Singapore Country profile

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Country risk in Singapore is low suggesting a relatively low likelihood that it will be unable or unwilling to meet its external debt obligations in a systemic sense (though individual debtors can and do default). Singapore enjoys the best possible Moody’s, Fitch and S&P credit ratings. The fiscal position is sound with the IMF expecting a string of budget surpluses over the next five years. The government also manages the Temasek sovereign wealth fund worth US$235b (equivalent to 68% of GDP). Favourable public finances allow the government to support the economy during a downturn, a key driver of Singapore’s ratings.

 

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Singapore is ranked 2 out of a possible 190, second only to New Zealand, on the World Banks ease of doing business scorecard. Singapore excels in enforcing contracts, protecting minority investors, starting a business and accessing electricity. The Singaporean government has placed a strong emphasis on free markets and enforcing investor friendly policies.

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Singapore scores in the top 90% in most areas of governance, but performs poorly on voice and accountability. Political risk is low in Singapore as it has one of the most stable political systems in the world.

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