A credit upgrade from a respected organization does not necessarily mean that the biggest global investors will suddenly flock to the Philippines.

Other countries in the region are also eyeing those same investors. Many have been disappointed at the Philippines’ bureaucratic red tape that is the bane of investors who are used to the speed with which other places like Vietnam, Singapore and Hong Kong process registration documents. It is no secret that it is easier to set up a business in most other nations in Southeast Asia than the Philippines. In Hong Kong, for example, it takes all of half a day to officially set up a new business. In the Philippines, one would be lucky to complete all documentary requirements in two weeks.

In order for the country to become truly investment grade, the economic cluster of the Aquino Cabinet must remove all the hurdles that investors – local as well as international – face.

The government need not wait until the country has advanced to the next grade. This early, the administration must back up its policy to be as investment-friendly as possible by placing the Philippines at par with the competition.

The recent upgrade will be noted by neighboring countries. They are sure to take steps to make themselves more attractive to the big players. Therefore, the Philippines cannot afford to rest on its laurels.

The Ba2 rating will be rendered meaningless if the Philippines only receives crumbs from the global investors, while other countries grab the bulk of their investible funds. Further, the country should work to attract more long-term investments—foreign direct investments. It should also welcome a lot more of the “hot money” investments in the stock market. For the volume of a country’s stock market trading is one of many economic indicators of that country’s health. But one must not forget that foreign money in the bourse is called “hot” because it can be pulled out by stock market players at a moment’s notice.

Another area is the unemployment rate. It remains uncomfortably high. While there is a growing middle class, there is still a vast number of Filipinos to whom credit upgrades are both meaningless and worthless because they are very poor and they are very poor because they are jobless. In working for the country’s eventual upgrade to investment grade, the government should target investors who will help create employment.