Singapore beat the United States in Forbes' fifth annual Best Countries for Business.

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The US, which was ranked at number two last year, has been demoted to ninth position this year. With its economy at the edge of a double-dip recession, Forbes cites the "the high tax burden and a poor showing on trade and monetary freedom compared with many other developed nations" for the drop in ranking.

Singapore, meanwhile is placed at number five.

The highest ranked Asian country, Hong Kong, is at number two, while the US now occupies Hong Kong's ninth spot from last year.

With closer ties to China, the special administrative region scored in the top three for taxes, investor protection and both trade and monetary freedom.

Denmark clinched the top spot for the third straight time this year.

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