Second Minister for Finance Indranee Rajah on Singapore’s drop in a recent world talent ranking

Key Concepts:

• IMD World Talent Ranking: Measures economies' performance in developing, attracting, and retaining talent.
• Perception-based factors: Business executives' views on apprenticeships, employee training, and brain drain.
• Investment and Development: Evaluates investment in and development of homegrown talent.
• Appeal: Measures the ability to attract and retain overseas talent.
• Readiness: Assesses whether the existing talent pool meets current and future needs.
• PISA score: A measure of education outcomes.
• SkillsFuture: Singaporean initiative for adult learning and skills development.
• Public expenditure on education as a percentage of GDP: A metric used in the IMD report.
• Pupil-teacher ratio: Number of students per teacher.
• OECD: Organisation for Economic Co-operation and Development.
• STEM graduates: Graduates in Science, Technology, Engineering, and Mathematics fields.

1. Overview of the IMD World Talent Ranking

• The IMD World Talent Ranking assesses how well economies cultivate homegrown talent, attract foreign talent, and develop workforce skills.
• Singapore's 2025 ranking was influenced by perception-based factors, particularly business executives' views on apprenticeships, employee training prioritization, and confidence in avoiding brain drain.
• Singapore's overall ranking was 7th out of 69 economies in 2025, a drop from 2nd in 2024, but still within the top 10. The general trend has been upwards over the last decade.
• The ranking measures competitiveness across different countries and economies.

2. Factors Influencing Singapore's Ranking

• The IMD assesses 69 economies using three factors: Investment and Development, Appeal, and Readiness.
• Investment and Development: Singapore's weaker performance was due to declining perception-based indicators on employee training and apprenticeships, and low public expenditure on education as a percentage of GDP.
• Appeal: While traditional factors like management and fair administration of justice remained strong, perception-based indicators on worker retention and the high cost of living weighed down the ranking.
• Readiness: Singapore's performance was relatively steady, with strengths in the education system (PISA scores, STEM graduates) but declines in labor force growth and perception indicators on the availability of skilled labor.

3. Investment and Development in Detail

• The report cites low education investment, despite education being a high item in Singapore's annual budget, including investments in adult continued training and SkillsFuture.
• The indicator used in the IMD report is public expenditure on education as a percentage of GDP.
• Singapore consistently allocates a large portion of its annual budget to education, including SkillsFuture.
• Singapore was ranked 17th in total public expenditure on education per student.
• Singapore's pupil-teacher ratio is comparable to OECD averages and countries like the US, UK, Germany, Korea, and Japan.
• The minister argues that the IMD report doesn't give enough weight to the value for money part and the outcomes of the education system.

4. Appeal in Detail

• Organizations are relocating to relatively low-cost countries, potentially finding similar quality workforce for a lower price.
• Traditional considerations like management and fair administration of justice remain strong.
• The high cost of living in Singapore is a factor, but not the key factor pulling down the ranking in 2025.

5. Readiness in Detail

• Singapore's strong education system is a notable strength, reflected in high PISA scores and the proportion of STEM graduates.
• Surveys affirm that primary, secondary, and university education meet the needs of the competitive economy.
• Areas of decline include labor force growth and perception indicators on the availability of skilled labor and specific skill sets.

6. Key Arguments and Perspectives

• The minister emphasizes that the IMD findings are based on perceptions, which may not always reflect reality.
• She argues that the IMD report's focus on public expenditure on education as a percentage of GDP doesn't fully capture the strength of Singapore's education system, as it doesn't account for outcomes or value for money.
• The minister highlights Singapore's continued commitment to developing the local workforce through investments in people, enhancing the business environment, strengthening connectivity, and fostering a vibrant tech and innovation ecosystem.

7. Data and Statistics

• Singapore's overall ranking: 7th out of 69 economies in 2025.
• Singapore's ranking in 2024: 2nd.
• Singapore's ranking in 2016: 15th.
• Singapore's ranking in 2017: 13th.
• Singapore's ranking in 2018: 13th.
• Singapore's ranking in public expenditure on education as a share of GDP: 63rd to 65th.
• Singapore's ranking in education outcomes (PISA score): 2nd.
• Singapore's ranking in total public expenditure on education per student: 17th.

8. Conclusion

Singapore's drop in the IMD World Talent Ranking is primarily attributed to perception-based factors related to employee training, apprenticeships, and the availability of skilled labor. While the report highlights concerns about public expenditure on education as a percentage of GDP, the minister argues that this metric doesn't fully reflect the quality and outcomes of Singapore's education system. The government remains committed to investing in its local workforce and maintaining Singapore's position as a leading global talent hub.