According to the latest IMD World Competitiveness Report, Singapore has emerged fifth, after the US, Switzerland, Hong Kong and Sweden.
The annual report ranks and analyzes the ability of nations to create and maintain an environment which is conducive for enterprises to compete in. This year, 60 economies were evaluated. The four main indicators namely, economic performance, government efficiency, business efficiency and infrastructure.
The US, which has ousted Hong Kong to the third place, has emerged in the number 1 spot due to a rebounding financial sector, technological innovation and successful companies.
Against the backdrop of everything else that is happening in the world, Singapore has proven to be able to hold its own. Although Singapore faces some challenges as it restructures it economy, its focus on innovation, respect to rule of law and political stability will continue to attract entrepreneurs to form a Singapore company.
Along with Hong Kong, Singapore emerges as one of the two Asian cities to remain in the top ten positions of IMD’s list. This is partly due to its reliable infrastructure, policy stability, effective governance and respect to rule of law.
According to IMD, Singapore, which has slightly deteriorated from its 1997 ranking, may improve its competitiveness by bolstering efforts to assist lower to middle-income workers as well as help Singapore companies mitigate cost pressures.
However, it asserts that like the US and Canada, Singapore, though not categorized as winners (i.e. improving by 5 positions or more) has a very stable and enduring competitiveness model that relies on long-term advantages such as technology, education and advanced infrastructure.
Analysis by Rikvin shows that the move towards innovation and technology adoption, as encouraged via the PIC Scheme Guide, is one of the measures towards this goal.
Professor Stéphane Garelli, Director of the IMD World Competitiveness Center, said that three elements were fundamental for competitiveness – growth, government efficiency and social cohesion. In the video below, he discusses these issues against the backdrop of Southern European economies that are currently facing austerity programs.
“Against the backdrop of everything else that is happening in the world, Singapore has proven to be able to hold its own. Although Singapore faces some challenges as it restructures it economy, its focus on innovation, respect to rule of law and political stability will continue to attract entrepreneurs to form a Singapore company,” affirmed Mr. Satish Bakhda, Head of Operations at Rikvin.