January 26, 2006
US-based Business Environment Risk Intelligence, in its third Business Environment Risk Report of 2005, gave Taiwan a Profit Opportunity Recommendation score of 72, earning the nation a fifth place spot globally alongside Norway and the third best ranking in Asia. Taiwan's latest score and rankings are the same as those BERI posted for Taiwan in its previous report in 2005. Of the fifty major nations evaluated in the report, Taiwan was outscored by only Switzerland, Singapore, Japan, and the Netherlands.
BERI once again gave Taiwan's business environment its highest rating of 1A, meaning the firm considers Taiwan a low-risk country that is ripe for investment. It also noted that the military threat emanating from China is steadily tapering off. Taiwan's industrial output and labor participation rate have both been on the rise and the nation is expected to post an annual economic growth rate of 3.6% for 2005. BERI, anticipating continued improvement in Taiwan's overall business environment, projects Taiwan will earn POR scores of 73 in one year and 74 in five years. These scores would find the nation established firmly in its current strong rankings of fifth worldwide and third in Asia.
In Asia, Taiwan's fifth place ranking globally leaves it trailing only global number two Singapore and third-place Japan, which attained POR scores of 78 and 74 respectively. Sharing the fourth spot in Asia China and Malaysia place just 19th worldwide with scores of 59 each. Following in Asia in order are South Korea (21st globally; POR 58), Thailand (29th; 48), the Philippines (36th; 43), Vietnam (39th; 42), and Indonesia (47th; 40).
The Business Environment Risk Report is composed of three main indices: the Operations Risk Index, Political Risk Index, and Remittance and Repatriation Factor. On the Operations Risk Index, this latest BERI report puts Taiwan third globally, the same position as in the last report, with a score of 72. Only Switzerland and Singapore lead Taiwan globally. Singapore's ORI score of 74 is the highest in Asia, while Taiwan's score makes it second in the region. Following these two leaders in Asia are Japan (14th globally; ORI 65), Malaysia (21st; 57), China (25th; 52), South Korea (26th; 51), Thailand (30th; 47), the Philippines (40th; 41), Vietnam (46th; 38), and Indonesia (46th; 38). BERI sees Taiwan's operations risks as stable in the future and expects the nation to continue to improve in this regard.
On the Political Risk Index, Taiwan's score of 60 means it is the world's 15th least politically risky country for business investments. Moreover, the nation's PRI score is the third best in Asia, behind only Singapore (2nd globally; PRI 76) and Japan (10th; 62). Other top PRI rankings and scores in Asia in order are: Malaysia (16th globally; PRI 58), China (20th; 56), South Korea (23rd; 51), Vietnam (25th; 49), Thailand (29th; 45), the Philippines (35th; 42), and Indonesia (49th; 35). Forecasting the progressive improvement of Taiwan's political risk in coming years, BERI expects the nation to be ranked 12th globally with a PRI score of 64 in ten years.
Taiwan remains ranked third globally with a score of 84 on BERI's Remittance and Repatriation Factor. Among Asian nations, Taiwan ranks second along with Singapore (RRF 84), while Japan is the regional and global leader with a RRF score of 95. Other regional RRF rankings are South Korea (8th globally; RRF 73), China (10th; 71), Malaysia (19th; 63), Thailand (25th; 53), Indonesia (34th; 47), the Philippines (38th; 46), and Vietnam (45th; 40).
E-mail this page.
Invest in Taiwan
