Singapore has risen to third place on the Hinrich-IMD Sustainable Trade Index, which evaluates the capacity of 30 major economies to engage in global trade that fosters economic growth, social development, and environmental protection. This marks an improvement from fifth place last year, with Singapore scoring 94.1 points, while New Zealand topped the index with a perfect score of 100.

The index reflects a broader trend of “slowbalisation,” where countries focus on strengthening their domestic industries and redefining global trade terms in response to rising geopolitical tensions. Japan, previously in fourth place, fell to eighth, while the United Kingdom retained second place with 96.5 points. Hong Kong, Australia, and South Korea followed Singapore in the rankings, demonstrating varying levels of commitment to sustainable trade practices.

Produced annually by the Hinrich Foundation and the Institute for Management Development (IMD), the index analyzes 71 indicators across participating countries. This year’s findings indicate a decline in trade liberalization efforts, with non-tariff barriers and trade costs worsening compared to 2022. The organizations noted that the world’s largest economies, which should ideally promote trade reforms, are instead increasing protectionist measures.

The top-ranking countries, including Singapore, share several key characteristics: they uphold stringent environmental standards, tackle pollution, and innovate technologically. They also exhibit political stability, economic equality, and high educational standards, fostering social mobility.

Conversely, nations at the bottom of the index, such as Russia and Myanmar, struggle with trade barriers and sustainability challenges. The United States ranked ninth, while China and Malaysia were positioned 16th and 14th, respectively.

Professor Arturo Bris from IMD emphasized the challenges facing global trade, noting that geopolitical and health crises have led to a greater focus on streamlining supply chains and reducing costs, sometimes at the expense of environmental and social considerations. Kathryn Dioth, CEO of the Hinrich Foundation, warned that increasing protectionist policies could undermine decades of globalization, despite rising trade values primarily driven by higher commodity prices.