Singapore hailed again as world’s second freest economy

Hong Kong topped the list by a narrow margin.

Singapore has again been hailed the second freest economy in the world, thanks to the city-state’s openness to global trade and investment providing a solid basis for economic dynamism, according to the 2016 Index of Economic Freedom released by the Heritage Foundation and the Wall Street Journal.

The index further notes that the country’s “transparent regulatory environment, buttressed by well-secured property rights, provides security for the innovative and resilient private sector.”

Singapore was notably successful under the index’s rule of law category, as local lawmakers are allowed to and do serve on the boards of private companies, creating potential conflicts of interest. The country also performed well in terms of regulatory efficiency and trade freedom.

Singapore’s score of 87.8 shows a decline of 1.6 points, and was narrowly beaten by Hong Kong’s 88.6 points. Rounding out the top five are New Zealand (81.6), Switzerland (81), and Australia (80.3).

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