Business tycoon pushes for radical rethink of Scotland’s economic model, with innovation and intent at the heart of a new strategy
Scotland needs to think less like Stockholm and more like Singapore if it wants to reverse its long-term economic decline, according to entrepreneur and philanthropist Sir Tom Hunter, who is calling for a bold, business-led transformation of the country’s strategy.
A new Oxford Economics report commissioned by Hunter paints a stark picture of stagnation in Scottish productivity, education, and health outcomes — and draws a provocative comparison between Scotland and the high-growth city-state of Singapore.
“The status quo is completely unacceptable. Change needs to come and it needs to be radical – tinkering will only yield further decline,” Hunter said in the report’s foreword.
While the comparison may seem far-fetched at first glance, Hunter insists it’s not about mimicry. Instead, he wants Scotland to absorb the strategic clarity, policy coherence, and growth ambition that underpin Singapore’s rise — all while preserving Scotland’s democratic values and social model.
Rethinking Scotland’s North Star
For decades, Scotland has drawn inspiration from Nordic models — high-tax, high-trust welfare states like Norway and Sweden. These nations offer strong public services, equality-driven policies, and high standards of living.
But Hunter argues that while admirable, these systems aren’t suited to building the kind of entrepreneurial, high-growth economy Scotland needs to reverse decades of decline.
“There’s a reasonable starting point in questioning whether we’ve over-indexed on the Scandinavian model,” said Hunter. “Singapore offers another lens — one that prioritises agility, innovation and results.”
Lessons From Singapore: Planning, Precision, Purpose
The report, titled Lessons From Singapore for Scotland’s Economy, is less about tax cuts and more about institutional discipline. Singapore is renowned for long-term economic planning, tight coordination across government, and industrial policies that focus resources on high-growth sectors.
Key pillars of Singapore’s model highlighted in the report include:
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Strategic 5-year economic plans focused on R&D and innovation
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Public-private coordination to translate ideas into scalable industries
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Infrastructure excellence, with high-density housing, reliable transit, and integrated digital systems
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Education alignment with industry needs, particularly in STEM fields
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Globally competitive tax and regulatory regimes that incentivise investment
Singapore now ranks among the top countries globally in the OECD’s PISA rankings for education, and it scores 4th globally in the IMD World Competitiveness Index for infrastructure — leagues ahead of the UK.
What’s Going Wrong in Scotland?
By contrast, Scotland is facing a combination of demographic, educational and economic pressures that Hunter warns are rapidly converging into a national crisis.
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Education standards have fallen steadily over the last 20 years, with widening skills gaps in high-demand sectors
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Health outcomes are now among the worst in Europe, according to the report
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Demographics are tilting rapidly: the number of Scots over 85 is projected to double by 2045, while the working-age population shrinks
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Inward investment is slipping, and business start-up rates remain flat compared to other UK regions
Hunter argues that these challenges demand radical, coordinated reform — not incremental fixes.
Fiscal Firepower – or Fiscal Straitjacket?
One of the more contentious proposals in the report is a re-evaluation of tax policy. Singapore’s tax-to-GDP ratio is under 16%, compared to 37% in the UK, and its top personal income tax rate is 24%, compared to 48% in Scotland.
“Tax is the single most important lever to encourage entrepreneurship and investment,” said Hunter. “We need to see it as a tool for growth, not just revenue.”
The report stops short of recommending wholesale cuts but makes the case that strategic tax reform, aligned with pro-growth policy, could make Scotland more competitive globally.
However, observers point out that Scotland’s tax powers are limited under devolution, and any radical shifts would face political and fiscal constraints — particularly given Scotland’s strong support for public services and welfare protections.
What Can Be Done?
Hunter insists that Scotland has the tools it needs — particularly in areas like:
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Skills development and education policy
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Planning and infrastructure investment
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Digital and regulatory reform
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Public procurement and innovation incentives
Scotland’s Green Industrial Strategy, for example, already shows signs of emulating Singapore’s long-term sectoral focus. But the report argues that more speed, discipline and private sector input are needed to make these strategies effective.
The report also calls for:
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Faster planning approvals and reduced red tape
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Innovation clusters focused on advanced manufacturing, AI, and net-zero technologies
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Targeted scholarships and grants to steer students toward high-growth industries
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Public-private partnerships to align research, education and job creation
What Doesn’t Translate?
Still, the report acknowledges fundamental differences between the two nations that limit direct comparison.
Singapore is a centralised, technocratic city-state governed by a dominant party. Dissent is tightly controlled, and media is largely state-aligned. Nearly 40% of its workforce are foreign workers, many living in conditions that would be politically unacceptable in Scotland.
Scotland, by contrast, is a plural democracy with deeply rooted civil society, regional diversity and a strong welfare ethos.
“We’re not suggesting we become Singapore,” the report states. “We’re saying: let’s act with similar intent.”
A New Scottish Growth Narrative
What Hunter ultimately wants is a mindset shift. To move beyond debate over the constitutional question and focus instead on building a world-class economy — one that draws on Scotland’s own values but learns from the best practices of others.
“Let’s unite to deliver a real growth strategy for Scotland,” he said. “It’s not outrageous to think we could reclaim our place on the global stage — but only if we are truly radical, bold and ambitious.”
Rather than chasing blueprints, the report calls for a hybrid model: one that blends Singapore’s economic intent with Scotland’s democratic tradition and social values.
The message: Scotland doesn’t need to become Singapore — but it can stop shrinking its ambitions.
