Philippines Must Cut Business Costs to Boost Investment, World Bank Says

The World Bank said the Philippines must improve conditions for businesses to invest, expand and innovate if it wants to become ASEAN’s next growth engine, warning that weak investment could constrain productivity and job creation.

The Philippines investment climate remains challenged by delays in permits, port congestion, complex paperwork and inefficient border procedures, according to World Bank country director Zafer Mustafaoğlu.

He noted that business registration in the Philippines takes around 78 days compared with one day in Singapore and two days in Malaysia, increasing operating costs for companies.

The World Bank added that the Philippines could attract more foreign investment and move further up the artificial intelligence value chain by expanding beyond semiconductor assembly into design support, testing and AI-enabled services.

The comments highlight growing pressure on Southeast Asian economies to streamline business regulations and improve competitiveness as global investors diversify regional supply chains.