Hong Kong has lost its position as Asia's most resilient economy to Singapore due to political tensions. In a study conducted by FM Global, Hong Kong dropped seven places from 19 to 26 in the Resilience Index mainly due to increased political risk and tensions. In the sub-category of political risk, Hong Kong dropped 56 places to 81 because of tense relations with mainland China and its active pro-democracy movement, according to the company.
Meanwhile, Singapore was the region’s biggest mover, rising 10 places to rank 12 overall thanks to the inclusion of new earthquake data incorporated into the 2021 index calculations.
China was divided into three territories due to disparate exposure to natural hazards like wind, flood and earthquake. The central and western parts of the country drop six spots from 65 to 71 because of increased earthquake exposure. Eastern regions fell nine places to 77 due to the lack of oil supply and the possibility of prices rising sharply, in addition to worsened control over corruption. Elsewhere in Asia, countries and territories were in the second half of the index as with Thailand being the highest (70), followed by Indonesia (82), the Philippines (89) and Vietnam (96).
On the other hand, Denmark was the most resilient country, rising from third place in last year’s index to its first-ever top ranking, followed by Norway and Luxembourg. The index was based on a total of 12 factors reflecting the countries’ economic, risk quality and supply chain conditions, studying 130 countries and territories in the current assessment.