Singapore now fifth most competitive economy in the world
Singapore has tumbled from its raking as the world's most competitive economy to fifth place, but it remains Asia's top performing economy.
The Republic ranked first in the past two years of the Institute for Management Development (IMD) World Competitiveness Ranking, whose latest list was released yesterday.
Switzerland is now number one, followed by Sweden, Denmark and the Netherlands.
IMD said: "Singapore managed to top the economic performance factor, one of four factors in the ranking, but fell to ninth in global business efficiency and 11th in global infrastructure. It ran into problems with job losses, lack of productivity and the economic impact of the pandemic.
"Similar to other countries that declined, Singapore experienced a shrinkage in its economic activity, in particular, a sharp decline in employment growth, and a sizeable worsening in public finances due to an increase in both government deficit and public debt."
But Singapore did well with international trade and technological infrastructure, ranking first in both, said IMD, which is based in Switzerland and Singapore. Singapore also ranked highly in international investment and business legislation.
Yesterday, Minister for Trade and Industry Gan Kim Yong said the Government will review IMD's report and enhance Singapore's competitiveness.
"IMD's ranking shows that we are facing increased global competition, and Singapore cannot afford to stand still or take our economic competitiveness for granted," he said in a post on his ministry's Facebook page.
"We must continually strive to provide an environment where businesses can thrive and create good jobs for our people. We must also remain an open and connected hub for global businesses and talent.
"Singapore businesses must be able to seek out new opportunities and transform. Workers have to constantly upskill to remain relevant."
The IMD World Competitiveness Ranking ranks 64 economies, by measuring economic well-being through statistical data and survey responses from executives.