SARS Fails To Dampen Foreign Investment In Hong Kong

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

26 June 2003

Despite the now receding SARS shock, which shook Hong Kong's economy to its very foundations, recent figures have indicated that the level of foreign direct investment into the city remains as strong as ever, Chief Executive of the Hong Kong Special Administrative Region, Tung Chee Hwa, observed last week.

Whilst addressing a reception held at the Government House, Tung took the opportunity to thank the 100 or so businesses who have decided to set up new operations in the territory over the past twelve months, noting that this reflected well on investor confidence and reinforced Hong Kong's position as a regional force in international finance.

Meanwhile, the Director-General of Invest Hong Kong, Mike Rowse, pointed to the jurisdiction's advanced infrastructure, flexible regulation and highly trained work force as the major contributors to Hong Kong's continuing success in this area.

Remarkably, despite the recent SARS epidemic which affected only Beijing more seriously than Hong Kong, some 135 institutions either set up or expanded their operations in the city in the previous 12 months, with 24 of these starting up during April and May this year- at the height of the SARS crisis.

During his address, Tung observed that there remained a healthy level of growth potential in the city, especially in the light of the pending Economic Partnership Arrangement with mainland China.

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