Singapore tops competitiveness ratings

28 October 1995

In the "World Competitiveness Report", the result of a survey of such indicators as trade performance, exchange-rate stability, cost of capital and opinions of business people conucted by the Swiss-based International Institute for Management Development and the World Economic Forum, Singapore tops the list from the Asian region, just second after the United States on an international basis. Competitiveness is defined as "the ability of a country to, proportionally, generate more wealth than its competitors in world markets.

Asia-Pacific Countries take 3 of the top five positions. In order among the 48 countries that were ranked, Singapore came 2nd, Hong Kong 3rd, Japan 4th, New Zealand 8th, Taiwan 11th, Australia (14), Malaysia (21), South Korea (24), Thailand (26), Indonesia (33), China (34), Philippines (35) and India (39). The reasons for Singapores high ratings, according to the Far Eastern Economic Review, include "trade preformance, ability to form partnerships with foreign firms, financial services cost of capital and transport infrastructure. Hong Kongs strenghts are similar, performaing better in "national debt and fiscal constraint, but suffers a middling performance in technological innovation, research and development, remuneration of top managers and quality of life." The Far Eastern Economic Review goes on to quote the report as saying that both economies are helped by "minimal state control of industry, foreigh investment, and low government spending on human resources and defence". Of course the full report should be consulted for the details and a more objective analysis of the self-admitted biases and not-so-transparent political agenda of the report's authors.