EIU rates Singapore and Hong Kong as top business cities of the world

Singapore and Hong Kong have once again been ranked as the top business cities in the world by the Economist Intelligence Unit (EIU). The countries are business friendly with an environment that allows the perfect setting, a congenial political climate, openness in foreign investment, labor friendly infrastructure and sw taxes.

Singapore has secured the top place out of the 82 countries for its efficient open economy. Last month Singapore made it to the top in World banks ‘ease of doing business report’ where 189 countries were evaluated and Singapore emerged as a top city for doing business.

Singapore has secured this rank for seven consecutive years. However, Denmark and Germany too continue to provide stable business environment despite stagnation in the euro zone. The BRIC economies did not score a good position for starting business. Meanwhile China took the 50th place, Russia back in 64th, with Venezuela and Libya trailing behind.

The other countries which will now be ranked in the top 5 until 2018 are Switzerland (2nd), Canada (4th), and Australia (5th). These categories were specifically chosen in order to accurately reflect the criteria used by companies when deciding whether to do business in a particular location. Each category contains a varying number of indicators, with approximately an even split between quantitative and qualitative data. The survey is based on sources from 2009-2013 and EIU forecasts for 2014-2018.

There is a low level of corruption in these countries. Top corporate tax rate is 17 percent and the top individual income tax rate is 20 percent, compared with a top corporate tax rate of 16.5 percent and a standard individual income tax rate of 15 percent in Hong Kong. It is straightforward to start a business in both places, and neither city requires a minimum amount of capital to do so. The average tariff rate is zero percent in both cities.

Singapore also ranked top among 30 cities in terms of transport and infrastructure. Hong Kong and Singapore have received high global ranking by other organizations this year. The Heritage Foundation and The Wall Street Journal, was released on January 14, 2014. It rated Hong Kong as the world’s freest economy for the 20th consecutive year, with Singapore coming in second place.

Last week, PricewaterhouseCoopers (PwC) released the sixth edition of its “Cities of Opportunity” report, a comprehensive ranking of the 30 cities around the world that offer the greatest opportunities for both businesses and residents. The two top-ranking Asian cities in the report are Singapore and Hong Kong, which overall took third and eighth places respectively. Singapore, in particular, was applauded for advancing four places since last year’s edition.