Singapore stomps harder on Hong Kong in latest business environment rankings

Hong Kong gets kicked further from reaching the top.

The Economist Intelligence Unit (EIU) once again placed the country at the top of its 2014 Business Environment Rankings, where it has always snagged gold since 2008.

The business environment model uses ten categories to evaluate the 82 nations included in its list: the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Singapore managed to rise above infrastructure as Asia’s weak point to become the only Asian country in the top 10 for the category. Meanwhile, Hong Kong remains at the top 3, despite sliding from 2nd to 3rd after being overtaken by Switzerland.

To confirm Singapore’s place on top, the BER model forecasted in 2013 that the country will remain rooted in no. 1 until 2017.

Here’s more from the report:

Asia’s best performers have several factors in common: a favourable policy environment
– particularly for finance and foreign investment – with competition policies that encompass
international best practice.

Especially in East Asia, competition between cities to become hubs
for international finance, manufacturing and logistics has driven improvements in the business
environment.

Despite tensions in some countries over immigration from poorer neighbours, migration of skilled labour within Asia will remain relatively unimpeded and overall labour market conditions will continue to compare extremely favourably to other regions, with companies able to expand or reduce their workforce with ease, as well as benefitting from freedom to set wages and hire foreign nationals.