On September 18, 2022, Brunei was ranked highly for its business regulation, according to the Economic Freedom Index report by the Fraser Institute, a Canadian conservative think tank. The report, which was based on 2020 data, ranked Brunei second globally in terms of regulation, with a score of 8.8 out of 10. Brunei also ranked fourth globally in labor market regulation and eighth in business regulation, with a score of 8.2.
The country’s overall ranking was 59th out of 165 economies globally, although this represented a drop of seven places compared to the 2019 index. The Economic Freedom Index report evaluates the economic freedom of 165 countries, based on factors such as the size of government, government spending, taxation, regulations, and international trade freedom.
The report found that Brunei had improved its scores in certain areas, such as sound money, legal system, and property rights, compared to the 2019 index. However, the country’s overall economic freedom ranking was affected by its lower scores in areas such as freedom to trade internationally.
According to Fred McMahon, a researcher at the Fraser Institute, “Hong Kong remains the most economically-free jurisdiction in the world, but this ranking is based on 2020 data.” Hong Kong was followed by Singapore, Denmark, Switzerland, New Zealand, the United States, Australia, Mauritius, Estonia, and Ireland in the rankings. In comparison to its South-East Asian neighbors, Brunei’s ranking was lower than Singapore’s, which was ranked second globally.
Malaysia was ranked 49th, while other countries in the region, such as Cambodia, the Philippines, Thailand, Vietnam, and Myanmar, were ranked lower. The report noted that the global economy had suffered due to the COVID-19 pandemic, with economic freedom declining in 146 countries. The pandemic had led to the imposition of restrictions by governments worldwide, which had affected economic activity and trade.
As McMahon noted, “Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier, and healthier lives.” The report found that countries with high levels of economic freedom tend to have higher levels of prosperity, political and civil liberation, and better living standards. The developed nations that have economic freedom had a GDP per capita of $48,251 in 2020, compared to $6,542 in countries with lower economic freedom.
Poverty rates were also lower in countries with high economic freedom, with 2.02 percent of the population living in extreme poverty, compared to 31.45 percent in countries with lower economic freedom. Life expectancy was also higher in countries with high economic freedom, at 80.4 years, compared to 66.0 years in countries with lower economic freedom.
The report’s findings suggest that economic freedom is an important factor in promoting prosperity and well-being. The report’s global rankings provided a snapshot of the state of economic freedom around the world. China was ranked 116th, while other major countries, such as Brazil, Russia, India, and Mexico, were ranked lower.
The United States was ranked seventh, while European countries, such as Germany, France, and Italy, were ranked higher. The report’s findings highlighted the importance of economic freedom in promoting prosperity and well-being, and the need for governments to implement policies that support economic freedom.
As the world continues to recover from the COVID-19 pandemic, the report’s findings provide a timely reminder of the importance of economic freedom in promoting economic growth and development. The Economic Freedom Index report’s findings have significant implications for policymakers and businesses around the world. The report’s rankings provide a useful benchmark for evaluating the economic freedom of different countries, and its findings highlight the importance of economic freedom in promoting prosperity and well-being.
As the world continues to evolve and change, the report’s findings will remain an important reference point for policymakers and businesses seeking to promote economic growth and development. The fact that Brunei was ranked highly for its business regulation is a positive development, and the country’s government should continue to implement policies that support economic freedom and promote economic growth and development.
