This article examines the approaches that Hong Kong and Singapore are taking to develop themselves as "regional hubs of higher education" and the implications of their approaches. It starts with a delineation of how the internationalization of higher education structurally alters the landscape of the global higher education market. These changes drive both Hong Kong and Singapore to compete for the higher education pie. Despite many similarities in the vision and policy instruments, the article argues that there are significant differences in terms of their implementation approaches. More importantly, such differences reflect the different mindsets of the two governments in their governance of the university sector.