For the people of Brunei, the latest global rankings on economic freedom tell a story of opportunity and stability. In a world where economic uncertainty has touched nearly every community, the Sultanate’s high marks in business and labor regulation mean that local entrepreneurs face fewer barriers to starting and growing their ventures, and workers benefit from a flexible job market. These scores reflect real human experiences: the ability to make personal financial decisions, to pursue a livelihood without excessive red tape, and to build a future for one’s family.
Brunei’s Strong Performance in Regulation
According to the Canadian conservative think tank, the Fraser Institute’s recent Economic Freedom Index report, Brunei has performed very well in regulation and secured second ranking globally in that category. The Sultanate achieved a score of 8.8 out of 10 for regulation overall. Within this category, Brunei scored 8.8 and secured the fourth position globally in labor market regulation, and eighth place in business regulation with a score of 8.2.
These high marks in regulation are a key factor in the daily lives of Bruneians. When businesses can operate with clear, predictable rules, communities see more local investment and job creation. The report checks and evaluates individual financial decision ability and economic freedom, meaning that for the average person in Brunei, these scores translate into greater personal autonomy in economic matters.
Overall Ranking and Regional Context
Based on 2020 data, the most recently available, Brunei ranked 59th out of 165 economies globally in the overall Economic Freedom Index. However, the economic freedom index was not very good for the Sultanate overall, as it dropped seven places in comparison to the 2019 index, with among the lower scores for freedom to trade internationally. Compared to 2019, Brunei did achieve high scores in sound money, legal system, and property rights, and maintained its score in government and in regulation.
Among Southeast Asian neighbors, Singapore is in the second spot globally, followed by Malaysia (49th), Brunei (59th), Cambodia (63rd), the Philippines (66th), Thailand (86th), Vietnam (113th), and Myanmar (137th). This regional context shows that while Brunei leads in regulatory quality, other factors such as international trade freedom have affected its overall standing.
The global economy suffered due to the pandemic, when COVID-19 restrictions imposed by governments worldwide led to economic freedom declining in 146 countries. The report checks and evaluates policies and institutions of 165 countries, with factors including the size of the government, government spending, taxation, regulations, and international trade freedom.
Global Leaders and the Link to Human Well-Being
Globally, Hong Kong ranks first, followed by Singapore, Denmark, Switzerland, New Zealand, the United States (US), Australia, Mauritius, Estonia, and Ireland. “Hong Kong remains the most economically-free jurisdiction in the world, but this ranking is based on 2020 data,” McMahon said. The rankings of other main countries include China (116th), Brazil (114th), Russia (94th), India (90th), Mexico (65th), France (54th), Italy (43rd), Germany (24th), and Japan (12th).
The report also highlights a clear link between economic freedom and human well-being. In countries with high levels of economic freedom—those in the high or top quartile—only 2.02 percent of people live in extreme poverty (defined as USD 1.90 a day), compared to 31.45 percent in the lowest quartile. Life expectancy tells a similar story: in the top quartile, life expectancy is 80.4 years, compared to 66.0 years in the low quartile. McMahon summed it up: “Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier, and healthier lives.”
Looking ahead, the key question for Brunei will be how it can improve its scores in international trade freedom and overall economic freedom ranking while maintaining its strong regulatory environment. As global conditions evolve and pandemic-era restrictions ease, the Sultanate’s ability to balance regulation with open trade will be a critical factor in determining whether its people continue to enjoy the prosperity and opportunity that the current rankings reflect.
