A Tale of Two Cities

Lifestyles Residents say why they prefer their city

The Big Picture How do others stack up?

OUTSIDE JAPAN, Hong Kong is still Asia's undisputed financial hub. In a good month, it can arrange more offshore loans than even the U.S. Its bourse has a market capitalization of $354 billion - the second-largest in Asia. But for how long? The question is increasingly being asked as Singapore, which has already carved a niche for itself as a foreign-exchange center, moves aggressively to reform its financial markets. And while its costs are already lower than Hong Kong's, Singapore is still cutting wages, pension-fund contributions and airport landing rights, among other things. Asiaweek compares some of the key indicators of these two great Asian cities.

Two services-oriented free ports . . .

. . . compete on costs . . .

. . . and human resources . . .

. . . especially in the financial sector . . .

. . . and tourism

*Figures do not add up to 100%. The share of indirect taxes less subsidies (which equals minus 6.8% of Singapore's 1997 GDP and accounts for 5.4% of Hong Kong's) is not included

Sources: Governments of Hong Kong and Singapore, Watson Wyatt, Vigers Hong Kong, Chesterton Petty, Santander Investment, Asiaweek Research