Singapore Ranks Third Globally In The Global Financial Centres Index, Beats Hong Kong

Twice a year, Z/Yen Group releases its ‘Global Financial Centres Index.’  With many surprises, the March release has shown one notable change that is worth mentioning.  In particular, Singapore has increased its rank to 3rd place, overtaking Hong Kong and bumping them to the 4th place position.  So, what does this mean for Singapore as well as the Asian market?  Let’s take a moment to review these findings, the system used to judge financial centers, as well as the practical implications of what such a ranking might mean.

The Top Global Financial Center In Asia

In March 2016, according to the well-regarded and often cited Global Financial Centres Index, Singapore beat out Hong Kong to become the top global financial center in Asia.  Singapore gained a single place in the ranking, ending in 1st in Asia and 3rd in the entire world.  The winner of the index was London with a rank of 800 points.  Second place was New York City with a rank of 792 points.  Both first and second position did not change.

However, third place saw a lot of excitement.  Going up 5 points in ranking, Singapore beat out Hong Kong to become #3 in the ranking.  Hong Kong dropped 2 points from last rating, resulting in a total score of 753 (2 below Singapore.)  5th place remained unchanged with Tokyo taking the ranking again.

What Is The GFCI?

The GFCI, or Global Financial Centres Index is a tanking system that is designed to measure how different financial centers from around the world compare to one another.  It utilizes a diverse set of indices including everything from questionnaires sent to businesses as well as the raw economic numbers that emerge from financial centers made available through things like local government.  In total, more than 29,000 assessments crated by the GFCI are used to generate the numbers and ranking system that is cited the world over.  The company Z/Yen Group compiles the information and publishes it once every year.  Of the thousands of individual measures, information is organized into 5 broad categories for investigation and ranking.  These categories include ‘Reputation And General Factors,’ ‘Human Capital,’ ‘Infrastructure Factors,’ ‘Financial Sector Development,’ and ‘Business Development.’  The most recent release of information was in March 2016.

What Does This Mean For Singapore?

Simply put, the 3rd place ranking on the Global Financial Centres Index is a measure of the investment Singapore as a country has put into becoming one of the leading business capitals in the world.  A unique country that benefits from its small size, Singapore has managed to enact reforms that keep pace with the global economy, allowing them to dynamically respond to changes that take larger nations months and years to figure out.  The third place ranking is a sign that Singapore is making considerable progress.

Being independent as well, Hong Kong has been Singapore’s chief rival as both nation states share certain similarities.  The increase of Singapore’s ranking over Hong Kong makes it the highest rated city for business in Asia, leading to a lot of potential for continued growth now and into the future.

About the author

Nick James writes for Company Stamp Singapore Pte Ltd, where he wrote most of the website and blog content. He wrote the article “Eco Friendly Rubber Stamps” and “How to re-ink self inking stamps“.