Facts on the Philippines’ 2023

World Competitiveness
Performance
48th (out of 63 economies) in 2022 to
52nd (out of 64 economies) in 2023.
40th in economic
performance (up by 13
spots) in 2023.
The Philippine’s rank
41st in 2019 to 52nd in
2023
 •
The Philippines ranked 40th
in business efficiency, with
productivity and efficiency
showing improvement.
The country’s government
efficiency dropped, falling
from 48th in 2022 to 52nd
in 2023.
The country’s government
efficiency dropped, falling
from 48th in 2022 to 52nd
in 2023.
The 2022 List of Establishments (LE) of the
Philippine Statistics Authority (PSA)

A total of 1,109,684 business enterprises are

operating in the country.

MSMEs-1,105,143 (99.59%)

Large Enterprise- 4,541 (0.41%)

Micro enterprises 90.49% (1,004,195) of

Small enterprises 8.69% (96,464)

Medium enterprises 0.40% (4,484).
The top five (5) industry sectors

(1) Wholesale and Retail Trade; Repair of Motor

Vehicles and Motorcycles (546,863);
(2) Accommodation and Food Service Activities
(158,113);
(3) Manufacturing (133,504);
(4) Other Service Activities (71,145); and
(5) Financial and Insurance Activities (50,782).
 Contribution of Establishments to Total
Employment
MSMEs - 5,607,748 or 65.10%
Micro Enterprises - 32.69%
Small enterprises - 25.35%
Medium enterprises- 7.06%.
Large Enterprises – 34.90 % or 3,006,821
jobs of the country’s overall employment.
Mainstreaming the National
Competition Policy (NCP)

Resource Speaker : Ms. Leizel A. Gabaldon

The Philippine Competition Commission (PCC) welcomes the signing of
Administrative Order (AO) No. 44 (s. 2021) by the Office of the President directing
government agencies to adopt and implement the National Competition Policy (NCP),
marking a milestone in mainstreaming competition policy across the public sector.
 Competition Law Competition Policy

Competition law (also known as Competition policy refers to a

antitrust law) is a set of legal rules broader framework that includes
and regulations that aim to promote various measures beyond legal
fair competition in markets enforcement

It ensures that companies compete It encompasses economic,

fairly, prevents anticompetitive regulatory, and institutional
practices, and protects consumers. aspects.
These laws are enforced by
government agencies or courts.
Examples of Anticompetitive
Practices: Price-fixing, bid-
rigging, abuse of dominant
market position, and mergers
that reduce competition.
 Competition Policy: What is it?
Competition policy is “the set of policies and laws which ensure that
competition in the market place is not restricted in such a way as to
reduce economic welfare.
Motta, M. (2004), Competition Policy: Theory and Practice
 Competition Policy: What is it?
Competition policy is government policy that promotes or maintains
the level of competition in markets, and includes governmental
measures that directly affect the behavior of enterprises and the
structure of industry and markets.
 Two (2) Elements
Policies that promote competition and greater reliance on market forces

Competition Law

Source: ASEAN Regional Guidelines on Competition Policy

 National Competition Policy

The NCP complements the Philippine Competition Act and contributes

to economic recovery, especially for vulnerable sectors like micro,
small, and medium enterprises (MSMEs).
 National Competition Policy
NEDA-PCC JMC No. 01-2020
The NCP aims to steer regulation and administrative procedures of
government agencies to level the economic playing field

Coverage: National Government Agencies (NGAs) Local Government

Units (LGUs), and Government –owned or controlled Corporations
(GOCCs)

All government agencies need to adopt and comply with the three pillars
of the NCP.
 The National Competition Policy (NCP) in the Philippines has
several impacts on both consumers and businesses:
Consumers Businesses
Lower Prices: Increased competition can Level Playing Field: The NCP ensures fair
lead to lower prices for goods and services, competition, preventing monopolistic
benefiting consumers. practices.
Quality Improvements: Businesses strive to Innovation: Competition drives innovation as
improve quality to attract customers in a businesses seek to differentiate themselves.
competitive market.
More Choices: A competitive environment Efficiency: Businesses become more
offers consumers a wider range of products efficient to survive in a competitive market.
and services.
Consumer Protection: The NCP Market Entry: Easier entry for new
encourages fair practices and transparency, businesses fosters entrepreneurship.
safeguarding consumer rights.
 LEGAL BASES

Date Significant Events Objectives

January 2016 Establishment of PCC

July 2020 Signing of NEDA-PCC JMC 01- To provide guidelines for the
2020 implementation of the Competition
Act of 1996 and other relevant laws
Guidelines on the Implementation and regulations, and to ensure a
of the Competition Act of 1996 more effective and efficient
(Republic Act No. 7925) and Other competition law enforcement in the
Relevant Laws and Regulations Philippines.
 LEGAL BASES
Date Significant Events Objectives

March 2022 Issuance of AO 25 IATF To provide guidelines for the

Memorandum Circular 2022-1 implementation of the National Competition
Policy, which aims to promote economic
Administrative Order No. 25 efficiency, innovation, and consumer
(AO 25) - Guidelines on the welfare by ensuring fair competition in
Implementation of the National various industries and sectors.
Competition Policy

August 2023 Issuance of AO 25 IATF To update and refine the guidelines for the
Memorandum Circular 2023-1 implementation of the National Competition
Policy, with a focus on improving
Administrative Order No. 25 competition law enforcement, promoting
(AO 25) - Guidelines on the economic efficiency, and enhancing
Implementation of the National consumer welfare.
Competition Policy
 Key Pillars of NCP
Pro-Competitive Policies &  Promote market efficiency and enhance consumer
Government Interventions welfare

 Not to distort competition by creating market barriers

to entry and promoting collusive outcomes.

Competitive Neutrality  GOCCs not to enjoy competitive advantages and

disadvantages over private firms simply by virtue of
public ownership

Enforcement of Competition-  All government agencies to uphold the original and

Related Laws and Issuances primary jurisdiction of the PCC over the enforcement
and implementation of PCA
The plan is anchored on the theme
"Malasakit at Tapat na Serbisyo"
(Compassionate and Responsive Service)
and aims to achieve sustainable and
inclusive economic growth, reduce poverty,
and improve the quality of life of Filipinos.
 aims to address various development
challenges facing the country and
promote sustainable growth and
development for all Filipinos.

• Its inclusion aims to enhance market

competition by fostering an environment
that:
•Penalizes anti-competitive practices.
•Facilitates the entry of players

•Supports regulatory reforms to stimulate

investments and innovation.

•Provides a framework for government

agencies to formulate and adopt pro-
competitive policies
•By aligning government interventions
with competition principles, the NCP
contributes to market efficiency and
inclusive economic growth
How can government entities comply with
the NCP?
Steps:
1.Review Policies and Interventions: Government agencies should assess
their policies and interventions to determine if they inadvertently favor certain
firms within the same sector or industry. Ensuring a level playing field is
crucial.
How can government entities comply with
the NCP?
Steps:
2. Avoid Anti-Competitive Practices:
Cartels: Government entities should not engage in anti-
competitive agreements, such as price-fixing or market-
sharing, with other businesses. These practices harm
competition and consumers.
o
How can government entities comply with
the NCP?

Bid-Rigging: When awarding contracts, ensure genuine competition among

bidders rather than colluding to deceive buyers.
Abuse of Dominant Position: If a government entity holds substantial
market power, it must avoid anti-competitive conduct that harms
consumers or excludes competitors.
How can government entities comply with the NCP?

3.Collaborate with Competition Agencies: Work closely with competition

authorities responsible for enforcing competition law. Sectoral regulators may
also play a role in ensuring fair competition within their specific domains.
The Future

“We are moving

rapidly towards a
'one world’.”
The Future

"Be the change you

wish to see in the
world."
– Mahatma Gandhi
THANK YOU!
References
https://cpbrd.congress.gov.ph/images/PDF%20Attachments/Facts%20in%20Figures/FF2023-
38_Phil_2023_World_Competitveness_Perf.pdf

National Competition Policy gets Palace nod for public sector rollout - Philippine Competition
Commission (phcc.gov.ph)

Joint Memorandum Circular No. 01-2020 and Administrative Order No. 44, s. 2021. The NCP
complements the Philippine Competition Act and contributes to economic recovery, especially for
vulnerable sectors like micro, small, and medium enterprises (MSMEs)

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