2.5 Fiscal and regulatory Fiscal and regulatory FIGURE 9 Global economic and political volatility is on the rise, with the prospect of tariffs and a rise in protectionist policies adding to inflationary pressures, hampering growth prospects and potentially disrupting global trade flows. As a result, manufacturers are increasingly seeking environments with transparent, predictable regulatory frameworks that are conducive to business growth.Using the indices described in the production readiness model (see Appendix 1), the top three strongest-performing markets for ease of business, regulatory quality and stability (among other factors) were Singapore (scaler), Switzerland (scaler) and Qatar (converger). Fiscal and regulatory frameworks are essential for establishing the rules of the road for industries, while governments should be guided by data regulation that promotes open data to enable all partners to more clearly identify trends and spot risks and opportunities. The way countries shape these policies will significantly influence their participation in global value chains and their attractiveness for foreign investment. Lorenz Noe, Research Manager, Open Data WatchSub-factors Tax policies Corporate tax rates, incentives for investment and the overall tax burden Regulatory environment Ease of doing business, regulatory transparency and efficiency of legal systems Capital availability Access to credit to support and incentivize transformation projects Indices International tax competitiveness Incentives for investment Ease of doing business Regulatory quality and stability Access to capital for transformation projects Environmental, social Geopolitical regulatory and skillsResourcesInfrastructure Technologyand governance landscape Fiscal and Labourand energy Source: World Economic Forum in collaboration with Kearney. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 18

Beyond Cost 2024