Study reveals HK's real engines of wealth creation
Foreign companies contributed 28 per cent of Hong Kong's gross domestic product and hired 16 per cent of its workforce, according to the government's first detailed study on their presence in the city.
The study, conducted by the Department of Census and Statistics, found some 10,000 foreign firms employed 543,000 people and generated HK$356.4 billion in 2004.
Their dominance is most apparent in finance, insurance, real estate and business services, where they hired 217,000 staff and generated HK$160 billion in added value - 45 per cent of staff and 60 per cent of value across the combined sectors.
Fung Hang-wang, Commissioner of Census and Statistics, said foreign companies in construction have the greatest advantage over local firms. He said while they accounted for only 9 per cent of employment, they generated 27 per cent of added value, meaning they have superior technology and skills to secure a better rate of return.
'The results show the market openness of Hong Kong's economy and the significance of commercial presence of foreign companies. Apparently they are doing pretty good business here, since they hired 16 per cent of employees but contributed 28 per cent of GDP,' he said.
Dr Fung said the study, entitled Inward Foreign Affiliates Trade in Services Statistics in Hong Kong, provided a more comprehensive picture of the level of foreign investment than the usual foreign direct investment figures. Foreign firms are defined as those registered outside Hong Kong and majority-owned by overseas investors.