Hong Kong As Business Location Scores High In Poll Of Foreign Firms

by Mary Swire, Tax-News.com, Hong Kong

07 February 2003

Hong Kong is still regarded by foreign firms as a highly advantageous location from which to do business, according to the preliminary findings of a survey conducted by Dr Edmund Thompson of the Ritsumeikan Asia Pacific University in Japan.

Reporting on the survey, the Hong Kong Standard revealed that the findings are based on responses from 917 senior managers of firms in the territory, and are part of an ongoing study of competitiveness in the Asia-Pacific region due to be completed this year.

According to Dr Thompson's survey, more than 77% of foreign forms based in Hong Kong feel that it is an advantageous location for them, with its advanced telecommunications network, free-trade environment, low tax system and high standard of regulation all cited as beneficial factors. On an industry basis, according to the survey results, the financial services sector was the most positive overall.

The Hong Kong Standard revealed, however, that the foreign firms were more bullish than local organisations, of which only 63% stated that they feel happy with their location from a business point of view.

Speaking with regard to the study this week, Dr Thompson observed:

'That over three quarters of foreign firms still regard the territory as very attractive for their increasingly mobile activities is positive for the city, especially as Shanghai and Singapore are becoming increasingly competitive compared with Hong Kong.'

'Although these are preliminary results, they underline the importance of both the mainland an Hong Kong governments fully recognising and protecting the city's open and free information technology and broader business environments.'

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