Singapore continues to attract highly skilled talent, a trend attributed to its economic success, competitive salaries and benefits, and superior quality of life. In contrast, its neighboring country, Indonesia, continues to experience a loss of highly skilled and educated talent. According to the Directorate General of Immigration, a total of 3,912 Indonesian citizens transitioned to Singaporean citizenship between 2019 and 2022. The recent social media movement centered around the hashtag #KaburAjaDulu (“just escape first” or “run away first”), popularized by Indonesia’s youth, highlights a deeper issue concerning Indonesia’s human capital development. This essay highlights Singapore’s economic miracle, its success in developing human capital, and the reasons behind its continued ability to attract highly skilled talent. It concludes by outlining how Indonesia can learn from Singapore in the face of its ongoing challenge of talent loss.
Singapore’s Economic Miracle: Lee Kuan Yew’s Leadership and Beyond
Owing to its exceptional economic growth, Singapore is recognized as one of the eight “East Asian miracle” countries (Campos & Root, 1996). Between 1960 and 2000, the country’s GDP grew at an annual rate of 7.7 percent, increasing 9.7 times over four decades (Sugimoto, 2011). Gaining independence in 1965 and facing significant challenges, including a lack of natural resources, a small domestic market, and political instability, Singapore underwent a remarkable transformation under the leadership of Prime Minister Lee Kuan Yew. Under his leadership, within three decades, Singapore became Asia’s highest-income country in terms of GDP per capita, beginning in the 1960s. By 2020 Singapore ranked third globally in GDP per capita based on Purchasing Power Parity (Grainger et al., 2020).
Leveraging economic globalization, Lee Kuan Yew’s leadership was characterized by strong political authority, long-term planning, pragmatism, an unwavering focus on economic development and education, and a commitment to a corruption-free economy (Mechitov et al., 2021; Kissinger, 2022). In Leadership: Six Studies in World Strategy, Kissinger (2022) highlights Prime Minister Lee’s strategic foresight and adaptability in navigating complex global dynamics, as well as his ability to balance external threats with internal stability. The latter is closely linked to Lee’s emphasis on national economic growth through global economic cooperation.
Singapore’s economic model is often described as ‘state-led capitalism,’ in which the government plays a dominant role in economic development while allowing market forces to operate within a regulated framework (Völgyi, 2019; Rodan, 2004; Sim, 2011). Within this model, the state directs economic advancements, influencing the activities of private enterprises and individuals (Allen et al., 2022). Despite arguments that state-owned enterprises are inherently inefficient, Singapore’s state-linked enterprises, such as Temasek Holdings, have demonstrated remarkable effectiveness. They have driven economic growth, maintained competitiveness, and served as instruments for implementing strategic economic policies (Tan et al., 2015). These entities not only generate revenue for the state but also contribute to national economic stability and development (Tan, 2016).
The economic strategies introduced by Lee Kuan Yew have been carried forward by subsequent administrations. Government policies continue to prioritize economic growth, education, and maintaining a competitive edge in the global economy (Ministry of Finance, 2023). Singapore’s economic success is also attributed to its strategic integration into the global political economy, which has accelerated its industrialization (Kumar & Siddique, 2010). Moreover, the government’s interventionist policies facilitate the flow of capital and labor into the industrial and innovation sectors, supporting industries by providing quality human capital, material resources, and institutional support (Wade, 2005).
The country has capitalized on its geo-strategic location as a global hub for trade, finance, and logistics, with its seaport serving as a key link between East Asia and Europe (Lee & Ducruet, 2009). Furthermore, to enhance its access to global markets, Singapore has established an extensive network of free trade agreements, with 27 agreements currently in place (Lam & Ramakrishnan, 2017; Ministry of Trade and Industry Singapore, 2024). Free trade agreements, foreign investment, and a business-friendly regulatory framework have been instrumental in attracting multinational corporations and fostering economic diversification (Huff, 1995). In response to emerging technological opportunities and disruptions, climate change challenges, and geopolitical shifts, the government places significant emphasis on technological and digital innovation. This necessitates both the development and recruitment of highly skilled human capital, as outlined in the following section.
Singapore’s Human Capital Development and Talent Policy
Recognizing that Singapore’s only significant resource was its people, Prime Minister Lee prioritized human capital development as one of the key strategies for driving economic growth and development (Reza et al., 2015). Singapore’s emphasis on innovation and education has enabled the country to transition from a labor-intensive economy to a knowledge- and service-based one, ensuring sustained and competitive economic growth (Kuo & Low, 2001).
Notably, two of the country’s universities—the National University of Singapore and Nanyang Technological University—are ranked among the world’s top 50, making them the only institutions in the region to achieve this distinction. These universities have played a crucial role in producing a highly skilled workforce capable of driving innovation and economic progress. The creation of a talent pool is also evident in the quality of Singapore’s primary and secondary education. The Organisation for Economic Co-operation and Development (OECD) Programme for International Student Assessment (PISA) ranks Singapore as the second-best in the world, after China, for secondary-level students’ skills and knowledge in science, reading, and mathematics (OECD, 2020).
Recognizing that the inflow of highly skilled individuals is a key resource for service- and technology-based economies that drive innovation and entrepreneurship, the government attracts highly qualified talent from overseas through various immigration schemes. These include the Overseas Networks and Expertise Pass, which aims to attract talented individuals in business, arts and culture, sports, academia, and research (Ministry of Manpower Singapore). While official reports are difficult to obtain, media sources indicate that Singapore actively seeks Indonesia’s top one percent of talent, such as winners of the Mathematics or Physics Olympiads, offering them scholarships that lead to permanent residency and, ultimately, naturalization (Jakarta Post, 19 February 2025). According to Indonesian government data, 3,912 of its citizens became Singaporean citizens between 2019 and 2022.
With the continuing advancement of technology, particularly through the issuance of visa programs for ‘digital nomads,’ foreign professionals working in a remote and borderless environment are increasingly sought after. These talented individuals, often found in foreign countries, are essential for accelerating domestic economic development and growth, particularly in the technology sector and knowledge-based industries such as digital, biotech, medical, and the creative economy (Litania & Marsan, 2023). Singapore has been at the forefront of scouting talent in the region, offering five types of visas tailored to remote workers, including the EntrePass, Tech.Pass, and Overseas Network and Expertise (ONE) Pass (Litania & Marsan, 2023). These visas target business innovators, experienced technology professionals, entrepreneurs, executives, and experts in emerging technologies, as well as top talent in business, arts and culture, sports, science and technology, and academia and research.
In essence, through the combination of internal human capital development and talent policies facilitated by various immigration schemes, Singapore has successfully attracted the top talent required to sustain its robust economic success. The country is renowned for its competitive salaries and benefits, as well as its attractive tax policies, including the world’s highest salaries in the finance sector (Selby Jennings, 2022), making it a prime destination for professionals in finance, technology, management, and healthcare.
Lessons for Indonesia in Addressing Talent Loss
Prime Minister Lee’s success in transforming Singapore from an underdeveloped economy into Asia’s highest per capita income country within three decades, coupled with the continued success of subsequent administrations in sustaining the country’s robust and resilient economy, is underpinned by the availability of highly talented human capital. This talent has been cultivated both domestically and through Singapore’s ‘talent policy,’ which attracts highly skilled foreign professionals.
The recent social media movement, #KaburAjaDulu (“just escape first” or “run away first”), has once again reminded Indonesia of its long-standing challenge in cultivating the country’s human capital. Rostya Putri’s (2025) article, Escaping Uncertainty: The Rising Trend of Indonesian Young Adults Moving Abroad, highlights the broader issues relating to poor employment conditions in the country and the aspirations of Indonesia’s youth to seek foreign employment for stronger labor protection, higher salaries, severance benefits, and job stability. The article also outlines a continuing trend of talent loss to Singapore, with a total of 7,900 Indonesians having moved there in 2023, including 66 nurses between June 2023 and June 2024. This number is projected to grow, with an estimated 24,000 nurses and healthcare staff expected to leave by 2030. According to a report by Indonesia’s Ministry of Law and Human Rights in 2023, at least six million Indonesians work across eighteen countries. While nationals working abroad is a commonly accepted practice within economic globalization, the loss of highly talented individuals, particularly when they are critically needed to contribute to the development of their own country, should be regarded as a matter of national security.
Indonesia, endowed with the demographic potential of a productive age group (70.72% of its population is aged between 15-64, including 27.95% of Gen Z and 25.87% of millennials (IDN Research Institute, 2024)), should allocate greater investment in the education sector and create conducive working environments to motivate its young talent to remain in the country. Indonesia currently ranks 74th out of 79 countries in the Programme for International Student Assessment (PISA) survey. It is also ranked 43rd out of 45 countries for the enrollment rate of 25- to 29-year-olds and 44th out of 45 countries for upper secondary attainment among 25- to 34-year-olds (OECD, 2024). Whilst the prospects may appear limited, Indonesia has the potential to cultivate and retain its talent through the implementation of appropriate policies and strategies, coupled with a commitment to a corruption-free economy, as frequently affirmed by the current President, Prabowo Subianto. This is essential for achieving the high economic growth the country urgently requires.
