THE ASIAN Development Bank (ADB) has approved a $400-million policy-based loan to support the Philippine government’s efforts to improve the ease of doing business in the country.
In a statement, the multilateral lender said it has approved the financing for the Business Environment Strengthening with Technology Program (BEST) Subprogram 1, which aims to help position the country as a leading investment hub in Asia and the Pacific.
The BEST program supports private sector development reforms to streamline and improve the transparency of regulatory requirements and processes for businesses.
“The private sector is an important engine of growth and job creation. Their role in the country’s overall economic development cannot be overstated,” ADB Country Director for the Philippines Andrew Jeffries said.
“We are committed to assisting the Philippines in finding innovative ways to create an enabling environment that would spur a more dynamic business sector — one that will help drive faster economic growth,” he added.
This comes as Philippine firms continue to grapple with regulatory bottlenecks, high energy costs and weak digital infrastructure, while investors face hurdles in navigating approvals and fragmented digital systems that raise costs and deter capital.
The Ease of Doing Business and Anti-Red Tape Advisory Council said it can take up to 75 days for local firms and more than 100 days for foreign firms just to complete registration in the Philippines, slower than its regional peers.
Mr. Jeffries said high logistics costs continue to weigh on Philippine competitiveness, citing geographical constraints. Logistics account for about 27% of the cost of goods, among the highest in the region.
The BEST program will streamline legal and regulatory frameworks to make it easier to start and operate a business, with faster permits, licensing, and approvals, the ADB said.
“It will also provide clear, updated, and reliable information via online investors’ guidebooks and a digital database of business regulations through the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority (AR-TA),” the ADB said.
The BEST program builds on the ADB-Philippine partnership in pursuing reforms to strengthen public sector management systems through the Public Financial Management Reform Program, Domestic Resource Mobilization Program, Business and Employment Recovery Program, and more.
The ADB said it extended complementary technical assistance to advance reforms under the program.
This includes supporting implementing agencies such as ARTA, the Department of Trade and Industry-Board of Investments, and the Department of Information and Communications Technology in developing and implementing new systems and improved processes.
Separately, ADB President Masato Kanda met with President Ferdinand R. Marcos, Jr. on Tuesday at Malacañan Palace, where he emphasized the importance of strong cooperation.
Mr. Kanda also pledged a comprehensive package to support the Philippines as it prepares to chair the Association of Southeast Asian Nations (ASEAN) in 2026.
“ADB is committed to support the Philippines in elevating ASEAN’s ambition to become more competitive, resilient, and sustainable. I was pleased that our proposals were welcomed by President Marcos and we look forward to working together on the success of ASEAN 2026,” Mr. Kanda said in a statement.
The multilateral lender is preparing a package of support to assist the Philippines in delivering regional outcomes under the ASEAN 2026 theme of “Navigating our Future Together.”
The ADB was the second-biggest development partner of the Philippines in 2024 with 59 loans and grants worth $11.05 billion. — Aubrey Rose A. Inosante