Searching for information regarding the regulations for investment in Asian countries is a painstaking job given the abundance of information on the internet. Nevertheless it is a dramatically important step for every investor. To further discuss about advantages in investing in Taiwan, we must compare with other countries.
In our previous blog post, we made a comparison between the investment environment in Taiwan and Singapore. In this one we are going to offer some comparison between the attributes for investment in Malaysia, which together with Korea and Singapore are on the top of the chart for foreign investment friendly countries (http://www.doingbusiness.org/rankings). Although Malaysia is ranked third, according to the World Bank affiliated website doingbusiness.com, there are some issues that makes Taiwan a more secure and prolific investment environment.
The Political Situation
The recent elections and controversies in Malaysia, offsets the advantage that this country has regarding Taiwan. Investors in Taiwan can expect
political environment without much turbulence, and foreign friendly democratic government.
Competitiveness: Taiwan is thirteenth most competitive economy in the world and Malaysia is ranked number 25, according to the World Economic Forum (http://www.weforum.org/issues/global-competitiveness). The countries are ranked based on theirs potential for prosperity.
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself. Taiwan is ranking high nineteenth, which 40 places up from Malaysia. This is an important indicator, that Taiwan and the responsible institutions work hard on creating free and welcoming ground for foreign investors.
Little known but important fact regarding the ownership is that Taiwan bits all Asian-Pacific countries in this criteria, offering the possibility for the foreign investor to own 100% of the company, as in Malaysia a minimum of two domestic directors are required.