Singapore has been recognised as the leading market for Business Environment in the Savills 2026 Nearshoring Index, highlighting its strengths in logistics infrastructure, trade facilitation, and ease of doing business. The index evaluates 54 countries based on factors crucial for companies seeking to diversify supply chains or reduce reliance on foreign imports. Singapore ranks 11th overall and is the highest-ranked Southeast Asian nation.
The country’s top Business Environment score is attributed to its high performance in the Logistics Performance Index, absence of trade barriers, and global competitiveness. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “The findings reinforce Singapore’s position as a regional trade and logistics hub, supported by its connectivity, efficient infrastructure, and ease of doing business.”
Globally, Canada, Japan, Taiwan, Austria, and the UK are the top locations for industrial occupiers aiming to nearshore production amidst economic and geopolitical uncertainties. These countries excel due to their balance of resilience, cost competitiveness, business environment, and ESG (environmental, social, and governance) considerations.
In the Asia Pacific region, Japan and Taiwan are notable performers, whilst China and Vietnam benefit from cost competitiveness and manufacturing scale. In the Americas, Canada leads the index, partly due to its access to the US market. In Europe, Austria ranks highest, followed by Portugal and the UK, due to their strong access to the EU market.
Connor Chilton, Associate at Savills World Research, commented on the complexity of location decisions for global manufacturing firms, emphasising the need to balance resilience, energy security, and policy environments.
