Singapore maintains strong intellectual property protections in 2019 Index

Economic growth requires not only sound government policy, but also a robust legal system that promotes the rule of law, effective enforcement of contracts and the protection of intellectual property. Singapore’s history of strong growth is largely a testament to its sound legal system set in place by the government.

Intellectual property (IP) protections are especially critical given Singapore’s desire to achieve innovation-driven economic growth. In fact, in August 2019, the Intellectual Property Office of Singapore (IPOS), announced a series of initiatives to support Industry 4.0 in the ASEAN region. The office also signed 6 MOUs and agreements with various stakeholders to further Singapore’s networks with global innovation communities. A new initiative was also launched to expedite Industry 4.0 patent applications – placing priority on “key emerging technologies” such as fintech, cybersecurity and robotics patent applications. The strong emphasis on IP in Singapore and ASEAN has been reflected in the latest 2019 International Property Rights Index (IPRI) developed by the Property Rights Alliance. The IPRI stems from a deep body of work by famous Peruvian development economist Hernando De Soto who emphasised property rights enforcement as a means of poverty alleviation. The 2019 edition ranks 129 countries from around the world that accounts for 94% of the world’s population and 98% of world GDP. Finland leads the 2019-IPRI (8.713) as well as the IPR component (8.90) in which it is followed by the USA (8.78). Switzerland ranks 2nd (8.57) followed by New Zealand (8.51), that leads the LP component (8.89).

Singapore has scored 4th at a score of 8.46, making it the leading country in Asia with the best protections of private property and intellectual property. It continues to be an example to other ASEAN nations, who are also moving up the ladder. Following four of the ASEAN members, the IPRI researchers find that all of them improved their score compared to 2018 as well as during the last five years. Whilst the Philippines and Indonesia show lower scores, the also have achieved the most relevant increases during the last five years, particularly Indonesia. Even Singapore located in the top ranks, is still moving ahead improving its scores at an important pace. The IPRI also calculates a gender component, to grasp possible bias within countries, and in this occasion, there is much room for improvement for these four countries. This strong performance follows another achievement on the 2019 Global Competitiveness Report, where Singapore has now overtaken the United States of America as the world's most competitive economy. This is largely due to our strong economic fundamentals of an open economy, strong intellectual property protections and a trusted legal system.

These achievements aside, Singapore, and ASEAN as a whole, cannot remain complacent. There remain economic uncertainties that threaten to undo this progress. The first of which is the ongoing trade war with the United States and China, which some estimate may trigger another recession. The American Enterprise Institute has also shown how the tariffs placed on Chinese products will cost the US economy about US 1bn a month, which could become the start of a global recession. Additionally, the central banks around the world have injected trillions of dollars in artificial credit. This is of grave concern, for monetary inflation is typically the cause of business cycle instability.

Singapore should continue to maintain its strong fundamentals, and remain proactive in equipping its graduates and workers for the economic uncertainties of tomorrow.