Mon, Oct 01, 2012 - Page 13 News List

Taiwan ranked 4th best for investment

INVESTMENT HAVEN:A report by a US-based research institute ranked the nation as a ‘1B,’ or ‘favorable investment environment,’ only behind three other countries

By Amy Su  /  Staff reporter

Taiwan may become the third-best investment destination out of the world’s 50 major countries next year, after maintaining the fourth-best ranking for the second consecutive year this year, the Ministry of Economic Affairs (MOEA) said yesterday, citing a US-based research institute’s latest report.

The business risk service report issued by Business Environment Risk Intelligence (BERI) SA — a global analysis and consulting firm in the US — last month showed that Taiwan remained the second-best investment destination in Asia and the fourth-best among the world’s 50 major countries.

Taiwan scored 72 points in the profit opportunity recommendation (POR) category — the fourth best score — in the BERI’s second survey of the year, the ministry said in a statement. The institute generally conducts the survey three times a year: in April, August and December.

The latest report showed the global average as 50.2 points, with Singapore, Switzerland and Norway topping the list by scoring 77 points, 76 points and 73 points respectively.

Taiwan maintained a “1B” rating among the surveyed economies, classifying the nation as a favorable investment environment, the report said.

The report said Taiwan is expected to continue expanding foreign economic and trade relations, with the pace of negotiations for the bilateral Trade and Investment Framework Agreement (TIFA) with the US expected to accelerate in the near future.

Meanwhile, the nation is expected to continue having a steady political environment over the next two years, which reduces investment risks and uncertainties for Taiwan, the report added.

These positive factors contributed to BERI’s estimate that Taiwan’s POR score may increase to 73 next year, sharing the position of third-best investment destination in the world with Norway.

Furthermore, the nation’s score is likely to increase to 75 in 2017, surpassing Norway to be the sole third-best investment destination globally, the report said.

The BERI survey evaluates a country’s investment environment in three sub-indices: operations risk, political risk and foreign exchange risk.

In the latest report, Taiwan was ranked the second-lowest place in the world — behind Singapore — in terms of operational risk down, from the first-lowest position posted in the April’s survey, BERI said.

However, BERI said Taiwan may take the first-lowest position in this sub-index next year if the economy continues to raise its competitiveness and lower the budget deficit.

As for the political risk category, Taiwan remained the seventh-lowest in the world and the second-lowest in Asia.

Supported by improved cross-strait relations with China and expectations of further TIFA talks with the US, BERI forecast Taiwan’s ranking in this sub-index would remain unchanged over the next five years.

Taiwan’s foreign exchange risks — in terms of both remittance and repatriation — are the fourth-lowest in the world and the second-lowest in Asia, the report said.

BERI said Taiwan’s foreign exchange risks were under pressure this year, but that pressure would be a short-term.

In this sub-index, Taiwan maintained fourth-best place, but should see its ranking increase one notch by 2017.

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