KUALA LUMPUR: - Malaysia is in sixth position in this year's Baseline Profitability Index (BPI), climbing five spots from 11th place achieved in 2014.

The BPI is a ranking of destinations of attractiveness for foreign investors, published by the Foreign Policy Magazine.

Among ASEAN countries, only Malaysia and Singapore featured in the top 10, while Indonesia was ranked 12th, Vietnam (23), Philippines (30) and Thailand at the 38th position.

In a statement today, Malaysia Investment Development Authority (MIDA) said the ranking, which covered 110 countries across six continents, reaffirmed that Malaysia was an attractive profit centre in this region for investors.

"The index sends a clear message that Malaysia provides a friendly business environment that makes it an attractive place to invest.

"This ranking is based not only on historical conditions but also on expectations about conditions prevailing over the next five years," it said.

Chief Executive Officer, Datuk Azman Mahmud, said this endorsement dissolved lingering misperceptions and attested the country's improving economic fundamentals and the government's prudent, proactive and pragmatic policies to restructure and diversify the economy.

"The ranking is a reflection of the continuous improvement in the delivery of public services and overall efficiency of the government machinery," he said.

The BPI uses a holistic approach based on eight factors that will affect the ultimate success of a foreign investment.

These factors cover economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates.

Its also incorporates changes made by the World Bank in its measurement of gross domestic product such as the revised method to compare living standards across countries. -- BERNAMA