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For years Singapore has ranked at the top the global competitiveness rankings and labour market eciency rankings developed by the World Economic Forum. e paper aims to present Singapore's labour market institutional infrastructure and iden- tify the underlying reasons for the good situation in its labour market. It discusses the assumption that the high eciency of Singapore's labour market, contributing to the country's global competitiveness, stems from a specic approach to labour market institutions, which involves using the alternative labour market regulation mecha- nisms, such as the promotion of good practices, to increase relatively low work stand- ards. Based on the breakdown of labour market institutions into formal and informal, the theoretical interpretation of the analysed mechanisms is presented. e conclu- sion indicates the direction for further research on labour market institutions in other Southeast Asian countries. Even though the labour market model in Singapore as such does not seem to be suitable for European economies, it is still a useful reference while shaping their labour markets.

The institutional sphere of the labour market of a highly competitive economy – the case of Singapore