Hong Kong Experienced Investment Boom In 2003 Despite SARS Setback

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

21 January 2004

Government promotional agency Invest Hong Kong announced last Friday that 2003 was the department’s best year in terms of attracting investment into the city, with 142 foreign companies successfully assisted to set up or expand operations in Hong Kong during the past 12 months representing an increase of 21% compared to 2002.

Welcoming these results, the Director-General of Investment Promotion at InvestHK, Mr Mike Rowse, commented at a year-end press conference: “Despite challenges brought by SARS and difficult economic conditions during the first half of this year, companies continued to invest in our city and Hong Kong remains the preferred location for international businesses serving the Asia Pacific region."

Levels of foreign direct investment (FDI) into Hong Kong have also maintained high levels, according to the ‘World Investment Report 2003’ released by the United Nations Conference on Trade and Development (UNCTAD). The territory was named again as the best-performing host economy for FDI in Asia. In monetary terms, Hong Kong attracted US$13.7 billion in FDI in 2002 holding the position as the second largest recipient of FDI in Asia, after mainland China (US$52.7 billion).

In addition, as at June 2, 2003, the number of regional headquarters (RHQ) in Hong Kong reached 966, an all-time high. Another 2,241 companies operated regional offices in the city, up 3.2% from the previous year.

Mr Rowse continued: "In a difficult year economically, it is especially encouraging that Hong Kong remains 2nd in Asia in FDI inflows and a major destination for FDI globally - and that the number of regional headquarters reached another all-time high. This is particularly impressive in times when overall investment has been declining globally.”

He added: "We are very pleased with the encouraging results we achieved in 2003 - and with the skills, hard work and dedication of our team that made these accomplishments possible. However, we are aware of the keen competition for investment in the region. InvestHK will continue to strengthen our efforts to retain our competitive edge as the preferred business hub in Asia and to attract targeted foreign investors.”

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