BERI’s 3rd “Investment Environmental Risk Assessment Report” in 2018, ranked 4th in the world in Taiwan’s investment environmental risk assessment

Business Environment Risk Intelligence (BERI) The 3rd (December) 2018 (Investment Environmental Risk Assessment Report) pointed out that Taiwan's Investment Opportunity Recommendation (POR) ranks globally. 4th place (2nd place in 2018), with a total score of 67 points (68 points for the 2nd time in 2018); among the 50 major countries in the world, followed by Switzerland, Norway, Singapore . (As shown in Tables 1 and 2),

Taiwan's investment environmental risk is ranked 1B in this evaluation. BEI's suggestion for investors is that it can invest in the stock market for a long time. Looking forward to 2019, Taiwan ranked 5th in the world with a score of 65; in 2023, it ranked 5th in the world with a score of 68.

Taiwan ranks second in the Asian region, second only to Singapore (the world's second, 68 points), and other Asian countries are ranked as follows: South Korea (5th, 66th in the world), Japan (9th, 62nd in the world) , China and India (both 16th and 53rd in the world), Malaysia (19th and 52nd in the world), Vietnam (23rd and 50th in the world), Indonesia (26th and 49th in the world), Philippines (30th, 47th in the world), Thailand (33rd, 45th in the world).

BERI publishes the Investment Environmental Risk Assessment Report in April, August and December of each year. It assesses the possible profitability of the company's investment in various countries from the perspective of multinational companies in terms of three major indicators: operational risk, political risk and exchange risk. As a basis for evaluating the advantages and disadvantages of the investment environment.

I. Operational risk indicators: 5th in the world and 1st in Asia

Taiwan's operational risk indicator ranks fifth in the world with a score of 66 (2nd and 6th in 2018), followed by Switzerland (1st, 73rd in the world), Australia, the Netherlands and the United States (both It is the second place in the world, 67 points). Taiwan ranks first in Asia, and other Asian countries are ranked: South Korea (8th, 64th in the world), India and Singapore (10th, 63rd in the world), Philippines (15th, 56th in the world) , Indonesia and Vietnam (18th, 54th in the world), Malaysia (21st, 52nd in the world), Thailand (29th, 46th in the world), Mainland China (36th, 44th in the world), Japan ( 38th and 43rd in the world).

BERI expects to rank 6th (65 points) in China's 2019 operational risk and 5th (68 points) in 2023. In the first half of this year, the total amount of loans increased by 5.1% compared with the same period of last year. The capitalization of banks remained stable. The real GDP in July and September increased by 2.3% compared with the same period of last year. This year's GDP growth will slow down to 2.3%. Industrial production in October increased by 8.3% compared with last year, and it is also the best in the past six months. The most eye-catching performance was manufacturing, which jumped from 2.0% to 9.2%.

The 15 sub-indicators of operational risk indicators published in this report, Taiwan ranks in the top 5 in the world: 7 money supply and inflation (1st), administrative efficiency (1st), labor cost and productivity ratio (1st) Name), communication and transportation (1st place), balance of payments (2nd place), economic growth (2nd place), professional services and contracts (3rd place), and currency exchange (6th place), right Foreign business attitude (No. 6), long-term loans and venture capital (No. 7), local management and partners (No. 9), and internationalization (No. 10) are also ranked in the top 10.

Second, political risk indicators: the world's 15th, Asia's 7th

Taiwan's political risk indicator ranks 15th in the world and scores 48 points (the second time in 2018 is the 13th, 51 points). Ranked 7th in Asia, second in Singapore (2nd, 67th in the world), Japan (4th in the world, 62 points), Mainland China (6th in the world, 59 points), Vietnam (9th in the world) , 53 points), South Korea (12th, 51st in the world), India (13th, 50th in the world); other Asian countries are ranked as follows: Thailand (22nd, 43rd in the world), Malaysia (26th in the world) 42 points), Indonesia and the Philippines (32nd and 39th in the world).

BERI said that the results of the nine-in-one elections held at the end of November this year will inevitably affect domestic policies in the future. In addition, BERI predicts that China will rank 17th (47 points) in political risk in 2019 and 13th (55 points) in 2023.

3. Exchange rate risk indicator: The world's first

Taiwan exchange rate risk indicator ranked first in the world with a score of 86 points (the second time in 2018 was the first and 87 points). Other Asian countries ranked in order: South Korea (2nd, 83nd in the world), Japan (4th, 81st in the world), Singapore (8th, 75th in the world), Malaysia (16th, 63rd in the world) , China and Indonesia (23rd, 55th in the world), the Philippines, India and Thailand (both 34th and 46th in the world) and Vietnam (37th and 45th in the world).

This year's foreign exchange risk rating maintained its first place. The current account surplus in the first half of the year rose from $35.513 billion in the same period last year to $37.174 billion. However, the increase was due to a decrease in the deficit in the secondary income (investment income) account. The direct investment inflows from outsiders increased by $7.206 billion in the first nine months.

The exchange risk indicator has four sub-indicators. Taiwan ranks first in the world in terms of international reserve and foreign exchange creation ability and foreign debt, and the foreign exchange law framework ranks second in the world.

Source: Ministry of Economic Affairs R.O.C