Singapore overtook the United States to become the world's most competitive economy in 2019, according to the World Economic's Forum (WEF) flagship Global Competitiveness Report released on Tuesday (Oct 8).
The annual ranking of 141 economies measures competitiveness on a scale of zero to 100 based on factors that include infrastructure, health, the labour market, the financial system, quality of public institutions and economic openness.
Singapore scored 84.8 out of 100. The US, which was last year’s most competitive economy, scored 83.7 to be ranked second.
An improvement of 1.3 points in its overall score and a lower performance by the US propelled Singapore to the top spot this year, said the report.
“Singapore improves from an already high base on 10 of the 12 pillars, and its score on every pillar is between 4 and 19 points higher than the OECD (Organisation for Economic Co-operation and Development) average,” it added.
Out of the index’s 12 assessment pillars, Singapore came in first in the areas of infrastructure (95.4), health (100) and labour markets (81.2).
The country also garnered a high score in the areas of financial system (91.3) and macroeconomic stability (99.7).
In terms of market efficiency, Singapore, being “the most open economy in the world”, scored 81.2 and was ranked second behind Hong Kong, according to the report.
With a score of 80.4, Singapore also came in second for the assessment pillar on public institutions, which takes into account areas such as security, social capital, checks and balances, public sector performance and the incidence of corruption.
Source: WEF and CNA