Hong Kong Remains Premier Location For Multinationals In Asia

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

21 August 2001

Hong Kong Chief Executive, Tung Chee Hwa, hosted a reception at Government House last week for 150 chief executive officers and senior representatives of 80 plus overseas companies which are newly established in Hong Kong or have significantly increased their investment here in the first six months of this year.

In welcoming their presence in the jurisdiction, Mr Tung congratulated his guests for choosing Hong Kong to set up their operations. 'I can assure you that your decisions are sound and that we will continue to work with you to make your decision to locate in Hong Kong a continuing success,' Mr Tung said.

He added: 'We have tremendous institutional strengths. These include accessibility of information, cleanliness of government, tax regime, banking and financial facilities, as well as the rule of law. In addition, we have first class infrastructure : airport, ports, roads, railways, and telecommunication. We have a geographical location which is the envy of many. We have quality professionals and a community with entrepreneurial and creative spirit.'

Since June 2000, at least a hundred companies have chosen Hong Kong as the location for their regional offices in addition to the 3,001 companies that have already established regional headquarters or offices.

Mr Tung also spoke of the recent restructuring of the Hong Kong economy. He highlighted the fact that there was a major economic downturn among major trading partners such as the United States and Europe, and combined with a sluggish economy in Japan, many in Hong Kong had been affected adversely.

He explained: 'Our economy this year may slow down some more and the unemployment rate this year may go up slightly. But we must be confident of our future. The fact is that over 100 overseas companies have chosen to come to Hong Kong at this time, a time of economic downturn in their own countries. It is a tremendous vote of confidence in Hong Kong and a testimony to the strength of Hong Kong as an attractive centre of international business.'

One of the most recent multinationals to set up base in Hong Kong is Executive Interim Management (EIM). Managing Partner of EIM, Mr Dominique Langlois, explained why the company has based its first Asian operation in Hong Kong: 'Hong Kong offers many advantages as a regional hub, not least because of its proximity to Mainland China, as well as easy access to other markets in the region. Hong Kong, as a business development hub, is where intelligence and decision making come together for the region,' he said.

Mr Tung concluded: 'As we emerge successfully from the cyclical economic downturn and from the economic restructuring, Hong Kong will grow stronger in the months and years ahead as a financial centre, a centre for logistics and transport, a centre for tourism, a centre for multi-national companies as well as a city in the middle of the fastest growing region, the Pearl River Delta. Our future is bright and secure. I know together we will make it.'

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