THE LONG VIEW

INTELLIGENCE BRIEFING: Asia's Urban Power Shift – Hong Kong and Singapore Lead as Global Hubs, While Emerging Cities Gain Momentum Executive Summary: The Asian Cities Internationality Index 2025 reveals a decisive shift in global economic influence toward Asia, with the region now contributing 60% of worldwide growth. Hong Kong and Singapore emerge as the top-tier international cities, excelling in business environment, financial markets, and innovation ecosystems. Tokyo and Seoul form a strong second tier, leveraging quality of life and technological advancement. Cities like Shanghai, Bangkok, and Ho Chi Minh City show significant potential but require further development in human capital diversity and governance. The report underscores the critical importance of openness, multiculturalism, and innovation in maintaining competitive advantage. Key challenges include high living costs, language barriers, and geopolitical tensions. Strategic imperatives include fostering SME support, enhancing digital connectivity, and promoting cultural assets to attract global talent and investment. This analysis provides a roadmap for cities to solidify their roles as leaders in the new global order. Primary Indicators: - Economic contribution of Asia at 60% of global growth - Hong Kong leads in Business and Economy dimension with strong financial markets - Singapore tops Human Capital Diversity with 30% foreign residents - Seoul excels in Infrastructure and Connectivity, including digital and transportation - Tokyo ranks highest in Quality of Life and Cultural Interaction - Shanghai leads in Innovation and Ideas with significant startup funding - Emerging cities (e.g., Ho Chi Minh City, Mumbai) show resilience but lag in multicultural integration - Protectionism and high operational costs identified as major barriers Recommended Actions: - Maintain open business environments to resist protectionism trends - Enhance support for international SMEs to foster dynamic ecosystems - Invest in digital infrastructure and information exchange capabilities - Promote multilingual workplaces to improve inclusivity and talent retention - Develop tailored strategies to attract and retain foreign professionals - Leverage cultural assets and host global events to boost international visibility - Strengthen governance and legal frameworks aligned with global standards - Focus on sustainable urban development and affordable living costs Risk Assessment: The ascendancy of Asian cities is undeniable, yet shadows loom on the horizon. Geopolitical tensions and rising protectionism threaten to fragment the very connectivity that fuels these hubs. High living costs in top-tier cities like Hong Kong and Singapore could deter global talent, while emerging cities face internal challenges—language barriers, inadequate infrastructure, and governance gaps—that may stifle their potential. The delicate balance between technological independence and open innovation cultures poses a strategic dilemma; those who close doors risk isolation, while those who embrace chaos may lose control. The unseen forces of demographic shifts and remote work trends add further volatility. In this new era, cities must navigate these murky waters with precision—those who adapt will shape the future, while others may fade into obscurity. The stakes have never been higher.