In a ranking of the most globally connected markets, both Singapore and Hong Kong, two Asian economies, have secured positions among the top 10.
Singapore takes the lead as the ‘most globalised’ country in the world, according to the new report jointly released by DHL and New York University’s Stern School of Business. The Netherlands (No. 2), Switzerland, the United Arab Emirates and the United Kingdom also placed in the top 10.
Examining the movement of trade, capital, and people across 181 countries and territories, the analysis tracks the current state and future trajectory of globalisation.
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According to the report, Singapore excels in terms of “depth,” indicating its significant international flows relative to the size of its domestic economy. The achievement is attributed, in part, to Singapore’s effective public policies aimed at seamless integration into the global economy. Additionally, Singapore leads in the areas of trade and capital, further solidifying its global connectedness.
Notably, Singapore’s total merchandise trade witnessed a remarkable increase of 33 percent between 2019 and 2022. The value surged from approximately EUR701 billion to EUR937 billion.
“Singapore has invested heavily in strengthening our physical and digital connectivity to the world because trade is our lifeblood,” said Ih-Ming Chan, executive vice president, Singapore Economic Development Board.
“We continue to enhance our connectivity and trade links to remain a critical and trusted node in global supply chains, facilitating international trade and flows of capital, information and talent.”
Hong Kong is named at No. 10, making it the only other Asian market in the top 10 list of the most connected countries.
Hong Kong’s global connectedness reinforces its standing as a pivotal gateway for flows between Mainland China and the global stage. The ranking not only highlights the significance of Hong Kong, but also underscores the increasing importance of the Greater Bay Area, along with notable progress in Macau’s ranking. Collectively, these developments showcase the region’s growing influence in facilitating international trade and interactions.
Contrary to predictions, the report reveals that globalisation has not been replaced by regionalisation. Majority of international flows appear to continue to occur over stable or even longer distances, with a decreasing proportion taking place within major geographic regions.
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The exception to this trend is observed in North America, where a noticeable shift towards more regionalised trade patterns is evident.
Also highlighted in the report are the robust trade flows within Asia as well as increasing demand for intercontinental trade between Asia and the Western regions, underscoring the dynamic nature of globalisation in the present era.