is most business friendly city: study

Wednesday, December 15, 2010

DAVAO CITY topped among urban cities in the country in terms of doing business, according to an international think tank.

During the City Competitiveness Forum 2010 yesterday, the Asian Institute of Management (AIM) revealed the results of their "Doing Business in the Philippines 2011" (Doing Business) report, which compared business regulations in 25 cities in the country.

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The forum gathered Mindanao's loyal government leaders and Chamber of Commerce organizations.

The city jumped by 19 places since the 2008 Doing Business under the same category, said AIM professor Dr. Federico Macaranas at the Grand Regal Hotel.

The data in Doing Business in the Philippines 2011 are current as of June 1 this year.

The city topped under the category of "Ease of dealing with construction permits" followed by Taguig, General Santos, Zamboanga City, Marikina, Valenzuela, Cagayan de Oro, Mandaue, Makati, and Las Piñas for the top ten.

Under the category of "Ease of starting a business," the city ranked second after General Santos. The city is followed by Taguig, Valenzuela, Lapu-Lapu, Zamboanga City, Cebu City, Marikina, Mandaluyong, and Pasay to complete the top ten.

The 25 cities subject to the report were Batangas City, Cagayan de Oro, Caloocan, Cebu City, Davao City, General Santos, Iloilo City, Lapu-lapu, Las Pi¤as, Makati, Malabon, Mandaluyong, Mandaue, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon City, San Juan, Taguig, Valenzuela, and Zamboanga City.

AIM Policy Center program manager Tanya Lat noted that four cities from Mindanao entered the top ten for the category of "Ease of dealing with construction permits" while three cities from Mindanao entered the top ten for the category of "Ease of starting a business."

Lawyer Lai-Lynn Barcenas, associate director of AIM Policy Center said factors to the city's ranking was how the local government streamlined business registration.

The city eliminated several documentary requirements, instituting one-time assessment of all fees at the City Treasurer's Office, and enabling applicants to download the business application form from the city website.

Barcenas said the city also eliminated the barangay clearance and certified true copy of land title as pre-construction requirements for building permit applications. The Davao Light and Power Company started to refund the cost of electricity connection within a year from service connection.

An address from Davao City Mayor Sara Duterte was delivered by Acting City Administrator lawyer Zuleika Lopez.

"As local leaders, we recognize that much of the responsibility of improving the development of our localities rests upon us," the city mayor said.

United Mindanao

During the forum, Mindanao leaders agreed cities here should unite in improving its economy.

Sarangani City Mayor Darlene Custodio said economic ranking should not be a source for competition among Mindanao cities but instead should become a venue for local government units to come together and share strategies.

Cagayan de Oro Chamber of Commerce & Industry Foundation Inc. president J. Rafael Paguio said Mindanao's cities have common problems such as power and should unite in how to address these problems.

"I am happy enough to know that many of Mindanao's cities made it to the top ten ranking among. I believe cities here in Mindanao share a common situation. It doesn't matter to me to which city in Mindanao investment comes, so long as it's in Mindanao. I believe that so long as there is investment in one city, this would have a trickle down effect to its neighboring cities as it has in Davao and in Cagayan de Oro," said Paguio, also vice president of CDO Electric Power & Light Company Inc.

The forum was organized by the AIM Policy Center; the Local Implementation of National Competitiveness for Economic Growth; on partnership with the United States Agency International Development (AID).

Doing Business in the Philippines 2011 (Doing Business) is the second substantial report of the Doing Business series in the Philippines. The first was in 2008, quantitative indicators on business regulations were analyzed for 21 cities in 3 regions: Luzon, Visayas, and Mindanao.

This year the report expands the analysis to 25 cities, whose selection were based on the level of urbanization, population's size, economic activity, political and geographical diversity, and other factors.

Doing Business investigated the regulations that enhance business activity and those that constrain it. Regulations affecting 3 stages of life of a local business are measured at the sub-national level in the Philippines: starting a business, dealing with construction permits, and registering property.

The indicators are used to identify business reforms and the extent to which these have been effective in simplifying the procedures, saving time, and lowering the cost of doing business.