Singapore has been ranked the most competitive out of 67 economies in the International Institute for Management Development (IMD) World Competitiveness Ranking 2024.

It reached the top of the ranking for the first time since 2020.

According to the report published in June 2024, Singapore performed well in all four areas studied, namely:

• Government efficiency (the extent to which government policies are conducive to competitiveness)
• Business efficiency (how well enterprises are performing in an innovative, profitable, and responsible manner)
• Economic performance (a macro-economic evaluation of the domestic economy)
• Infrastructure (the degree to which basic, technological, scientific, and human resources meet the needs of business)

About the ranking

The ranking evaluates economies with various population sizes, as well as those with GDP "on both ends of the scale".

It also takes into account ongoing global issues that may pose as challenges to each economy.

José Caballero, a senior economist from the IMD World Competitiveness Center, said the issues include U.S.-China tensions, armed conflicts compounding inflation and poverty, geopolitical tensions which may exacerbate supply-chain disruptions, as well as the challenges and costs associated with implementing AI-based systems.

Arturo Bris, the centre's director, said the ranking "serves as a benchmark for these countries to measure their progress and identify areas for improvement".

It also aims to provide guidance in economic development while supporting global goals such as the Sustainable Development Goals (SDGs) set by the United Nations.

Did best in government and business aspects

Singapore, returning to its top spot after four years since 2020, has reportedly done well especially in the areas of government efficiency and business efficiency.

It previously ranked fifth in 2021, third in 2022 and fourth in 2023.

Following close in second and third place in 2024 are Switzerland and Denmark respectively.

Here's how Singapore did in each of the four areas, according to the report:

Singapore got a score of 87.8 in government efficiency and reached the second spot after Switzerland.

In the business efficiency area, Singapore scored 95.96 and placed second after Denmark.

Across all 67 economies assessed, Singapore gained a score of 70.85 and placed third after the U.S. and the United Arab Emirates (UAE) in economic performance.

Under infrastructure, Singapore scored 77.08 and takes up the fourth position following Switzerland, Denmark, and Sweden.

In 2023, Denmark climbed to first place, followed by Ireland and Switzerland.

IMD said that Singapore's relatively small size and its maritime setting have "gone in Singapore’s favour".

Declined in some areas

While Singapore scored well in all four areas, the report also highlighted areas where there was a decline from last year’s ranking.

Singapore fell behind slightly in areas such as real GDP growth per capita, total general government debt, and health expenditure.

Singapore's ranking for total public expenditure on education also fell, along with its ranking for pupil-teacher ration, which dropped by at least six places for both primary and secondary education.

The report noted that there are also emerging challenges which could threaten Singapore's rank — such as artificial intelligence.

To tackle such challenges, it recommended support for employees undergoing reskilling, and for businesses in transformation.

Top photo by Mothership