Singapore ranks high in liveability but lags in economic dynamism

[SINGAPORE] Singapore’s 21st-place showing in the 2025 Global Cities Index paints a picture of progress tempered by inertia. On one hand, its reputation for liveability remains intact; on the other, warning signs are surfacing in areas vital to long-term economic resilience. That contrast is more than academic. For investors weighing regional bets and policymakers eyeing future-proof strategies, the deeper question now surfaces: can a city built on order and infrastructure hold its ground if its economic responsiveness and regulatory sophistication begin to lag?

Key Takeaways

1. Singapore posted a score of 83.9 in the 2025 Global Cities Index, securing 21st place out of 1,000 cities assessed.

2. Its performance in quality of life stood out—ranking 4th globally—thanks to its well-maintained public spaces, low crime levels, and efficient infrastructure.

3. Still, the overall result reveals uneven footing. The city-state trailed significantly in the economy (106th) and governance (135th) categories—an outcome that raises questions about its flexibility for business and responsiveness in regulatory oversight.

4. Compared to other Asian cities, Singapore remained ahead of the pack. But it couldn’t break into the top echelon dominated by Western powerhouses, where New York, London, and Paris continued to set the global benchmark.

5. The Global Cities Index, published annually by Oxford Economics, scores urban centers across five pillars: economic performance, human capital, quality of life, environmental sustainability, and governance capacity.

Comparative Insight

Singapore’s profile in this index reflects a broader trend among mature, centralized economies: excellence in planning and quality-of-life delivery, but friction when it comes to rapid adaptation. In contrast, U.S. cities like San Jose and Seattle—though less cohesive in public infrastructure—scored higher due to their innovation ecosystems and economic dynamism.

Tokyo, the sole Asian entrant in the top 10, reflects a familiar trade-off—high liveability offset by rigid institutional structures—but its vast scale, mature capital markets, and powerhouse tech industry give it staying power. By contrast, once-formidable rivals like Hong Kong have slipped further down the ranks, dragged by political turbulence and a visible deterioration in governance benchmarks. Singapore had previously gained from that fallout. Yet this year’s data hints at a shifting tide: the margin of advantage is thinning, and past tailwinds may no longer be enough.

What’s Next

Letting its economic and governance scores continue to erode could cost Singapore more than just chart position. Investor confidence, talent mobility, and multinational interest are deeply shaped by perceptions of forward momentum—and those perceptions are no longer static. What complicates matters further is Singapore’s own ambition: it’s not merely maintaining status quo, but actively courting next-generation sectors like green finance, AI, and biotech. The credibility of that pivot now hinges on whether the fundamentals can keep pace with the narrative.

Global talent, in particular, remains a pressure point. A 41st-place finish in human capital hints at deeper friction—whether in workforce mobility, education systems, or immigration levers. And while the regulatory environment has long been praised for clarity, the question now is whether it can evolve fast enough to match the pace of innovation. While rules-based stability has long been a national strength, global investors increasingly demand both transparency and speed.

What It Means

Few would dispute that Singapore stands among the world’s most livable and meticulously run cities. Still, in a climate where agility often outweighs order, that distinction may no longer suffice. The widening gulf between its top-tier liveability and lackluster economic performance hints at a deeper structural dilemma: a city that has mastered stability, yet now wrestles with the demands of reinvention.

For financial markets and businesses operating in Asia, this raises a key question: can Singapore evolve from a legacy hub to a next-gen capital magnet?

The index result is not a crisis—but it is a caution. Cities that rest too comfortably on infrastructure and rule-of-law credentials risk losing out in a world where agility and creativity drive capital flows. Singapore’s policymakers would do well to treat this as a strategic inflection point, not just a flattering benchmark.