The approach adoption in developing the GLPI is also similar to that of the LPI. A five-point scale is used to gauge the performance of a surveyed firm in various GL activities. These numeric outcomes, from 1 (worst) to 5 (best), serve as indicators to indicate how bad or good a firm in the industry performs in the surveyed activities in comparison with others. The GLPI is then aggregated as a weighted average of the various performance scores using the principal component analysis (PCA) method to derive the weights for the indicator variables thereby improving the statistical confidence of the composite index.