Supporting Regulatory Reforms in Southeast Asia

9. Philippines

Abstract

This chapter presents the country profile for the Philippines. It provides an overview of the current de jure requirements for the institutions, tools and processes of regulatory governance and, where possible, how these have been implemented in practice. The profile focus on three aspects of regulatory governance pertinent to the past, present and near future of regulatory reforms in the ASEAN region. The first is whole-of-government approaches to regulatory policy making, including national and international commitments to better regulation that are driving domestic reform processes. The second is the use of good regulatory practices, including regulatory impact assessments (RIAs), stakeholder engagement and ex post review. The third is approaches to digitalisation, or how countries are using digital tools to respond to regulatory challenges, and is the newest frontier for better regulation reforms in both ASEAN and OECD communities. The information contained in this and the other profiles serves as the basis for the analysis of trends in regulatory reform presented in Chapter 1.

Whole-of-government perspective

Regional focus

Since 2018, the Philippines has continued to improve its regulatory environment through its participation in various trade agreements. These multi-lateral agreements have included provisions for supporting a better regulation mandate as well as contributing to the economic development of the state. Presently, the Philippines is a signatory to the Regional Comprehensive Economic Partnership Agreement (RCEP) of which they ratified to in September 2021. The Philippines also works with other ASEAN Member States and external actors, like the Asian Development Bank and Malaysia Productivity Corporation, to improve the quality and coherency of regulations and strengthen the country’s position in relation to the country’s regional development (ERIA, 2020[1]).

The Philippines have also been supporting the implementation of the ASEAN Single Window (ASW). Before the ASW Agreement was signed by other Member States, the Philippines had already volunteered to participate as a pilot country for the implementation of the National Single Window for Cargo Clearance, during the 3rd Inter-Agency Task Force Meeting on ASW in 2005 (ASW, n.d.[2]). This led to the creation of the National Single Window Task Force for Cargo Clearance (EO 482) in 2005, under which a PNSW Task Force for Cargo Clearance (PNSW Task Force) was created, composed of a Steering Committee (PNSW-SC) and a Technical Working Group (PNSW-TWG). The PNSW-SC is mainly responsible for setting the policy guidelines for the creation and operation of the NSW and the ASW as well as ensuring their efficient implementation in the country, while the PNSW-TWG is responsible for implementing the policies and directives of the PNSW-SC. This includes identifying a common set of data, information and processes to be standardised, while at the same time ensuring data integrity and security, and delineating the roles and responsibilities of each government agency participating in the PNSW project (ASW, n.d.[2]). The Philippines has also integrated its National Single Window with the ASW.

Finally, in December 2019, the Department of Finance announced that the Philippines had officially joined the live operations of the ASW. The goal for the Philippines is to eventually have all 76 trade regulatory government agencies under 18 government departments fully interconnected. This progress would be in line with the government’s thrust to improve the ease of doing business in the country (Umali, 2020[3]).

National focus

The Philippine Development Plan (PDP) 2017-2022 is the first medium-term plan that will be geared towards the AmBisyon Natin 2040. The AmBisyon Natin 2040 is a national programme that aims to fulfil the collective vision of the Filipino population and what they attempt to achieve by 2040. This programme is anchored on the 0-10 Point Socioeconomic Agenda and takes into account the country’s international commitments such as the 2030 Sustainable Development Goals. The PDP was updated in 2021 to respond to the emergence of new threats to the country’s growth prospects including the COVID-19 pandemic. The updated PDP reinforces the Philippine Competition Act (PCA) through strategies that aim to foster an environment that penalises anti-competitive practices, facilitates entry of players, supports regulatory reforms, and improves trade policies to stimulate investments and innovation and boost competitiveness (NEDA, 2021[4]).

Under the mandate of this programme, the Government of Philippines has also launched the Modernising Government Regulations (MGR) Programme. The MGR Programme is a comprehensive national regulatory reform programme that aims to help improve regulatory quality in the country and is considered a priority project of the National Economic Development Authority (NEDA) under the Philippine Development Plan 2017-2022. The programme aims to contribute to the improvement of the competitiveness of the Philippines by examining existing regulations with the end goal of streamlining unnecessary rules and reducing compliance costs borne by citizens, businesses and the government (DAP, n.d.[5]). Specific objectives of the programme related to improving regulation in Philippines include (DAP, n.d.[5]):

• Enhance the capability of regulating agencies to develop smart regulations through capacity building on Good Regulatory Practices (GRP);

• Prevent regulatory failure through risk-based approaches such a Regulatory Impact Analysis (RIA);

• Improve effectiveness of regulations by crafting of a Regulatory Management System (RMS); and

• Reduce costs of administration and enforcement of regulations by developing regulatory and non-regulatory alternatives to improving market efficiency.

Efforts under this programme include (DAP, n.d.[5]):

• A Regulatory Cost Model calculator developed by DAP to facilitate the estimation of compliance costs of existing and proposed regulations on businesses, organisations and individuals.

• Two satisfaction e-Surveys – one for citizens and one for businesses – that gain insights on each group’s satisfaction with government services

In 2018, the administration also leveraged its civil service performance incentive system (Performance-Based Incentive System or PBIS) to extend its advocacy for more efficient government processes (OECD/ADB, 2020[6]). This strategy required all government agencies to follow “Good Governance Conditions” for staff to be eligible for a performance-based bonus (OECD/ADB, 2020[6]). Performance targets included measuring client satisfaction, and streamlining and improving the agency’s processes for critical services to reduce the compliance costs such as turnaround time, the number of signatures and required documents (OECD/ADB, 2020[6]).

In 2021, the criteria and conditions for the grant of the Performance-Based Bonus (PBB) were refined. As provided under Memorandum Circular (MC) No. 2021-011 of the AO 25, the Fiscal Year (FY) 2021 PBB shall measure and evaluate the performance of agencies with emphasis on the public’s satisfaction on the realisation of the agencies’ performance targets, quality of service, efficiency in the use of resources, and strengthened agency stewardship. The Good Governance Conditions, which were previously used as conditions for eligibility, shall no longer be included in the criteria to assess the overall eligibility of the agencies availing PBB. The compliance with these conditions will be part of the Agency Accountabilities, which shall be monitored by the mandated agencies to monitor and enforce these requirements. Instead, the criteria and conditions for FY 2021 PBB is categorised according to four (4) dimensions of accountability: Performance, Process, Financial, and Citizen/Client Satisfaction Results.

Process Results include the achievements in ease of doing business/ease of transaction with the agency as a result of streamlining, standardisation, digitisation, and related improvements in the delivery of services. While the public’s satisfaction dimension will be measured in the Citizen/Client Satisfaction Results that include the achievements of the agencies in satisfying the quality expectations of the transacting public.

In terms of administrating new legislative principles, the Philippines introduced the Implementing Rules and Regulations (IRRs) of Republic Act (RA) No. 10667, which was passed into law on July 2019.2 The IRRs feeds directly into the functions and duties of the Philippine Competition Commission (PHCC), which is otherwise commonly referred to as the Philippine Competition Act. The Competition Act prohibits business practices that restrict market competition through anti-competitive agreements and abuse of a dominant position. It also introduces a compulsory notification regime for certain mergers and acquisitions (Clifford Chance, 2015[7]). The Competition Act is bound by an extra-territorial effect, meaning that it is enforceable against acts committed within or outside the Philippines which affect trade, industry or commerce in the Philippines (Clifford Chance, 2015[7]).

The Anti Red Tape Authority (ARTA) was established in 2018 pursuant to RA 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act, and became operational in July 2019. Under the IRRs of RA 11032, ARTA is responsible for improving the regulatory environment in the Philippines. In general, to support the regulatory environment of the country, the body provides three primary functions (OECD/ADB, 2020[6]):

1. Taking over and continuing the work relating to improving the ease of doing business;

2. Improving government service delivery, provide regulatory management training programmes, assistance and co-ordinating with relevant agencies;

3. As the central oversight body assessing the quality of regulatory impact assessments (RIAs) from national government agencies (NGAs) and local government units (LGUs).

Under its mandate, ARTA is also responsible for institutionalising the Philippine Regulatory Management System (RMS). This includes by (according to Sections 5 and 17 of RA 11032):

• Co-ordinating with all government offices in the review of existing laws, executive issuances and local ordinances (ex-post);

• Recommending policies, processes and systems to improve regulatory management (policy)

• Ensuring the dissemination of and public access to information on regulatory management system and changes in laws and regulations (stock); and,

• Providing technical assistance and advisory opinions in the review of proposed national or local legislation, regulations or procedures.

Following its introduction into the administration, ARTA also launched its flagship programme called the National Effort for the Harmonization of Efficient Measures of Inter-related Agencies (NEHEMIA) Programme in 2020. This programme would be based as a sectoral-based streamlining effort, with objectives to reduce administrative processing times, cost, requirements, and procedures in sectors of economic and social significance by 52% within 52 weeks (ARTA, 2020[8]). The programme was in support of Rule III Section 3 of the (IRR) of RA 11032 which mandated ARTA to adopt a whole-of-government approach when attempting to streamline government services as well as Administrative Order 23: Eliminating Overregulation to Promote Efficiency of Government Processes, issued by the President of the Philippines on 20 February 2021 (ARTA, 2020[8]). Inter-agency reviews have also been scheduled under this effort to be adopted for horizontal integration as well as in the end-to-end processing in the delivery of government services. ARTA currently has ongoing NEHEMIA initiatives on the following sectors: telecommunications, logistics, food and pharmaceuticals, energy, and housing.

In addition, several laws, regulations and policies have been passed since 2018 that have had positive implications for regulatory quality in the Philippines. These include:

• The Ease of Doing Business and Efficient Government Service Delivery Act of 2018 (RA 11032): This Act aims to streamline the current systems and procedures of government services (ARTA, n.d.[9]). The law aims to improve competitiveness and ease of doing business in the Philippines. It applies to all government offices and agencies in the Executive Department including local government units (LGUs), government-owned or -controlled corporations, and other government instrumentalities, located in the Philippines or abroad, that provide services covering business-related and non-business transactions as defined in the Implementing Rules and Regulations (IRR) (ARTA, n.d.[9]).

• The Philippine Innovation Act of 2019 (RA 11293): This Act calls for a whole-of-government approach to effectively drive innovation across all areas of government policy. Moreover, the Act mandates that government agencies must make a joint web portal bearing information relevant to innovation policies, strategies, and programmes available to the public. The web portal is also expected to include a database of all ongoing and completed innovation projects implemented under the National Innovation Agenda and Strategy Document (NIASD) (LawPhil, 2019[10]).

• Innovative Startup Act of 2019 (RA 11337): This Act is a policy which aims to foster inclusive growth through an innovative economy by streamlining government and nongovernment initiatives, in both local and international spheres, to create new jobs and opportunities, improve production, and advance innovation and trade in the country (LawPhil, 2019[11]). The Act, among other initiatives, calls for a Start-up Philippines Website that integrates any existing websites and content on programmes for start-ups and start up enablers implemented by the government.

Good regulatory practices

Regulatory impact assessments

The conduct of Regulatory Impact Assessment (RIA) for proposed regulations and the review of existing regulations are required by law in the Philippines under the 2018 EODB Act. The Act applies to all government offices and agencies in the Executive Department, including LGUs, government-owned and/or -controlled corporations (GOCCs) operating in or outside the Philippines. Under the conditions of the Act, all relevant entities must undertake a RIA to evaluate the impacts of a proposed regulation. It also conditions, when required, any proposed regulation to undergo a pilot implementation to further assess impacts. The EODB presents a formal framework for how RIAs should be applied and provides further guidance to policymakers on the importance of RIA and its purpose.

The implementation of RIA is overseen by the country’s oversight body ARTA. As noted briefly in the section above, ARTA is the main body for implementing and overseeing national policies related to anti‑red tape and ease of doing business. ARTA’s mandate is to monitor and evaluate the compliance of agencies covered under the EODB Act as well as recommend policies, processes, and systems to improve regulatory management. The body also facilitates whole-of-government trainings,3 and provides technical assistance and advice to agencies when required.

ARTA has also developed and supported the development of various guidance materials to support RIA. For example, the Philippine’s RIA Manual that was launched by ARTA in October 2021 highlights when exemptions can be allocated towards some regulations.4 In the Philippines, exemptions can be proposed to some regulations, depending on the outcome of the proportionality test. In most cases, exemptions are applied in cases of minor regulatory amendments and proposals. That being said, the rules on exemptions are circulated through a Memorandum Circular (MC) for flexibility. Through this approach, the use of exemptions is based on the discretion of ARTA who determines the need to apply based the current regulatory context (e.g., in pandemic situations, financial crises, need to reduce tariffs).

The RIA manual has also been a key document for outlining guidance on Regulatory Reporting Cycles and Formal Rulemaking Processes that are required by concerned agencies, as well as, more generally outlines the stages in rulemaking and the processes involved in conducting RIA. In the later half of 2022, the government has set an objective to publish the country’s National Policy on Regulatory Management System (NPRMS)5 that shall provide the implementing guidelines, institutional arrangements, and procedures for the implementation of the RIA requirement.

Prior to the availability of the NPRMS, ARTA has issued MC 2021-06, which provides the interim guidelines for agencies to abide by when organising pilot-implementations of RIA. With the adoption of RIA as a mandatory government tool, the Filipino government have been co-ordinating pilots with several agencies to guide the full implementation of this tool (OECD, 2018[12]). The adoption of this guidance tool has provided agencies with resources to understand key steps, assessment issues, and stakeholder consultation. At present, these pilot-implementation have demonstrated success in the Philippines. In 2021, of the 48 priority government agencies trained in the conduct of RIA, a total 33 Regulatory Impact Statements (RIS) were submitted to ARTA for review and evaluation.

Moving forward, ARTA is currently developing a platform, which will serve as a repository of impact assessments that can be later shared to the public. Currently, RIAs are transmitted via electronic mail. However, with the development of the Philippine Business Regulations Information System (PBRIS), the country will make stronger efforts to align with good practices of transparency and openness in their rule-making processes.

Stakeholder engagement

Like RIAs, consultations are also mandated for all legislations, department administrative orders, and any issuances that directly affect the public (OECD, 2018[12]). The framework in which consultations take place is defined by the agency overseeing the regulatory proposals, and it is the responsibility of that body to make their issuance as accessible to the public as possible. In general, most stakeholder consultations are taken late in the regulatory process stage, usually only after a regulation has been drafted and prior to the approval of the appropriate authorities.

To support the adoption of stakeholder consultations, ARTA has issued various guidelines to lead policymakers with good regulatory practices. For example, the Philippine Good Regulatory Principles (PGRP) manual explicitly outlines to regulators to ensure, sustain, and maintain effective and inclusive stakeholder engagements throughout the regulatory processes (Article 5). The Philippine RIA Manual also recognises the importance of conducting stakeholder consultations and in particular mentions the need for policymakers to identify any parties that could be directly impacted by a regulatory proposal (i.e. individuals, groups, or organisations). In helping with these assessments, the RIA manual also includes a Gender and Social Inclusion Assessment (GESIA) Lens, which further delves into the government agencies assessment of how a regulation could affect women, the marginalised or the disadvantaged sector proportionally more than others (see Box 9.1).

Box 9.1. Gender and Social Inclusion Assessment (GESIA)

The GESIA is an ex ante evaluation that allows policymakers to identify, in a preventative way, the likelihood of a given decision creating negative consequences for the level of equality between men and women (European Institute for Gender Equality, n.d.[13]). It also helps policymakers to measure the various distributional impacts a regulation or law could have on different populations based on their socio-economic backgrounds.

In the Philippines, the GESIA covers three main points: 1) who got consulted, indicating whether women’s groups or groups representing marginalised or disadvantaged groups were involved; 2) the barriers and opportunities that women and other marginalised and/or disadvantaged are likely to face with the proposed regulation (or regulatory reform); and 3) gains or losses to the Philippine economy as an effect of the social inclusiveness or exclusiveness of the regulation.

The inclusion of the GESIA in the RIA Manual conforms with the expectations of the Magna Carta of Women (RA 9710), the Social Reform and Poverty Alleviation Act (RA 8425), and other social inclusion related laws such as the Magna Carta for Disabled Persons (RA 7277) and the Indigenous Peoples’ Rights Act, or IPRA (RA 8371).

Source: (European Institute for Gender Equality, n.d.[13]); Based on the questionnaire response from the Government of Philippines.

When developing these manuals, the Philippines notes that stakeholders were extensively consulted throughout the process and that ARTA worked closely with Local Government Units and National Government agencies to construct and finalise the documents, particularly in relation to the PRGP. ARTA has also taken special measures to promote these guidance materials and to ensure their effective utilisation.

To lead stakeholder engagements, concerned agencies are required to share the draft RIA through the PBRIS platform6 as well as through the agencies’ website. When identifying stakeholders, agencies must make an evaluation of parties that would be relevant to consult and at times conduct a stakeholder mapping exercise to ensure they have considered all demographics. During the consultation, the proponent agency will provide information on the proposed regulation such as the policy objectives or objectives behind the selected option, the reasons for adopting it, and its likely impacts on households and/or firms. Moreover, stakeholders that will be using the PBRIS platform may provide comments on the draft RIA through registered user accounts.

The RIA Manual encourages adherence to the OECD best practice principles on stakeholder engagement in regulatory policy in order to ensure the quality of consultations. The Manual also includes a summary of the Philippine Good Regulatory Principles, which state that regulators should ensure and sustain effective and inclusive stakeholder engagement. In line with this principle, stakeholder engagement should be observed at all stages of the rulemaking process, and agencies are expected to consult with stakeholders accordingly including encouraging via the Manual that consultation is conducted at the early stages of policy or regulatory development. However, OECD review of the system notes that stakeholder consultation tends to happen at a late stage, after the production of a draft law, rather than at a more nascent stage of policy development where stakeholders can provide input into whether there is a public policy problem, as well as alternative solutions (including non-regulatory options) (OECD/ADB, 2020[6]). A minimum period of 30 to 90 calendar days is suggested for stakeholder consultations to take plane on a proposed option. It is also recommended to send out consultation materials to stakeholders at least 20 days in advance to provide them with sufficient time to assess and prepare their inputs or comments prior to the scheduled consultation. Understanding that Philippines is still in its early stages of RIA adoption/implementation, only a few impact assessment have undergone public consultations, but will likely progress in the upcoming years.

Burden reduction/ex post review

The aim for continuous evaluation is enshrined within the eighth principle of the PGRP. The principle states that regulators should subject regulations to regular review and evaluation for continued relevance, efficiency, and effectiveness and to keep pace with emerging technologies. Other documents that also support the application of ex post evaluations within the Philippines are the 2021 RIA Manual, which further reinforce that ex post evaluations, should also be considered as a major component of regulatory processes.

In the Philippines, non-major Regulations (or those that do not have to undergo a full RIA), are required to have a Monitoring & Evaluation Plan (M&E) as part of their legal text. Monitoring sets the baselines and targets of the quantitative and qualitative indicators identified in the cost-benefit analysis of the RIS, while Evaluation seeks to determine if the regulation is effective after adoption with respect to a) expected outcomes beyond the control of the regulator (e.g. time and cost of compliance), and b) intended impacts on the regulated and other affected sectors (e.g. business growth, regulator revenues, socio-environmental effects) (ARTA, n.d.[14]). The RIA Manual also states that this information should ultimately feed back into the policy making process. Incorporating an M&E plan helps the government to ensure that these regulations are subjected to post-implementation reviews.

In some cases, agencies are also recommended to apply a review (i.e., sunset, though this term is not formally used in the country) clause as part of their regulatory proposal. By doing so, a government agency can automatically trigger a regulatory evaluation at a specific time and ensure that proper M&E is facilitated, which is then shared with ARTA and posted on the agency’s website and eventually in the PBRIS. Within the same scope, specific performance indicators can also be used that so that policymakers can attain aggregated information and data for ad-hoc reporting purposes.

ARTA is mandated by law to implement the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, which aims to streamline the current systems and procedures of government services. ARTA took over the function of monitoring the country’s ease of doing business function from the former National Competitiveness Council (NCC) and the Department of Trade and Industry (DTI) – Competitiveness Bureau. Since 2019, ARTA has contributed towards 26 issuances between the timeframe of July 2019 to May 2021. These issuances have had the purpose of guiding government agencies in streamlining their services as well as consolidating and repealing obsolete regulations. ARTA also operates specific administrative burden reduction programmes, which focusses on streamlining procedures in different sectors relevant for the country (see Box 9.2).

Box 9.2. Administrative burden reduction programmes in the Philippines

The NEHEMIA programme

The NEHEMIA programme in the Telecommunications Sector focuses on streamlining the permitting process relevant to the construction, operation, and maintenance of internet infrastructure ultimately to improve internet connection across the country. Specifically, Joint Memorandum Circular No. 1 s. 2020 or the “Streamlined Guidelines for the Issuance of Permits, Licenses, and Certificates for the Construction of Shared Passive Telecommunications Tower Infrastructure (PTTIs)” was issued which aims to shorten the timeline to 16 days from the original period of more than 200 days for constructing PTTIs. Application on permits and clearances for the erection of poles, construction of underground fiber ducts and installation of aerial and underground cables were also streamlined through the issuance of a JMC No. 1 s. 2021, “Streamlined Guidelines for the Issuance of Permits and Clearances for the Erection of Poles, Construction of Underground Fiber Ducts and Installation of Aerial and Underground Cables and Facilities to Accelerate the Roll Out of Telecommunications and Internet Infrastructure”.

The Program NEHEMIA was also implemented in the Food and Pharmaceutical Sectors. This effort has effectively linked the Food and Drug Administration (FDA) electronic service to the CBP. The linkage simplified the process for obtaining new business permits from the LGU and initial License to Operate (LTO) from the Centre for Drug Regulation and Research (CDRR) of the FDA. This initiative has reduced the combined steps by 68% (from 28 to 9), requirements by 70% (from 41 to 12), and days by 67% (from 63 to 21) for business permit and LTO applications that are coursed through the CBP and continued to the FDA eService.

Green Lane for COVID-19 Vaccine Manufacturers

ARTA also facilitated the signing of the Joint Memorandum Circular (JMC) No. 1 (s. 2021), entitled the Establishment of a Green Lane for Securing Permits, Licenses, Authorizations for the Establishment and Operation of a Bulk Import, Fill and Finish Local Coronavirus Disease 2019 (COVID-2019) Vaccine Manufacturing Facility and for the Registration for Ailment of Incentives, with the Department of Health (DOH), Department of Trade and Industry (DTI), Board of Investments (BOI), Department of Science and Technology (DOST), National Task Force Against COVID-19, and the FDA. The implementation of the JMC is expected to expedite the processing of Emergency Use Authorization (EUA) for local vaccine manufacturers with FDA and provide them with assistance for their registration of available or appropriate investment incentives through the BOI. Checkpoint meetings are being conducted by ARTA to monitor the implementation of the JMC.

For these initiatives, ARTA conducts regular co-ordination meetings with all concerned agencies and private stakeholders to ensure the effective implementation of the Program and validate the simplified process established.

Source: Based on the questionnaire response from the Government of Philippines.

Finally, the Government of the Philippines has also employed strategies to improve business-related regulatory reforms, notably those that affect SMEs, by focusing on cutting red tape in the country as mandated in the ARTA Act of 2007 as well as reducing processing times. Firstly, in 2018 under the EODB Act mandate, the Philippines introduced the “Zero Contact Policy”. The objective of this policy was to enforce the use of electronic submission of applications and to resist contact with any requesting party concerning an application or submission of documents. Additionally, the EODB Act also prescribed standard processing times for documents such as: 3 days for simple procedures, 7 days for complex procedures, and 20 days for highly technical procedures.

At present, the Department of Information and Communications Technology has built and operated the Central Business Portal (CBP), which has aimed to streamline and simplify interoperable government processes and procedures as well as improve the competitiveness rankings of the Philippines. The CBP has also made it easier for businesses to register their information, by creating a harmonised electronic form where the applicant can input all the required information from the government agencies and local government units involved in starting a business. Overall, the CBP has contributed towards more effective service delivery for both businesses and the administration and has enhanced transparency. The Philippines also notes that post COVID-19 relief efforts were adding motivation to reduce regulatory burdens and improve access of administrative services through digital platforms.

Digital

Since 2018, the Philippines has increasingly used digital technologies to improve regulatory management, reduce red tape and monitor corruption. Ongoing initiatives, such as the IDOL programme to fast-track processes for receiving permits from the FDA and the development of online portals such as BNRS Next Gen7 and iBPLS8 have helped with streamlining administrative procedures as well as consolidating information for both stakeholders and the government alike. In the most recent e-government development index (2020), the Philippines also ranked 77th out of the 193 countries monitored, which offered some intel towards the country’s commitment towards digital reform.

The Government of Philippines has also undertaken digital approaches through various strategies such as the Department of Trade and Industry’s Inclusive Innovation Industrial Strategy (i3S). This strategy has been focussed on growing the innovative and globally competitive manufacturing, agriculture and services industry of the country, while also strengthening linkages into domestic and global value chains (DICT, 2017[15]). The strategy has been founded on good governance and regulation, with particular attention placed on eliminating bureaucratic red tape and automatizing government procedures. In 2019, the Bureau of Customs (BOC) also took steps to reinforce the digital mandate in the Philippines by launching a total of six information systems, which were designed to streamline customs processes, increase transparency, and mitigate corruption (see Table 9.1) (World Bank, 2020[16]; Bureau of Customs, 2019[17]).

Table 9.1. Online portals in the Philippines

Electronic Business One Stop Shop (EBOSS)	The EBOSS is an online portal, or a website including DICT's iBPLS, the ARTA platform, or other similar online business permitting systems or platforms of LGUs. Under R.A. 11032, cities and municipalities are mandated to set up their EBOSS within a period of 3 years upon the effectivity of the law or until 17 June 2020.
Anti-Red Tape Electronic Management Information System (ARTEMIS)	The ARTEMIS is a web-based platform that will facilitate the submission of Citizen’s Charters yielding a real-time on-demand database and mapping of all government services. By providing information on services and process flows, the ARTEMIS provides an efficient monitoring mechanism for agencies and ARTA-CMEO and a useful information and transparency tool for citizens. ARTEMIS will allow the public to view the process flows of specific services needed in business registration among all other services of government agencies through their Citizen’s Charters.
Philippine Business Regulations Information System (PBRIS)	PBRIS is a web-based platform provides real-time access to the regulatory management system and regulations relevant to the public. PBRIS was created to fulfil the requirement of RA 11032 that ARTA should ensure the dissemination of, and public access to, information on the regulatory management system and changes in subordinate regulations relevant to business.
Central Business Portal (CBP)	The CBP was established, operated, and maintained by the Department of Information and Communications Technology (DICT) to serve as a central system to receive applications and capture application data involving business-related transactions. It is currently being developed by DICT in partnership with relevant agencies and local government units.
Go smARTApp	The Go.smARTApp (Govt Offices’ Smart Management And Real-Time Application) is a single platform where local government units and other government agencies may create their own accounts store, retrieve and manage data; and use the application’s analytics in decision-making. The application intends to harmonise ease of doing business platforms in accordance with R.A. No. 11032. It is interface-ready and can integrate with existing systems of government. The GO.SmARTApp will allow LGUs and government agencies to provide eServices, reduce red tape, and transition to eGovernance in line with PRRD’s directive in his 5th SONA. LGU rollout is expected by the second quarter of 2022

Source: Information provided by the Philippines.

Finally, the Government has also taken measures to improve their National Single Window (NSW): TRADENET.gov.ph (hereinafter: TRADENET). TRADENET is an automated and integrated licensing, permit, clearance, and certification system for regulatory agencies developed and implemented by the Department of Finance and the Department of Information and Communications Technology in 2017. It serves as an interoperable online platform to reduce processing time and harmonise the permitting procedures involved in import and export. On 5 March 2021, ARTA issued a mandate for all Trade Regulatory Government Agencies to use the TradeNET system. This was to address the fact that, at the time, only two agencies were live pilot users, while four agencies were preparing to go live, 13 agencies were undergoing process refinements and 26 were admitted for configuration and linking. This move is also in line with the President’s Administrative Order 23 on 21 February 2020 which directs all agencies to eliminate overregulation in the government to promote efficient delivery of services and improve ease of doing business in and the competitiveness of the country (ARTA, 2021[18]).

Moving forward, the aims of the Filipino government will be to focus on aligning all government agencies on to digital platforms.

References

[18] ARTA (2021), ARTA Mandates Onboarding of All Trade Regulatory Government Agencies with Tradenet, https://arta.gov.ph/press-releases/arta-mandates-onboarding-of-all-trade-regulatory-government-agencies-with-tradenet/.

[8] ARTA (2020), ARTA Launches Program Nehemia to Cut Gov’t Processes by 52% Within 52 Weeks, https://arta.gov.ph/press-releases/arta-launches-program-nehemia-to-cut-govt-processes-by-52-within-52-weeks/#:~:text=within%2052%20weeks-,ARTA%20launches%20Program%20NEHEMIA%20to%20cut%20gov't%20processes%20by,House%20in%20Malaca%C3%B1an%20Compound%20tod.

[14] ARTA (n.d.), REGULATORY IMPACT ASSESSMENT (RIA), https://arta.gov.ph/riamanual/.

[9] ARTA (n.d.), THE EASE OF DOING BUSINESS LAW, https://arta.gov.ph/about/the-ease-of-doing-business-law/.

[2] ASW (n.d.), Philippine General Information, https://asw.asean.org/index.php/nsw/philippines/philippines-general-information.

[17] Bureau of Customs (2019), DOC Modernization in Full Swing, “Seamless and Simplified”, https://customs.gov.ph/boc-modernization-in-full-swing-seamless-and-simplified/ (accessed on 16 May 2022).

[7] Clifford Chance (2015), Philippine Competition Act.

[5] DAP (n.d.), Modernizing Government Regulations Program.

[15] DICT (2017), Philippine Inclusive Innovation Industrial Strategy.

[1] ERIA (2020), Interconnected Government: International Regulatory Cooperation in ASEAN.

[13] European Institute for Gender Equality (n.d.), .

[10] LawPhil (2019), , https://lawphil.net/statutes/repacts/ra2019/ra_11293_2019.html.

[11] LawPhil (2019), , https://lawphil.net/statutes/repacts/ra2019/ra_11337_2019.html#:~:text=%E2%80%94%20It%20is%20hereby%20declared%20the,and%20trade%20in%20the%20country.

[4] NEDA (2021), Updated Philippine Development Plan.

[12] OECD (2018), Good Regulatory Practices to Support Small and Medium Enterprises in Southeast Asia, OECD Publishing, Paris, https://doi.org/10.1787/9789264305434-en.

[6] OECD/ADB (2020), Regulatory Impact Assessment in the Philippines, OECD Publishing.

[3] Umali, T. (2020), The Philippines Goes Live on ASEAN Single Window Platform, https://opengovasia.com/the-philippines-goes-live-on-asean-single-window-platform/.

[16] World Bank (2020), Philippines Digital Economy Report 2020.

Notes

← 1.  Guidelines on the Grant of the PBB for FY 2021 under Executive Order (EO) No. 80 (s. 2012) and EO 201 (s. 2016).

← 2.  The law fully took effect 15 days after posting.

← 3.  Between the period of May – September 2019, ARTA was able to train 223 participants from 44 National Government Agencies on its basic user training for RIA. Further, in co-operation with USAID and DAP, 34 additional trainings have taken place for RIA for government agencies.

← 4.  Non-major regulations.

← 5.  The aim of the NPRMS will be to provide comprehensive, organized, and systematized framework in the issuance, implementation, and review of regulations as well as set expectations in the behaviour of regulators in the country.

← 6.  This platform is still undergoing development.

← 7.  Business Name Registration System Next Generation.

← 8.  Business permitting and licensing system.