Singapore has been ranked the world’s third most competitive city due to its first-class infrastructure, strong economy and clean environment, according to the latest report published by the Economist Intelligence Unit (EIU).
Ranked by the World Bank as the easiest place to do business, Singapore also tops the list as the most competitive city in Asia, surpassing Hong Kong and Tokyo which placed second and third respectively. However, Singapore fared relatively worse in terms of social character and cultural vibrancy, which were also factors examined in the ranking.
Singapore’s future competitiveness may also be affected, as the country weans itself off its dependence on a foreign workforce, noted Sudhir Thomas Vadaketh, Senior Editor for Industry and Management Research at EIU Asia.
“If Singapore decides to seriously crimp the hiring of foreign nationals – which I don’t think it will, for a multitude of reasons – then yes, you could argue that its score could go down in the future,” he said.
Commissioned by banking giant Citi, the report ranked 120 cities based on their demonstrated ability to attract business, capital, tourists and talent.
Globally, New York and London grabbed the top two spots, while Paris and Hong Kong shared the fourth spot. Tokyo, Zurich, Washington, Chicago and Boston completed the top 10 list of most competitive cities in the world.
Khoo Teng Chye, Executive Director of Singapore’s Centre for Liveable Cities, a government think tank, said the key to Singapore’s competitiveness has been its openness to the rest of the world.
“We have always been a hub open to the flow of people, ideas, capital, goods and services,” he said, noting that the city has always strived to attract both businesses and human capital, and has lured in businesses by, among other things, offering tax incentives and streamlining license approvals.
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