Malaysia’s attractiveness as a foreign investment destination got a lift, as the country landed in sixth spot in this year’s Baseline Profitability Index (BPI), climbing five notches from 11th place achieved in 2014.
The BPI is a ranking of destinations of attractiveness for foreign investors, published by the Foreign Policy Magazine.
Among countries in the Association of Southeast Asian Nations (ASEAN), only Malaysia and Singapore featured in the top 10. Indonesia was ranked 12th, Vietnam 23, Philippines 30, and Thailand 38th, said a report by Bernama, Malaysia’s national news agency.
In a recent statement, Malaysia Investment Development Authority (MIDA) said the ranking, which covered 110 countries across six continents, reaffirmed that Malaysia was an attractive profit center in this region for investors.
“The index sends a clear message that Malaysia provides a friendly business environment that makes it an attractive place to invest. This ranking is based not only on historical conditions but also on expectations about conditions prevailing over the next five years,” it said.
Chief Executive Officer Datuk Azman Mahmud said this endorsement dissolved lingering doubts and attested to the country’s improving economic fundamentals and the government’s prudent, proactive, and pragmatic policies to restructure and diversify the economy.
“The ranking is a reflection of the continuous improvement in the delivery of public services and overall efficiency of the government machinery,” he said.
The top three countries in business profitability in 2015, according to the BPI, are India, Qatar, and Botswana. Leading the way for Southeast Asia is Singapore in fourth place.
The BPI uses a holistic approach based on eight factors that will affect the ultimate success of a foreign investment. These factors cover economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates.
The index also incorporates changes made by the World Bank in measuring gross domestic product, such as the revised method it now uses to compare living standards across countries.
Photo: Two hundred percent
