Hong Kong Tops Asia's Internationality Rankings

Hong Kong has been ranked Asia's most international city, narrowly surpassing Singapore in the "Asian Cities Internationality Index 2025." The city excelled in business and economy but lagged in innovation and talent development. The Hong Kong General Chamber of Commerce highlighted the need for better commercialization of research and enhanced workforce diversity. Despite challenges like global trade tensions, Hong Kong’s free-trade advantages position it well for growth. Officials remain optimistic about widening the city’s lead over regional rivals.

Hong Kong has been named Asia's most international city, narrowly edging out Singapore in a new index assessing global competitiveness among regional metropolises. The recognition comes from the inaugural "Asian Cities Internationality Index 2025," released by the Hong Kong General Chamber of Commerce (HKGCC) on Tuesday. However, the chamber cautioned that the city must address key challenges in innovation and talent development to secure its competitive edge in the face of global uncertainties.

Leading the Pack with a Slim Margin

The index ranked Hong Kong first with a score of 73.7, just 0.2 points ahead of Singapore's 73.5. Shanghai earned the distinction of being the highest-ranked mainland Chinese city, securing fifth place with a score of 65.1.

This accolade comes on the heels of Hong Kong’s strong performance in the International Institute for Management Development’s (IMD) World Competitiveness Index, where it ranked third globally, following Switzerland and Singapore.

Hong Kong’s victory in the Asian Cities Internationality Index was largely attributed to its strength in the "business and economy" segment. However, the city lagged behind in "innovation and ideas," where it placed fourth, trailing Singapore, Shanghai, and Seoul.

Challenges in Innovation

Patrick Yeung Wai-tim, chief executive of the HKGCC, acknowledged Hong Kong’s struggles to commercialize its scientific research effectively. "Hong Kong’s enterprises still allocate a relatively small portion of their operational budgets to research and development," Yeung said.

He expressed hope for improvement, citing recent government initiatives aimed at bolstering innovation. “With the right support, the momentum will shift positively, and future surveys will reflect better achievements in these areas,” he added.

To enhance its performance in the "innovation and ideas" category, the chamber recommended implementing investor-friendly policies to help commercialize academic research and fostering a more diverse and skilled talent pool. The chamber also highlighted the need to address declining English proficiency among the workforce, a category where Singapore currently leads.

Methodology of the Index

The study, conducted by the chamber in collaboration with global market research firm Ipsos, assessed 11 prominent Asian cities. The evaluation framework incorporated four key attributes: stability and scalability, global interconnectedness, openness to resources and ideas, and influence in value exchange.

The final scores were calculated using 113 indicators across seven areas, with 60% of the data based on hard metrics and 40% derived from a survey of 1,107 senior executives in the participating cities.

Singapore’s Decline in Business Environment Ranking

HKGCC Chairwoman Agnes Chan Sui-kuen highlighted challenges faced by Singapore, citing recent IMD data that showed a sharp drop in the city-state’s business environment ranking, from second to eighth place. This decline was attributed to high operational costs exacerbated by the COVID-19 pandemic.

Opportunities Amid Geopolitical Challenges

Despite global trade tensions and rising geopolitical risks, Hong Kong retains its advantages as a free-trade and duty-free port. “This positions us as an attractive transit hub amid tariff disputes,” said Chan.

Regarding tensions in the Middle East, Chan noted that the economic impact would be global, keeping inflation and oil prices high while limiting the potential for interest rate cuts. “This is a global issue, not confined to Hong Kong,” she emphasized.

Optimism for the Future

Despite the hurdles, Chan expressed confidence in Hong Kong’s trajectory. She believes the city will widen its lead over Singapore in the coming years, citing progress across multiple areas and the government’s proactive measures. “We are moving in the right direction, and the results of these efforts will become more evident,” she said.

As Hong Kong builds on its strengths while addressing its weaknesses, its position as a leading international hub in Asia seems poised for further consolidation.