Hong Kong Lags Regional Rivals In Terms Of Labour Quality

by Philip Morton, Investors Offshore.com

21 August 2002

A recent survey conducted by the Political and Economics Risks Consultant Company has revealed that Hong Kong is in danger of losing its competitive edge, according to a report from the China Daily news service.

Looking primarily at the quality of labour within the Asian region, the results of the poll suggest that inadequate education investment and rising labour costs have meant that although salaries for white collar workers and managerial staff are higher, the quality of service provided is not necessarily any greater than that provided by labour in other Asian countries.

The survey showed that the jurisdiction still excels in terms of language skills, overall professionalism, and technical expertise, but warned that on a comparative 'value for money' basis, the competitive margin between Hong Kong and the Chinese mainland is narrowing, and regional rivals such as Singapore, Taiwan, and India have overtaken the SAR.

However, the China Daily report also revealed that the current economic recession has helped to reduce the cost of doing business in Hong Kong, a factor which may, paradoxically, help the jurisdiction to regain its position as regional leader.

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