Taiwan’s ranking improves on improving risk factors

  • By Lisa Wang / Staff Reporter

Taiwan’s investment ranking rose one position to third place as key risk factors improved from the previous assessment in December last year, according to a report by US firm Business Environment. Risk Intelligence SA (BERI).

Taiwan earned a higher profit opportunity recommendation of 62, up from 60 in December, behind Norway and Switzerland among the 50 countries assessed by BERI. South Korea was also 62nd, matching Taiwan’s investment ranking and rating of 1C.

Taiwan is expected to retain third place next year, with the score up slightly to 63, he said.

Photo: AP

BERI publishes three investment assessment reports in April, August and December. Three key indicators are used to assess a country’s investment risk: operational risk, political risk and a transfer and repatriation factor, or currency risk.

Taiwan moved up one position in its operational risk ranking to No. 2, just behind the United States and better than all its Asian business competitors, including South Korea at No. 5, China at No. 15 and Singapore at No. 18, the report showed.

Taiwan scored 65 in this category, up from 63 in December.

In operational risk, Taiwan improved in 11 sub-categories, including economic growth, contract enforcement, labor cost and productivity, earning it a ranking among the 5 first.

Taiwan received an improved political risk score of 42 from 38 in December, placing it 24th, according to the report.

Taiwan lags behind its main Asian competitors in this category. Singapore ranks #3, while China and Japan rank #5 and #7 respectively.

In currency risk, Taiwan ranked No. 1, maintaining its score of 80 from December, given its excellent foreign exchange reserves, external debt and international reserve. South Korea ranked 7th, Singapore and Japan tied for 8th and China 12th.

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