The Hong Kong Government needs to focus on attracting new and foreign businesses to maintain a competitive edge within the region, Arthur Andersen has warned. The tax consultancy yesterday released results of a survey of 239 business executives from multinational and major local companies. It shows 71 per cent expect the economy to gain from China's entry into the World Trade Organisation, but a number consider the positive impact will be short-lived. Tax partner Marcellus Wong yesterday echoed those concerns, saying the focus for the Government should be to strengthen Hong Kong as an e-business hub, an international trade and finance centre and a continuing China gateway. Aggressive tax concessions in other Asian centres such as Singapore and Shanghai were a tremendous competitive threat. 'If Hong Kong could introduce such measures and keep strengthening its position in certain industries, more businesses will come here and more foreign investment will come here,' Mr Wong said. From the survey - undertaken in the middle of last month - Arthur Andersen found 72 per cent of respondents felt the Government should introduce tax incentives for high-technology and high value-added industries. As well, some 66 per cent suggested incentives should be introduced to encourage multinationals to set up regional headquarters.