With neighbouring countries and regions actively attracting foreign investment, the HKSAR Government has rolled out a series of measures in recent years to compete for enterprises and talent, which are gradually yielding results. Hong Kong should seize these opportunities, remain adaptable and speed up the process for businesses seeking to establish a presence in the city.

As a free port, Hong Kong has long upheld a free trade policy. In response to increasingly complex geopolitical dynamics and fierce competition from neighbouring regions, the Government has been actively “going global” in recent years, promoting Hong Kong’s advantages overseas in an effort to attract foreign enterprises, investors and top talent.

As a representative of Hong Kong’s business sector, I have joined Government delegations on multiple overseas visits, including trips to ASEAN and the Middle East, to highlight Hong Kong’s excellent business environment and explore opportunities. Recently, I accompanied the Commerce and Economic Development Bureau’s delegation to France to study the development of industries such as the wine and spirits trade, aviation services and environmental recycling, as well as their investment potential in Hong Kong.

Middle Eastern economies are rapidly diversifying, and Hong Kong, as an international financial, innovation and trade hub, as well as an important bridge between global markets and the Mainland, including the GBA. This makes it highly appealing to their investors. At the same time, Hong Kong’s free and open economy, safe and stable society, and robust business environment make it equally attractive to enterprises and investors from Europe and the Americas.

While our city has unique advantages, we must also seize opportunities to avoid missing the boat. Hong Kong should be more proactive in attracting businesses by accelerating and streamlining the process of establishing a business here. For instance, countries like Thailand, Malaysia and Vietnam are offering tax incentives to attract foreign investment.

Similarly, I recommend that Hong Kong offer a five-year profits tax exemption to enterprises setting up in designated areas of the Northern Metropolis. This would not only attract foreign investment but also accelerate the development of the project. To further attract investors, the Government could relax the requirements of the “New Capital Investment Entrant Scheme” by lowering the threshold for property investment from HK$50 million to HK$20 million.

Amid rising regional competition, Hong Kong should implement a multi-pronged approach to attract businesses and welcome more investors to its shores.

Jeffrey Lam
jeffrey@jeffreylam.hk