Hong Kong 9th most competitive in the world

Hong Kong has moved up two places to 9th in the list of the world's most competitive economies.

The Global Competitiveness Report 2012-2013 released by the World Economic Forum praised Hong Kong for its high quality infrastructure, efficient financial market and the dynamism of its local goods and labor market.

"Hong Kong tops the infrastructure pillar with its outstanding quality of all modes of transportation and its telephony and electricity infrastructure,” the report noted. “The city's financial markets are second to none, and the dynamism and efficiency of the local goods and labor market further contribute to the economy's very good overall positioning."

The report warned, however, that Hong Kong must make more improvements in higher education and innovation to maintain and enhance its future competitiveness.

"The student participation rate in higher education in the city remains below levels found in other advanced economies. Hong Kong must also improve its innovative capacity which remains constrained by the limited engineers and scientists," the report noted

"Actually the Hong Kong government already has made a lot of investment in higher education and has cultivated many talents for the city's economic development," said Chong Tai Leung, a finance professor at the Chinese University of Hong Kong's Institute of Global Economics and Finance.

"Maybe the talents in Hong Kong are not so proficient in the use of English than the Singaporeans."

"The local exorbitant rental level is a factor that deters companies from expanding their operations in the city, hence diminishing the city's economic competitiveness," Chong cautioned.

Top 10 most competitive economies:

1. Switzerland
2. Singapore
3. Finland
4. Sweden
5. Netherlands
6. Germany
7. USA
8. United Kingdom
9. Hong Kong
10. Japan