Singapore — Singapore has been ranked the sixth least complex location for doing business in the Asia Pacific region, coming behind two of its Southeast Asian neighbours, Vietnam and Thailand, according to the 2025 Global Business Complexity Index released by TMF Group.
The index, now in its 12th edition, evaluates 79 jurisdictions covering 94 percent of global GDP and 95 percent of foreign direct investment inflows. Rankings are based on 292 indicators across legislation, compliance, accounting, tax, human resources, and payroll practices. Countries at the top of the list face the greatest business complexity, while those near the bottom offer the simplest environments for companies.
Globally, Singapore ranked 48th out of 79, placing it behind regional peers such as New Zealand (77th), Hong Kong (76th), Vietnam (54th), Thailand (56th), and Taiwan (51st). Other Southeast Asian economies listed included the Philippines (26th), Malaysia (27th), and Indonesia (14th).
The report cited Singapore’s continued investment in both physical and digital infrastructure as a key factor underpinning its role as a major trade hub. Upgrades to ports, airports, and digital connectivity continue to strengthen the city-state’s appeal for global commerce. Singapore also improved in human resources and payroll factors, with streamlined immigration processes and competitive wages helping to attract international talent.
However, the study highlighted increasing regulatory complexity. Stricter anti-money laundering measures and enhanced corporate service rules have introduced new compliance demands. TMF Group’s CEO Mark Weil noted that while such frameworks protect transparency and financial integrity, they also add bureaucratic hurdles for businesses.
“Regulatory bodies like the Monetary Authority of Singapore are known for their efficiency but also for maintaining high standards, especially in finance and data governance,” Weil told The Straits Times. He added that restrictions on hiring foreign workers, alongside employment pass requirements, can slow recruitment, while new flexible work policy rules introduced in late 2024 have added another layer of obligations for employers.
On a global scale, Greece emerged as the most complex business environment, followed by France, Mexico, and Turkey, primarily due to rapidly changing regulations in taxation, accounting, and labour management. By contrast, Singapore continues to balance its position as a business-friendly hub with the need for rigorous governance standards, underscoring both opportunities and challenges for international investors.
