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Singapore
AsiaSoutheast Asia

More multinationals are picking Singapore over Hong Kong to set up Asia hubs

  • The city state hosted regional headquarters for 4,200 multinational firms in 2023, dwarfing the 1,336 based in Hong Kong
  • Even many mainland companies seeking to hedge geopolitical risks choose Singapore over the Chinese city, according to a report

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According to a report, Singapore’s diversified economy could help it attract even more global business than Hong Kong for the next five years. Photo: Reuters
Bloomberg
The international business community is clear on where it wants to call home in Asia: Singapore.

The city state hosted regional headquarters for 4,200 multinational firms in 2023, extending its lead and dwarfing the 1,336 found in Hong Kong, its main rival, according to a Bloomberg Intelligence report that details Singapore’s rise in the perennial battle to be known as Asia’s premier business destination.

Even many Chinese companies seeking to hedge geopolitical risks and broaden their reach pick Singapore over Hong Kong, the report found.

“Hong Kong has lost the race to be international business’ preferred choice for Asia headquarters, as more global and even Chinese companies choose Singapore because of its better relations with the West, broader talent pool, diversified economy, and tax incentives,” according to the 50-page report. “Companies may rank Singapore higher in terms of political stability and freedom amid elevated geopolitical risks in the region.”

Hong Kong codified its position as mainland China’s finance centre by containing political protests and adhering to the country’s zero-Covid policy during the pandemic, while Singapore highlighted its independence and emerged as the preferred site for international business offices, the report said.
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