The document summarizes an assessment of recommendations from the Arangkada initiative to improve the business environment and competitiveness in the Philippines. It provides an overview of the forum agenda, interactive activities, and Arangkada activities over the past year. The main body details the assessment results for various sectors and business environment areas, assigning ratings on a scale of 1 to 6 stars to indicate the level of progress. Overall, 55% of areas assessed received a rating of 3.5 stars or higher, indicating substantial progress in many areas but still work remaining to fully implement recommendations.

2. PURPOSE OF FORUM
• Observe First Anniversary of Arangkada, launched December
13, 2010
• Report on JFC Arangkada activities
• Release First Assessment of
Arangkada
Recommendations
• Assemble public and private
sector Arangkada partners
to energize our advocacy for
growth and jobs.
Arangkada Press Launch with DTI
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3. INTERACTIVE FORUM
• Send us your questions and comments:
 By email, arangkadaph@gmail.com
 By handwritten note (in folder)
-identify yourself (optional)
 By Twitter, @ArangkadaPH
 By Facebook, www.facebook.com/arangkadaphilippines
• If we can’t answer today, we will after the
Forum
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4. FORUM PROGRAM
Part 1: Growing Too Slow
• With former Secretary Roberto de Ocampo
Part 2: Becoming More Competitive
• With National Competitiveness Council Private Sector Co-Chair Guillermo Luz
Part 3: Seven Big Winner Sectors
• With experts moderated by Mr. David Celdran
Part 3: Infrastructure
• With experts moderated by Ms. Maria Ressa
Part 4: General Business Environment
• With experts moderated by Mr. Coco Alcuaz
Address by President Aquino and Open Forum
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5. ARANGKADA
ACTIVITIES
• Nearly 70 advocacy dialogue meetings with senior government
officials
• Website – www.arangkadaphilippines.com (over 15,000 hits in
7 months) from 100 countries
• Seven Big Winner Sectors Workshop March 30 and Arangkada
Forum January 26
• Partnership with National Competitiveness Council
• Cooperation with Philippine Business Groups – Legislative
Priorities, Memo to President June 30, Letters re Holidays, etc.
• First annual Arangkada Anniversary Assessment
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6. PART 1: GROWING
TOO SLOW
Real GDP yoy growth rates, ASEAN-6, quarterly, 1q2009-3q2011
Indonesia Vietnam Malaysia
25% Philippines Thailand Singapore
20%
15%
10%
5%
PH
0%
-5%
-10%
1Q-09 2Q-09 3Q-09 4Q-09 1Q-10 2Q-10 3Q-10 4Q-10 1Q-11 2Q-11 3Q-11
Sources: Respective national statistics offices
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7. PART 1: GROWING TOO
SLOW
FDI, Bn, US$
Singapore Indonesia Vietnam
45 Malaysia Thailand Philippines
40
35
30
25
20
15
10
5
PH
0
-5
-10
Source: UNCTAD
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9. PART 2: BECOMING MORE
COMPETITIVE
Survey Title Year RP Previous RP ASEAN-6 Trend
ranking ranking position
Best Countries for Business 2010 91 of 128 84 of 127 5 of 6 Deteriorated
Failed States Index 2011 51 of 177 53 of 177 6 of 6 Improved
Index of Economic Freedom 2011 107 of 179 115 of 179 4 of 6 Improved
World Competitiveness
Yearbook 2011 41 of 59 39 of 58 5 of 5 Deteriorated
International Property Rights 2011 87 of 129 80 of 115 6 of 6 Improved
Corruption Perception Index 2011 129 of 183 134 of 178 6 of 6 Improved
Human Development Report 2011 112 of 187 113 of 187 4 of 6 Improved
E-governance Readiness not yet
Survey* 2012 released 78 of 183 - -
Doing Business 2012 136 of 183 134 of 183 6 of 6 Deteriorated
not yet
Investing Across Borders* 2012 released 87 countries N/A N/A
Paying Taxes 2012 135 of 183 124 of 183 5 of 6 Deteriorated
Global Competitiveness Report 2011 75 of 142 85 of 139 6 of 6 Improved
not yet
Global Enabling Trade Report* 2012 released 82 of 125 - -
Travel & Tourism
Competitiveness 2011 94 of 139 86 of 133 6 of 6 Deteriorated
Environmental Performance not yet
Index* 2012 released 50 of 163 - -

10. PART 3: SEVEN BIG WINNER
SECTORS
AGRIBUSINESS
BUSINESS PROCESS OUTSOURCING
CREATIVE INDUSTRIES
INFRASTRUCTURE
• POLICY
• AIRPORTS
• POWER
• ROADS AND RAIL
• SEAPORTS
• TELECOMMUNICATIONS AND INFORMATION
• WATER
MANUFACTURING AND LOGISTICS
MINING
TOURISM, MEDICAL TRAVEL, AND RETIREMENT
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11. PART 4: GENERAL BUSINESS
ENVIRONMENT
BUSINESS COSTS
ENVIRONMENT AND NATURAL DISASTERS
GOVERNANCE
JUDICIAL
LABOR
LEGISLATION
MACROECONOMIC POLICY
SECURITY
SOCIAL SERVICES: EDUCATION
SOCIAL SERVICES: HEALTH AND POPULATION
SOCIAL SERVICES: POVERTY

12. METHODOLOGY
• Almost 50 private sector experts, including several of
our panelists
• Annual assessment will allow measurement of
progress
No Longer Relevant Started
Backward/Regression Substantial Progress
Not Ongoing Completed
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13. ASSESSMENT
SUMMARY
1 star: No 2 stars: 2.5 stars: 3 stars: 3.5 stars: 4 stars: 4.5 stars: 5 stars: 6 stars:
Longer Backwa- Backwa- Not Not Started Started – Substan- Comple-
Relevant rds/ rds/ Ongoing Ongoing Substan- tial ted
Regress- Regressi - Started tial Progress
ion on - Not Progress
Ongoing
Part 1: Growing Too Slow 3 5
Part 2: Becoming More
3
Competitive
Part 3: Seven Big Winner
12 24 1 100 12 105 2 21 6
Sectors
Agribusiness 1 3 9 5
BPO 3 4 7 7 7 2
Creative Industries 1 10 4 1
Infrastructure
Policy 1 3 9 7 3 2
Airports 5 6 2 2
Power 2 5 1 4 9
Roads & Rail 2 3 4
Seaports 14 6
Telecommunications 1 6 3 1
Water 3 6
Manufacturing 1 7 3 6
Logistics 3 2 9 7 3 1
Mining 1 3 13 13 3
Tourism, Medical Travel, and
2 1 7 22 2
Retirement

14. ASSESSMENT
SUMMARY
1 star: No 2 stars: 2.5 stars: 3 stars: 3.5 stars: 4 stars: 4.5 stars: 5 stars: 6 stars:
Longer Backwa- Backwa- Not Not Started Started – Substan- Comple-
Relevant rds/ rds/ Ongoing Ongoing Substan- tial ted
Regress- Regressi - Started tial Progress
ion on - Not Progress
Ongoing
Part 4: General Business
4 22 55 10 75 10 1
Environment
Business Costs 4 1 4 7
Environment and Natural
2 3 9
Disasters
Foreign Equity and
3 4 5
Professionals
Governance 1 4 3 5 3
Judicial 2 4 5 1
Labor 2 1 4 1 1
Legislation 1 4 8
Local Government 3 3 4 5 1
Macroeconomic Policy 14 1 13 1
Security 5 4 2 4
Social Services:
Education 7 5
Health & Population 3 4 2
Poverty 2 1 1
TOTAL 16 46 1 158 22 185 2 34 7
3 stars and below: 205 = 45% 3.5 stars and up: 250 = 55%

15. ASSESSMENT
SUMMARY
50% mark
Overall
Part-1
Part-2
Part-3
3-Agri
3-BPO
3-Creative Industries
3-Infrastructure Policy
3-Airports
3-Power
3-Roads & Rail
3-Seaports
3-Telecommunications and Information
3-Water
3-Manufacturing
3-Logistics
3-Mining
3-Tourism, Medical Travel & Retirement
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
3 Stars and Below 3.5 Stars and Up

16. ASSESSMENT
SUMMARY
50% mark
Part 4
4-Business Cost
4-Environment & Nat. Disasters
4-Foreign Equity & Professionals
4-Governance
4-Judicial
4-Labor
4-Legislation
4-Local Govt
4-Macroeconomic Policy
4-Security
4-Education
4-Health & Pop'n
4-Poverty
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
3 Stars and Below 3.5 Stars and Up

17. ASSESSMENT
SUMMARY
Overall Rating, percentage Roads and Rail, percentage Tourism, Medical Travel, and
Retirement, percentage
5 1 Star 2
6 Stars 1 Star 6% Stars
Stars
7% 10%
6% 3%
3
3.5 Stars 3 Stars 5 Stars 2 Stars Stars
and up and below 23% 14% 20%
55% 45%
3 Stars 4
4 Stars 23% Stars
23% 65%
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18. Sample Assessment
Part 3: Business Process Outsourcing, p.10
Most of the priority BPO bills have substantially progressed
in the Congress. The amendment to the Labor Code
Strengthen the industry removing the restriction on women working at night was
with a robust legal signed as RA 10151. The DICT bill has been approved by the
House on 3rd reading and is pending 2nd Reading in Senate.
A. framework, passing five
The Data Privacy bill has been approved by the House on 3rd
key bills and opposing Reading and is pending 2nd Reading in Senate. The
legislation that harms Cybercrime Prevention Act is pending Committee Report in
the IT-BPO investment the House, and approved on 2nd Reading in Senate and is a
climate. LEDAC priority. Rationalization of Fiscal Incentives passed
3rd Reading in the House and is pending Committee Report
in Senate.
Substantial Progress
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19. Sample Assessment
Part 3: Infrastructure-Roads and Rail, p.37
Operationalized rail transport improvement
projects include the upgraded Bicol PNR line and
Buildintercityrail the start of operations of the 4-station MRT-1
and urban light North Extension, both initiated in the previous
rail, especially on administration. Other major rail projects remain
Luzon, twice as in the planning stage except for the suspended
G. fast. Accelerate controversial PRC-funded Northrail project. DOTC
rail construction Sec. de Jesus planned to bid O&M for the Metro
on Luzon, using Manila light rail system to the private sector, but
PPPs as well as this was shelved by his successor. Delays have
DOTCfunds. long plagued the efforts of DOTC to implement
rail projects.1
Backwards/Regression
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20. Investment banks-but not ADB-
predict Philippines can be a
major economy.
Goldman Sachs Asian HSBC
Citi (2011) Development
(2007) (2012)
Bank (2011)

21. Bank Date of Report Title of Report Growth Projection
The N-11: More
GS March 2007 • 17th largest economy by 2050
Than an Acronym
• 6th of 10 by GDP growth, 7.3%,
Global Growth 2010-2050
Citi February 2011
Generators • 9th of 10 by GDP per capita
growth, 5.5%, 2010-2050
Asia 2050: • Philippines, named as an aspiring
ADB August 2011 Realizing the Asian economy, IF able to move out of
Century Middle-Income Trap
HSBC January 2012 The World in 2050: • 16th largest economy by 2050
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22. Estimated FDI, job creation , taxes if
recommendations implemented, 2010-
2020