Hong Kong Will Remain Region’s Business Hub, Government Assures

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

24 August 2004

The Hong Kong government has rejected comments made by the former Singaporean Prime Minister Lee Kuan Yew, that the territory’s position as the region’s financial services hub is threatened by its close governmental ties to Beijing.

“As one of the freest societies in Asia, we can progress with creativity and entrepreneurship. We are strategically located to take full advantage of the prosperity and vast market potential in Mainland China,” a government spokesman commented at the weekend.

“The benefits of the ‘One Country, Two Systems’ to Hong Kong are obvious and these are comparative advantages which no other Asian economy can lay claim to.”

The spokesman’s words came in response to a speech by Singapore’s elder statesman Lee Kuan Yew, who on Friday told an audience that Singapore was poised to supersede Hong Kong as the region’s economic force as it was more independent.

"We can chart our course for the benefit of 4 million Singaporeans, unlike Hong Kong where the way to the future is decided by China to advance the overall interests of not only 7 million Hong Kongers but also 1,300 million mainlanders," he stated.

Lee Kuan Yew led Singapore to independence and served as its first prime minister. He served several spells as the city-state’s leader from 1959 until he stepped down in 1990.

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