In Hong Kong and Singapore, the latest higher education policy changes and reforms have emphasised quality assurance, managerial efficiency, cost-effectiveness, market relevance and public accountability. The rise of a more utilitarian, pragmatic and market-oriented perspective in relation to public service institutions, including higher education institutions, has secured the dominance of corporate managerialism, economic rationalism, and academic capitalism in the development of higher education in the two city-states, as in other developed or developing economies. In the process of reform, there have been major changes in the relationships between the governments and the universities, including matters of finance, provision and regulation. Though the two higher education systems have been affected by similar market forces and public sector reforms, certain policy changes and reforms have differed significantly between Hong Kong and Singapore. This article compares and evaluates the reform policies adopted by the two governments and examines the impact of those policies and reform initiatives on universities and the academic profession.