Discussion Forum

Singapore ranked fourth in this year’s IMD World Competitiveness study, which measures how well countries manage their economic and human resources to increase their prosperity.  Topping the list this year is Hong Kong, followed by the United States and Switzerland.  

The survey was conducted with 4,210 respondents from 59 countries. The respondents, including executives in top- and middle-management with global exposure, were nationals or expatriates in the country, representative of the economy.

The report listed 40 factors in which Singapore did well and was ranked between 1st and 6th place out of 59 countries. These include the unemployment rate, social cohesion, transparency, higher education achievement and finance and banking regulation.  It also listed 24 areas in which Singapore received a lower ranking of between 34th and 57th place, including the cost of living index and immigration law.

Economists attributed the fall in competitiveness to the recent moves to restructure the economy and bring about more inclusive growth.  According to one economist interviewed by The Straits Times, the “supply side constraints, partly exacerbated by policy measures under the inclusive growth strategy, have extracted a price in terms of cost competitiveness”.

Apart from the IMD report, another keenly watched global competitiveness survey is the World Economic Forum Global Competitiveness Index which lists Singapore as the second most competitive economy after Switzerland.