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WOO JUN JIE

As prosperous and successful Asian cities, Hong Kong and Singapore have often taken each other as bases for comparison across a wide array of measures. Such comparisons have on occasion bordered on controversy, as evidenced by Li Ka-shing's recent remarks on Hong Kong being a "spoilt child" as well as his observation that Singapore is "outpacing" Hong Kong both economically and innovatively.

Allegations of corruption plaguing senior executives in Chinese state-owned enterprises have damaged the reputation of these companies in recent years. Questions of accountability have been raised, with many calling for reform of the enterprises. And while reform is needed, there is a danger of throwing the baby out with the bathwater.

Championed by Premier Li Keqiang, plans to establish a free trade zone in Shanghai have now been approved by the State Council. Combining three areas in the Pudong district, it will allow the Chinese government to experiment with economic liberalisation and renminbi convertibility.

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