Cut business approval time: World Bank

[webfact]

Cut business approval time: World Bank
THE NATION

BANGKOK: -- THE WORLD BANK has urged Thailand to shorten its approval time for starting a business, lessen the number of tax payments and seriously enforce the bankruptcy law if it wants to move up further in the global ranking of ease in doing business.

According to the World Bank's "Doing Business 2015: Going Beyond Efficiency", released recently, Thailand was grouped in the 30 countries, out of 189 countries assessed, that were at the top of ease for doing business after its position went up to 26th with a score of 75.27 this year from 28th last year.

Asean rankings

Asean economies' rankings vary. While Singapore tops the global chart, Myanmar is towards the bottom at 177th among 189 economies.

Asean rankings

Country 2015 2014

Singapore 1 1

Malaysia 18 20

Thailand 26 28

Vietnam 78 72

Philippines 95 86

Brunei 101 98

Indonesia 114 117

Cambodia 135 134

Laos 148 155

Myanmar 177 178

Source: Doing Business 2015

Singapore continues to be the economy with the most business-friendly regulations with a score of 88.27, followed by New Zealand 86.91 and Hong Kong 84.97

Constantine Chikosi, a manager at World Bank, said that if Thailand wants to improve its ranking, it had to focus more on four reforms - time to start a business, number of tax payments, the bankruptcy law and credit requests.

The report compares business regulations for domestic firms in 189 economies, tracking and measuring one of the most important features of an economy - the ease with which it is possible to do business, trade and exchange.

Chikosi said that starting a business in Thailand took 27.5 days on average, while in New Zealand it was half a day. If Thailand could shorten that, the time and cost of business registration would be reduced.

If Thailand could cut the number of tax payments, the efficiency of tax payments will increase. Thai firms make 22 tax payments each year and spend about 260 hours on these transactions, while firms in some countries make only four to five tax payments each year.

The country may have to take seriously legal enforcement of its bankruptcy law, given its low mark at 58.73.

A state credit bureau should be set up, besides a privately owned credit bureau, he added.

Kirida Bhaopichitr, a senior economist at the World Bank's Bangkok office, said that among Southeast Asian countries, Thailand was ranked fourth after only Singapore, Hong Kong and Malaysia.

Taking 10 indicators into consideration, Thailand earned no high scores in two to three categories like paying tax. If the Internet or IT is employed to help lessen the number of tax payments or time preparing them, Thai firms may not have to contact several tax agencies and that could help upgrade the ranking in next year's report, she said.

Thailand was included in the 30 countries at the top for ease of doing business in five indicators - dealing with construction permits (sixth, 88.77 score), getting electricity (12th, 91.71), protecting minority investors (25th, 65.83), enforcing contracts (25th, 70.05) and registering property (28th, 83.04).

Ulrich Zachau, the World Bank's country director for Southeast Asia, based in Bangkok, said Thailand was a case study for modern technology that improved the business environment.

Employing an electronics system for seven years helped facilitate Thailand's exports and imports after its use of paper was cut to less than a half of the level in 2007.

Source: http://www.nationmultimedia.com/business/Cut-business-approval-time-World-Bank-30246543.html


-- The Nation 2014-10-30

[razer]

That's curious. Everyone I know in Cambodia with a business, be it a restaurant or IT, said it was easier, faster and corruption cheaper than Thailand.

I think the WB is talking about multinationals not entrepreneurs. It would be less like propaganda if it qualified what businesses would benefit.