The city-state ranked 48th out of 79 destinations in the 2025 Global Business Complexity Index, which evaluates how difficult it is to set up and operate companies at each place.
Locations at the top of the ranking have the most complex business environment while those at the bottom are the least complex.
In Asia Pacific, Singapore came behind New Zealand (77th), Hong Kong (76th), Thailand (56th), Vietnam (54th) and Taiwan (51st).
Compiled by global professional services firm TMF Group and now in its 12th edition, the index assesses 79 locations covering 94% of global GDP and 95% of foreign direct investment inflows based on 292 indicators spanning legislation, compliance, accounting standards, tax, human resources and payroll practices.
The report noted that Singapore’s sustained investment in both physical and digital infrastructure, including its ports, airports, and digital networks, helps reinforce its role as a key trade hub in the region, as cited by Singapore Business Review.
The city-state saw an improvement in the “human resources and payroll” factor, appealing to global talent thanks to its streamlined immigration policies and competitive wages.
But its regulatory complexity has edged up due to stricter anti-money laundering measures and tighter corporate service regulations.
Mark Weil, CEO of TMF Group, acknowledged that Singapore’s compliance frameworks are intended to safeguard transparency and financial integrity, though they present added bureaucratic hurdles for companies.
“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 in a recent interview.
He noted that restrictions on hiring foreigners in certain industries, coupled with employment pass requirements, can hold up recruitment.
New rules introducing flexible work policies late last year also created additional complications for firms, he added.
Three other Southeast Asian economies also appeared in the ranking, namely the Philippines (26th), Malaysia (27th) and Indonesia (14th).
Globally, Greece emerged as the most complex market, driven by ongoing shifts in legislation related to tax, accounting and human resources. It is followed by France, Mexico and Turkey, also mostly due to their intricate regulatory environment.
