Singapore Sets Global Standard as Business Regulations Improve in E Asia and the Pacific

A new report from IFC and the World Bank finds that across the globe Singapore and Hong Kong SAR, China, provide the friendliest regulatory environments for local entrepreneurs. Within the East Asia and the Pacific region, China advanced the most in making its regulatory environment more business-friendly over the past six years.

Released today, Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders. This year, the rankings on ease of doing business have expanded to include indicators on getting electricity. The report finds that getting an electrical connection is most efficient in Iceland; Germany; Taiwan, China; Hong Kong SAR, China; and Singapore.

Singapore topped the rankings on ease of doing business for the sixth straight year. Hong Kong SAR, China, held onto the second spot—in part by introducing an online system for company registration and making it easier to secure an electricity connection.

Fourteen of the region's 24 economies improved business regulations in the past year. The Solomon Islands, Tonga, Vanuatu, and Malaysia improved in three or more areas measured by Doing Business. Malaysia rose five places in the global ranking, to 18, by implementing regulatory reforms—including a new one-stop shop for start-ups, computerization of commercial courts, and improved insolvency proceedings. Brunei Darussalam's rank climbed to 83, partly because the country made it easier for businesses to get an electrical connection.

New data show that improving access to information on business regulations can aid entrepreneurs. In the region, two-thirds of the economies have put application requirements for building permits in public notices or online. "Effective use of information technology can make things easier for entrepreneurs," said Sylvia Solf, lead author of the report. Hong Kong SAR, China; Malaysia; the Solomon Islands; Taiwan, China; Tonga; and Vanuatu have all used new technologies to simplify business start-up, made it easier to register property, or modernized the court system.

Over the past six years, a new measure shows that 22 economies in East Asia and the Pacific have made their regulatory environment more business-friendly. "Making business regulation more transparent and efficient increases opportunities for economic growth," said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. "In East Asia and the Pacific, businesses have benefited from the region's broad and sustained regulatory reforms."