New peak for Singapore

Hong Kong has lost its top position as the world's freest economy to Singapore for the first time in over 50 years due to interference from China, according to a Canadian public policy think tank, but the argument has been rejected by the administration.

The Vancouver-based Fraser Institute, which publishes the Economic Freedom of the World report annually, said Hong Kong slipped to second place in its latest ranking for the first time since 1970 and expects the SAR to drop even further. The 2023 report is based on data from 2021.

The report measures the economic freedom of individuals - their ability to make their own economic decisions - by analyzing the policies and institutions of 165 jurisdictions.

The policies examined include regulation, freedom to trade internationally, size of government, legal system and property rights, and sound monetary plan.

Singapore beat Hong Kong in "legal system and property rights" and "regulation" although the SAR continued to remain at the top in terms of freedom in international trade.

This brought the total score of Hong Kong to 8.55 points, falling 0.01 points short of Singapore's 8.56.

The institute said increased military interference and eroding confidence in the court and the judicial system led to the decline. New regulatory barriers to entry, limits on employment of foreign labor, and increases in the cost of business were some of the factor for declining scores.

A Hong Kong government spokesman said the "mainland's military interference in Hong Kong's rule of law is completely fictitious and contrary to the facts," and insisted that the SAR enjoys a high degree of autonomy under the one country, two systems principle.

The spokesman dismissed the institute's claims on new barriers to entry and limits on employment of foreign labor.

There is no change to the labor policy, he said, adding the SAR has introduced various schemes to attract foreign talent.

"We totally disagree with such unfounded claims and express our disappointment."

Switzerland ranked third place on the list, followed by New Zealand, the United States, Ireland, Denmark, Australia, the United Kingdom and Canada.

Venezuela once again ranked last and North Korea and Cuba could not be ranked due to lack of data.