Singapore named most competitive economy in Asia

Singapore has the most competitive economy in Asia, according to a report released on Wednesday by the Boao Forum for Asia.

The report said the city-state topped a list that reflected the strength, social development, infrastructure, human capital and innovation of 37 Asian economies.

Trailing Singapore were Taiwan, Hong Kong, Japan and South Korea.

Singapore has topped the list for two consecutive years, according to the English-language China Daily.

China and India lagged behind in the rankings because of their low commercial and administrative efficiency.

China's competitiveness was ranked the 10th-highest among Asian economies last year, moving up from the previous year.

'China's overall competitiveness increased in 2011 because of the country's work to modify its structure,' Mr Wang Jun, a researcher at the China Centre for International Economic Exchanges, told the China Daily. 'But it needs to streamline the approval procedure to improve commercial administrative efficiency.'

The Boao Forum for Asia is a non-profit organisation that holds forums for government, business and academic leaders.

Although India is a large market that enjoys rapid economic growth and great potential for innovation, its ranking dropped to 32nd from 28th.

Mr Zhou Wenzhong, secretary-general of the Boao Forum for Asia, told the China Daily it would be important for Asia's economies to pursue their goals more strenuously.

'There is an increasing need to expand the region's internal demand to offset a continuous slowdown in the European and US markets,' he said.

Europe, the largest trading bloc in the world, saw its share of world trade decline to 38 per cent in 2010, from 41 per cent in 2009. Asia's share, meanwhile, increased to 32 per cent in 2010, from 29 per cent the year before.

Mr Pei Jiansuo, an economist at the University of International Business and Economics, said: 'Further progress has been made in Asian economic integration, and the production network has laid the foundation for the region's integration.'

About 54 per cent of Asia's trade was conducted among Asian economies in 2010, up from 51 per cent in 2009.

Mr Pei said Asian economies are at a crossroads, and must decide whether to work further towards regional integration.

Source: Straits Times
23 March 2012