Singapore reclaims title as world's most competitive economy

The country rose three spots to reclaim the number one position it had previously held in 2020, surpassing Switzerland and Denmark.

Singapore demonstrated strong results in the four key pillars of economic performance, government efficiency, business efficiency, and infrastructure.

According to the Switzerland-based International Institute for Management Development (IMD), “Singapore’s performance marks a return to form; last occupying first place in 2020, it then fell to fifth, third, and finally fourth in the following years, while Denmark and Switzerland performed a tussle for power over the top spot.”

Singapore distinguished itself in business efficiency, securing the top position in the index for labour market factors—rising three places—and for attitudes and values, where it rose 12 ranks. Additionally, it took 21 significant steps to claim the second position in management practices.

The nation achieved the foremost rank in technological infrastructure, elevating its rank to 4th in the overall infrastructure category, a notable improvement from its previous 9th position.

Despite this progress, economic performance remained at third place, hindered by a drop of 11 positions in the pricing category to 62nd, and a slight drop of three places in employment, now ranking fifth.

Associate Professor Jamus Lim from Essec Business School who spoke to The Straits Times attributes the poor economic performance to the high cost of living in Singapore.

"Many other areas where Singapore exhibits weaknesses – such as rental prices, cost of transport, compensation of management and employees, and health expenditures – are directly or indirectly linked to it. This becomes the primary challenge for policymakers, not only because high prices and costs weigh on Singapore’s competitiveness, but also because of its implications on people’s confidence in the economy,” Prof Lim said.