4.2.2. The key role of country image
It is interesting to note that, according to our panel of ASEAN experts, the most important consideration for a foreign investor is whether a host country has a pro-business reputation or image, followed by the extent to which the local economic infrastructure can be expected to support FDI. Factors such as the availability of managerial expertise and cheap labour are of secondary importance, as are the actual
investment promotion means that are used to attract new investment. Likewise, macroeconomic
considerations are not of immediate importance in the initial stage of the foreign investment decision-making process. As one panel expert put it, … nothing else really matters; if you have the proper policies in place to support FDI, everything else falls into place.
This suggests that the projection and maintenance of a positive and pro-business
image is a prerequisite as well as an integral part of any investment promotion communications
strategy. Foreign investors will consider other factors, such as infrastructure
and labour, when they are satisfied with the political and economic security of
their investment. The higher levels of investment in countries like Singapore, Malaysia
and Thailand tend to support this view. According to Kotler, building and maintaining an “effective image” is fundamental to investment promotion. An “effective image” must be “realistic, believable, simple
to understand, attractive to investors and distinctive, with unique attributes that make
the place stand out among other places” (Kotler et al., 1993, pp. 149–150). In this
regard, the role that FDI has played in stimulating robust economic growth in Thailand
and Malaysia has contributed directly to these countries being able to maintain
an “effective image” as an attractive place for foreign investment. The Expert Panel
was uniform in its conclusion that the “right” country image is vital for investment
generation.
(Views expressed by Canadian respondents are congruent with the ASEAN viewpoint
in this regard.)