Sweeping lay-offs by the US Department of Government Efficiency have reportedly eliminated over 275,000 federal jobs and displaced skilled professionals in academia and the sciences, intensifying global talent competition.

Faced with uncertainty, many are now seeking opportunities abroad. This has created a space for other countries and regions to step in, utilising flexible immigration policies, strong support systems and effective integration strategies to attract top-tier talent.

Hong Kong can only become a key global talent hub by adopting a strategic, forward-thinking approach. Despite its unique position within the Greater Bay Area development zone, the city has struggled to establish itself as a leading destination for skilled professionals.

Initiatives like the Top Talent Pass Scheme and the Quality Migrant Admission Scheme have drawn significant interest, receiving over 440,000 applications and approving at least 280,000 as of the end of last year. However, their impact remains limited. Many participants face challenges securing suitable employment, revealing a disconnect between talent attraction efforts and the city’s economic priorities.

Other regions are capitalising on global talent dislocation. Many prominent Chinese scientists have recently returned to mainland China, attracted by increased research funding and strong talent programmes, while feeling disheartened and threatened by discriminatory policies that label them as security risks, growing research limitations and budget cuts.

These returnees underscore the intense global competition that Hong Kong encounters in attracting top talent. If the city fails to provide comparable support and implement more effective retention strategies, it risks falling behind other locations.

The recent announcement that 18 strategic enterprises from hi-tech sectors, including advanced manufacturing, artificial intelligence (AI), fintech, and life sciences, will establish global or regional headquarters and research and development centres in Hong Kong presents a critical opportunity to reverse this trend. Companies are expected to invest HK$50 billion (US$6.4 billion) and create over 20,000 jobs.

However, the success of these commitments hinges on effective talent recruitment and retention policies. Without a comprehensive strategy to attract and integrate skilled professionals, these investments may fail to reach their full potential.

One of Hong Kong’s key weaknesses is the misalignment between its talent policies and the long-term integration of skilled workers. Compared to Singapore and Germany, which offer more accommodating settlement support, Hong Kong provides only limited help for incoming talent.

The government should also conduct regular policy evaluations, including thorough surveys, to understand why talent departs and identify strategies for improving retention. Instead of focusing on superficial metrics like application numbers, the city should adopt a data-driven approach that prioritises long-term outcomes and effectively incorporates skilled professionals into the local economy.

To compete effectively, Hong Kong must shift its focus from the quantity of applicants to the quality of outcomes. Success should be measured by how well professionals integrate into the economy and contribute to key industries.

Additionally, improving quality of life through affordable housing, better work-life balance and accessible public healthcare is essential for retaining talent in the long term.

Hong Kong’s innovation and technology sector presents significant potential. Hong Kong Science and Technology Parks Corporation programmes such as the Global Internship Programme and “AI in Action” Career Day showcase job opportunities to thousands. The Global Internship Programme provides non-local interns with accommodation, as well as chances to network with emerging entrepreneurs and explore future career options.

However, these efforts are too isolated to tackle the broader challenges of talent retention. A more cohesive and proactive strategy is required to respond to a rapidly changing landscape, align talent initiatives with the city’s economic goals and cultivate a thriving innovation ecosystem.

Hong Kong should focus on retaining non-local university graduates. While international student intake has increased, many see the city as a temporary stop rather than a place to build their careers. Clearer pathways, including internships, mentorship programmes and streamlined visa processes, are essential for encouraging graduates to remain and contribute to the economy.

Hong Kong can also learn from successful international models. For example, South Korea’s K-Tech Pass programme offers long-term residency to skilled workers in advanced industries.

The mainland’s domestic tech ecosystem has established an attractive environment for engineers and innovators by offering competitive funding, professional development opportunities and lower living costs. Adapting these practices to Hong Kong’s unique context could help it regain its competitive edge.

Hong Kong’s talent attraction strategy remains fragmented and reactive despite its potential. Hi-tech enterprises investing substantial amounts is a promising development. However, without fundamental reforms, these opportunities may be squandered. Hong Kong must adopt a forward-thinking approach that prioritises integration, retention and long-term outcomes.

By creating an environment where professionals feel valued and empowered to contribute, Hong Kong can transform its challenges into opportunities and cement its position as a global hub for innovation and talent.