MANILA, Philippines – Building up Davao City as the ideal local government, President Rodrigo Duterte “directed” mayors across the Philippines to cut down the processing period of business permits to just 3 days.

“I am directing you publicly. All clearances, permits emanating from your office that would also need your approval, must be out, at the very least in 3 days,” Duterte said in his State of the Nation Address on Monday, July 22. (READ: How businessmen cope with Duterte’s politics)

According to Duterte, the country is losing much from making it difficult for aspiring businessmen to set up shop because of the permit requirements.

The Philippines ranked 124th out of 190 economies in the World Bank’s latest Ease of Doing Business report. The government contested this, claiming that the World Bank did not include new reforms in the tally. But in his SONA, Duterte admitted the need for much more improvement.

“I am directing also the DILG Secretary [Eduardo] Año for the local government to see to it that this is honored,” Duterte said.

In fact, the Department of the Interior and Local Government (DILG) has been pushing for ease of doing business since 2017, calling for mayors to streamline their process of approving or rejecting permits.

Under the Ease of Doing Business Act signed by Duterte in May 2018, simple transactions of business entities with government should be processed within 3 days, 7 days for more substantial transactions, and 20 days for highly technical transactions. 

Duterte did not recognize the categories in his order.

The DILG usually compels local government units to comply by threatening them with suspensions. This DILG tactic has not been applied in the case of the ease of doing business compliance. 

With Duterte’s SONA remarks, the DILG now has the orders to push harder against LGUs on this issue. – Rappler.com

For highlights of President Duterte’s 4th SONA, check out our live blog.

For related stories, visit Rappler’s 2019 State of the Nation Address page.

Rappler takes a deeper look at the first half of Rodrigo Duterte’s presidency – its highs and lows, its achievements and shortcomings: 
Duterte Year 3: The Halfway Mark