According to the World Competitiveness Yearbook (WCY) published by IMD, Lausanne, the Switzerland-based business school, Singapore currently ranks just behind the United States, and is ahead of Hong Kong, Luxembourg and Denmark. The WCY is widely recognized to be the worldwide reference point to world competitiveness, and ranks the ability of nations to create and maintain an environment that sustains the competitiveness of enterprises.
Singapore scored 99.33 in the 2008 study, as against 99.12 scored last year. Singapore is third on economic performance (up from fourth last year); up to second on business efficiency (fourth in 2007); and retains for the second straight year its first and third places on government efficiency and infrastructure, respectively. Singapore has been fast catching up with the US and it is expected to topple US from its top position next year.
The survey ranks 55 economies according to 323 criteria, 2/3 hard facts, 1/3 executive opinion survey with 3,700 responses.
The data are grouped into 4 main factors namely
- Economic performance – encompassing 79 criteria, such as size of the economy, wealth, international trade, international investments, employment, prices etc
- Government efficiency – encompassing 72 criteria, such as public finance, fiscal policy, institutional framework, business legislation etc
- Business efficiency – encompassing 71 criteria, such as productivity and efficiency, labor market, finance, management practices, attitudes and values etc
- Infrastructure – encompassing 101 criteria, such as land area, arable area, population, energy infrastructure, roads, technological infrastructure, scientific infrastructure, education, health, and environment etc.
In a World Bank report last year, it was voted the world’s easiest place to do business. Earlier Singapore was chosen as the world’s second freest economy after Hong Kong, according to the 2008 Index of Economic Freedom, released in January 2008, by the US think-tank, The Heritage Foundation.
Commenting on the new accolade, Ms. Ragini Dhanvantray CEO of Rikvin Consultancy says,
“Singapore has been consistently scoring well when it comes to international ranking of factors crucial to the success of enterprises. Its efficiency, legislation and infrastructure give attractive incentives to investors and enterprises. Singapore has been adaptive to the changes in global economy and has fared well in the post globalization era.”
Even amidst the volatile globalised economy, Singapore is resilient in pursuing its enterprise development efforts, it is this determination and stable governance instills confidence among the enterprise community that is assured of the long term prosperity. Sustained distinctions in such international ranking attracts foreign enterprises and entrepreneurs to setup their operations in Singapore.