Singapore’s drop in global talent rankings reflects a shift in executive priorities as cost and career now trump lifestyle and culture. (Photo: Getty Images)
Singapore’s slip to 7th in the IMD World Talent Ranking 2025 marks a turning point. Despite strong education outcomes and business appeal, the city-state is losing ground due to rising costs and underinvestment in education.
IMD’s research shows that quality of life, once a top draw, is no longer the dealmaker. Rising living costs and low public education spending have made Singapore less competitive in the “investment and development” pillar, where the country fell from 22nd to 30th. Public education spending is just 2.1 per cent of GDP, ranking 63rd globally.
Hong Kong, meanwhile, surged to 4th place, thanks to improved appeal and readiness scores. But the real story is that executives are chasing value, where they can get top-tier talent and infrastructure without the premium price tag.
Singapore still shines in readiness, ranking 2nd globally, and boasts strong education outcomes and business environment ratings.
Cost-of-living concerns also weighed heavily. Singapore ranked 65th in affordability, making it harder to retain talent, even with its high salaries and clean governance.
IMD experts say companies are relocating to Malaysia, Vietnam, and Indonesia, where they find “similar quality workforce for a much lower price”.
Executives still rate Singapore’s education system highly, especially in science graduates and student mobility. But the talent equation is shifting, and Singapore’s premium positioning is being questioned.
IMD experts say the country needs a “well thought-out plan” to re-attract talent and stay competitive.
For full rankings and insights, read IMD’s report here.