SAR Losing Edge, Says Survey

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

31 January 2002

According to a survey conducted by the Better Hong Kong Foundation, the region is in danger of losing its edge as an international business centre.

Despite the fact that 96% of respondents expressed satisfaction with the jurisdiction's taxation system, there were concerns that business costs are rising and standards of English slipping in the SAR. 77% of the 1,750 companies surveyed revealed that they believed that Hong Kong was becoming an expensive location for multinational businesses, while 65% rated English standards as unsatisfactory.

Christopher Hammerbeck, Executive Director of the British Chamber of Commerce in Hong Kong commented on the results of the survey in the South China Morning Post on Wednesday: 'If Hong Kong is to remain competitive, it has to keep costs down in terms of human resources and residential and commercial property,' he observed. Mr Hammerbeck also warned that demand for english-speaking professionals in Hong Kong is now outstripping supply.

According to reports, Hong Kong also lost out in the new investment stakes, with Shanghai and Beijing taking first and second place at 59% and 44% of the votes respectively. However, of the companies with regional headquarters in the SAR, 85% said that they intended to remain in the jurisdiction for the next few years. Respondents also expressed hope for Hong Kong's medium-term economic future, with many predicting that their business would return to form within three years.

Meanwhile, Financial Secretary Antony Leung Kam-chung has clearly decided to hedge his bets over Hong Kong's economic future. On a visit to the Tai Po suburb of Lam Tsuen on Tuesday, he managed to successfully lodge a po-tip - a tied stack of orange paper expressing hopes for the future - in the branches of a wishing tree.

'I wished everyone good shelter and good employment opportunities,' he revealed. 'If we all work hard, I am confident my wish will come true.'

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