Singapore ranks nr 1 in 6 out of 9 areas for foreign businesses

Singapore ranks fourth in the Asia Manufacturing Index, driven by strong performance in institutional quality, infrastructure, international trade, tax policy, and innovation. These strengths offset lower scores related to economic scale, labor cost, and domestic manufacturing depth.

Economic conditions

In the economic pillar, Singapore scores strongly on economic resilience and currency stability, placing it among the top performers on these indicators. By contrast, it ranks lower on the economic scale and manufacturing growth, reflecting the limited role of large-scale industrial expansion within its economy.

Political risk and institutional quality

Singapore ranks first on institutional stability and corruption perception, and records high scores on global peace and governance indicators. These results contribute significantly to its overall Index position and reflect consistency across political and regulatory frameworks.

Business environment

Singapore ranks first overall in the business environment pillar. It records leading scores in setup efficiency, IP protection, and capital environment indicators, reflecting regulatory clarity and administrative efficiency rather than cost competitiveness.

International trade

Singapore ranks first in the international trade pillar, with top-tier scores in trade openness, logistics performance, and trade facilitation. These indicators reflect the economy’s deep integration into cross-border supply chains and its role as a trade and logistics hub.

Tax policy

Tax policy is a core strength in the Index. Singapore ranks first overall in this pillar, scoring highly on tax structure, incentives, and tariff exposure, reflecting a stable and predictable tax framework.

Infrastructure

Singapore ranks first in the infrastructure pillar. High scores across electricity reliability, digital connectivity, infrastructure investment, and logistics systems support manufacturing activities that depend on system performance and reliability.

Workforce

The workforce pillar presents a mixed profile. Singapore scores highly on education attainment, labor productivity, international mobility, and English-language capability, while ranking lower on labor force size and labor cost competitiveness.

Innovation capacity

Singapore ranks first in the innovation pillar. Strong scores in R&D intensity, higher education, and innovation output highlight the role of technology and advanced capability within its manufacturing base.

Position in the Asia Manufacturing Index

Singapore’s fourth-place ranking reflects consistent top-tier performance across governance, infrastructure, trade, tax policy, and innovation, balanced by lower scores in scale, labor cost, and manufacturing expansion.

Source: ASEAN briefing