The latest report released by U.S.-based Business Environment Risk Intelligence assesses Taiwan’s Profit Opportunity Recommendation at 73 points, tied for No. 3 in the world with Norway. Of the 50 reviewed countries, Taiwan trails only Singapore and Switzerland, taking second place in Asia.
This result, when viewed in light of the European sovereign debt crisis and U.S. financial slowdown, is significant in that it reaffirms Taiwan’s political and economic development is on the right track.
The report also describes Taiwan’s operational conditions as excellent, with infrastructure investment to expand over the next two years and more incentives adopted to accelerate projects. Another highlight is the greenlighting of mainland China-controlled financial institutions to take a maximum 10-percent stake in Taiwan banks or holding companies.
Clearly, BERI has recognized that pragmatic ROC government policymaking aimed at promoting infrastructure is expanding the domestic market and cross-strait economic exchanges.
In terms of political risk, Taiwan is rated sixth worldwide with 62 points, one place and one point up on the previous report. Despite the Jan. 14 presidential and legislative elections, the island’s political climate remains stable—a necessary condition for international investment.
Other developments noted by BERI include a US$5.88 billion upgrade of the ROC air force’s aging F-16 A/B fighters, and negotiations on economic cooperation pacts with India, Indonesia, New Zealand and Singapore. These show that although cross-strait relations are peaceful and stable, the ROC government will continue upgrading the nation’s defense capabilities while working to sign trade agreements with partners around the globe.
Coincidentally, in the most recent Index of Economic Freedom produced by U.S.-headquartered The Heritage Foundation, Taiwan turned in its best-ever performance. The island was rated 18th, seven places up from last year and ahead of Japan at 21st and South Korea at 31st.
The index reflects well on the government’s policies, in particular the Cross-Straits Economic Cooperation Framework Agreement (ECFA). Among the 10 rankings, Taiwan improved in fighting corruption, restraining government spending and bolstering financial, currency, enterprise and labor freedoms.
With the BERI and Heritage assessments indicating that government political and economic policies are moving in the right direction, it is obvious that the efforts to reboot Taiwan’s business climate have been unanimously endorsed by the international community.
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