A new generation of Asian Tiger Cub countries with rising prosperity are emerging and set to attract more expats and foreign investment, a survey suggests.
Indonesia is the fastest growing in terms of prosperity, entering the top 15 for the first time in the Legatum Institute Prosperity Index. Malaysia, Vietnam, Thailand and Indonesia all appear in the top half of the worldwide ranking this year in 45th, 53rd, 56th and 63rd positions.
The report says that these countries are fast approaching the Asian Pacific regional leaders thanks in large part to increasing levels of foreign direct investment (FDI). They are attracting more investors who are in turn attracted by regional stability, relatively low labour costs and a high output of electronics and components.
Among the Tiger Cubs, Thailand and Indonesia receive the highest levels of FDI at $8.6 billion and $8.1 billion while each of the Tiger Cubs receives higher average inflows of FDI than South Korea.
Indonesia is a particular success story of the Tiger Cubs, climbing 26 places in the prosperity rankings since 2009 while Malaysia ranks 15 th in the Economy sub-index, the highest position of all the Tiger Cub nations.
Australia and New Zealand lead the region for prosperity, ranking in fourth and fifth place, as a result of strong all round performance in the Index’s eight sub-indices.
The Asian Tigers, Hong Kong, Singapore, Taiwan and South Korea, also perform well ranking 18th, 19th, 20th and 27th respectively, while Japan is in 22nd place.
The Legatum Prosperity Index is a unique and robust assessment of global wealth and wellbeing, which benchmarks 142 countries around the world in eight distinct categories: Economy; Education; Entrepreneurship and Opportunity; Governance; Health; Personal Freedom; Safety and Security; and Social Capital.
‘The Legatum Prosperity Index allows us to paint a comprehensive picture of what makes a country truly successful, encompassing traditional measures of material wealth, as well as capturing citizens’ sense of wellbeing from how safe they feel, to their perceived personal freedom,’ said Jeffrey Gedmin, president and chief executive officer of the Legatum Institute.‘It is encouraging to see a new generation of promising economies come to the fore in this year’s Index. However, GDP alone can never offer a complete view of prosperity,’ he explained.
‘In order for these Tiger Cubs to fulfil their full potential and continue to scale the global prosperity rankings, leaders in these countries must overcome the barriers that remain by encouraging tolerance, providing top quality education and distributing wealth more equally amongst citizens,’ he added.