All ASEAN-5 countries but Thailand drop in world competitiveness report

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Container ship ThailandThe newest “World Competitiveness Yearbook” released by the International Institute for Management Development (IMD) shows that all ASEAN-5 countries but Thailand dropped in the ranking that compares the competitiveness of 61 economies worldwide.

The ranking looks at indicators such as government policy, real GDP growth per capita, exchange rate stability, risk of political instability,  exports, stock market capitalisation, tourism receipts and at several other aspects of each country as a place to conduct business, including government efficiency, business efficiency and infrastructure.

Singapore, Malaysia, the Philippines and Indonesia all dropped, with Indonesia and Malaysia showing the worst performance mainly owing to the fall in commodity prices, a strong US dollar and lower revenues in both the private and public sectors. Singapore, in turn, dropped as its economic growth slowed in the past.

Thailand’s ranking rose two notches to 28 thanks to “improvements in key criteria such as political stability and policy flexibility,” the IMD said. Improvements also included real GDP growth per capita, exchange rate stability and decreased risk of political instability. But exports and stock market capitalisation showed declines.

IMD graphOverall, the IMD this year ranks Hong Kong at the top, surpassing Switzerland. The US fell from first place to third, followed by Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada.

The sheer power of the economy of the US was “no longer sufficient to keep it at the top of the ranking, which it has led for the past three years,” Arturo Bris, Director of the IMD World Competitiveness Center, said

“The US still boasts the best economic performance in the world, but there are many other factors that we take into account when assessing competitiveness,” he added.

In terms of Asia, and Hong Kong and Singapore aside, the research suggests Asia’s competitiveness has declined markedly overall since the publication of last year’s ranking. Taiwan, Malaysia, South Korea and Indonesia have all suffered significant falls from their 2015 positions. Mainland China also declined, albeit only narrowly, retaining its place in the top 25. Japan improved by one notch to rank 27.

The rest of the ASEAN countries (Myanmar, Cambodia, Laos, Vietnam and Brunei) were not assessed.

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The newest "World Competitiveness Yearbook" released by the International Institute for Management Development (IMD) shows that all ASEAN-5 countries but Thailand dropped in the ranking that compares the competitiveness of 61 economies worldwide. The ranking looks at indicators such as government policy, real GDP growth per capita, exchange rate stability, risk of political instability,  exports, stock market capitalisation, tourism receipts and at several other aspects of each country as a place to conduct business, including government efficiency, business efficiency and infrastructure. Singapore, Malaysia, the Philippines and Indonesia all dropped, with Indonesia and Malaysia showing the worst performance mainly owing to...

Reading Time: 2 minutes

Container ship ThailandThe newest “World Competitiveness Yearbook” released by the International Institute for Management Development (IMD) shows that all ASEAN-5 countries but Thailand dropped in the ranking that compares the competitiveness of 61 economies worldwide.

The ranking looks at indicators such as government policy, real GDP growth per capita, exchange rate stability, risk of political instability,  exports, stock market capitalisation, tourism receipts and at several other aspects of each country as a place to conduct business, including government efficiency, business efficiency and infrastructure.

Singapore, Malaysia, the Philippines and Indonesia all dropped, with Indonesia and Malaysia showing the worst performance mainly owing to the fall in commodity prices, a strong US dollar and lower revenues in both the private and public sectors. Singapore, in turn, dropped as its economic growth slowed in the past.

Thailand’s ranking rose two notches to 28 thanks to “improvements in key criteria such as political stability and policy flexibility,” the IMD said. Improvements also included real GDP growth per capita, exchange rate stability and decreased risk of political instability. But exports and stock market capitalisation showed declines.

IMD graphOverall, the IMD this year ranks Hong Kong at the top, surpassing Switzerland. The US fell from first place to third, followed by Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada.

The sheer power of the economy of the US was “no longer sufficient to keep it at the top of the ranking, which it has led for the past three years,” Arturo Bris, Director of the IMD World Competitiveness Center, said

“The US still boasts the best economic performance in the world, but there are many other factors that we take into account when assessing competitiveness,” he added.

In terms of Asia, and Hong Kong and Singapore aside, the research suggests Asia’s competitiveness has declined markedly overall since the publication of last year’s ranking. Taiwan, Malaysia, South Korea and Indonesia have all suffered significant falls from their 2015 positions. Mainland China also declined, albeit only narrowly, retaining its place in the top 25. Japan improved by one notch to rank 27.

The rest of the ASEAN countries (Myanmar, Cambodia, Laos, Vietnam and Brunei) were not assessed.

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