Hong Kong's status as world's freest economy threatened by Singapore, says Heritage Foundation
City tops world rankings again, but with Singapore snapping at its heels, American think tank says
Hong Kong has been ranked the world's freest economy for the 20th consecutive year by a right-wing US think tank.
But the free-market-orientated Heritage Foundation has warned that increasingly populist policies, perceived levels of corruption and potential political instability mean the SAR's lofty position is being threatened by Singapore.
Hong Kong's overall score, at 90.1, rose 0.8 points year on year - but the rate of growth was weaker than Singapore's 1.4 points, which brought its score to 89.4.
The foundation says today's policy address by Chief Executive Leung Chun-ying could hold the key to the future standing of the city, as an expected increase in public spending to tackle poverty could weaken its position in the eyes of its annual index of economic freedom.
"In recent years, populist policies that increase spending and empower the administrative bureaucracy, as well as an increasing level of perceived corruption, have held back Hong Kong's overall rating," the conservative think tank said in its 2014 Index of Economic Freedom report.
Business interests had also exerted "a strong influence" on the legislative and executive branches of the government.
Terry Miller, director of the foundation's centre for international trade and economics, warned against further populism as the city plots its future democratic development.