Singapore ranked first as the world's most competitive economy in 2024, according to the International Institute for Management Development (IMD)’s latest World Digital Competitiveness Ranking.
This is an improvement from 2023, when the country ranked two places lower in third place. This year, Switzerland ranked second, while Denmark ranked third, and the US dropped three spots to fourth place.
The IMD World Digital Competitiveness Ranking is now in its eighth year, and it measures the capacity and readiness of 67 economies to adopt and explore digital technologies as a key driver for economic transformation.
The ranking’s methodology divides digital competitiveness into three factors: knowledge, technology, and future readiness.
Notably, Singapore rose 9 positions in terms of future readiness, ranking first with a score of 100.
Singapore also ranked first in technology with a score of 97.6, while raising one position in knowledge to clinch second position.
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According to the report, Singapore’s strengths include its city management, number of high-tech patent grants, banking and financial services as well as public-private partnerships.
The report found that Singapore’s key challenges include the uncertain external environment amidst heightened geopolitical tensions and enhancing Singapore’s economic competitiveness amidst resource constraints and seizing opportunities.
José Caballero, senior economist at WCC, notes that “geopolitical rivalries, particularly between major powers such as the US and China’s technological competition, are fragmenting the digital landscape, influencing not only how other countries develop and use digital technologies but also their ability to compete globally.”
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Another challenge Singapore faces is in managing disruptions from new technologies, such as artificial intelligence (AI), by supporting workers in reskilling and businesses in transformation.
The report also identified other key challenges to digital competitiveness worldwide, including the disparity that exists in the development of digital infrastructure across countries.
Many economies, particularly in developing regions, lack access to high-speed broadband reliable electricity and modern telecommunication networks, limiting their participation in the global digital economy.
Furthermore, economies must manage the pace of change in technological advancements and with capabilities requirements.
The report notes that while emerging technologies such as artificial intelligence (AI), blockchain and quantum computing drive innovation, reshape industries, economies and societies, they can also widen the digital gap.
As such, countries that can effectively exploit the power of these technologies are likely to enhance their digital competitive advantage, leading to continued economic growth, improved productivity and greater global influence.
Key indicators in the ranking signalling this include high-tech patent grants, intellectual property rights and e-governance.
Meanwhile, other nations such as the US have suffered a decline in competitiveness of its economy, as downward trends have been registered in the country’s perceived attitude towards globalisation, an increasing entrepreneurial fear of failure, and a notable decrease in the availability of international experience at the managerial level.
