Worldbox Country Risk Climate – September 2026
SINGAPORE
Summary
Overall Risk Score
34/40 – Stable (Unchanged)
| Political risk: 9/10 – Stable (Unchanged)
Economic risk: 8/10 – Stable (Unchanged) Commercial risk: 9/10 – Stable (Unchanged) Technology risk: 8/10 – Stable (Unchanged) A country’s risk rating is based on four areas: political, economic, commercial and technological risk. Each area is scored from 1 to 10, where 1 is the highest risk and 10 is the lowest. |
ESG Risk: 8/10 – Stable (Unchanged)
Environmental, social and governance (ESG) risk is increasingly important to companies, investors and consumers across Southeast Asia. Our quarterly country risk reports therefore include a separate ESG score and analysis of each country’s environmental, social and governance performance, along with recent developments. |
Political Risk September Update
Stable at 9
A YouGov survey has found rising confidence in the Singapore government with around two-thirds of Singaporeans being satisfied with the government’s performance, compared with 28% who express dissatisfaction. Satisfaction is highest among millennials (79%), while men (32%) and Gen X respondents (39%) are more likely to report dissatisfaction. The figures are extraordinarily high by Western standards and have improved since 2023, suggesting that government efforts to combat concerns about housing and employment for Singaporeans are having an effect. The cost of living, however, remains a key concern with nearly half of Singaporeans (44%) say it should be the government’s main priority in 2026.The next general election is not due until 2030 but there is nothing to suggest that Singapore’s long-standing and remarkable political stability is under threat.
An article in the Straits Times has suggested that the impact of AI on jobs could become a major political theme in the coming years. The article says that the government is responding to the potential challenge by scaling company training committees with the National Trades Union Congress, forming a new jobs council with employers and the unions, and merging skills agencies. The main opposition Workers Party, by comparison, is calling for individual entitlements that workers can claim directly, including wage subsidies for graduate apprenticeships, redundancy insurance and a “national AI equity fund”. The Straits Times points out that the political stakes are high, explaining that: “professionals, managers, executives and technicians (PMETs) make up 64.2% of employed Singapore residents” and that “from 2014 to 2024, around 63% of the growth in resident PMET jobs came from local-born Singaporeans”.
Political Risk – Context
Singapore is one of Southeast Asia’s most stable and prosperous countries. The electoral and legal framework allows for some political pluralism but constrains the activities of opposition parties and limits freedoms of expression, assembly and association. The media environment is controlled and self-censorship among journalists is common. There are also curbs on online content. The People’s Action Party (PAP) has ruled the country since it split from Malaysia in 1965.
Lawrence Wong became prime minister on 15 May 2024, succeeding Lee Hsien Loong, the eldest son of the country’s founding father, Lee Kuan Yew. Wong, the former deputy prime minister, became the fourth leader of Singapore since independence. Aged 53, he is only Singapore’s second leader not to come from the Lee family, after Goh Chok Tong, who governed between 1990 and 2004.
Singapore, a bellwether for global trade, faces a turbulent 2026 with the outbreak of war in the Middle East in February already presenting serious economic challenges to the island republic. However, the government is unlikely to make any drastic policy changes. Worldbox Business Intelligence expects further efforts to protect both local workers and the environment. For example, the government may announce further measures to protect local workers by tightening foreign-labour policy further, making it costlier to hire foreigners.
Efforts to reskill and upskill workers will also continue, particularly as artificial intelligence (AI) becomes an increasingly prevalent opportunity – and threat – in the workplace. The government may, for example, offer “more lifelong education policies to increase the flexibility and competitiveness of our labour market”.
Sustainability will be another key policy area, with the carbon tax for applicable large emitters rising from S$25 to S$45 for a tonne of emissions in 2026 and 2027. The change will shape emissions behaviour and induce cost increases that will affect other businesses and end consumers.
Economic Risk September Update
Stable at 8
Singapore’s economy expanded by 5% in 2025, exceeding forecasts even after the Ministry of Trade and Industry upgraded its projections twice – in August and November. It marked the second consecutive year of 5% plus growth. Officials attributed the rapid expansion to manufacturing, wholesale trade, and finance and insurance sectors. The electronics cluster and machinery, equipment and supplies segment experienced particularly strong growth, driven by surging demand for artificial intelligence-related electronics. Accommodative financial conditions supported growth in the finance and insurance sector.
Singapore’s economy is once again beating expectations in 2026. The economy grew by an annual pace of 6% in the first quarter, the Ministry of Trade and Industry reported, comfortably beating an official advance estimate of 4.6%. The Ministry added that robust AI-related demand led to growth in the machinery, equipment & supplies segment of the wholesale trade sector, as well as the electronics and precision engineering clusters within the manufacturing sector. However, Singapore’s economy will inevitably be affected by the Middle East conflict given that it imports nearly all of its energy requirements and is a bellwether for global trade. In April, the government announced that it was bringing forward some of the support measures announced in the budget to provide earlier relief and cushion the Middle East conflict’s impact on Singapore households and businesses.
In June, the Ministry of Trade and Industry kept its 2026 growth outlook steady at between 2 and 4% despite “downside risks” from rising energy and fertiliser prices amid the closure of the Strait of Hormuz to most shipping. During the same month, private-sector economists revealed they expected Singapore’s economy to expand by 3.5% in 2026, slightly weaker than their previous forecast of 3.6%, on slower growth in private consumption. The data is from the latest quarterly survey of professional forecasters sent out by the Monetary Authority of Singapore.
In May, S&P Global forecast that GDP growth would ease to 3.7% in 2026 and 2.3% in 2027, reflecting external headwinds. In addition to base effects from a strong expansion of 5.0% last year, the ratings agency said that ongoing energy shock from the Middle East war alongside spillovers to global trade will weigh on near-term economic growth. It added that economic imbalances also exist because of high private residential real estate prices, and latent upside pressure that has been kept in check by government intervention.
In May 2026, the central bank said Singapore’s monetary policy stance remains appropriate and domestic interest rates should hold broadly stable, even as global rate uncertainty persists following the stronger-than-expected Q1 GDP data. The central bank uses the exchange rate as its key policy tool, reflecting the fact that international trade flows dwarf the island nation’s domestic activity. Consequently, the Singapore dollar operates under a managed float-currency regime, based on a basket of currencies representing the city-state’s major trade partners. The rate is allowed to trade within an undisclosed band.
Economic Risk – Context
Singapore is a high-income economy built on a business-friendly regulatory environment and strong investments in infrastructure, education, healthcare and public services. The city-state is among the world’s most competitive economies, according to the World Bank. Political stability, low corruption rates and transparent public institutions have underpinned its growth as a leading business and financial hub in Asia.
The economy is heavily trade-dependent and has an open investment regime, with some licensing restrictions in the financial services, professional services and media sectors. The government is committed to maintaining a free market but also actively plans Singapore’s economic development, including through a network of state-owned enterprises.
Following independence in 1965, the economy experienced rapid industrialization in the 1960s, with manufacturing emerging as the main driver of growth. The manufacturing and services sectors remain the twin pillars of Singapore’s high-value-added economy.
Manufacturing is increasingly hi-tech: the country is the world’s fifth-largest exporter of hi-tech products in sectors such as semiconductors, pharmaceuticals, medical and aerospace engineering. Electronics account for close to half of the manufacturing sector’s output, with semiconductors being particularly important.
The government actively promotes the country as a centre for research, development and innovation by offering tax incentives, research grants and partnership opportunities with domestic research agencies. Singapore remains a regional hub for thousands of multinational companies and maintains its reputation as a world leader in dispute resolution, financing and project facilitation for regional infrastructure development.
The country is also an important global maritime and aviation hub, and claims to have the best seaport in Asia, while Changi Airport is routinely voted as being among the best in the world. Singapore is home to the world’s largest transshipment container port, linked to over 600 ports worldwide.
In May 2026, the government’s Economic Strategy Review (ESR) committees released its final recommendations – with Deputy Prime Minister Gan Kim Yong stating that it is not simply a response to immediate challenges. The key recommendations are as follows:
- Build global leadership in areas of strength and take bold bets for future growth.
- Make Singapore a global leader in AI solutions, and an AI-empowered economy.
- Strengthen Singapore’s role as a connected and trusted hub.
- Foster a more dynamic enterprise ecosystem so that more Singapore based companies can start, scale and succeed globally
- Create more and a broader range of good jobs.
- Establish a stronger system for career transitions and worker support.
- Empower workers to learn for life and take charge of their careers.
- Build economic resilience as a core capability.
Commercial Risk September Update
Stable at 9
In April 2026, Fitch affirmed Singapore’s Long-Term Foreign-Currency Issuer Default Rating at ‘AAA’ with a Stable Outlook. The agency said that the rating reflects its exceptionally strong fiscal and external balances, supported by large external and fiscal surpluses, high income per capita, prudent fiscal management and a favourable business environment. These strengths mitigate the economy’s vulnerability to external shocks arising from its high degree of trade openness.
In May, S&P Global issued a glowing report on the economy. It said that most corporations have strong balance sheets and adequate capacity to manage shocks to income and financing costs. It added that the banking sector’s overall corporate NPL ratio has continued improving and stood at 1.5% in the third quarter of 2025, from 3% in the same period of 2021. Uncertain geopolitical environment and energy price volatility could dampen growth and disrupt supply chains, and some highly leveraged SMEs are more vulnerable, according to the agency. However, it believes that the corporate sector “is entering this period of uncertainty from a position of strength”.
The ratings agency also cited a resilient domestic household sector. It explained that the labour market remains robust with a low overall unemployment rate of only 2% in 2025. It added that the household sector continues to have robust balance sheets, supported by strong wage growth and an increase in property prices. Mortgage NPLs remained low at just 0.26%, below their historical average of 0.38%. Cash and deposits held by households continue to exceed household debt by more than 1.5x. Moreover, reported S&P Global, the personal savings rate stayed high at 36.3% as of the fourth quarter of 2025, compared with 37.6% a year earlier, and higher than its 10-year average of 31%.
Commercial Risk – Context
Singapore consistently ranks as one of the best economies in the world in which to operate. The country ranks in first place in terms of economic freedom out of 184 countries, according to the Heritage Foundation 2025 Index of Economic Freedom. In its 2025 report on Singapore, Freedom House said that:
“Strong protection of property rights and effective enforcement of anticorruption laws sustain the foundations of Singapore’s economic freedom. Tax rates are competitive, and the regulatory environment encourages vibrant economic activity. Openness to global commerce boosts productivity and facilitates the emergence of a more dynamic and competitive financial sector. The business start-up process is straightforward. There is no statutory minimum wage, but the National Wage Council guides wage adjustments. Inflation is under control despite the challenging external environment.”
Singapore’s competitive strengths were underlined again in June when it was revealed that the country had climbed back to the top of the IMD’s World Competitiveness Rankings, after slipping to second in 2025. The rankings evaluate 70 economies for competitiveness, looking at four key areas – economic performance, government efficiency, business efficiency and infrastructure. The report credited Singapore’s performance to a broad recovery across several areas of competitiveness, particularly business efficiency, which it topped among the 70 economies.
Singapore is also consistently rated as one of the least corrupt societies in the world, ranking third in Transparency International’s (TI) 2025 Corruption Perceptions Index, maintaining the same position as last year. It is the only Asian country ranked in the top 10. Singapore has tackled corruption decisively and garnered international recognition for its incorruptibility and clean public sector, according to TI. Singapore also ranks well in other international reports. In the 2025 Report on Corruption by the Political and Economic Risk Consultancy (PERC), Singapore received the best score out of 16 economies in Asia, the US and Australia.
Singapore benefits from excellent infrastructure, reflecting high levels of investment supported by years of political stability and economic prosperity. The country hosts superb transport links, for example, and its nationwide fibre network provides its citizens with among the fastest home internet speeds in the world.
Singapore is consistently regarded as among the “smartest” cities in the world. For example, the 2026 Smart City Index ranked Singapore as the smartest city in East and Southeast Asia, ahead of Beijing, Shanghai, Hong Kong and Seoul, and as the world’s ninth-smartest city, the same ranking as in 2026. The report found that Singapore was excelling in areas like providing satisfactory basic sanitation for the poorest areas, public transport and public safety.
Technology Risk September Update
Stable at 8
Singapore lies just behind Vietnam in the region in terms of the use of technology in construction. Around 52% of local employees utilise weekly construction-specific technology, while the figure in Singapore stands at 47% according to Autodesk‘s State of Digital Adoption in the Construction Industry 2026 report.
Technology Risk – Context
The Global Innovation Index (GII), from the World Intellectual Property Organisation, is an important index used by countries and multinational companies to assess innovation ecosystems and aid in policymaking and investment decisions.
Singapore consistently ranks well, ranking fifth out of 139 countries in the 2025 GII – moving up from 15th place in 2020. Singapore ranks second among the 17 economies in Southeast Asia, East Asia and Oceania.
Singapore was named one of 12 global technology “powerhouses” and is positioned to draw the capital and talent needed to develop a sophisticated AI ecosystem that will keep it among the elite, according to the Global Tech Talent Guidebook published in 2025. However, it is also one of the costliest cities to run a tech business in, ranking 24th out of 115 markets for software engineers’ wages and with office rents that are second only to Paris.
Beijing, Shanghai, Bengaluru, Tokyo, San Francisco, New York, Seattle, Boston, Toronto, Paris and London complete the top dozen powerhouses in the study compiled by real estate services firm CBRE. Singapore, with 45% of its 4.3 million working-age population having at least a university degree, ranked behind only Ireland and Switzerland in education levels.
Government policies
The government has played a key role in driving the development of critical and emerging technologies. Singapore launched its first National AI Strategy (NAIS) in 2019, which saw the country embark on national AI projects in education, healthcare, logistics, security and municipal services. It launched an updated NAIS 2.0 strategy in 2023, which aimed to more than triple the number of AI practitioners to 15,000, and help Singapore become a place where the world’s top AI creators gather. The strategy was updated in May 2026 to focus on “double-click” priorities and global public good. Spearheaded by the newly formed National AI Council, the strategy launched four National AI Missions to drive transformation in Advanced Manufacturing, Connectivity, Finance, and Healthcare.
In December, Singapore announced that it would invest S$37 billion (US$28.5 billion) – or about 1% of its economic output –on research, innovation and enterprise over the following five years. Around 8% – or S$3 billion – will go towards research, innovation and enterprise in flagships and “grand challenges”, including the semiconductor industry and longevity research.
Singapore’s long-term vision also integrates digital technology into all facets of daily life and citizen services—from seamless digital IDs (Singpass) to AI-powered career and urban mobility tools. Singapore introduced a Smart Nation initiative back in 2014 and updated it in 2024 as Smart Nation 2.0 which incorporates new developments such as the rise of AI.
Singapore has positioned itself as the undisputed tech talent hub of Southeast Asia, attracting startups, enterprises, and global tech giants alike. The startup ecosystem in Singapore has seen a surge in activity, particularly in sectors like MedTech, Greentech, Agri-tech, and AI. By the end of 2025, Singapore was home to more than 48,000 startups, climbing to fourth place globally from fifth a year earlier, according to StartupBlink Ltd.’s Global Startup Ecosystem Index.
Programmes like Smart Nation and Startup SG, alongside agencies such as Enterprise Singapore and GovTech, provide comprehensive support for tech innovation and digital transformation. With a 17% corporate tax rate, Singapore has become a prime destination for venture capital.
In line with the national climate goals outlined in the SG Green Plan 2030, innovation is being stimulated in energy efficiency, carbon capture, and low-carbon technologies. Collaborations between startups, enterprises, and research institutions power this drive towards a sustainable future.
Singapore is the world’s most crypto-friendly city according to the Crypto Friendly Cities Index 2026, published by borderless living platform Multipolitan. The report ranks cities based on regulatory clarity, tax efficiency, institutional infrastructure and real-world cryptocurrency adoption. Six Asia-Pacific cities secured positions in the global top 10, reinforcing the region’s emergence as a leading destination for digital asset investors, entrepreneurs and infrastructure providers. Singapore combines a clear regulatory framework with favourable tax policies, strong institutional participation and growing cryptocurrency payment adoption.
Infrastructure
Singapore’s infrastructure ranks among the best in the world. It has one of the most reliable electricity supplies globally, for example, with an average interruption time of less than one minute per customer per year.
The authorities are integrating sensors, data analytics, and automation to build smart infrastructure, deploying smart traffic management systems, for example, that utilise real-time data to dynamically adjust traffic flow, ease congestion and improve commuting times. In housing estates, sensors proactively monitor utilities and structural health, enabling swift maintenance and ensuring a more secure and comfortable living environment for residents.
Singapore is also one of the biggest data-centre markets in Asia and one of the top submarine-cable hubs globally, with connections to 25 active subsea cables and more to come. Singapore’s Changi airport was named the “world’s best airport” for the thirteenth time, voted by air travellers around the world in the 2025/2026 World Airport Survey. The airport is undergoing an expansion with a fifth terminal due to open in the mid-2030s. The new terminal will increase capacity by 50% (serving 140 million passengers annually) and feature pandemic-ready technology, contactless systems, and sustainable design.
Other major infrastructure projects underway include:
An expansion of the rail network to about 360km by the early 2030s, which will leave eight in 10 households within 10 minutes of a train station.
A joint project with Malaysia, the Johor Bahru – Singapore Rapid Transit System Link aims to ease congestion on the causeway between the two countries. The link will be a standalone Light Rail Transit System with the capacity to serve up to 10,000 commuters during peak periods, for every hour and in each direction, with a train journey time of about five minutes between the two stations. The link is targeted to commence passenger service at the end of 2026.
Construction of the Jurong Region Line (JRL) is Singapore’s seventh mass rapid transit line, serving both existing and future development in the western part of Singapore, is underway. The JRL will open in phases from mid-2028 to 2029.
The country is building its eighth line, the Cross Island Line (CRL), the island’s longest fully underground line at more than 50 kilometres long. It will serve existing and future developments in the eastern, western, and north-eastern corridors, connecting major hubs such as Jurong Lake District, Punggol Digital District and Changi region. The CRT is due to become operational in 2030.
An expansion of the circle line with the addition of three new stations will be completed by 2026.
Education and skilled staff
Education in Singapore is seen as being among the best in the world. Singapore was ranked number one for mathematics, science and reading in the OECD’s Programme for International Student Assessment (Pisa) 2022. The National University of Singapore ranked 10th in the QS World University Rankings while Nanyang Technological University is in 12th position, according to the Quacquarelli Symonds (QS) World University Rankings 2027, released in June 2026.
Environmental, Social and Governance (ESG) September Update
Stable at 8
Singapore and the Philippines have signed a carbon trading agreement that allows both countries to share verified emissions reductions, a move expected to boost climate investment. The deal creates a framework under the Paris Agreement for transferring carbon credits between the two nations.
Environmental, Social and Governance (ESG) – Context
The United Nations’ Sustainable Development Goals (SDGs) are recognised as a beneficial framework for responsible investment. The Sustainable Development Report from Cambridge University Press assesses the progress of all 193 UN Member States on the SDGs. It provides a useful means of ranking Southeast Asian countries on their ESG progress.
Singapore is ranked 69 out of 167 in the 2025 report, with a score of 71.5. Singapore has the highest score in the ASEAN region, a reflection of the country’s advanced economy, the rule of law and the increasing attention paid to ESG issues by the authorities.
Environment – Singapore is a liveable and sustainable city, with clean air and a generally healthy environment, a robust and diversified supply of water, green spaces and a highly efficient public transport network.
The government’s Singapore Green Plan 2030 sets ambitious targets to improve the environment and place the city on course to reach its net-zero target by 2050. Goals include developing over 130 hectares (ha) of new parks, and enhancing around 170 ha of existing parks with more lush vegetation and natural landscapes by 2026. The plan also calls for a doubling of the annual tree-planting rate between 2020 and 2030, to plant 1 million more trees across Singapore.
The government says that as “a small, low-lying city-state with one of the world’s most open economies, Singapore is particularly vulnerable to the impact of climate change”. It is committed to a multilateral, rules-based solution to address this challenge, and actively supports and participates in international negotiations on this front.
Social – Singapore has a reputation for authoritarianism that the government is seeking to address. In 2023, it launched its Forward Singapore vision, which seeks to review and refresh the social contract between the government and the people. The exercise involved consulting more than 200,000 Singaporeans over 16 months to discuss issues ranging from careers to ageing and environmental sustainability. The key points of Forward Singapore include:
- An ambition to support families through every stage of life.
- Highlighting the need for Singaporeans to pursue lifelong learning.
- Encouraging people to enhance their careers through guidance and skills training and a commitment to reduce the wage gap between the highest and lowest paid.
- Enabling seniors to age well through national programmes like Healthier SG and Age Well SG.
- Optimising limited land and environmental resources, strengthening food and water security, and upholding fiscal prudence and responsibility.
In the latest Article IV assessment of the economy by the IMF, released in July 2025, IMF welcomed Forward Singapore and the authorities’ efforts to promote a stronger and more inclusive economy, including introducing a temporary financial support scheme for involuntarily unemployed workers. It added that continuing efforts to support workers to reskill and helping firms to adopt AI technologies, as well as investments, including in climate resilient infrastructure, were important.
Governance – This is another area where Singapore scores highly. The country’s success as a global commercial and financial hub is based on its willingness to embrace international standards, especially in corporate law and capital markets regulation. The authorities have updated their corporate governance code several times over the past 20 years and are moving from a voluntary “comply-or-explain” approach to a partially mandatory one.
Moreover, the Heritage Foundation in its 2025 report on economic freedom says that “the overall rule of law is well respected in Singapore. The country’s property rights score is above the world average; its judicial effectiveness score is above the world average; and its government integrity score is above the world average.”
Latest economic data
f forecasts,
Source: IMF article IV assessment July 2025, Monetary Authority of Singapore, Ministry of Trade and Industry and Worldbox Business Intelligence forecasts.
Useful Links
https://www.transparency.org/en/cpi/2021
https://www.imf.org/en/Countries/SGP
https://www.straitstimes.com/global
Source: Worldbox
Global Business Information from Worldbox
Worldbox provides trusted business information on more than 500 million companies across developed and emerging markets.
Access company profiles, credit risk reports, ownership and management details, legal status, financial information and other data to support onboarding, KYB, compliance and risk assessment.
Worldbox data is available through online search, API, Snowflake’s data platform, AWS Marketplace, and AI-ready access through AWS MCP Servers.
Need reliable information on a company or market? Contact Worldbox to discuss your requirements.
 |
 |
 |
 |
Copyright (C) 2026 Worldbox Business Intelligence. All rights reserved.
Our mailing address is:
Worldbox Business Intelligence
Breitackerstrasse 1
Zollikon
Zurich 8702
Switzerland
