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Hong Kong economy
OpinionComment
Bernard Chan
Bernard Chan

Opinion | Hong Kong is still drawing foreign talent and businesses as Singapore overheats

  • Singapore has become a victim of its own success, with the cost of living skyrocketing on the back of overheated property and car ownership markets
  • Meanwhile, Hong Kong’s strong recovery continues to offer abundant economic opportunities in one of the easiest places in the region to live and work

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Commuters in Central on April 6. Many of us take for granted Hong Kong’s quality of life and high standard of living. Meanwhile, Singapore’s rapidly rising cost of living has left many foreign residents reassessing their options. Photo: Yik Yeung-man
Bernard Chan

Hong Kong has an excellent track record of being a preferred location for international companies establishing operations in Asia. Our strategic location, international financial capability, common law system and ease of business make us attractive.

For example, insurer Manulife wishes to re-establish its corporate foothold in Hong Kong by changing the domicile of its Hong Kong unit from Bermuda. Manulife and other insurers are consulting the government and stakeholders to streamline the process. The initiative has the full support of the Hong Kong Federation of Insurers, and the Financial Services and the Treasury Bureau has begun preparatory work to develop suitable legislation.
The main reason the Canada-based Manulife chose Hong Kong is the scale of the business opportunity presented by “one country, two systems”.
According to Patrick Graham, Manulife’s Hong Kong and Macau CEO, the “Greater Bay Area makes up around 6 per cent of China’s population, but 11 per cent of the country’s GDP. The insurance penetration is close to 6 per cent in this region, which is less than one-third of the penetration in Hong Kong. It is just such a phenomenal opportunity.”
But it is not all plain sailing. US logistics giant FedEx is moving its regional headquarters from Hong Kong to Singapore. It will, however, maintain a strong presence here to provide vital support services for operations in the rest of the country, north and South Pacific, India and Africa.
Companies generally choose a location based on market potential, ease of doing business, an attractive tax regime, rule of law and access to a skilled workforce – but sometimes, geopolitics influences decisions.
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