Taiwan Continues Dropping in Global Competitiveness to Trail Malaysia
2014/06/03 | By Ken LiuTaiwan slipped to No. 13 on the IMD 2014 World Competitiveness Yearbook Ranking from the 11th place in 2013, dropping for the third year to lag even Malaysia.
Of the four main factors IMD uses to measure a nation's environment, Taiwan moved up two spots in Economic Performance in 2014 but dropped four slots in Government Efficiency, seven spots in Business Efficiency and one in Infrastructure.
The National Development Council under the Taiwan Cabinet pointed out that the steep drop in the Government Efficiency and Business Efficiency categories is the primary reason for the island's demotion in the 2014 global competitiveness ranking. The drop in the two categories is due to the protest mostly by students against the passing of the Service Trade Agreement between Taiwan and China by occupying the Legislature for nearly a month beginning March 18, during which the IMD issued the survey to business managers whose opinions on Government Efficiency and Business Efficiency were inevitably impacted.
In Asia, Taiwan typically is ranked behind only Singapore and Hong Kong in competitiveness, but in 2014 Malaysia leapt forward three spots to No. 12 to replace Taiwan, which, however, showed progress in gross domestic product (GDP) growth, foreign investment, and anti-corruption in 2014.
Issues working against Taiwan in the latest survey include escalating government financial deficit, aging population, increased government policy and political uncertainty, worsening brain drain, questionable judicial transparency.
The IMD said that the main challenges for Taiwan include accelerating social solidarity and harmony, economic liberalization, internationalization, industrial restructuring and upgrading, service-industry development, employment and pay equality, economic growth, and green-economy competitiveness. (KL)
Top 13 Rankings of IMD World Competitiveness Yearbook 2014
| Ranking
| 2013
| 2014
| Ranking change
|
| 1
| USA
| USA
| --
|
| 2
| Switzerland
| Switzerland
| --
|
| 3
| Hong Kong
| Singapore
| ↗ 2
|
| 4
| Sweden
| Hong Kong
| ↘1
|
| 5
| Singapore
| Sweden
| ↘1
|
| 6
| Norway
| Germany
| ↗3
|
| 7
| Canada
| Canada
| --
|
| 8
| UAE
| UAE
| --
|
| 9
| Germany
| Denmark
| ↗3
|
| 10
| Qatar
| Norway
| ↘4
|
| 11
| Taiwan
| Luxembourg
| ↗2
|
| 12
| Denmark
| Malaysia
| ↘3
|
| 13
| Luxembourg
| Taiwan
| ↘2
|