On the 26th of August, we published a story reporting on a study conducted in partnership by Singapore’s Civil Service College and the Center for Demographics and Policy at California’s Chapman University, which shunned Kuala Lumpur as an important emerging global power. This study stated that the Malaysian capital has little influence over international trade and was therefore a long way from becoming an important player in global business.
Four other media channels also reported on the findings on this Singapore study. Below are links to these stories:
However, a study, published earlier this year, takes quite the opposite view of Kuala Lumpur, ranking it as one of the top ten cities from low- and middle-income countries to be catching up to the world’s top ranking global cities. This study, conducted by A. T. Kearney, a global management consulting firm, is entitled “2014 Global Cities Index and Emerging Cities Outlook”. It analyzed the performance of 34 cities from across the continents, measuring each’s development in “business activity, innovation and ability to attract people to live there.”
Since 2008, A. T. Kearney have produced a yearly “Global Cities Index” (GCI), which examines 84 countries according to 26 criteria grouped in the following 5 categories; “business activity”, “human capital”, “information exchange”, “cultural experience” and “political engagement”. These criteria are continuously modified to reflect emerging trends and the evolution of the “Global City.”
While the GCI study measures actual performance, their sister study, “Emerging Cities Outlook” (ECO) is interested in the potential of a city. Out of the 34 cities analyzed, a list of the top 20 was compiled to show which are marked to improve their global standing over the next 10 to 20 years. A. T. Kearney determines this by calculating how long it would take any city to reach the global leader position in each of the 10 leading indicators, which are represented by three categories: business activity, human capital, and innovation.
Below is a list of the top 10 emerging global cities, according to the A. T. Kearney Emerging Cities Outlook:
1. Jakarta, Indonesia
This Southeast Asian business hub champions the list of emerging cities most likely to progress, seeing rapid improvement in “human capital”; in particular, for “stability and security”. A focus on addressing income equality and environmental concerns has also been an important factor in the city’s success.
2. Manila, Philippines
Southeast Asian also claims the second spot, with the Philippine capital displaying sharp improvements in global business, healthcare and “human capital”.
3. Addis Ababa, Ethiopia
Ethiopia is a surprising front-runner for cities most likely to advance. It scored lowly in the area of innovation; nonetheless, for income equality, healthcare and “business transparency”, it is closing in on the top performers.
4. Sao Paolo, Brazil
A well-rounded city across the board, with a history of strong “business activity”. Sao Paolo is set to catch up with the world capitals fairly quickly should it continue to improve at its current rate.
5. New Delhi, India
Despite scoring well across all categories except “information exchange”, New Delhi has fallen by seven places. India’s capital has boosted its global exposure in terms of “business activity”; however, improvement is needed in “human capital” and “cultural experience”.
6. Rio de Janeiro, Brazil
Rio de Janiero scores highly for “human capital”, however, poor performance in “business activity” and “innovation” have held the city back slightly in rankings.
7. Bogota, Colombia
Bogota is one of the most improved cities for “stability and security”, followed closely by Cape Town. It has also shown developments in its healthcare system and environmental concern; the city has recently constructed a system of bicycle paths and improved bus services.
8. Mumbai, India
India’s commercial capital and most populous city has seen a 73% increase in performance compared to last year, with large improvements for “information exchange” and “human capital”. However, the city is advised to boost its “cultural exchange” and “international political engagement” if it is to advance further in the rankings.
9. Nairobi, Kenya
Sub-Saharan city, Nairobi, is rapidly becoming an important player in regional politics. Its status in the corporate world has been recognized by IBM who is already building a research laboratory here.
10. Kuala Lumpur, Malaysia
Kuala Lumpur has excelled in business exchange, and the study highlights the ease of doing business in the Malaysian capital. Note that the Singapore study criticized KL for having limited scope in international commerce
Share your thoughts about Kuala Lumpur’s global status potential. Post in the comments below.
Study by Singapore’s Civil Service College
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