Editorial | Hong Kong cannot take its standing for granted

Hong Kong’s regional rivals are trying to capitalise on the uncertainty created by the national security law and conflict between Beijing and Washington. Japan, South Korea, Taiwan, Singapore and Australia are attempting to lure foreign companies and talent.

The city’s position as Asia’s premier financial and business centre will not easily be usurped, either in the short or medium term. But laurels can never be rested upon in so competitive an environment and authorities have to constantly update their knowledge and policies to maintain advantages.

New Japanese Prime Minister Yoshihide Suga is looking into ways to change tax and visa arrangements. South Korea has similar plans, Singapore seeks to entice fund managers and family offices, and Australia is considering tax and regulatory concessions and special visas.

But no matter how jittery some company executives may be about Hong Kong’s circumstances, making the decision to move headquarters or realign operations cannot be taken lightly, especially in the midst of the downturn caused by the Covid-19 crisis.

Competitors also have to face the reality of the city’s advantages, among them being a gateway to the markets of mainland China, the world’s best-performing major economy, central location, ease of providing services and international-standard facilities.