Singapore is world’s freest economy

Singapore’s economy has been ranked the most free in the world this year in the Heritage Foundation’s 2021 Index of Economic Freedom, the second year in a row it topped the list.

The Republic scored 89.7 points, with its overall score having increased by 0.3 points from 2020, primarily because of an improvement in points gained for government spending, the conservative Washington think-tank said on Thursday (March 4).

Singapore’s score placed it far ahead of both the regional average for 40 countries in the Asia Pacific (60.2) and the world average (61.6).It was followed in the rankings by New Zealand, Australia, Switzerland and Ireland, in that order, with scores ranging from 83.9 (New Zealand) to 81.4 (Ireland).

The Index ranks 12 indicators under four categories: rule of law, size of government, regulatory efficiency, and open markets.

“Singapore remains the only country in the world that is considered economically free in every 12 Index category,” Mr Anthony Kim, research manager at the Heritage Foundation and editor of the Index, told The Straits Times.

“The foundations of Singapore’s economic resilience and competitiveness include strong protection of property rights and effective enforcement of anti-corruption laws,” he said.

“Efficient government provides good public services with low tax rates. The regulatory environment is flexible and transparent, encouraging vibrant commercial activity.”

“A strong tradition of openness to global trade and investment has long boosted productivity while facilitating the emergence of a more dynamic and competitive financial sector.”

In addition, Singapore has, over the years, been storing or reserving “relatively ample policy space to be flexible and resilient thanks to its high degree of competitiveness, whether through monetary or fiscal policy tools”, Mr Kim added.

Content source The Straits Times.