Not so long ago, Hong Kong was the undisputed king of Asian cities: cosmopolitan, wealthy, democratic and vibrant, we offered the perfect blend of east and west, tradition and modernity. But has that crown started to slip? Patrick Brzeski investigates whether Singapore is becoming the new leader of the pack. Illustration by Timothy McEvenue

Back in 2001, after months of costly PR consultation, the Hong Kong government launched a bold new slogan declaring the Hong Kong SAR “Asia’s World City”. It was a dash of hometown hubris, and a friendly slice of regional provocation – a gesture that inspired no shortage of comment both at home and from abroad. But ten years later, having given the slogan a good decade to digest, who among us doesn’t agree that this city, for all its faults, is the most dynamic, most cosmopolitan, most globally relevant town in Asia?

There are ample arguments to buttress that boast, of course. Glancing to the West, Hongkongers can tout their economic freedom, low tax rate and overall ease in conducting business. With Japan in mind, we note our bilingualism, large cosmopolitan international community and energetic economy. Nodding northward (but keeping our voices down), we savour our free press and relative right to political expression. And then there’s the low crime rate, world class luxury shopping, diverse dining scene, vibrant nightlife, abundant recreation options, efficient public transport, burgeoning art market, cheap and convenient flight connections, and everything else that we at Time Out Hong Kong endeavour to celebrate about this great city.

Yet, while Hong Kong continues to thrive, it has become increasingly difficult to ignore our once sleepy post-colonial sister to the southwest: Singapore. Thanks to aggressive and uncommonly effective central planning, the pint-sized country has mounted a calculated, decade-long boom. And, with the many headline-grabbing developments in Singapore over recent years – such as the F1 Grand Prix and the huge boon it’s delivered to the city’s entertainment profile, the architecturally striking multibillion US dollar Sands Marina Bay casino, the influx of flagship luxury fashion boutiques and international nightclub brands, and the towering 17.9 per cent growth of the Singapore economy in the first half of this year – it seems like the Lion City may have a realistic shot at usurping our self-anointed status as Asia’s leading light.

We asked Dan Chavasse, Regional Managing Director of recruitment consultancy Michael Page International, whether Singapore may soon overtake Hong Kong as the most desirable place for cosmopolitan professionals to live and do business in Asia. “I would say you have to restate the question”, he replied, “because the gap between Singapore and Hong Kong has already been closed.”

If you’re dubious of this assertion, as we were, brace yourself for a barrage of cold, hard economic fact.

Hong Kong has a long and proud reputation for being one of the world’s most fluid and unregulated business environments; yet according to the Wold Bank’s 2010 Ease of Doing Business Index, Singapore is the world’s number one most hospitable business environment, with Hong Kong trailing in third (New Zealand, perhaps surprisingly, is second). Similarly, the World Economic Forum’s Global Competitive Index for 2009-2010 seats Singapore as the most competitive economy in Asia and the third most competitive in the world, with Hong Kong ranked a distant 11th. As stated above, Singapore’s economy ballooned by 17.9 per cent in the first half of this year, while Hong Kong’s grew by a more modest 7.3 per cent over the same period. Singapore’s unemployment rate is just 2.3 per cent; Hong Kong’s is 4.3. The median household income in Hong Kong is negligibly higher at US$31,000 to Singapore’s US$30,000; yet according to the Mercer 2010 Global Cost of Living Survey, Hong Kong is the eighth most expensive city in the world, while Singapore is notably cheaper at 11th. And contrary to popular belief concerning Hong Kong’s competitive tax rates, you actually get to keep more of your income if you work in Singapore (see graph below). Hongkongers are taking note of Singapore’s new attractions too. In the first six months of this year 25 per cent more Hong Kong residents visited Singapore than during the same period in the year prior.

Perhaps you’re thinking, economic factoids aside, day-to-day quality of life is ultimately what matters for a city’s character and reputation. Unfortunately, quality of life can be quantified too, and the findings aren’t particularly encouraging for Hong Kong.

As Cathy Loose, Regional Director for the human resources research and consulting firm Mercer, explains: “What we do is provide a benchmark assessment of the overall quality of living in cities around the world for multinational companies to use as an objective measure when providing compensation packages to international assignees.” According to Mercer’s 2010 report – which ranks 221 cities around the world according to 39 criteria grouped into ten quality of life categories, including political environment, health and sanitation, schools and education, transportation, recreation, consumer goods, housing and natural environment – Singapore is again the highest ranked city in Asia, seated at 28th, while Hong Kong sits well down the list, behind several Japanese cities, in 71st place. “The two cities are very competitive,” says Loose, “but Singapore is slightly higher in most categories and significantly higher in the areas of health and sanitation – owing largely to Hong Kong’s poor air quality – and housing, which assesses the quality, cost and availability of housing in the cities.”

These quantitative assessments are borne out by the anecdotes and opinions of those who’ve lived and worked in both cities. “I’ve been seeing a lot of friends, colleagues and clients – those who are a little older and are married and have children – making the move to Singapore,” says Chavasse. “If you’re ready to settle down and you want to stay in Asia, it’s a nicer place to have a family. You don’t have to worry about your kids developing asthma from the bad air, and for the same money as a 29th floor flat in a Hong Kong housing block, you can get a nice two-storey house with a garden out back and a car to drive to work.”

Patrick Mansfield, a Project Development Manager for RBS, is inclined to agree. Mansfield is married to a Singaporean and spent two years living in the city before moving to Hong Kong in 2008. He says he’d be a ready Singapore recidivist if he had kids. “The lifestyle is much more relaxed and you get more space and comfort for your money.” He notes recreation perks as well. “Golf is much cheaper there. I used to play nine holes before work a couple of times a week, which is impossible here – unless you’re very wealthy. It’s great if you want to explore Southeast Asia too, because you’re right in the heart of the region and those short-hop flights are even cheaper than travelling from Hong Kong.”

Amanda de Silva, a Senior Consultant at Ogilvy Public Relations, grew up in Singapore and moved to Hong Kong three and a half years ago for work. “I think Hong Kong is a great place to start your career,” she says. “Everyone is very work-focused here and it’s a fun place to be young and single; but if you’re getting a little older, Singapore provides a much better balance between work and private life.”

Christina Lee, Asia Managing Director of Bloomberg Businessweek, has made the opposite transition and holds opposing views – she was born and raised in Hong Kong, but moved to Singapore three and a half years ago for professional reasons. “Singapore is a pleasant place to live,” she says, “but one thing I really miss from Hong Kong is how efficient and flexible people are. People move much slower in Singapore and they’re always very concerned with following the rules, so it can be quite frustrating at times trying to get something done. And there’s just so much more happening in Hong Kong.”

Chavasse, ultimately, is also careful to qualify his praise of Singapore’s economic strides. He points out that Singapore is strong in the pharmaceutical, biotech, and fixed income sectors, but Hong Kong remains a far greater financial centre. “Let’s not get things out of proportion. Many companies have moved their data centres and infrastructure hubs to Singapore, because of their superior flexibility in labour markets, competitive tax rates, and lower salary and property costs, but the big banks still have far more revenue generating staff in Hong Kong, because the market is bigger.” Giving dramatic pause for punctuation, he adds, “Hong Kong also happens to sit on the doorstep of the world’s fastest growing economy. In nearly all of the industries that service China, Hong Kong is streaks ahead of Singapore.”

Hong Kong financial institutions received further good news to that effect earlier this year when it was announced that select Hong Kong-based banks would be the first to trade in renminbi-denominated securities. Hong Kong’s Securities and Futures Commission authorised the first fund denominated in RMB earlier this month and Hong Kong may well develop into the world’s first offshore RMB centre. Presumably Hong Kong will continue to benefit, in oblique if not open and obvious ways, from its close proximity to the Mainland and close ties to Beijing as Chinese markets mature. Business connections with the Mainland will soon get an infrastructural underscoring too, when the controversial Hong Kong-Guangzhou high speed railway roars into operation in 2016.

As a Managing Director, Chavasse also feels, for all its comforts, Singapore lacks the inspired frission of Hong Kong work life. “For someone like me, who employs a lot of people, you notice an amazing vibrancy to the workforce. People in Hong Kong will work all hours to get the job done, if given the right rewards. You don’t see that in Australia, you don’t see that in the UK, and you don’t see it in Singapore. It’s a truly unique asset. People who move up here from Singapore are just blown away by the work ethic, the vibrancy, the ideas, and the creativeness of people in Hong Kong. You don’t get the driven entrepreneurship in Singapore that you find in Hong Kong.”

Benjamin Tee is an IT professional at Barclays Capital, originally from Australia, who lived and worked in Hong Kong for two years, before moving to Singapore in 2007, around the time that he got married and had his first child. “Like most people, I see Singapore as the better family option. I feel healthier here, but there’s a definite sense of living in a bubble world, which can get to you at times... Everything is kind of plastic and fake-feeling.”

Tee says he doesn’t regret his move and believes he made the right choice for his family. Yet he finds himself longing for the gritty excitement of Hong Kong life. “I loved the energy. There’s a great sense of spontaneity in Hong Kong that I’ve never found in Singapore, and I really do miss it.”

The data, the air quality, the anecdotes – they all suggest that Singapore is the better option if you’re at the family-starting stage of life and want to remain in Asia for reasons personal or professional. Yet there are always intangibles – those slippery street rhythms and cultural shadings that coalesce to form the gestalt vibe of a place – which elude quantification and transcend any economic indicator. We are left with two great cities, for two sensibilities. Ship off to settle down, or stick around for the buzz, the grind, and the energy. The choice is yours.