The high cost of operating a regional business headquarters in Hong Kong is offset by the high level of productivity and efficiency of the workforce, according to a survey.
Roman Scott, vice-president at Gemini Consulting, said Hong Kong and Singapore were the two most favourable and competitive locations, and although their costs were higher than Sydney, higher productivity made up the difference.
'Singapore has lower factor costs but Hong Kong is so efficient it makes up for the cost disadvantage,' he said.
According to Mr Scott, the survey revealed that the huge volume of foreign exchange transactions in Hong Kong alone gave it a competitive advantage.
Mr Scott said unit cost per transaction in Hong Kong was only US$7.19 compared with $8.69 in Singapore, $9.39 in Sydney and $15.84 in Tokyo.
The survey compared staffing and cost structures of capital-market functions among 12 of the region's leading banks as well as producing regional comparisons between Hong Kong, Singapore, Tokyo and Sydney.
