Asia: The Most Problematic Factors for Doing Business in Asia

The Most Problematic Factors for Doing Business in Asia

Yr. 2008-2010

- Source: The Global Competitiveness Report 2009-2010
The World Economic Forum: http://www.weforum.org/en/index.htm

In 2009, The World Economic Forum performed a survey of over 13,000 business leaders in 133 countries. According to the World Economic Forum, the survey is designed to capture a broad range of factors affecting an economy’s business climate. The Report also includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform. Below are the most problematic factors identified for doing business in Asia. The list of problems are from a total list of 15 factors. Respondents were asked to select the five most problematic for doing business in their country/economy and to rank them between 1 (most problematic) and 5. The table below shows the top 10 problems that the responses weighted according to their rankings of countries in Asia. Runckel & Associates believes this listing can be a basis of defining the key business areas that need to be resolved in a particular country and the issues that your business or potential new business needs to consider first.

Cambodia

Problems	% of Responses
1. Corruption	23.9
2. Inefficient government bureaucracy	17.4
3. Inadequately educated workforce	9.6
4. Inadequate supply of infrastructure	8.3
5. Access to financing	6.6
6. Policy instability	6.4
7. Inflation	5.9
8. Tax regulations	5.3
9. Poor work ethic in national labor force	4.8
10. Crime and theft	3.2

China

Problems	% of Responses
1. Access to financing	16.8
2. Inefficient government bureaucracy	11.1
3. Tax regulations	9.6
4. Policy instability	9.3
5. Inadequate supply of infrastructure	8.5
6. Corruption	7.4
7. Inadequately educated workforce	7.3
8. Tax rates	7.1
9. Inflation	5.8
10. Restrictive labor regulations	5.4

India

Problems	% of Responses
1. Inadequate supply of infrastructure	24.6
2. Inefficient government bureaucracy	14.0
3. Corruption	11.0
4. Restrictive labor regulations	10.6
5. Access to financing	9.8
6. Tax regulations	8.0
7. Policy instability	6.0
8. Tax rates	4.0
9. Poor work ethic in national labor force	3.8
10. Inadequately educated workforce	2.6

Indonesia

Problems	% of Responses
1. Inefficient government bureaucracy	20.2
2. Inadequate supply of infrastructure	14.8
3. Policy instability	9.0
4. Corruption	8.7
5. Access to financing	7.3
6. Restrictive labor regulations	7.1
7. Tax regulations	6.8
8. Inflation	6.1
9. Foreign currency regulations	5.2
10. Inadequately educated workforce	4.7

Japan

Problem	% of Responses
1.Tax regulations	17.1
2.Tax rates	17.0
3. Inefficient government bureaucracy	16.7
4. Policy instability	16.0
5. Government instability/coups	9.0
6. Restrictive labor regulations	8.1
7. Access to financing	7.7
8. Inadequate supply of infrastructure	3.6
9. Poor work ethic in national labor force	1.5
10. Inadequately educated workforce	1.2

South Korea

Problems	% of Responses
1. Inefficient government bureaucracy	16.9
2. Policy instability	16.7
3. Access to financing	15.1
4. Restrictive labor regulations	14.6
5. Tax regulations	7.8
6. Corruption	5.9
7. Inadequately educated workforce	5.4
8. Inadequate supply of infrastructure	4.6
9. Tax rates	4.2
10. Inflation	4.2

Malaysia

Problems	% of Responses
1. Access to financing	12.8
2. Inefficient government bureaucracyy	11.3
3. Corruption	10.4
4. Policy instability	8.5
5. Inadequately educated workforce	8.0
6. Poor work ethic in national labor force	7.9
7. Tax rates	6.9
8. Restrictive labor regulations	6.4
9. Crime and theft	5.9
10. Inadequate supply of infrastructure	5.5

Philippines

Problems	% of Responses
1. Corruption	24.3
2. Inefficient government bureaucracy	20.6
3. Inadequate supply of infrastructure	15.0
4. Policy instability	12.6
5. Access to financing	5.2
6. Tax regulations	4.8
7. Crime and theft	3.3
8. Tax rates	3.3
9. Government instability/coups	2.8
10. Restrictive labor regulations	2.4

Singapore

Problems	% of Responses
1. Inflation	20.3
2. Restrictive labor regulations	15.1
3. Access to financing	12.6
4. Inadequately educated workforce	11.9
5. Tax regulations	9.4
6. Tax rates	7.9
7. Inadequate supply of infrastructur	6.2
8. Poor work ethic in national labor force	5.7
9. Foreign currency regulations	4.8
10. Inefficient government bureaucracy	3.4

Thailand

Problems	% of Responses
1. Government instability/coups	23.7
2. Policy instability	15.4
3. Inefficient government bureaucracy	13.3
4. Corruption	11.0
5. Access to financing	7.2
6. Inadequately educated workforce	6.7
7. Tax regulations	6.3
8. Poor work ethic in national labor force	3.5
9. Tax rates	2.9
10. Inadequate supply of infrastructure	2.8

Vietnam

Problems	% of Responses
1. Inadequate supply of infrastructure	16.1
2. Access to financing	13.2
3. Inadequately educated workforce	13.2
4. Inflation	11.5
5. Tax regulations	8.2
6. Policy instability	7.6
7. Poor work ethic in national labor force	6.8
8. Corruption	5.1
9. Tax rates	5.0
10. Foreign currency regulations	3.1

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