Taiwan placed 15th in the latest Global Competitiveness Report released Sept. 26 by Geneva-based World Economic Forum, moving down one spot from last year.
The report rates 137 economies worldwide by looking at 12 pillars in three subindexes of basic requirements, efficiency enhancers as well as innovation and sophistication factors. Receiving a total score of 5.33, Taiwan improved 0.05 points from last year, finishing ahead of regional neighbors such as Malaysia at 23rd; South Korea, 26th; and mainland China, 27th.
Chiou Jiunn-rong, deputy minister of the Cabinet-level National Development Council, said although Taiwan moved down one spot in the overall ranking, it still advanced two spots to 15th in the subindex of innovation and sophistication factors, a move that can be attributed to the country’s improvement in the pillar of business sophistication.
The deputy minister noted Taiwan’s drop of one place to 15th in the subindex of basic requirements, saying that although the country took 5th in the pillar of macroeconomic environment, it slipped two spots to 15th in the pillar of infrastructure.
Chiou added that Taiwan’s overall ranking demonstrates the necessity to fast-track government efforts to accelerate economic transformation such as the Forward-looking Infrastructure Development Program, a comprehensive initiative aimed at addressing Taiwan’s key infrastructure needs over the next 30 years.
Of the 12 pillars the WEF examined in the index, Taiwan ranked between fifth and 30th, with its strongest performances in macroeconomic environment, innovation and market efficiency, and weakest in institutions, labor market efficiency and technological readiness.
Among the 114 factors cited by the WEF in its assessment, Taiwan made the top 10 in 17 categories. These include inflation, No. 1; state of cluster development, No. 2; fixed telephone lines, No. 3; degree of customer orientation, No. 4; and extent of market dominance, financing through local equity market and intensity of local competition, all at No. 5.