The Dual City Tale of Web3: The Competitive and Cooperative Path of Singapore and Hong Kong

Recently, the TOKEN2049 event is in full swing in Singapore, attracting numerous Web3 practitioners to attend. This raises the question of what advantages and challenges the two important cities of Singapore and Hong Kong have in the Asian Web3 sector. This article will compare the performance and future prospects of these two cities in the Web3 ecosystem from multiple perspectives.

Policy Environment

The policy environment is crucial for the development of Web3, involving legal regulations and regulatory measures concerning cryptocurrencies, blockchain, and digital identity. A friendly and stable policy atmosphere can provide clear guidance and assurance for Web3 projects, promoting innovation alongside compliance.

Singapore has consistently maintained an open and forward-looking attitude in terms of policy, strongly supporting financial technology innovation. The Monetary Authority of Singapore (MAS) has established a "regulatory sandbox" for blockchain, metaverse, and Web 3.0 technology enterprises, allowing innovative projects to be tested outside the existing legal framework. MAS has also enacted the Payment Services Act to regulate market participants and strengthen consumer protection mechanisms. At the same time, Singapore actively participates in international cooperation to promote the formulation of standards in areas such as cross-border payments and digital currency exchanges.

In contrast, Hong Kong's policy orientation is relatively cautious. At the end of 2022, the Hong Kong SAR government issued a declaration on the development of virtual assets, indicating an open attitude towards innovation. Recently, many leading companies and startups in the Web3 field are considering doing business in Hong Kong. However, the regulation of virtual asset exchanges in Hong Kong remains quite strict, including the requirement to obtain a license from the Securities and Futures Commission and only being able to provide services to professional investors, which has affected Hong Kong's competitiveness to some extent.

Overall, Singapore's policy environment is relatively more flexible and inclusive, while Hong Kong focuses more on balancing innovation with risk management.

Talent Resources

Talent is the core driving force behind the development of Web3, including technical developers, entrepreneurs, managers, and consultants. A diverse international talent pool has come together to form a thriving Web3 community.

Singapore has a clear advantage in talent, thanks to its quality education system, multicultural background, convenient visa policies, and high-quality living environment. World-class institutions such as Nanyang Technological University and the National University of Singapore have cultivated a large number of technology talents for the country. At the same time, Singapore has attracted numerous experts and leaders from the global Web3 field. Policies such as the Entrepreneur Visa and Tech Talent Visa launched by the government facilitate foreign talents to start businesses and work in Singapore. Moreover, Singapore's comprehensive public services in healthcare, education, and transportation, along with a safe and comfortable living environment, enhance its appeal to talents.

As an international city, Hong Kong has attracted many local and foreign Web3 talents, but still faces some challenges. The education system in Hong Kong is relatively traditional, and training related to Web3 technologies and knowledge needs to be strengthened. Although the Talent Admission Scheme launched by Hong Kong provides support for attracting talent, its actual effectiveness is limited due to quota restrictions, complex application processes, and other factors.

Overall, Singapore has a more pronounced advantage in talent, being able to better cultivate and attract Web3 talent, and providing them with an environment suitable for innovative development. Hong Kong, on the other hand, needs to make improvements in its education system and talent policies to enhance its competitiveness in the Web3 field.

Cost of Living

The cost of living is an important factor influencing the choice of residence for Web3 practitioners, covering expenses in areas such as food, housing, transportation, and education. A lower cost of living not only allows practitioners to invest more funds into project development and operations but also improves their quality of life.

Singapore and Hong Kong are both economically developed cities, with a relatively high cost of living. According to the latest data from the global database website Numbeo, Singapore and Hong Kong rank 5th and 16th respectively in terms of cost of living among 138 countries or regions worldwide.

In terms of housing, the Mercer 2023 Global Cost of Living Index shows that the average monthly rent in Singapore is approximately 16,000 RMB, while in Hong Kong it reaches as high as 23,700 RMB, ranking first in the world.

In terms of food, prices in Singapore are generally lower than in Hong Kong, and the selection is more diverse. Singapore's hawker centers offer affordable meals, costing around 15-25 RMB per meal. The prices at Hong Kong's dai pai dong are slightly higher, averaging around 25-35 RMB per meal. Regarding supermarket groceries, the average monthly spending in Singapore is about 1000-1500 RMB, while in Hong Kong it is 250-350 RMB.

In terms of other living expenses, such as daily necessities, clothing, cosmetics, and entertainment, the differences between the two places are not significant. However, Hong Kong has no sales tax and often has discount events, which may make it more economical than Singapore in certain aspects.

In summary, Singapore and Hong Kong each have their advantages and disadvantages in terms of living costs, and the specific choice needs to consider personal income levels, lifestyle, and spending habits.

Future Development

The future development potential is a key indicator in the Web3 field, including aspects such as technological innovation, market demand, and social impact. A good development prospect can attract more practitioners to join and enhance the overall value of the industry.

Singapore's advantages are mainly reflected in the stability and support of its policy environment, as well as its superior geographical location. As a neutral and open country, Singapore is able to establish good relationships with global Web3 partners, promoting cross-border and cross-chain collaboration. However, Singapore also faces challenges such as a small population size, relatively weak competitiveness, and a high dependence on external factors.

Hong Kong's advantages lie in its strong financial strength and professionalism, as well as its close connections with mainland China. As an international financial center, Hong Kong can provide abundant funding, services, and product support for Web3 projects. Furthermore, as a Special Administrative Region, Hong Kong is able to participate in China's innovative development in the Web3 field, which brings it unique advantages.

Both cities face opportunities and challenges in future development, and the key lies in how to respond to changes in the external environment and make full use of their own advantages to create value.

Conclusion

Singapore and Hong Kong each have their own characteristics in the Web3 field, with both competition and cooperation existing between the two cities. Singapore slightly excels in policy openness and talent attraction, while Hong Kong has advantages in financial strength and its connections with mainland China. In the future, how the two cities leverage their strengths and complement each other will determine the development pattern of the Web3 ecosystem in Asia. Whether entrepreneurs, investors, or practitioners, all need to closely monitor the trends in these two cities to seize opportunities in the rapidly changing Web3 world.