NEW YORK, Feb. 12, 2026 /PRNewswire/ — Egan-Jones released an analysis examining how differing sovereign strategies in places such as Singapore, New York, Switzerland, and Monaco are influencing where businesses locate talent, capital, and legal domicile in an increasingly digital and globalized economy.
The commentary states that, much like corporations, sovereign regions pursue strategies that materially affect business outcomes. It notes that digitalization and globalization have reduced the importance of physical location for many firms, particularly those producing software and other intangible goods that can operate across borders with relative ease.
The article highlights Singapore as a leading example, describing how the country achieved dramatic growth in GDP per capita by creating an ultra-business-friendly environment characterized by tax efficiency, low corruption, and a highly educated workforce. It explains that political developments in the region have encouraged many firms to select Singapore as an Asian base or headquarters, despite rising costs associated with increased prosperity.
In contrast, the commentary examines recent political developments in New York, noting the election of a self-described socialist mayor and proposed policies centered on higher taxes and expanded public benefits. The article suggests that these developments may reflect deeper concerns about inequality and the changing value of labor, particularly in light of advances in technology and artificial intelligence.
The publication also reviews Switzerland and Monaco, describing their long-standing roles as destinations for the wealthy due to stable legal systems and extensive financial services. It notes that London, once a preferred domicile, has seen outflows following tax changes affecting non-domicile residents.
Drawing on historical examples of once dominant cities that later declined, the commentary argues that business activity tends to migrate toward the most hospitable environments. It cautions that while modern city-states can be attractive, they may face long-term vulnerabilities due to geopolitical risks.
The article concludes that as firms gain greater flexibility in where they operate, competition among jurisdictions is likely to intensify, with meaningful implications for established economic centers over time.
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SOURCE Egan-Jones Ratings Co.
