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Singapore – Singapore Regains Top Position in Global Competitiveness Ranking After Three Years

Singapore Regains Top Position in Global Competitiveness Ranking After Three Years

Singapore has reclaimed its position as the world leader in competitiveness, topping the IMD World Competitiveness Ranking in 2024 after a three-year hiatus. Previously ranking first in 2020, Singapore slipped to fourth place but has now surged past rivals like Switzerland and Denmark, who had been contending for supremacy.

The IMD, based in Switzerland, ranks countries using 333 criteria across four categories: economic performance, government efficiency, business efficiency, and infrastructure. Singapore excelled in all areas, notably rising to the top in business efficiency due to significant improvements in labour market rankings and managerial practices. It also excelled in technological infrastructure, propelling it to fourth in the infrastructure category.

In terms of government efficiency, Singapore climbed to second place, with marked improvements in societal framework and public finance. However, economic performance remained stagnant at third, affected by decreases in pricing and employment rankings. Notably, high living costs continue to be a pressing concern, positioning Singapore 62nd out of 67 countries for cost of living.

Experts like Associate Professor Jamus Lim from Essec Business School and Professor Lawrence Loh from NUS Business School highlight Singapore’s robust governance, ease of doing business, and infrastructure as key strengths. However, they caution against complacency due to high living costs, which not only affect competitiveness but also public confidence in the economy.

Singapore’s strategy includes leveraging policy and cultural strengths in the labour market, such as effective remuneration management and attracting foreign talent. Additionally, its favourable attitudes towards globalization and adaptability contribute to its competitive edge. Despite these strengths, wage growth has struggled to keep pace with inflation, suggesting a need for increased productivity potentially driven by new technologies like artificial intelligence.

This comprehensive analysis, based on responses from over 6,600 executives and thorough statistical data, underscores the complex interplay of factors that contribute to national competitiveness. Smaller economies continue to dominate the top ranks, with Switzerland and Denmark closely following Singapore. The findings emphasize the critical importance of maintaining competitive advantages and adapting to economic challenges in a dynamic global environment.