The Rise of the ‘Intelligence City’: How APAC Hubs are Redefining Global Competitiveness
Imagine a city where traffic flows are optimized by AI, energy grids anticipate demand with pinpoint accuracy, and public services are tailored to individual needs – all while proactively adapting to climate change and geopolitical shifts. This isn’t science fiction; it’s the emerging reality for leading cities in the Asia Pacific (APAC) region, as revealed in Kearney’s 2025 Global Cities Report. The report underscores a critical shift: urban success is no longer solely about size or historical prominence, but about APAC cities’ readiness to harness the power of artificial intelligence and navigate an increasingly complex world.
APAC Cities Demonstrate Resilience Amidst Global Volatility
Despite heightened global fragmentation and economic headwinds, the top five APAC cities – Tokyo, Singapore, Beijing, Hong Kong, and Shanghai – continue to dominate the Global Cities Index (GCI), maintaining their positions among the world’s most internationally connected and influential metropolises. This resilience isn’t accidental. It’s a direct result of strategic investments in digital infrastructure, climate resilience, and institutional agility. As Shigeru Sekinada, Region Chair of Asia Pacific and Managing Director of Japan at Kearney, notes, “This demonstrates the region’s ability to navigate evolving global dynamics.”
“Cities are now at the frontline of the intelligence age. Their leadership will depend not only on capturing AI’s productivity gains, but also on how they govern its risks.” – Shigeru Sekinada, Kearney
The Shifting Landscape of the Global Cities Index
Tokyo remains a stalwart at number four on the GCI for the eleventh consecutive year, leveraging its strong human capital base and making gains in business activity, cultural experience, and information exchange. Singapore, consistently ranked fifth, is benefiting from improvements in ease of entry and human capital, though slight declines in cultural experience and business activity require attention. Hong Kong’s rise from ninth to seventh place is particularly noteworthy, fueled by a surge in international travelers and a thriving arts scene. These established hubs are proving their ability to adapt and maintain their global relevance.
But the story doesn’t end with the established leaders. Emerging Asian hubs like Taipei and Kuala Lumpur are rapidly gaining momentum, climbing 13 and 9 positions respectively in business activity. Jakarta is also making strides, with a 13-position jump in human capital, driven by institutional strengthening and infrastructure development. This redistribution of opportunity signals a dynamic shift in the global urban landscape.
Beyond Current Performance: The Global Cities Outlook
While the GCI measures current standing, the Global Cities Outlook (GCO) offers a crucial glimpse into future potential. This year’s GCO reveals a significant shake-up, with Seoul and Singapore surging into the top five. Singapore’s dramatic leap from 20th to third place is a testament to its strategic investments in infrastructure, GDP per capita, and foreign investment. Seoul’s climb to second place underscores its consistent gains in innovation and governance. This highlights a key takeaway: future success isn’t guaranteed; it requires proactive investment and a forward-thinking vision.
Did you know? Singapore’s rise in the GCO is directly linked to its proactive approach to digital infrastructure and its commitment to becoming a ‘Smart Nation.’
The Three Pillars of Future Urban Competitiveness
Kearney’s report identifies three interdependent enablers of long-term urban competitiveness: expanding energy capacity, embedding resiliency and livability into growth, and developing talent ready for AI adoption. Cities that can systematically integrate these elements will not only withstand disruption but will actively shape the future of global leadership. This requires a holistic approach, moving beyond siloed initiatives to create a unified vision for urban development.
Consider the challenge of energy security. Cities can’t simply invest in renewable energy sources; they must also develop smart grids capable of managing fluctuating supply and demand, and implement policies that incentivize energy efficiency. Similarly, building a resilient city requires not only robust infrastructure but also social safety nets and community engagement to mitigate the impacts of climate change and other disruptions. And finally, preparing for the age of AI demands a workforce equipped with the skills to develop, deploy, and manage these technologies.
Implications for Businesses and Investors
The trends highlighted in the Kearney report have significant implications for businesses and investors. Companies looking to expand into the APAC region should prioritize cities that are actively investing in digital infrastructure, talent development, and climate resilience. These cities are more likely to offer a stable and supportive environment for long-term growth. Furthermore, understanding the specific strengths and weaknesses of each city is crucial for tailoring investment strategies. For example, Hong Kong’s thriving arts scene may be particularly attractive to companies in the creative industries, while Singapore’s strong financial sector may be more appealing to fintech firms. See our guide on investing in emerging markets for more insights.
The Role of Digital Infrastructure
The report consistently emphasizes the importance of digital infrastructure. Cities with robust 5G networks, widespread access to high-speed internet, and advanced data analytics capabilities are better positioned to attract investment and foster innovation. This is particularly true for industries that rely heavily on data, such as e-commerce, finance, and healthcare. Investing in digital infrastructure isn’t just about technology; it’s about creating a more connected and efficient urban environment.
Pro Tip: When evaluating potential investment locations, look beyond the headline rankings and delve into the specifics of each city’s digital infrastructure. Consider factors such as network coverage, data security, and the availability of skilled IT professionals.
Frequently Asked Questions
What is the Global Cities Index (GCI)?
The GCI is a comprehensive ranking of the world’s most internationally connected and influential cities, evaluating them across five dimensions: business activity, human capital, information exchange, cultural experience, and political engagement.
How does the Global Cities Outlook (GCO) differ from the GCI?
The GCO is a forward-looking assessment that evaluates how effectively cities are creating conditions for future success, focusing on personal well-being, economics, innovation, and governance.
What are the key enablers of future urban competitiveness?
According to Kearney’s report, the key enablers are expanding energy capacity, embedding resiliency and livability into growth, and developing talent ready for AI adoption.
Which APAC cities are showing the most promising growth potential?
While established hubs like Tokyo and Singapore remain strong, emerging cities like Seoul, Taipei, and Jakarta are demonstrating significant momentum and are poised for future growth.
The future of urban competitiveness is being redefined in the APAC region. Cities that embrace innovation, prioritize sustainability, and invest in their people will be best positioned to thrive in the intelligence age. The Kearney report provides a valuable roadmap for navigating this evolving landscape and unlocking the potential of these dynamic urban centers. What steps will your organization take to capitalize on these trends? Explore more insights on APAC economic trends in our latest analysis.
