Country risk in Singapore is low suggesting a relatively low likelihood that it will be unable or unwilling to meet its external debt obligations in a systemic sense (though, needless to say, individual debtors can and do default). Singapore enjoys the best possible Moody’s, Fitch and S&P credit ratings. The fiscal position is sound—with revenues from the Temasek sovereign wealth fund exceeding government expenditures. Favourable public finances allow the government to support the economy during a downturn, a key driver of Singapore’s ratings.
Singapore is ranked 2 out of a possible 190, second only to New Zealand, on the World Banks ease of doing business scorecard. Singapore excels in enforcing contracts, protecting minority investors, starting a business and accessing electricity. The Singaporean government has placed a strong emphasis on free markets and enforcing investor friendly policies.
Singapore scores in the top 90% in most areas of governance, but performs poorly on voice and accountability. Political risk is low in Singapore as it has one of the most stable political systems in the world.