Singapore has emerged as the world's top-performing market for business environment in the Savills 2026 Nearshoring Index, underpinned by its strengths in logistics infrastructure, trade facilitation and ease of doing business.

The index ranks 54 countries based on factors that matter to occupiers seeking locations to shorten or diversify supply chains and reduce reliance on foreign imports.

Overall, Singapore ranks 11th globally and is the highest-ranked market in Southeast Asia. The assessment evaluates countries across four pillars: resilience, economics, business environment and ESG performance.

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Singapore scored particularly strongly in the business environment category, driven by its high ranking in the Logistics Performance Index, the absence of trade barriers and its broader global competitiveness. The results reinforce its role as a regional hub for trade, logistics and business operations.

"The findings reinforce Singapore's position as a regional trade and logistics hub, supported by its connectivity, efficient infrastructure and ease of doing business," says Alan Cheong, executive director of research and consultancy at Savills Singapore.

While US tariffs have weighed on parts of the region, Singapore's logistics sector serves a different function by acting as a gateway to Southeast Asia and Australia, Cheong notes. As a result, demand for efficient ramp-up logistics facilities and temperature-controlled space remains resilient.

Cheong adds that because land supply for logistics and industrial development is largely controlled by the authorities, the risk of a significant oversupply in the sector remains low.

Globally, Canada, Japan, Taiwan, Austria and the UK emerged as the most attractive locations for industrial occupiers pursuing nearshoring strategies amid ongoing economic and geopolitical uncertainty. According to Savills, these markets stand out for their ability to balance resilience, cost competitiveness, business environment and ESG considerations.

Across Asia Pacific, markets demonstrated distinct competitive strengths. Japan and Taiwan ranked among the region's top performers due to their balanced performance across multiple pillars, while China and Vietnam continued to benefit from strong cost competitiveness and manufacturing scale.

In the Americas, Canada and Mexico both ranked highly, aided by their preferential access to the US market at a time of heightened uncertainty over trade tariffs. Canada topped the overall index.

Meanwhile, Austria led the European rankings, supported by its central location, highly skilled workforce, and strong resilience and ESG credentials. Portugal and the UK followed closely, while several other European economies also placed within the top 20, benefiting from access to the European Union, the world's largest single market.

"In the current macroeconomic and geopolitical climate, location is an incredibly complex decision for global manufacturing firms," says Connor Chilton, associate at Savills World Research.

"Decisions aren't driven solely by a desire to minimise costs. Factors such as resilience, energy security and policy environments sit alongside labour availability, rents and access to consumers," he adds. "Many of these considerations pull in opposite directions, so the locations that top our Nearshoring Index tend to be those that strike the right balance."