Taiwan was recognized for a relatively strong performance in introducing reforms to help small and medium businesses generate jobs, with the nation ranked the world's 35th easiest country in which to do business, according to a report released by the World Bank Group yesterday.
The report, Doing Business in 2006: Creating Jobs, which for the first time provides a global ranking of 155 economies on key business regulations and reforms, is co-sponsored by the World Bank and the International Finance Corporation, the private-sector arm of the World Bank Group.
The report tracks a set of regulatory indicators related to business startup, operation, trade, payment of taxes and closure by measuring the time and costs associated with various government requirements.
New Zealand was ranked as the easiest country in the world in which to do business, followed by Singapore and the US. In Asia, Australia was rated sixth, Hong Kong ranked seventh, and Japan was 10th, the report said.
Among several indicators, Taiwan's weakest point was "dealing with licenses," with the nation ranking 126th, followed by "hiring and firing," in which Taiwan was rated 108th, the report said.
"Obstacles in the two areas have been addressed by foreign business groups here, and the government is trying hard to remove them in order to attract businesses," Emile Chang (張銘斌), deputy secretary-general of the Investment Commission under the Ministry of Economic Affairs, said yesterday.
Applying for general business licenses, for example, can be completed online within a day, Chang said. Previously, applicants would have to line up in front of the ministry's Department of Commerce.
After obtaining a license, companies still need to apply for other licenses, such those for their buildings and office space, from local governments, he added.
As different local governments usually have different rules and procedures for issuing licenses, it may take applicants longer to go through the process, Chang said, adding that local governments should make efforts to improve this aspect.
To hire foreign employees in Taiwan, workers need to have a bachelor's degree and at least three years of related work experience overseas to be eligible, Chang said, adding that this rule has been waived for high-tech staff to help ease labor shortages in the segment.
Countries in East Asia were found to impose the fewest regulatory obstacles on entrepreneurs after nations belonging to the Organization for Economic Cooperation and Development (OECD), but economies in the region implement reforms more slowly than Eastern European nations, OECD countries, Latin America and the Caribbean, and South Asia, the report said.
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