Hong Kong has climbed to fourth place and its best-ever position in a world talent ranking by the Swiss-based International Institute for Management Development.

The SAR moved up five spots from last year to finish highest in Asia.

The global chart was topped by Switzerland, Luxembourg and Iceland, with Singapore dropping five places to seventh.

The SAR government noted that Hong Kong improved in all of the three indicators, with its "appeal" to outside talent jumping eight places to 20th overall.

"Readiness" in terms of skills in the talent pool, and "investment and development" of local talent edged up one spot each, to third and 12th, respectively.

Chief Executive John Lee said the government played a part in the result.

"Our ranking rose 12 places over the past two years, a clear testament to the Hong Kong SAR government's enhanced efforts in education and talent development," Lee said while delivering a speech at a function.

A government spokesperson said the ranking is clear evidence that its education, talent admission and innovation and technology policies are going in the right direction and achieving good results.

"We welcome the continued arrival of outside quality talent and their family members to boost Hong Kong's labour force," the spokesperson said in a statement.

"[The talent] effectively enhance our population structure, replenish the manpower shortfall and inject continuous impetus to Hong Kong's economic growth."

The spokesperson went on to say that officials received more than half a million applications through different talent admission schemes, with more than 230,000 people arriving in the SAR.