Effective administration, business friendly tax regimes and openness to trade have placed Hong Kong and Singapore as the top two Asia-Pacific economies for investors, according to a new cross-industry survey of executives.

18 regional economies were ranked by Singapore-based consultants Vriens & Partners Pte. 100 executives from major sectors like telecommunications, energy, resources and consumer goods said the two city-states’ openness and communication in business made them the most favorable destinations for trade and investment. Rule of law, government quality, low levels of corruption and fiscal/monetary administration were also important factors.

Tiny Singapore, ranked second on the list after Hong Kong, is due to become Southeast Asia’s largest economy by GDP this year, rising a whopping 15% to US$277 billion. Malaysia, though now #2, also grew 7% to $270 billion. Foreign capital continues to flow into both countries, with the survey saying this is likely to continue.

source & article: PropertyGuru via Yahoo Singapore