Singapore Tops Economic Competitiveness in Asia for Four Consecutive Years; Japan is 2nd In Latest Global Competitiveness Report

By Staff Writer

Sep 24, 2014 05:49 AM EDT

The Asia Pacific is a fast developing region in terms of economic competitiveness. In the 2014 Global Competitiveness Report of the World Economic Forum, it is home to three of the world's top 10 most competitive economies and six of the Top 20. These countries continue to fare well in the Global Competitiveness Index of the said report. Likewise, Southeast Asian countries continue to rise in the rankings. Malaysia jumps four places into the top 20, Thailand goes up six ranks, Indonesia goes up by 4, the Philippines goes up seven ranks higher and Vietnam two. The Philippines emerged as the most improved country since 2010, based on the report.

Asia is known for its extreme diversity and because of this the challenges of its economy may greatly vary. In advanced economies, their rigid labor market continues to pose a challenge. Emerging economies, on the other hand, faces an infrastructure deficit as well as the need to reduce red tape and corruption and improved market efficiency. For poor economies, there is a need to develop a manufacturing base, sound and a stable institutional framework and focus on education.

The Global Competitiveness Report measured the economies based on 12 key factors that can drive competitiveness. Among these factors include governance, infrastructure, education, market efficiency, and innovation. Here now are the top five most competitive Asian economies, as reported in the Global Competitiveness Report.

1. Singapore

Singapore is the most competitive economy in Asia and the second in the world for the fourth straight year. It ranked no. 1 in the goods market efficiency pillar and second in labor market efficiency and financial market development. The country has one of the best institutional frameworks in the world and a world-class infrastructure with its excellent roads, ports, and air transport facilities.

2. Japan

Japan climbs three notches higher from sixth position overall. It boasts of having a competitive edge in business sophistication, high research & development spending, excellent workforce, world class research facilities, and a high capacity for innovation. Over the last five years, its budget deficit has been at around 10% of its GDP, one of the highest ratios in the world.

3. Hong Kong SAR

Hong Kong has been in the global Top 10 since 2012 and is seventh this year. It has the best infrastructure in the region due to its quality transportation system. Although it is one of the most open and technologically ready economies, it still needs to work on improving on higher education and innovation and its limited availability of scientists and engineers.

4. Taiwan

Ranked as the 14th most competitive economy in the world, Taiwan has been showing a stable performance in the last six years. Among its strengths include high capacity for innovation, highly efficient goods market, and its world class infrastructure and higher education. To improve its competitiveness, Taiwan needs to boost its institutional framework as well as encourage women's participation in the workforce.

5. New Zealand

New Zealand is ranked as the 17th most competitive economy in the world, its highest since the introduction of the current CGI methodology. It topped the institution pillar and ranks 3rd in financial market development. It is known for having an excellent education system and is among the world's best in terms of efficiency of goods and labor markets. 

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics