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Singapore has been rated as the most business-friendly economy in the world.
According to a World Bank-IFC report, Singapore beats previous winner New Zealand for the top spot in the 2005/2006 rankings while the United States came in third.
Within Asia, Hong Kong was Singapore's closest competitor at fifth place.
Thailand and Malaysia also made it to the list of top 30 countries where it is easiest to do business in but the Philippines dropped 5 places to number 126.
The study surveyed 175 economies for the latest rankings.
They were evaluated on 10 key parameters that included ease of starting a business, getting licences, sourcing staff, as well as and enforcing contracts.
Singapore shone because of good online access to the government.
This allows businesses to make applications for licences or register property via the internet, saving them time and money.
German Vegarra, IFC Country Manager, World Bank Group, said: "It was a very tight race between Singapore and New Zealand. It was like a Formula One race where New Zealand actually fell back because they implemented new changes to licensing procedures, which allowed Singapore to take over."
But China emerged as the region's top reformer by cutting red tape and simplifying business procedures.
It now takes 35 days to start up a business there, compared to 48 previously.
With other economies catching up, the World Bank says the challenge is for Singapore to stay a step ahead of the competition.
German Vegarra said: "Singapore is doing terrific across the 10 parameters. Now if you ask me are there areas for improvement? Of course. For example it takes 6 days to start up a business, procedure-wise in Singapore. It takes 2 days in Australia. All the other countries are catching up. That's the message we are giving. Countries are reforming, particularly Eastern Europe, which are now becoming the new tigers on the block. And China is reforming very fast. So while Malaysia and Thailand are closest competitors to Singapore, all the countries are moving very fast."
Next year, the rankings will include new indicators such as transparency and infrastructure in which Singapore will be expected to rate highly.
Ilian Mihov, Associate Professor of Economics, INSEAD, said: "The World Bank is planning to add a measure of infrastructure which is an important parameter because it tells you how easy it is to transport goods and do business. For Singapore, it's not an issue at all because here the infrastructure is probably one of the best in the world. The other indicator is about transparency and bribes. As far as I know Singapore is ranking also high in this dimension as measured by other groups like Transparency International. So both of these indicators will only strengthen Singapore's position." - CNA/ch
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