Contrary to the prevailing perception of gloom, Hong Kong has made significant gains in the 2015 Global Power City Index compiled annually by the Mori Memorial Foundation of Japan.
The city, widely thought to be beset by internal political bickering, worsening pollution and deteriorating public services, ranks seventh among 40 major cities surveyed. It was ranked fourth in Asia after Tokyo, Singapore and Seoul.
Results of the survey show that Hong Kong has done surprising well in the category of research and development, which has always been regarded as a weak link in the city’s economic chain. Ranking at 11th place, it beat Shanghai and Beijing at 17th and 18th, respectively.
Hong Kong’s total score of 1084.6 is only 4.3 points lower than Seoul in 6th place. “In Asia, an adverse phenomenon is prominent between mid- and top-rank cities,” the survey report said. “Singapore (5th) and Hong Kong make significant gains, while Shanghai (17th) and Beijing (18th) slip in the rankings after exhibiting promising vitality in previous years.”
The report didn’t explain the reasons behind Hong Kong’s rise in this year’s survey. But based on the criteria used in the ranking, it seems that Hong Kong was rated highly by the bankers and business people surveyed for its accessibility, the economy, livability and research and development. The other function-specific rankings include cultural interaction and environment.
To be sure, it’s too much to expect Hong Kong to match the top four cities, London, New York, Paris and Tokyo, in such a comprehensive survey. But the standing of Hong Kong against 40 global cities indicates that foreign business people are showing greater confidence in Hong Kong’s strength as a global business hub than in their local counterparts.
In the past few years, some economic analysts have made a habit of dispensing prophesies of gloom and doom. They warn that Hong Kong is losing its competitiveness against other cities in the region. At one time, Shanghai was touted as the most likely city to displace Hong Kong as the region’s premier financial center. Now, the focus of praise has shifted to Shenzhen. The southern mainland city is considered to have set an example of how to be innovative.
But so far, Hong Kong’s position as in international financial center in the region has remained unchallenged. As Financial Secretary John Tsang noted in an entry in his widely read Sunday blog, innovation in Hong Kong is alive and well. He noted the success stories of several young entrepreneurs who have written computer programs and created clever products that have won recognition in the global marketplace.
Hong Kong is grappling with numerous social and economic problems deemed to be real and immediate. Some of them could hinder growth in coming years. But none of them is serious enough to set Hong Kong on an irreversible downward slide.
The local business community should have more faith in Hong Kong’s underlying advantages.
