Competing for enterprises and talent is more than a slogan. In the latest Policy Address, the Government has demonstrated its commitment to attracting businesses and talent. The multi-pronged approach will serve to enhance Hong Kong’s competitiveness with the establishment of various offices and a vast range of initiatives.

Chief Executive John Lee’s decision to set up six offices, namely the Office for the Financing of Major Development Projects, the New Industrialization Development Office, the Chinese Culture Promotion Office, the Digital Policy Office, the Cultural and Creative Industries Development Agency, and a preparatory office for the Hong Kong Centre for Medical Products Regulation, has highlighted the Government’s determination to pursue industrial diversification, making clear the direction of future economic development in Hong Kong. 

The move will also help to attract overseas and Mainland companies to set up headquarters in the city, which will be conducive to the development of a headquarters economy. Coupled with the policy measures announced earlier this year to facilitate family offices to set up on our shores, it will help bring in more foreign investment while encouraging Mainland enterprises to go global. 

Successful policies require concrete and specific implementation. As such, the Government plans to submit legislative amendments in the first half of 2024 to introduce a mechanism that will facilitate companies domiciled overseas – in particular, those with a business focus on the Asia-Pacific region – for re-domiciliation to Hong Kong.

I repeatedly urged the Government to seek support from the Central Government to issue foreigners working in Hong Kong a work pass for foreign talent in the GBA. This has been responded to in the Policy Address. Foreign staff of companies registered in Hong Kong can apply through the Chinese Visa Application Service Centre in the city for a multiple-entry visa valid for two years or more to the Mainland, with priority processing available. 

I am pleased to see that the Government has adopted proposals to further attract talent to Hong Kong. Measures include introducing stamp duty suspension for acquisition of residential properties by incoming talent. Under the new arrangement, the payment of stamp duty concerned is suspended at the time of property acquisition, but the talent is required to pay the relevant amount, if they are subsequently unable to become a Hong Kong permanent resident.

The Buyer’s Stamp Duty (BSD) and the New Residential Stamp Duty (NRSD) have also been cut from 15% to 7.5%. These measures will not only reduce the cost for expatriates to purchase properties and live and work in Hong Kong, but also help to stimulate the property market, thus reinvigorating the economy.

Jeffrey Lam
jeffrey@jeffreylam.hk