ASEAN member state Singapore remained in the top spot as the world’s most-free economy, according to The Heritage Foundation’s 2021 “Index of Economic Freedom” published in early March 2021.
Singapore’s economic freedom score is 89.7, making its economy the freest in the 2021 Index. The overall score of Singapore has increased by 0.3 point since the previous year’s index, primarily due to improved score for government spending, The Heritage Foundation said. The country ranks 1st among 40 countries in the Asia–Pacific region, and its overall score is well above the regional and world averages.
Singapore’s scores have increased in terms of property rights, government integrity, business freedom, trade freedom, labour freedom, tax burden, and government spending, the breakdown of the different scores showed.
“Singapore’s economy has been ranked the freest in the world again this year for the second year in a row. Singapore remains the only country in the world that is considered economically free in every Index category, although its indicator scores for fiscal health and financial freedom just barely make it over the threshold into the highest category,” The Heritage Foundation said.
“Well-institutionalized openness to global investment encourages vibrant commercial activity,” it said, commenting on Singapore’s open markets score. The ASEAN member state has 25 preferential trade agreements in force.
After Singapore, New Zealand ranks second in the 2021 Index of Economic Freedom, while Hong Kong – which was ranked second for the first time in the history of the Index in 2020 after ranking first for 25 years – was not ranked in this year’s Index, which now includes only countries exercising full sovereign control over their economic policies. Hong Kong and Macau were not ranked in the 2021 Index, partly as a consequence of China’s growing control over the cities’ economies.