The NUS Economics Society Dialogue: Engaging Future Leaders

The Shaw Foundation Alumni House at the National University of Singapore (NUS) buzzed with anticipation on March 27, 2026, as approximately 300 students gathered for the NUS Economics Society's (ECS) Post-Budget Dialogue. Organised by the student-led ECS, the event featured Coordinating Minister for National Security and Minister for Home Affairs, K. Shanmugam, as the guest of honour. Students from diverse faculties, including the NUS College of Design and Engineering and the Faculty of Arts and Social Sciences, along with an exchange student from Cornell University, attended to discuss Singapore's Budget 2026 in the context of national security.

This dialogue underscored the pivotal role of higher education institutions like NUS in fostering informed discourse on critical national issues. As Singapore's flagship university, NUS provides a platform for students to engage directly with policymakers, bridging academic learning with real-world policy challenges. The event highlighted how economics students, in particular, are positioned to contribute to Singapore's strategic responses to global uncertainties.

Singapore's Exposure to Global Volatility

Minister Shanmugam opened by painting a vivid picture of Singapore's geopolitical and economic position, likening the city-state to a 'small sampan' navigating a vast, turbulent ocean. He emphasised that Singapore's external economy is three times its internal Gross Domestic Product (GDP), making it acutely sensitive to international events such as US tariffs, the Ukraine war, and tensions in the Middle East. 'Whatever happens outside has a multiplier effect on us,' he stated, illustrating how external shocks can rapidly impact domestic stability.

In the higher education context, this vulnerability translates to the need for universities to prepare students for unpredictable global dynamics. NUS and its peer institution, Nanyang Technological University (NTU), consistently rank among Asia's top universities, attracting international collaborations essential for research and innovation. However, this openness exposes academia to risks like foreign interference, prompting discussions on safeguarding academic freedom while maintaining competitiveness.

Maintaining Openness to Trade and Talent as a Security Imperative

Central to Shanmugam's message was the non-negotiable need for Singapore to remain open to trade, talent, and capital. 'You’ve got to be open to talent, you’ve got to be open to capital. You’ve got to be externally focused. We have no other choice,' he asserted. This stance is particularly relevant for Singapore's universities, which rely heavily on foreign faculty and students to sustain their global rankings. For instance, NUS boasts an international student ratio score of 96.9 in QS World University Rankings 2026, drawing talent from over 100 countries.

The minister stressed the government's role in transparently communicating the benefits of foreign talent to locals, ensuring economic growth leads to quality jobs for Singaporeans. In higher education, this balance is evident in policies that prioritise Singaporean admissions while capping international spots at around 16% for undergraduates at NUS and NTU. Yet, foreign academics form a significant portion of faculty, enabling cutting-edge research in fields like AI and engineering.Read the full NUS report here.

Budget 2026: Bolstering Security and Economic Resilience

Shanmugam linked national security directly to Budget 2026 priorities, noting an 11% increase in security spending to S$37.3 billion, or 3% of GDP—a figure expected to rise further. This includes investments in AI and cost-of-living support, critical for sustaining Singapore's innovation-driven economy. Universities stand to benefit from heightened funding for skills development and lifelong learning, aligning with the budget's emphasis on human capital.

• Enhanced AI initiatives to counter technological threats.
• Cost-of-living measures to support student and faculty welfare.
• Investments in research infrastructure at NUS and NTU.

These allocations ensure higher education remains a pillar of economic security, training the workforce needed for high-value sectors.

Photo by Chunjiang on Unsplash

Demographic Challenges and Higher Education's Response

Singapore faces a stark demographic shift: by 2030, only two working adults will support each person over 65, down from 8.4 in 2000. Surging healthcare costs will strain the shrinking workforce, making skilled talent attraction vital. Universities play a key role here, with programs like NUS's geospatial intelligence degree and NTU's AI-focused curricula preparing students for emerging demands.

Higher education enrolment trends show a surge in computing and engineering, offsetting declines elsewhere, as students align with national priorities. Government scholarships and lifelong learning subsidies further incentivise upskilling amid ageing.Ministry of Manpower insights on ageing workforce.

Student Engagement: Q&A Highlights and Reflections

The dialogue's open-floor Q&A delved into AI's societal impact, fertility rates, and policy trade-offs. Students appreciated Shanmugam's candid insights on long-term planning, geopolitical transparency, and balancing growth with social cohesion. One exchange student from Cornell noted the event's value in understanding Singapore's unique approach to security through economics.

This interaction exemplifies how NUS cultivates critical thinkers, with ECS events promoting policy literacy among undergraduates.

Navigating Foreign Interference in Academia

Singapore's Foreign Interference (Countermeasures) Act (FICA) addresses risks from hostile information campaigns, with potential amendments planned for evolving threats. While assurances protect academic collaborations, concerns persist about self-censorship in universities. NUS and NTU's international profiles necessitate robust safeguards to maintain openness without compromising security.

Recent government proposals aim to amend FICA, ensuring higher education remains a safe space for diverse ideas while countering undue foreign influence.

The Role of Universities in National Security

Institutions like NUS contribute to security through programs such as the National Security Studies Programme at the S. Rajaratnam School of International Studies (RSIS), part of NTU. Research in cybersecurity and disinformation bolsters Singapore's defences. Student societies like ECS bridge academia and policy, preparing graduates for roles in government and industry.

Photo by Mia de Jesus on Unsplash

• RSIS's Centre of Excellence for National Security (CENS) tackles hybrid threats.
• NUS's emphasis on multidisciplinary education fosters resilience.
• International partnerships enhance capabilities while vetted for risks.

Future Outlook: Preparing Singapore's Next Generation

Minister Shanmugam's call for proactivity resonates in higher education's forward-looking strategies. With Budget 2026 supporting tech upskilling, universities are poised to address talent gaps. NUS's 8th global ranking in employability underscores its success in producing adaptable graduates.

Looking ahead, Singapore's universities must continue balancing openness with vigilance, ensuring students like those at the dialogue lead in a volatile world.