Singapore

Ranking 4th overall, tied with the US and Germany, Singapore’s high scores for commercialisation of innovation help it attain the top spot for Economic Competitiveness, far above its ranking for Comparative Liveability (17th).

Since independence in 1965, Singapore has transformed its economy and the wealth of its citizens by nurturing manufacturing for export, particularly in electronics, aided by extraordinary levels of foreign trade and investment and guided by government industrial policy. However, rising labour costs, and Singapore’s susceptibility to fluctuating international demand, have forced a rethink of the low-value manufacturing development model that has been followed widely in the region.

Nonetheless, Singapore retains significant advantages in infrastructure, labour, and a sound regulatory environment, and is particularly respectful of property rights, all of which have led to extraordinary success in accumulating capital investment. Singapore’s mass education scores are already high. Recent education reforms, with a particular focus on IT skills, should help the economy continue its shift into knowledge and capital-intensive sectors such as biotechnology. Singapore has already achieved considerable success in reaping the commercial benefits of innovation, as evidenced by the amount of high-tech goods that it exports.

Singapore’s excellent score for openness reflects sustained government promotion of bilateral FTAs and work towards economic integration within ASEAN and APEC. Singapore has built a substantial competitive advantage as a regional financial centre, backed by a high level of government effectiveness.

Singapore has enjoyed sustained growth in incomes, and has achieved an excellent health-adjusted life expectancy of over 70 years. These are two of the most heavily-weighted components in the Prosperity Index.

Despite a weak score for political rights and civil liberties, Singapore’s government is in general highly effective and maintains tight control over corruption. However, Singapore’s material success has been paid for by arduous working hours (an average of 49.8 hours a week) and a corresponding reduction in leisure time (just over four^g hours a day).

Singapore also shows some weaknesses in equality of opportunity. Increasing numbers of low-skilled jobs are filled by immigrants, who are required as Singapore’s population growth slips below the replacement rate. However, charitable giving remains common, suggesting a relatively healthy degree of social cohesion.

Singapore’s small size and high population density means that green spaces are sparse. However, the government has compensated for a low abundance of nature by making natural environment and resource preservation a priority in its long-term Green Plan. Index scores on air quality and to public satisfaction with environmental preservation efforts are very high.