SINGAPORE has again been ranked the world's second freest economy, after long-time rival Hong Kong, which retains the top position for the 15th straight year.

The Republic scored 87.1 on the Index of Economic Freedom, which is published annually by The Wall Street Journal and American conservative think-tank The Heritage Foundation.

Hong Kong was 2.9 percentage points ahead with 90 points - a score which also reflects the strength of the country's economic performance.

Authors of the Index, Ambassador Terry Miller and Dr Kim Holmes, said that Singapore's unwavering position is due to 'an efficient business environment that is well maintained' and so has 'long benefited from vibrant entrepreneurial activity'.

Ireland and two other Asia Pacific countries, Australia and New Zealand, rounded up the top five spots in the Index.

The United States dropped one spot to sixth place because of increases in government spending as a percentage of gross domestic product (GDP), said The Wall Street Journal.

But as governments attempt to stave off a global recession with new economic policies in the coming year, authors of the Index warn that 'their meddling could well threaten economic freedom and long-term economic prosperity.'

Said the authors: 'There is a real possibility that the scores in this edition might represent the historical high point for economic freedom in the world.'

The Index measures levels of economic freedom on a scale of 0 to 100 in 10 categories: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom.

The higher the score, the lower the level of government interference in the marketplace.

Of the 179 economies ranked for the 2009 Index, only seven scored above 80 points, which classifies them as 'free'.

North Korea and Zimbabwe are at the bottom of the rankings, published on Tuesday.