Singapore fell five places to seventh in the 2025 IMD World Talent Ranking, released on 9 September, marking a setback in its ability to attract, develop and retain talent.
The country also lost its position as Asia’s top performer to Hong Kong, which climbed to fourth.
The ranking, compiled by the Swiss-based IMD World Competitiveness Center, assessed 69 economies using statistical data and survey responses from 6,162 executives.
It evaluated three pillars: investment and development, appeal, and readiness.
Switzerland retained first place, followed by Luxembourg and Iceland.
Singapore’s steepest decline was in the investment and development pillar, falling from 22nd in 2024 to 30th in 2025.
This pillar measures education spending, pupil-to-teacher ratios, and apprenticeships. Public expenditure on education was just 2.1 per cent of GDP, ranking Singapore 63rd on this indicator.
Cost pressures were another weakness.
Under the appeal pillar, Singapore ranked 65th for cost of living, highlighting the challenge of retaining talent.
At a press conference, IMD director Arturo Bris said rising living costs had made it harder for professionals to remain in the country.
Despite these setbacks, Singapore continued to perform strongly in readiness, slipping only one position to second.
Executives surveyed noted that the skills from Singapore’s primary and secondary education systems aligned well with the needs of a competitive economy.
Strengths included a high proportion of science graduates, strong participation by international tertiary students, and strong results from the OECD’s PISA survey of 15-year-olds.
Regional shifts see firms relocating from Singapore to lower-cost neighbours
Singapore also ranked third in how highly skilled foreign professionals viewed its business environment.
Professor Misiek Piskorski, dean of executive education at IMD, highlighted that organisations were relocating to neighbouring countries such as Malaysia, Thailand, and Vietnam, which offer lower costs and growing stability.
“So it’s not necessarily that the talent itself is leaving, it’s that many organisations are leaving, and the sort of talent follows with that,” he said.
Still, Prof Piskorski expressed confidence in Singapore’s ability to recover, suggesting the country would develop a “well thought-out plan” to reattract global talent.
Other Asian economies featured prominently.
The United Arab Emirates secured ninth position, praised for its competitive private sector and success in attracting international students.
Hong Kong was commended for “outstanding” academic performance and student mobility.
Taiwan ranked 17th, Malaysia 25th, South Korea 37th, and China 38th.
Singapore retains global competitiveness but faces decline in business efficiency
Beyond the talent ranking, IMD also released its 2025 World Competitiveness Ranking, where Singapore secured second overall, maintaining a strong global standing despite modest declines across several areas.
Singapore improved in economic performance, climbing two places to first, driven by GDP growth, capital formation, and exports.
However, under business efficiency, Singapore slipped from second to eighth, with sharp declines in management practices, entrepreneurship, and digital transformation.
The country also saw weakening in infrastructure, particularly in education, which fell from third to eighth.
The low share of GDP allocated to public education, relatively low female degree attainment, and middling university rankings contributed to this decline.
Government efficiency remained a strong point, ranking third globally.
IMD credited Singapore with sound fiscal management, balanced tax policies, and transparent governance.
While Singapore’s competitiveness remains resilient, IMD highlighted the rising cost of living and limited education spending as major structural challenges.
Addressing these areas will be critical if Singapore is to sustain its reputation as a hub for talent and innovation.
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