ASEAN competitivenes in one chart: Philippines a rising star

It's ranking jumped 10 spots for a second straight year beating Vietnam this time.

In the 2012/13 Global Competitiveness Index (GCI) rankings released this week, the Philippines jumped 10 spots for a second straight year, putting its ranking at 65. It has now switched places with Vietnam (75).

According to Nomura, the rapid improvement reflects governance reforms that we have highlighted as a key catalyst for boosting the investment climate.

"Indeed, it scored most favourably in the areas of public institutions, perceptions of corruption, and the macroeconomic environment. While we think the pace of this rise in the rankings is unlikely to be sustained, the strong reform momentum should remain supportive, in our view."

In contrast, Indonesia fell 4 places to 50, reflecting weaker scores on bureaucracy, corruption, and infrastructure, said Nomura.

"Compared with a few years ago, Indonesia‟s rankings have only marginally improved but there is a risk that this could stall if the policy environment worsens ahead of the 2014 elections."

"Meanwhile, Malaysia‟s and Thailand‟s ranking have been broadly range-bound, but we believe they are
approaching critical junctures."

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