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Taiwan ranked as the 4th best investment destination in world

TAIPEI, Taiwan -- The Ministry of Economic Affairs (MOEA) yesterday said that Taiwan is ranked as the second-best investment destination in Asia and fourth in the world, citing a recent report from a leading U.S.-based research institute.

The research institute Business Environment Risk Intelligence S.A. (BERI), surveys the investment climate and competitiveness of 50 economies in April, August and December of every year.

In its December report last year, BERI's assessment of Taiwan was 72 points, while Singapore leads Asia with 78 points. China and South Korea scored 57 points, sharing the ranking of 14th. Japan scored 56 points, ranking 16th.

The survey is comprised of three major categories, including operational risk, exchange rate risk and political risk; of which, Taiwan ranked second, fourth, and eighth respectively.

Taiwan's operational risk index ranked second in the world, trailing only behind Singapore. BERI indicated that it views the Taiwanese government's efforts in seeking private funding for public infrastructure projects favorably. Overall the institute deemed Taiwan's operating risk as comparatively low, and expects Taiwan to keep its second-place ranking until 2017.

Taiwan's exchange rate risk index ranked fourth in the world, trailing behind the Netherlands, Switzerland and Singapore. The institute indicated that Taiwan's monetary situation is sound, and has relatively low exchange rate risk with national trade surplus at US$30.335 billion, up from 2012's US$40.799 billion. BERI estimates an influx of US$10 billion in foreign direct investment for 2012, and anticipates additional deregulation to promote further foreign investments.

The recent downgrade of Taiwan's political risk ranking from seventh to eighth was due to President Ma Ying-jeou's waning approval rating, and controversial policies such as the hiking of utility prices and the implementation of the second-generation National Health Insurance program, consequently casting clouds over the nation's prospects, said a MOEA official.

Although Taiwan lags behind Singapore, Switzerland, Austria, Norway, Finland, Australia and Germany in political risk ranking; BERI indicated that it considers Taiwan's political climate as relatively stable, citing Ma's continuous attempts at participating in free trade agreements and maintaining amicable relations with China. The institute also considered the increasing good will in fishing rights negotiations between Japan and Taiwan.

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