The World Bank has released its 2019 Doing Business report, revealing that Thailand has dropped one position to 27th place out of 190 countries, down from 26th last year. This comes despite an increase in the Ease of Doing Business Score (EODB), which rose by 1.06 points to a total of 78.45. The Office of the Public Sector Development Commission (OPDC) remains optimistic, highlighting improvements in four key areas: starting a business, obtaining electricity, paying taxes, and international trade. They downplay the drop in ranking, viewing the score increase as a sign of progress.

The World Bank's annual report ranks countries based on their business environment. Thailand's score reflects improvements in facilitating business operations, particularly in the areas mentioned above. However, the country saw a decline in its construction permit ranking, which fell to 67th from 43rd the previous year. This decline is attributed to bureaucratic challenges, including a shortage of engineering personnel to conduct inspections, leading to longer processing times and increased costs for the private sector. The OPDC plans to propose regulatory reforms to streamline processes and reduce timeframes, as well as to incorporate technology, such as linking government databases.

“Rankings do not tell the whole story; we will focus on whether scores in each area show improvement. We are not concerned about the ranking itself but rather about the substantive developments that enhance the quality of life for citizens,” said Mr. Pakorn Nilprapunt, Secretary-General of the OPDC.

This year, the World Bank has revised its ranking criteria from the previous Distance to Frontier (DTF) method to a new EODB measurement, aiming for a more accurate reflection of reality. Under this new system, the best-performing countries in each indicator receive a score of 100, while the worst receive a score of 0, with other countries scored based on their performance relative to this benchmark.

Mr. Mara Warwick, the World Bank's Director for Thailand, Brunei, Malaysia, and the Philippines, noted that rankings are sensitive and foster competition by allowing comparisons with other countries worldwide. While Thailand has improved, other nations have also made progress, and he believes the government will continue to push for strong reforms.

“Comparing with other countries, starting a business in Thailand used to take about a month 16 years ago, but now it takes just 7 days, while New Zealand takes only half a day. Resolving bankruptcy issues in Thailand takes 1.5 years, compared to Malaysia's 1 year and Mongolia's 4 years. This Doing Business ranking will serve as a tool for policymakers moving forward,” Mr. Mara stated.

New Zealand topped this year's Doing Business report, followed by Singapore, Denmark, Hong Kong, and South Korea. The United States ranked 8th, down from 6th last year. In Southeast Asia, Singapore maintained its 2nd place ranking, while Malaysia improved to 15th, up 9 spots. Thailand is at 27th, down 1 spot, Brunei at 55th, up 1 spot, Vietnam at 69th, down 1 spot, Indonesia at 73rd, down 1 spot, the Philippines at 124th, down 11 spots, Cambodia at 138th, down 3 spots, Laos at 154th, down 13 spots, and Myanmar at 171st, unchanged.

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