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Comparison Far East

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Submitted By jaskirat1
Words 487
Pages 2
Comparison – Constraints & Challenges
Indonesia
• GCI Rank: 38/148
• Efficiency driven economy.
• Rigidities o Wages Structure o Hiring & firing people
• Poor health care. o High infant mortality rate o Communicable disease
• Increasing interest rates
• Transparency International’s Corruption Perceptions Index: 137/158
• Unemployment: 10%
• Natural disasters: Tsunamis, earthquakes, etc cripple economy and brought maximum population under poverty overnight.
• Energy shortage. Not able to utilize natural resources for geothermal energy.
• Poor implementation of economic reforms.
• Technological readiness: 75/148
• Inefficient government bureaucracy.
• Launching Business o 4 days o 4 procedures
Malaysia
• GCI Rank: 24/148
• Transition stage between efficiency driven and innovation driven.
• Shortage of skilled labour o Low level of women workforce. (ranked 131/148) o Lack of developed educational sector,
• Budget Deficit.
• Lack of IP rights and laws.
• Low Technology readiness in comparison with other SE Asian countries (Ranked 51/148).
• Inefficient government bureaucracy.
• Corruption
• Poor work ethics in national labour force.
• Insufficient capacity to innovate.
The Philippines
• GCI Rank: 59/148
• Doing Business Rank: 138
• High rate of crime
• Transition from factor driven to efficiency driven
• Rigidities o Job creation – structural problem o Shifting labour from agriculture to industries
• Aging & Inadequate supply of infrastructure
• Currency instability and volatility
• High level of government debt
• Rapid population growth
• Endemic corruption (Rank 87/148)
• Inefficient judiciary system
• Rising energy costs
• Prone to natural disaster
• Business Freedom: Rank 135
• Low domestic saving and consumption
• Low private investment and entrepreneurship
• Highest level of rural poverty compared to Asian Tigers
• Launching a business o 36 days o 16 procedures
Thailand
• GCI Rank: 37/148
• Efficiency Driven
• Poor health condition – Max HIV Cases after Africa
• Political instability & turmoil
• Excessive red-tapisim
• Low reliability on IP rights
• Cronyism
• Poor education sector
• Rise on interest rates
• High energy prices
• Highest corruption among the Asian Tigers
• Poor infrastructure
• Technological readiness: 78/148

Singapore Malaysia Thailand Indonesia Phillipines
Doing Business 1 12 18 128 138
Starting a business 4 54 85 166 161
Dealing with construction permits 2 96 16 75 100
Getting electricity 5 28 10 147 57
Registering property 36 33 26 98 122
Getting credit 12 1 70 129 129
Protecting investors 2 4 13 49 128
Paying taxes 5 15 96 131 143
Trading across borders 1 11 20 37 53
Enforcing contracts 12 33 23 144 111
Resolving insolvency 2 49 58 148 165 Basic Requirements 1 27 49 45 78
Institutions 3 29 78 67 79
Infrastructure 2 29 47 61 96
Macroeconomic environment 18 38 31 26 40
Health and primary education 2 33 81 72 96 Efficiency Enhancers 2 25 40 52 58
Higher education and training 2 46 66 64 67
Goods market efficiency 1 10 34 50 82
Labor market efficiency 1 25 62 103 100
Financial market development 2 6 32 60 48
Technological readiness 7 51 78 75 77
Market size 34 26 22 15 33 GINI Index 0.462 0.394 0.381 0.43

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