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Liputan6.com, Jakarta Singapore has replaced Hong Kong as the country with the freest economy in the world.

This is according to a report published by the Canadian think tank, the Fraser Institute.

Launch CNBC International, On Friday (22/9/2023), a report from the Fraser Institute found that Hong Kong slipped from first place to second place as the country with the freest economy in the world. This is the first decline since the Global Index of Economic Freedom began being compiled in 1970.

For your information, the Fraser Institute considers several factors used to measure the Economic Freedom Index, namely ease of international trade, freedom to enter and compete in markets, and trade regulations and other benchmarks.

The 2023 report’s findings are based on data from 2021, the most recent year for which comparable statistics are available in 165 jurisdictions.

It measures an individual’s economic freedom – or their ability to make their own economic decisions.

“The recent changes in Hong Kong are an example of how economic freedom is closely linked to civil and political freedom,” Matthew Mitchell, a senior fellow at the Fraser Institute, said in a press release.

New regulatory barriers to entry, rising business costs and restrictions on hiring foreign workers have weakened Hong Kong’s ranking, the Fraser Institute said.

“This, coupled with government efforts to control the private sector, will inevitably lead to a reduction in economic freedom. As a result, Hong Kong’s prosperity is likely to suffer,” Mitchell said.

Singapore rose to first place after occupying second place the previous year.

“Thanks to the improvement in the size of government and regulatory components, Singapore’s overall score increased by 0.06 points to take first place,” explained the Fraser Institute.

Switzerland, New Zealand and the United States occupy the third, fourth and fifth positions respectively. Then there is England in sixth place, while Japan and Germany occupy 20th and 23rd places respectively.