The government needs to tackle the high-cost issue, globalize management education and diversify the economic base if the Hong Kong Special Administrative Region wants to cement itself as the education hub in Asia, said David Bach, president and Nestle professor of strategy and political economy at the Institute for Management Development (IMD).

“There are millions of young people across Asia who are looking for a great education. And some of them in the past would have gone to the United States or would have left Asia and pursued opportunities elsewhere. I am sure many of them would have to get a world-class education in Asia, and Hong Kong is very well positioned to be an education hub in the region,” Bach said in an interview with China Daily.

The strategy of making Hong Kong an education hub in Asia is good, said the IMD president, but he added that the SAR has to tackle the high-cost issue, globalize management education and provide more diverse job opportunities to make it more attractive for international students.

“The cost of living is still a very big deterrent for a lot of people. You need to earn a lot of money to have a good life here in Hong Kong. In comparison to some other jurisdictions, the cost of living becomes an issue,” Bach said.

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As the world is becoming more complicated politically, it is important to understand how the business environment is changing in India, in Europe, in the Middle East, in America, Bach said. “Certainly, there is an opportunity for business schools here in Hong Kong to attract professors from around the world to offer a global education. Developing an even more global perspective for graduates would be good.”

The third area to address relates to helping more graduates find their way into the labor force and growing local employment.

Bach said that Hong Kong is already strong in providing job opportunities for finance, science and engineering students, but diversifying the economy to provide an entrepreneurial and innovation ecosystem would be very helpful. “Hong Kong should also provide job opportunities for students studying in art, literature, or psychology. An economy with more diverse opportunities would become even more attractive for international students.”

Hong Kong’s ranking leapt to fourth globally from ninth last year, marking the highest-ever ranking and ranking first in Asia, according to the 2025 IMD World Talent Ranking published in September.

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The renowned Swiss-based business school now has campuses in Switzerland and Singapore, as well as a research office in Shenzhen in the Chinese mainland which conducts research into management innovation and supports talent and leadership development.

“There is no specific plan to establish a campus in Hong Kong SAR at this time, but clearly we want to grow our presence in Asia and Hong Kong is really an attractive place,” Bach told China Daily.

The IMD delegation visited the Northern Metropolis Coordination Office in June to learn about the Northern Metropolis’ planning and progress, particularly related to the proposed university town across Hung Shui Kiu/Ha Tsuen and Ngau Tam Mei.

Bach said Hong Kong should fulfill two important criteria if the SAR wants to maintain its top-notch position in global competitiveness rankings. “It is a combination of having a stable and predictable business environment as well as encouraging innovation, learning and experimentation.”

“Hong Kong has proven very adaptable and this has been reflected in the World Competitiveness Ranking and the World Talent Ranking. The initiatives such as improving the infrastructure, strengthening universities, and creating a predictable business environment are paying off,” he said.

Hong Kong was ranked the world’s third most-competitive economy, trailing behind Switzerland and Singapore, according to the IMD 2025 World Competitiveness Ranking released in June.

To achieve business environment and policy stability, Bach said that Hong Kong could follow the Swiss and Singaporean model of drafting regulations and making policies, emphasizing collaboration between government and business and civil society. “This is for striking the right balance that is inclusive and grounded in a need to bring different stakeholders together.”