Singapore is well regarded as an international city, from its citizens carrying the world’s most powerful passport, to its world-renowned financial services and UNESCO-listed Hawker Culture, to top-tier infrastructure like Changi Airport.
However, the Singapore growth story since independence (in 1965) was never clear-cut. Given the lack of land mass, wealth or natural resources available to the country, its economic transformation is regularly been described as a miracle.
This may be due to a confluence of factors coming together.
Read Also: 10 International Rankings That Singaporeans Enjoy
Always Atop The Rankings
For Singapore, being at the top (or near the top) of global rankings across a variety of metrics is nothing out of the ordinary today. Being recognised for its world-class infrastructure or efficiency has become something of a norm in recent decades as the city state is routinely highlighted as a model for countries to emulate.
Lee Kuan Yew, the founding father of post-independent Signapore, was famous for his crusade against corruption within government (and the broader economy) in Singapore. Indeed, on corruption, Mr Lee famously stated that:
“We’ve created, in Singapore, a climate of opinion which considers bribery as totally devastating to society and economy”.
This focus from government on ensuring there was no graft in Singapore has resulted in the country being well-respected for its clean governance and general transparency in doing business. Indeed, Singapore is always close to the top of international rankings when it comes to transparency.
The most well-respected of these rankings is Transparency International’s Corruptions Perceptions Index (CPI). In the latest CPI 2023 report, Singapore placed 5th globally and was the only Asian country in the top 10.
CPI 2023 Report’s Top 10 By Score + Country/Territory
Strong Work Ethic And Efficiency
Singapore’s clean governance and minimal corruption have also been combined with a strong work ethic from her people. This has been instrumental in creating a business environment that is synonymous with getting things done.
In terms of the “ease of doing business”, Singapore is one of the best places in the world. The World Bank’s previous “Ease of Doing Business” annual rankings always had Singapore sitting first or second. More recently, its first Business Ready report revealed Singapore to be second in public services (behind only Estonia) and placed first globally in operational efficiencies. While this inaugural report only covered 50 global economies, next year’s Business Ready report is slated to include 110 economies – and it will be no surprise if Singapore features heavily within it again.
This has also resulted in one of the world’s top GDP per Capita, in current prices, of nearly $134 thousand international dollars per capita.
A Strong Currency Along With Credit Rating
Singapore regularly punches way above its weight when it comes to global financial metrics that matter to investors and creditors. First off, the Singapore Dollar has been a beacon of consistency and strength within Asia. It has consistently been stronger versus a basket of global currencies and recently hit a 10-year high versus the US Dollar.
Additionally, while Singapore’s gross debt-to-GDP ratio may appear large at first glance, it’s also a misleading metric. As the Singapore government pointed out at the beginning of 2024, it in fact has a strong balance sheet with no net debt.
That means its financial assets are well in excess of its debt. That’s one reason why the government is able to issue debt at such favourable rates and also why it’s one of the few countries in the world that has a sovereign credit rating of AAA from the three top ratings agencies – S&P, Moody’s and Fitch. This low debt burden means Singapore is able to issue debt to meet specific goals, such as significant infrastructure spending.
With a transparent economy, efficient public services and infrastructure, and globally-recognised currency as well as credit rating, Singapore is one of the world’s most influential and powerful economies in many respects.
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