Singapore has been ranked as the most operationally efficient market in the Asia-Pacific (APAC) region, according to the Vistra Friction Index 2026. The report highlights that businesses navigating regional complexities can gain a competitive edge by effectively managing operational friction. This efficiency is crucial for companies expanding in high-growth economies, where the benefits of overcoming such challenges often surpass the costs.
The Vistra Friction Index evaluates 12 markets across APAC and the Middle East, using a Market Attractiveness Scorecard and a Friction Index. These tools assess factors like economic resilience and regulatory complexity, providing businesses with a strategic guide for aligning growth ambitions with execution realities. Melanie Leydin, Executive Vice President of Global Solutions, South East Asia, stated, “The businesses set to win in Asia-Pacific are those that stop treating complexity as a problem to solve and start treating it as a position to hold.”
The report categorises markets into four strategic profiles: Fast-Track, Competitive Advantage, Efficiency, and Precision Entry Markets. Singapore, along with Australia and Hong Kong SAR, is identified as a Fast-Track Market, offering streamlined regulation and deep talent pools. However, Singapore faces a talent shortage, with 164 open tech jobs for every 100 qualified seekers, leading to a 25% wage premium for critical roles in AI, cloud, and cybersecurity.
Tiffany Lim, Market Lead for Singapore and ASEAN, noted, “Singapore’s unparalleled efficiency is where the opportunity lies. Firms that can mitigate talent crunches and compliance burdens will be best positioned to scale operations across Southeast Asia.” The Vistra Friction Index underscores the importance of managing operational friction as a key differentiator in global expansion.
