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  • Zen Chong

Singapore Rated as the Best Business Environment Globally for 16 Consecutive Years and Expected to Retain the Title for the Next Five Years

For 16 consecutive years, Singapore has topped the Business Environment Rankings by the Economist Intelligence Unit (EIU), and it is expected to remain one of the best countries for business for the next five years.

According to the latest Business Environment Rankings released by the Economist Intelligence Unit on Thursday (March 21), Singapore, Denmark, and the United States stand out among 82 countries and regions with their stable political environments and excellent economic performance. These three countries are expected to maintain their leading positions in the next five years.

The top 10 best business environments globally also include several economies in Western Europe, as well as Canada, Hong Kong, and New Zealand.

The Economist Intelligence Unit points out that these developed economies have long held high positions in these rankings, making them often considered safe investment destinations. However, their overall and per capita GDP growth rates may be quite stable and slow.

Compared to the past five years, Greece, Argentina, and India will be the three countries with the most improved business environments in the next five years. This could drive increases in per capita real GDP, investment spending, and foreign direct investment.

The Economist Intelligence Unit points out that Greece's improvement is mainly due to its pro-business government, which has implemented a series of reforms, tax cuts, and measures to boost business confidence. Argentina's score has significantly improved thanks to free-market reform measures to be launched by President Javier Milei, such as encouraging the development of private enterprises and attracting foreign investment. India's young population structure ensures strong demand and a good supply of labor. It is expected that the country's economy will grow rapidly from 2024 to 2028, and foreign direct investment in manufacturing will surge as companies seek to move their supply chains out of China.

Although Venezuela's business environment will also improve in the next five years, it is expected to remain at the bottom of the global best business environment rankings.

In addition, among ASEAN countries, Thailand ranks 39th. The country has significantly improved its business environment performance from 2021 to 2022, and the growth of real per capita GDP has accelerated from 2022 to 2023. Thailand is one of the first ASEAN countries to provide special incentives for investment in electric vehicles and green industries. At the same time, many infrastructure projects are underway. As investors seek to shift from China to India and ASEAN, Thailand will benefit from the "China + 1" trend and encourage this trend through preferential policies.

The Business Environment Rankings is a forward-looking business survey aimed at assessing the attractiveness of the business environment in each country for the next five years. The evaluation criteria cover aspects such as political and macroeconomic environment, policies towards foreign investment, taxation, labor market, and infrastructure.

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