The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support government reforms aimed at improving the ease of doing business and positioning the Philippines as a leading investment destination in Asia and the Pacific. The Business Environment Strengthening with Technology Program (BEST) Subprogram 1 focuses on private sector development reforms that streamline regulatory requirements, improve transparency, and facilitate investment in priority sectors with high development impact. It also seeks to enhance digital delivery of government services to businesses and investors, making administrative processes more efficient.
ADB Country Director for the Philippines, Andrew Jeffries, highlighted the critical role of the private sector in driving economic growth and job creation. The program aims to create an enabling environment for businesses, spurring faster economic growth and innovation. In 2024, the Philippines ranked 52nd out of 67 economies in the International Institute for Management Development’s World Competitiveness Ranking and 36th out of 50 in the operational efficiency pillar of the World Bank’s Business Ready framework, reflecting regulatory and bureaucratic frictions that slow productivity, particularly for micro, small, and medium-sized enterprises.
The program supports the government in removing barriers to starting and operating a business, including faster permitting and licensing procedures and streamlined approval processes. It also strengthens investment facilitation to improve investor experience and provides reliable, updated information through online guidebooks and the Philippine Business Regulations Information System, launched by the Anti-Red Tape Authority (ARTA).
Priority sector investments, such as renewable energy and digital infrastructure, are emphasized under the program to promote sustainable economic growth and reduce greenhouse gas emissions. The initiative builds on ADB’s long-standing partnership with the Philippine government, complementing reforms under the Public Financial Management Reform Program, Domestic Resource Mobilization Program, and the Business and Employment Recovery Program. ADB also provides technical assistance to implementing agencies, including ARTA, the Department of Trade and Industry–Board of Investments, and the Department of Information and Communications Technology, to develop and roll out improved systems and processes.
Founded in 1966 and owned by 69 members—50 from Asia and the Pacific—ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth in the region. The Bank works with members and partners to address complex challenges, build quality infrastructure, transform lives, and safeguard the environment through innovative financial tools and strategic partnerships.
