Singapore has found itself in a challenging position in the latest Global Business Complexity Index, landing 48th out of 79 global destinations for 2025. This index, which scrutinizes how easy or difficult it is to set up and operate businesses around the world, reveals a landscape where the top-ranked countries exhibit significant complexity and the lower-ranked ones showcase simpler business environments.
In the Asia Pacific region, Singapore’s ranking pales in comparison to its neighbors, trailing behind New Zealand (77th), Hong Kong (76th), Thailand (56th), Vietnam (54th), and Taiwan (51st).
Compiled by TMF Group, a global professional services firm now in its 12th iteration, the index assesses a whopping 79 locations representing 94% of global GDP and 95% of foreign direct investment inflows. The evaluation is based on 292 distinct indicators spanning legislation, compliance, accounting standards, tax procedures, and human resources practices.
The report highlights Singapore’s ongoing investment in physical and digital infrastructure—supported by enhancements to its ports, airports, and digital networks—which bolsters its status as a pivotal trade hub in the region. According to Singapore Business Review, this focus on infrastructure elevates Singapore’s appeal in a highly competitive landscape.
Interestingly, there has been a positive shift in the “human resources and payroll” category, with Singapore attracting global talent through streamlined immigration policies and competitive salaries. However, the flip side of progress comes with heightened regulatory complexity. Stricter anti-money laundering measures and tighter corporate service regulations have made the business climate more intricate.
Mark Weil, CEO of TMF Group, acknowledges the intent behind Singapore’s compliance frameworks, stating they are designed to ensure transparency and maintain financial integrity. Yet, they inevitably introduce additional bureaucratic hurdles for firms looking to thrive. “Regulatory bodies like the Monetary Authority of Singapore are known for their efficiency but also for upholding high standards, particularly in finance and data governance,” Weil remarked in a recent interview with The Straits Times.
Weil also pointed out complications arising from restrictions on hiring foreigners in certain sectors and stringent employment pass requirements, which can stymie recruitment efforts. New flexible work policies introduced late last year have added another layer of complexity for companies navigating Singapore’s evolving regulatory framework.
Other Southeast Asian economies didn’t fare too poorly either, with the Philippines ranking 26th, Malaysia at 27th, and notably, Indonesia impressively at 14th. On the global stage, Greece takes the crown of the most complex business environment, followed by France, Mexico, and Turkey, driven largely by their multifaceted regulatory setups.
How does Singapore rank in comparison to other countries in Asia?
Singapore ranks 48th out of 79 destinations in the Global Business Complexity Index, falling behind countries like New Zealand, Hong Kong, and Thailand in the Asia Pacific region.
What factors contributed to Singapore’s ranking?
The ranking took into account Singapore’s regulatory complexity amid stricter anti-money laundering measures and enhanced corporate regulations, despite improvements in human resources recruitment.
Which country is deemed the most complex globally, and why?
Greece is recognized as the most complex market globally, primarily due to ongoing legislative changes related to tax, accounting, and human resources.
