Countries are ranked based on eight equally-weighted attributes which are corrupt, economically stable, entrepreneurial, dynamic, favourable tax environment, innovative, skilled labor force and technological expertise.
With 30 points more than any other county on a 100-point, Malaysia blazes past Singapore, Czech Republic, Denmark and Poland to top the ranking.
“The country is one of the top recipients of foreign direct investment, and its pro-business government offers a wide range of incentives to investors,” the survey published by US News and World Report.
Highly-skilled workforce is also another reason that makes Malaysia attractive to investors.
Countries that the decision makers preferred more than all other survey participants did in these factors are placed higher in the ranking, according to BAV Consulting firm, and the Wharton School of the University of Pennsylvania.
More than 21,000 participants from four regions were asked to associate 80 countries (up from 60 last year) with specific attributes.
According to the report, more than $1 trillion is pumped around the world in foreign direct investment each year, and a country’s share sometimes signify its value and potential to the world.
“Investors are particularly drawn to what they don’t have.”
“The things that make a country unique – its people, environment, relationships, framework and teachings – create four distinct factors identified in a report by the World Bank Group that motivate an individual or corporation to invest in that country: natural resources, markets, efficiency and strategic assets like technologies or brands,” the report said.
Other countries like Singapore and India, are also at the top of the list, typically have a younger, educated population. The majority of their citizens can provide the type of skilled work that the labor market demands at competitive wages and continue the cycle by contributing to the country’s consumer market.