SINGAPORE, 9 September 2025 — Singapore has fallen five spots to seventh place in the latest IMD World Talent Ranking, losing its position as Asia’s top performer. The decline reflects mounting challenges from limited education spending and a rising cost of living, even as the city-state continues to excel in talent readiness.
The 2025 report, released by the Swiss-based IMD World Competitiveness Center, once again ranked Switzerland as the world leader, followed by Luxembourg and Iceland. Singapore, which had previously held second place in 2024, was overtaken by Hong Kong, now ranked fourth, securing its place as Asia’s highest-performing economy in talent competitiveness.
Analysts pointed to weaknesses in Singapore’s “investment and development” pillar, where it dropped from 22nd to 30th globally. This was largely attributed to limited public spending on education, which stood at just 2.1 per cent of gross domestic product, placing Singapore 63rd worldwide on this metric. Rising living costs also weighed heavily on the country’s “appeal” factor, where it ranked 65th, diminishing its attractiveness to skilled professionals seeking sustainable lifestyles.
Yet Singapore’s strength remains in talent readiness. The country ranked second in this category, underpinned by high-quality education, outstanding international student performance, and globally competitive PISA scores. Executives surveyed by IMD also praised Singapore’s ability to equip students with skills that align closely with business and economic needs. Skilled foreign professionals rated Singapore’s business environment positively, helping the city-state secure third place in this sub-indicator.
At the report’s briefing, IMD World Competitiveness Center director Arturo Bris stressed that rising living expenses have hurt Singapore’s ability to retain talent. Professor Misiek Piskorski, Dean of Executive Education at IMD, added that multinational organisations are increasingly shifting operations to neighbouring countries such as Indonesia, Malaysia, Thailand and Vietnam, where labour costs are significantly lower while the workforce quality remains strong. However, he noted that Singapore is well-placed to reassert itself with what he described as a “very well thought-out plan” to reattract and retain talent in the future.
The broader regional landscape reflected diverging trends. Hong Kong’s climb to fourth was supported by exceptional academic performance and an ability to attract international professionals, while the United Arab Emirates broke into the top ten at ninth, bolstered by a dynamic private sector and strong international student integration. Elsewhere in Asia, Taiwan ranked 17th, Malaysia 25th, South Korea 37th, and China 38th.
Despite the setback, Singapore’s resilience in talent readiness signals that its fundamentals remain strong. But to regain its standing as Asia’s premier hub for skilled professionals, policymakers may need to confront the twin challenges of rising costs and underinvestment in education. Without decisive measures, the city-state risks ceding ground in a region where talent competitiveness is becoming an increasingly decisive factor in economic growth.
