Hundreds of millions of pounds could be invested in housing in Scotland if the Scottish government had clearer policies, a leading businessman has claimed.

Sir Tom Hunter said that he knew of developers who were choosing to take “build to rent” projects to Birmingham or Manchester because they were unsure of how rent caps would work in Scotland.

Social Justice Secretary Shirley Anne Somerville defended the principle of having rent controls during a cost of living crisis, but said legislation currently going through Holyrood would give developers the certainty they need about the policy.

And she said ministers were doing a “tremendous amount of work” with private firms to improve the planning process.

In a wide-ranging interview Sir Tom also called for Scotland to be more like Singapore in bid to improve the education system and deliver a better health service.

And he said ministers should be paid more in a bid to attract the “best talent” into politics.

Last May the Scottish government declared a national housing emergency.

But Sir Tom told BBC Scotland’s The Sunday Show the crisis could be solved “tomorrow morning”.

He added: “It’s very simple. Build baby build, to take a phrase from over the pond.

“To solve the housing crisis you need to build more houses. Really? That’s it.”

The entrepreneur said housing investors allocate their investment where they understand the policy.

He said: “I know of hundreds of millions of pounds that are sitting on the sidelines, not coming to Scotland because the investors go: ‘We are not quite sure what the Scottish government’s housing policy is. Rent cap? No rent cap? What is it?

“We will just go to Manchester. We will just go to Birmingham.

“And therefore sort the policy. Sort it tomorrow and hundreds of millions of pounds will flow into Scotland.”

The businessman said a joined-up approach would also create opportunities for apprentices.

Ms Somerville, who also appeared on The Sunday Show, said she held talks with representatives of investors in the build to rent market last week.

She added: “While we have had a disagreement about whether rent controls should come to Scotland or not, the government’s been very clear that it should.

“But we are very clear to do that in a way that will provide that certainty for private investors.”

The minister said the housing bill that is currently going through parliament had a formula on rent caps and added the change was made after listening to private developers.

Meanwhile, Sir Tom also told the programme that ahead of the Holyrood election next year he wanted to look at “the big ideas, the bold ideas for Scotland.”

He added: “If we look at where we are, a state of the union – not in a political sense – but our education standards are falling, our health service is struggling and we have a lacklustre economy.

“If this was a business, which is my background, I would be looking to see where my competitors were doing better than me.”

Sir Tom commissioned a report on what lessons Scotland could learn from Singapore as he said it had one of the best GDPs of capita in the world.

He also highlighted the fact that the prime minister of Singapore earns $2.2m Singapore Dollars (£1.27m).

In comparison First Minister John Swinney earns £165,000.

Sir Tom said: “Countries with the best talent win.

“Do we have the best talent running our country?”

Asked to answer his own question, he replied: “I would say we could do better.

“We need to encourage better people into politics.

“The hardest job in this country is running the country.”