Singapore has retained its position as the world’s top business environment for the 15th year in a row, according to the Economist Intelligence Unit (EIU). This achievement is based on the country’s stable political environment, world-class infrastructure, and highly skilled workforce, as well as its regulatory environment, efficiency of the legal system, and access to financing.
The EIU considers several factors such as political stability, economic growth, infrastructure, labor market, and business environment policies. The biggest improvements over the past year are in Vietnam, Thailand, Belgium, Sweden, India, and Costa Rica. Vietnam is the biggest mover worldwide, climbing 12 spots in the rankings, while Thailand improves by ten places and India by six. Taiwan, South Korea, and Australia also rank in the global top 20.
However, Venezuela, Libya, and Syria are currently ranked at the bottom of the list due to significant political instability and economic challenges. The COVID-19 pandemic has impacted the global business environment, leading to disruptions in supply chains, changes in consumer behaviour, and reductions in demand for specific goods and services. China suffered the biggest deterioration in the rankings, falling 11 spots from the second-quarter rankings a year earlier, mainly due to regulatory changes and rising local costs.
Thailand among most improved countries
Taiwan and South Korea also rank in the global top 20
Venezuela, Libya, and Syria at the bottom
China biggest loser
Singapore’s robust legal system, low tax rates, and excellent infrastructure make it an ideal location for high-tech industries. Hong Kong also offers a similar business-friendly environment to Singapore but has been facing political unrest. Meanwhile, Switzerland’s political stability, strong economy, and favorable tax policies have attracted many multinational companies, especially in the financial sector.
Overall, the EIU’s rankings serve as a useful guide in choosing an ideal business environment. However, interested companies should still take a closer look at the individual opportunities and challenges presented by each location before making any investment decisions.