APAC Cities Thrive Amid Global Shifts, Kearney Report Shows

Asia-Pacific cities, led by Singapore and Shanghai, have demonstrated remarkable resilience and growth, securing dominant positions in Kearney’s 2024 Global Cities Index (GCI).

According to the report, five APAC cities, including Tokyo, Singapore, Beijing, Shanghai, and Hong Kong, now occupy top spots in the rankings, underscoring the region’s ability to adapt to shifting global trends.

Singapore climbed to fifth place, surpassing Beijing, while Shanghai made its way into the top 10, landing in eighth.

Both cities saw notable improvements in business activity and digital capabilities, key factors driving their upward momentum.

Shigeru Sekinada, Kearney’s Asia Pacific Region Chair, pointed to the central role of digital leadership in the success of these cities.

“Leading cities in the region have risen through the ranks bolstered by their steadfast leadership in digital capabilities, further highlighting the central importance of the digital economy in today’s world,” Sekinada said.

The GCI, which assesses global connectivity based on five dimensions—business activity, human capital, information exchange, cultural experience, and political engagement—introduced new metrics this year.

These include digital readiness and human mobility, reflecting the evolving global environment.

As a result, global cities have showcased resilience across all dimensions, with average scores rising.

Singapore’s ascent in the rankings was driven by a near-perfect score in ease of entry, combined with strong human capital and business activity.

Meanwhile, Shanghai’s rise was fueled by its second-place global ranking for internet speed and eighth for data center presence, highlighting its strength in the information exchange dimension.

In Southeast Asia, Kuala Lumpur and Bangkok also made significant progress.

Kuala Lumpur jumped 17 places to claim 55th place, driven by improvements in business activity and human capital, as well as a strong showing in the ease of entry metric.

Bangkok rose to 34th place, benefiting from advances in cultural experience and information exchange.

Kearney’s report also highlighted the shifting nature of globalization, which has become more diversified and digital in recent years.

The APAC region’s cities have capitalized on these changes to remain competitive, even as traditional measures of globalization evolve.

Beyond the current rankings, the report’s Global Cities Outlook (GCO) provided insight into cities poised for future prominence. Cities such as Seoul, Tokyo, and Osaka made significant strides, while emerging hubs like Mumbai and Ho Chi Minh City saw elevated rankings in Foreign Direct Investment (FDI), positioning them as potential global challengers.

However, the report warned that as cities adapt to geopolitical and economic pressures, they must also confront mounting environmental challenges.

Sekinada emphasized the need for cities to adopt a “regenerative mindset” to address the impacts of climate change.

“Amidst the threat of climate change, cities have a responsibility and an opportunity to seek solutions to counter the climate crisis,” Sekinada said.

He called for collaborative decision-making, integrated governance, and sustainability strategies to ensure that cities can meet future challenges holistically.