Global competitiveness surveys have pointed out that the presence of regulatory uncertainty and red tape, aside from poor infrastructure and unfriendly investment environment (i.e., restrictions on foreign investments in the Constitution and certain laws and government policies), explains the weakness of the Philippine economy’s overall competitiveness in comparison with our ASEAN neighbours. It has also been noted that the business enabling environment is costly and overregulated with wide variations observed in the implementation of national level regulations among local government units due to questions of jurisdictions and the lack of holistic approach to regulation.
It is recommended that a formal Regulatory Management System (RMS) be institutionalized to subject existing or proposed regulation to regulatory impact analysis. It should affirm the Regulatory Impact Analysis as a whole-of-government policy. It should highlight the need for a coherent, coordinated and responsive RMS to upgrade the quality of existing regulations since national regulatory systems require periodic maintenance to ensure that outcomes are assessed, that unnecessary or inefficient rules are weeded out, and that needed rules are adapted to address new economic and social conditions. >>read complete document