‘SG has become such an expensive place to do business,’ netizen says as Singapore’s ability to attract and retain talent drops amid rising cost of living
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SINGAPORE: “SG has become such an expensive place to do business,” a netizen said after Singapore slipped in a global ranking on its ability to attract and retain talent amid the rising cost of living, a reason that has made it harder for talent to stay, said Swiss-based International Institute for Management Development (IMD) World Competitiveness Centre director Arturo Bris.
In the latest IMD World Talent Ranking, the city-state slipped five places to seventh globally, while Hong Kong overtook it as Asia’s top performer. Switzerland retained the top spot worldwide, followed by Luxembourg and Iceland, as reported by Channel News Asia (CNA).
The study, published on Tuesday (Sep 9), used statistical data and responses from 6,162 executives to assess economies’ investment and development, appeal, and readiness in attracting, developing, and retaining talent.
Notably, Singapore declined the most in terms of investment and development, dropping to 30th place from 22nd last year.
Investment and development include public education spending, pupil-teacher ratios, and the implementation of apprenticeships. Public spending on education was just 2.1% of the gross domestic product (GDP), ranking Singapore 63rd globally.
The city-state also ranked 65th in terms of appeal due to its high cost of living.
Singapore, however, ranked second in readiness. Executives surveyed said the skills Singaporeans gained from its primary and secondary education system aligned well with the needs of a competitive economy. Strengths were also seen in the number of science graduates, international tertiary students, and results from the Organisation for Economic Co-operation and Development’s (OECD) PISA survey of 15-year-olds.
At the same time, the city-state ranked third in how highly skilled foreign professionals viewed its business environment.
IMD’s Mr Bris also added that while Singapore does “more than enough” in education, it ranks low because of its relatively low investment in the sector.
However, IMD’s Professor Misiek Piskorski, speaking on Singapore’s drop in talent attraction and retention, noted that “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 organisations are relocating to Malaysia, Indonesia, Thailand, and Vietnam, where they can get a “similar quality workforce for a much lower price”.
Netizens shared the same concern. One said it was now a “no-brainer” to move business units to regional cities, which are catching up in infrastructure and living standards but with lower costs.
“Their advantage is that the cost is less, and no matter how pro-business policy there is, the final drive will always be cost,” he said.
While some were not surprised by the news, many found the report worrying, with a netizen saying, “SG has become such an expensive place to do business. Little tax incentives and cheaper alternatives in the region.”
“I see a future where only trilinguals who are capable will thrive in SG, especially if they are interested in working for an MNC. SMEs will just outsource all the work to surrounding countries if the government doesn’t do more to support fresh graduates here. Dangerous times,” he added.
Meanwhile, another remarked, “Malaysia has been narrowing the gap for a while now. Too many people were just focused on 1SGD = 3RM to see the bigger picture.”
Still, Prof Piskorski said he was confident Singapore would rebound, adding that he expects the country to return with a “very well thought-out plan” to draw talent back. /TISG
Featured image by Depositphotos (for illustration purposes only)