In one of the conferences addressed by Simone A. Wolfe at the DA Expo held at the Intercontinental Hotel in St Julian’s earlier this month, it was emphasised that Malta ranks high on the list of start-up business friendly locations. In an era where the world is considered a global village, I think it would be well to look further afield and gauge other localities’ strong and weak points to keep a proper perspective and spur us on to further efforts.

For example, Taiwan has jumped 15 notches to number 46 in the latest “World Bank’s Doing Business 2010” report released in the early days of the third quarter, on 9 September. This is the first time in three years that Taiwan’s ranking in the report has improved.

“Many international enterprises and foreign investors have very high regard for the report, and use it as an important reference when they set up their overseas offices,” the deputy minister of the Council for Economic Planning and Development of Taiwan, Hu Chung-ying was quoted as saying in that island’s independent newspaper United Daily News.

Among the 183 countries surveyed, Taiwan is ranked 153, up six places from last year in the “employing workers” category, where it received its worst score. The Council of Labour Affairs is working on an amendment of the Labour Law that would give employers more flexibility in hiring workers, while also protecting the rights of “unconventional employees.”

The report evaluates a country’s business environment based on 10 criteria: “starting a business,” “dealing with construction permits,” “employing workers,” “registering property,” “getting credit,” “protecting investors,” “paying taxes,” “trading across borders,” “enforcing contracts” and “closing a business.” Taiwan’s improved ranking is due mainly to the 90th place it garnered in the “starting a business” category. Taiwan’s Deputy Minister Hu explained that the country moved up from 119th place to 29th in the “starting a business” category because the government had cut bureaucratic red tape and simplified procedures for starting a business. Thus only six steps are required now instead of the previous eight. Simultaneously, it is estimated that the time required for a start-up has been shortened almost by half from 42 to fewer than 23 days.

Interestingly, in the time of the credit crunch Taiwan has also joined the rank of nations that have no minimum capital requirements for starting a business, pointing to the real support entrepreneurs can expect to obtain from Taiwan’s financial institutions. In tax reforms implemented, the number of payments a medium-sized business is required to make also went down from 23 to 18. The time it takes to prepare for filing taxes has been cut down from 340 to 281 hours.

In the “paying taxes” category, Taiwan’s ranking improved from 102 to 92, thanks to tax reforms that allow businesses to pay their value-added taxes via both e-filing and e-payment.

Singapore is ranked number one in this year’s World Bank report. Taiwan ranks last among the so-called Four Little Dragons. Hong Kong came in third, while South Korea came in at number 19. Mainland China fell three spots in this year’s rankings to number 89. Interestingly, at a time where perhaps more than a thousand container ships are laying idle in port, Taiwan has just opened a new transhipment port on its north coast near its capital city Taipei, anticipating that it will soon become one of the topmost port processing zones for the country as trade picks up. Thus, while Taiwan is handicapped by not being politically recognised by many nations, even those professing neutrality, it is still very active in international trade and we could do with learning a lesson or two from it!

I think I wouldn’t be alone in welcoming some improved ship berthing facilities in the much smaller island of Gozo. That would be a worthwhile project destined to generate turnover and not the replacing of a now known landmark, Valletta City Gate with a City (and budget) Gap! What will we have: muscle toning or fat loading? International and local investors may initially be impressed by claims and reports but some do pretty good maths before starting up!

G. Bonett

MARSALFORN