The Philippines ranking fell 12 notches in 2015 Global Dynamism Index as the country lags behind in science and technology, despite getting high scores on the growth areas of labor and human capital, as well as economics and growth, the P&A Grant Thornton said.
In its latest report, the P&A Grant Thornton said the Philippines GDI ranking dropped to 33 from 21 out of 60 countries, pulled down by its research and development (R&D) ranking at 53rd or only 7 notches ahead than lowest-ranked Ukraine.
It said the Philippines investment in R&D or as percentage of of gross domestic product (GDP) is very low, just 1 point over 100, while “broadband subscriber per 100 inhabitants” (7 points over 100 inhabitants).
Mrs. Marivic Españo, Chair and CEO of P&A Grant Thornton said the Philippines’ offers growth opportunities for businesses, but its workforce and economics, it needs improvement in other growth areas, particularly science and technology to fully support business dynamism.
Españo underscored the need for the Philippines to become competitive not only in terms of human capital but across different growth areas.
“To continue attracting investors, we need to address challenges in other areas such as science and technology as well as financing environment. Amid increasing globalization and digital connectivity, more businesses are looking for new revenue streams in different markets. They are becoming more discerning in choosing which markets to enter. We cannot afford to perform weakly in areas that we know are equally critical for investors,” Españo continued.
The Philippines, however, made it to the top 10 of two GDI growth areas: economics and growth (rank 6) and labor and human capital (rank 8).
The Philippines cites the Filipino workforce as one of its most compelling advantages over any other country in Asia. It has 95 percent literacy rate, proven English proficiency, more than 350,000 graduates each year, and millions of young workforce. Of the Philippines’ over 100 million population, 25% or over 25 million are 20 to 34 years old.
GDI combines 22 indicators across five growth areas to rank the business growth environments of 60 of the world’s largest economies. Each economy is ranked for its overall dynamism or potential to support business growth.
As published in Manila Bulletin dated 23 September 2015