Nov 15, 2012

Taiwan: Taiwan 16th- Best Country For Business

In a recent poll by the renown Forbes Magazine, Taiwan has been ranked as the 16t-best country for business. 

Below is an article published by Focus Taiwan News Channel:

Taiwan has made a massive leap to become the 16th-best country for business, according to the results of a survey conducted by U.S.-based Forbes Magazine.

Taiwan, which ranked 26th in a similar poll last year, only trails third-ranking Hong Kong and fourth-ranking Singapore among the Asian economies on the Forbes’ 2012 “Best Countries for Business” list.

The magazine said in a profile on Taiwan that the country has "a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade."

In keeping with this trend, Forbes said, some of Taiwan's large state-owned banks and industrial firms have been privatized.

Exports, led by electronics, machinery and petrochemicals, have provided the primary impetus for the country's economic development, the magazine said.

Nevertheless, Forbes pointed out that the heavy dependence on exports has exposed Taiwan's economy to fluctuations in world demand. It identified diplomatic isolation, a low birth rate and a rapidly aging population as the country's major long-term challenges.

The magazine quoted President Ma Ying-jeou as saying that the landmark Economic Cooperation Framework Agreement signed with China in June 2010 will serve as a stepping stone toward trade pacts with other regional partners. Taiwan is now in talks with Singapore for a similar economic cooperation deal.

Forbes scrutinized 11 different factors in 141 countries to determine its annual "Best Countries for Business" list, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.

New Zealand replaced Canada to lead the 2012 list thanks to "a transparent and stable business climate that encourages entrepreneurship," the magazine said.

Denmark came in second, advancing from its fifth ranking of a year ago, on the strength of its technology, trade freedom and property rights.

Hong Kong maintained its 2011 ranking at third and Singapore ranked fourth. Forbes said the only thing keeping Singapore from the top spot is a low score on personal freedom, as measured by watchdog organization Freedom House.

Canada slid from the top of the rankings in 2011 to No. 5 this year, losing ground on innovation and technology.

The sixth-to-10th-ranked countries were Ireland, Sweden, Norway, Finland and the United Kingdom, in that order.

According to Forbes, the United States has continued to lose ground against other nations since being placed second in 2009.

Runaway government spending and a heightened regulatory environment have held back the U.S., the magazine said. It ranked 1.