Singapore’s economy has been ranked as the most open in the world

Wednesday - August 6, 2014

Singapore is a highly developed trade-oriented market economy. Singapore’s economy has been ranked as the most open in the world, least corrupt, most pro-business…

The economy in Singapore has a very good reputation. Its strong growth has earned the small country the nickname “Asian tiger”. Singapore’s economy has been ranked as the most open in the world, least corrupt, most pro-business, with low tax rates (14.2% of Gross Domestic Product, GDP) and has the third highest per-capita GDP in the world; in terms of Purchasing Power Parity (PPP).

Singapore City

Government-linked companies play a substantial role in Singapore’s economy, which are owned through the sovereign wealth fundTemasek Holdings, which holds majority stakes in several of the nation’s largest companies, such as Singapore Airlines,SingTel, ST Engineering and MediaCorp. The economy of Singapore is a major Foreign Direct Investment (FDI) outflow financier in the world.

Singapore has also benefited from the inward flow of FDI from global investors and institutions due to her highly attractive investment climate and a stable political environment.

Singapore’s economic freedom score is 89.4, making its economy the 2nd freest in the 2014 Index. Its score is 1.4 points better than last year, reflecting improvements in investment freedom and labor freedom that outweigh small declines in monetary freedom and business freedom. Singapore is ranked 2nd out of 42 countries in the Asia–Pacific region.

Singapore City 2

Over the 20-year history of the Index, Singapore’s economic freedom has advanced by nearly 3 points. The areas of market openness and limited government have advanced by double digits. High levels of trade freedom and regulatory efficiency continue to underpin Singapore’s competitiveness in global commerce and ensure resilient economic growth. Recording four consecutive years of score improvements since 2010, Singapore has achieved its highest economic freedom score ever in the 2014 Index.

 

Singapore has also benefited from the inward flow of Foreign Direct Investment from global investors and institutions due to its highly attractive investment climate and the stable political environment, a key reason for the growth of the startup and coworking culture.