This paper focuses on the attempt by the Singapore government to introduce a new education paradigm to prepare students for success in a knowledge economy. The paper highlights the policy statements and changes for a new paradigm known as an Ability Driven Education (ADE) in Singapore. The ADE, launched as part of the Thinking Schools, Learning Nation vision in 1997, has the explicit aim of developing creative, innovative and life-long learners who will rise to the challenges presented by a knowledge economy. The paper discusses the potential of the ADE to prepare students for a knowledge economy by exploring some issues and challenges in Singapore. The concluding section raises implications for the key stakeholders of education in Singapore.