Denmark has overtaken Canada as the most advantageous country to place money seen from a five year investment perspective, Ritzau news bureau reported on Friday, quoting a leading economic report.

It is the first time Denmark has taken pole position as the world's best place to run a business. And in the EU region, Denmark now occupies the position previously held by Holland as the most business friendly country, according to the Economist Intelligence Unit's list of the world's investment magnets.

Worldwide, Canada was ranked No. 2, followed by USA, Singapore and Hong Kong. "Denmark scores well in all 10 categories which form part of EIU's model for the relative ability of countries to attract future investments. Denmark's labour market scores highly on flexibility and has a well educated workforce", EIU writes in a press release.

Initiatives such as the pending municipal reform and reorganisation of the tax system resulting in a larger transparency helped ensure Denmark's high scores. Denmark also has a strong banking sector and an efficient share dealing institution in Copenhagen Stock Exchange, assesses the EIU.

The Oeresund Bridge (a road-rail fixed link between Zealand and Southern Sweden), the Great Belt Bridge and the prospect of a bridge over Femern Belt linking Zealand and Germany have improved the infrastructure significantly and made Denmark into a European junction from where it is easy to transport goods to the rest of the Nordic region and Eastern Europe.

EIU additionally mentions Denmark's position as a leading nation in ICT and its associated infrastructure -- aspects which are collectively described as part of "The Danish Model" in the EIU report.

Elisabeth Manford, Director of Invest in Denmark, said: "We are very happy with the EIU report, which supports the arguments, which we use on a daily basis to convince foreign companies of the benefits of locating in Denmark."

"To this aim, we are using a customized benchmark tool, based on international statistics, to illustrate the advantageous combination of cost and quality that Denmark offers. And this report supports the outcome of these benchmark analyses -- locating in Denmark gives a competitive advantage," he added.