Skip to main content

Advertisement

Advertisement

Singapore is least risky country in the world for investments: Euromoney survey

SINGAPORE — The Republic has surpassed Norway and Switzerland to be the least risky country in the world for investments, according to the latest results of the Euromoney Country Risk (ECR) survey on Thursday (March 9).

Reuters file photo

Reuters file photo

Follow TODAY on WhatsApp

SINGAPORE — The Republic has surpassed Norway and Switzerland to be the least risky country in the world for investments, according to the latest results of the Euromoney Country Risk (ECR) survey on Thursday (March 9).

This is the first time Singapore has topped the ECR survey, which has ranked countries based on their investment risks for more than 20 years. In 2007, Singapore was ranked 21 on the list, but has slowly climbed up the rankings. Over the past decade, only Switzerland or Norway have topped the survey.

According to Euromoney, a monthly business and finance magazine, Norway dropped a spot this year to No 2 due to low oil price globally. Third-ranked Switzerland’s score was affected by the strength of the Swiss franc, which was undermining its economy.

While Singapore is not without challenges, the Republic still has a number of strengths that have turned into weaknesses elsewhere around the world, said Euromoney.

“So, Singapore’s economy only grew by 2 per cent in 2016, and the government forecasts only 1 per cent to 3 per cent for 2017, but it is considered good and sustainable growth in an unpredictable world – and GNP (gross national product) is strong, with national livelihood high,” the magazine added.

It further noted that despite financial problems in the oil services industry, non-performing loans in Singapore still hover around the 1 per cent mark. Singapore’s banking sector is also the most stable in the region and among the strongest in the world, Euromoney added.

“Monetary stability is as good as it gets, employment is high, the government obviously doesn’t change and its finances are relatively luxurious, it is largely transparent and without significant corruption, its institutions are sound and its regulations clear, it has the best infrastructure in Asia and – as anyone who has ever passed through the airport knows – it just works. It exudes efficiency,” the magazine wrote.

The ECR survey compiles responses from a community of economic and political experts who provide real time scores for countries in 15 categories that relate to economic, structural and political risk.

The scores provided from the experts are then combined with data from the IMF/ World Bank on debt indicators, a survey of debt syndicate managers at international banks on access to capital and Moodys/Fitch credit ratings.

A total of 186 countries are covered in the survey. The top ten countries in the latest rankings are Singapore, Norway, Switzerland, Denmark, Luxembourg, the Netherlands, Sweden, New Zealand, Canada and Germany.

Despite Singapore’s ascent, Euromoney suggested that Norway is likely to regain the top spot once oil prices rise. In November, Euromoney also called for a “reinvention of Singapore”, noting the struggle to attract new listings on the stock market and the fallout from the scandal involving Malaysian state investment fund 1MDB.

“However, Singapore should be proud of its time at the peak. And it should continue to remind its private banking industry that nothing in the country is more important than its safe and reliable reputation,” wrote the magazine.

“Sometimes boring is good”, especially during “a changing and uncertain world order, where nothing seems reliable or assured”, Euromoney concluded.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.