Asia’s competitiveness is deteriorating.
Singapore is losing out to neighboring Hong Kong in terms of economic competitiveness, according to the annual world competitiveness scoreboard by IMD.
Singapore slipped to fourth place in this year's rankings, from third in 2015. Meanwhile, Hong Kong clinched the first place for the first time since 2012, toppling the United States which fell to third place. Switzerland came in second to Hong Kong.
Singapore's rank for economic performance, government efficiency, and infrastructure dropped in this year's index. However, the city-state inched up in terms of business efficiency.
Singapore and Hong Kong are the only Asian countries in the top 10.
Hong Kong and Singapore aside, however, the research suggests Asia’s competitiveness has declined markedly overall since the publication of last year’s ranking.
Taiwan, Malaysia, South Korea and Indonesia have all suffered significant falls from their 2015 positions, while Mainland China declined only narrowly retaining its place in the top 25.
“The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions,” said Professor Arturo Bris, Director of the IMD World Competitiveness Center.
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