SINGAPORE: The Economist Intelligence Unit (EIU) reported that Singapore has retained “its position as the world’s best business environment for fifteen consecutive years” in a report on Thursday (Apr 13).
This is based on the most recent business environment rankings of the EIU, the research and analysis division of The Economist Group, for the second quarter of this year.
In the top ten are Canada and Denmark, which are in a tie following Singapore, the United States, New Zealand, Hong Kong, and several countries in Western Europe.
The high ratings given these countries are largely due to strong economic and political stability.
“Singapore continues to be one of the most stable and business-friendly countries in the world. We have been steadfast advocates of free and open trade and a rules-based global multilateral trading system. Our strong legal system and fiscally sustainable approach to governance have been critical enablers of a stable and business-friendly environment,” reads a webpage from the Ministry of Finance.
Aside from Singapore, Taiwan and South Korea are among the top 20 countries with the best business environment.
But Vietnam, Thailand, and India have shown much improvement, with Vietnam showing the best performance across the globe, rising 12 places. Thailand has climbed ten spots, and India has six.
At the other end of the scale, China has been the biggest loser, falling 11 places compared to the same time in 2022.
“Although the end of the zero-covid policy is positive for firms operating in China, regulatory changes stemming from the statist direction of economic policy as well as rising local costs weigh on its business environment and limit opportunities for international investors,” the EIU report says.
On a regional level, North America and Western Europe top the list, followed by Asia in third place.
“The global business environment rankings can continues to see headwinds stemming from the war in Ukraine, ensuing spike in inflation and cost-of-living crisis, and the current combination of fiscal loosening and monetary tightening amid an economic slowdown,” said the country forecast manager and Europe analyst for the EIU, Prianthi Roy.
The EIU’s full report may be found here. /TISG