Two Financial Centres, One Region: The Myth of Competition

A long-held assumption has taken hold in Asia’s financial landscape: that Hong Kong and Singapore are locked in a zero-sum game for regional dominance. This narrative suggests that one city must lose for the other to gain, with each side vying for capital and market share at the expense of the other.

However, Eric Teo Boon Hee, Singapore’s consul general in Hong Kong, has pushed back against this prevailing view. In a recent statement, Teo argued that healthy and natural competition between the two cities can drive growth and improvement for both.

The notion that one city must lose for another to gain assumes a zero-sum game, where growth is seen as a fixed pie to be divided among the players. But what if we were to approach this challenge differently? By recognizing the value of complementarity, where each city brings its unique strengths to the table, Hong Kong and Singapore can create something greater than the sum of its parts.

This vision of “win-win collaboration” implies a fundamental shift in mindset. Rather than viewing competition as a zero-sum game, Teo’s approach recognizes that both cities can thrive without sacrificing each other’s interests. In fact, this has already happened in Asia’s financial landscape. Both Hong Kong and Singapore emerged as major financial hubs in the 1980s, driven by their proximity to China and Southeast Asia.

Today, they stand alongside Tokyo and Seoul as key players in the region. What’s striking about this development is that both cities have managed to create a mutually beneficial dynamic where each city benefits from the other’s strengths. This hasn’t happened by accident – it’s the result of careful planning and collaboration between governments, businesses, and financial institutions.

The implications of Teo’s vision are significant for Asia’s financial future. By recognizing that growth is no longer a zero-sum game, the focus can shift from competing for market share to collaborating on mutually beneficial solutions. This approach also recognizes the value of regional integration, where different cities and countries work together to create new economic opportunities.

By embracing this mindset, Asia can unlock its full potential as a major driver of global growth and prosperity. The future of Hong Kong and Singapore will be shaped by their ability to collaborate and innovate together, rather than competing with each other for dominance.

In the words of Teo, “Asia was big enough” to accommodate two financial hubs – and he may be onto something much bigger than just a diplomatic nicety. With the right mindset – collaboration over competition – there’s no limit to what our two major financial centres can achieve together.