Editorial: Hong Kong Making Good Progress in Attracting Investments – 20240322 – English – Daily Ming Pao

To woo enterprises and talent, the SAR government has launched a series of measures over the past two years. Although it is far too early to say we can reap the rewards, some progress and results have been seen. In terms of attracting talent, the Top Talent Pass Scheme (TTPS) has received more than 72,000 applications so far, of which nearly 59,000 have been approved. About 44,000 people have come to Hong Kong. A total of 108,000 people have arrived through the scheme and other talent entry programmes since last year.

No doubt not all of those who have arrived have found a job. An earlier survey by the Labour and Welfare Bureau showed that about 54% of the interviewed talent who had arrived for more than half a year were employed. Some applicants said that the high cost of living affects whether they will come to the city. In addition, applicants come to showcase their talents. If there are no ideal employment opportunities, they will inevitably think twice. To attract talent, the authorities must work hard to attract investment and create more high-end jobs.

The 2022 Policy Address proposed to establish the Office for Attracting Strategic Enterprises (OASES). Several measures were also announced to attract family offices to put down roots in Hong Kong. A year and a half on, after introducing the first batch of about 30 key enterprises into Hong Kong last year, OASES has recently announced an agreement with a second batch of key enterprises. A signing ceremony was held yesterday (20 March). The government expects these two batches of about 50 key enterprises to bring over $40 billion in investment to Hong Kong over the next few years. 13,000 jobs, most of which are scientific research and management positions, are expected to be created.

In terms of attracting family offices, the latest research by Deloitte and Family Office HK shows that there are currently more than 2,700 single-family offices in the city. It is expected that at least 200 new offices will be established this year, reflecting the rapid development of the family office industry. Executives of UBS Hong Kong also believe that the goal of having no less than 200 family offices establishing or expanding their businesses by the end of 2025, which is set in the 2022 Policy Address, can be achieved smoothly.

While China is committed to high-quality development, some mainland companies have moved midstream and downstream production processes overseas amid geopolitical tensions, trying to avoid the high US tariffs on Chinese products. These two trends are driving mainland manufacturers to extend their industrial chains overseas.

It was proposed in this year’s Budget that Hong Kong be built into a ”multinational supply chain management centre”, providing enterprises with one-stop services such as trade financing and supply chain management. With these services, the government hopes to attract mainland enterprises to Hong Kong and set up regional headquarters to manage their offshore trade. It is hoped that the authorities introduce measures with greater intensity in order to realise Hong Kong’s strengths and contribute to the country’s needs.

Ming Pao Editorial 2024.03.21: Making progress in attracting investment, seizing opportunities to expand space

The government has introduced a new batch of key innovation and technology enterprises. Together with the first batch last year, a total of nearly 50 companies have decided to settle in Hong Kong, and the total investment is expected to exceed NT$40 billion.

The SAR government has launched a series of measures in the past two years to compete for enterprises and talents. Although it is far from the harvest period, it has finally seen some progress and achievements. In terms of attracting talents, the High Talent Program has received more than 72,000 applications so far, of which nearly 59,000 have been approved. About 44,000 people have come to Hong Kong. Together with other talent entry programs, a total of about 108,000 people have arrived in Hong Kong since last year. port.

Of course, coming to Hong Kong does not mean you have found a job. An earlier survey by the Labor and Welfare Bureau showed that about 54% of the interviewed talents who had arrived in Hong Kong for more than six months were already employed. Some applicants said that the high cost of living in Hong Kong is a factor that affects whether they come to Hong Kong. In addition, talents come to Hong Kong to showcase their talents. If they do not find ideal employment opportunities, they will inevitably think twice. If the government wants to attract talents, it must work hard to attract investment and create more high-end jobs.

The “Policy Address” of the year before last proposed the establishment of the “Introduction of Key Enterprise Offices”, and also announced a number of measures to attract family offices to settle down. A year and a half later, after introducing the first batch of about 30 key enterprises last year, the Introduction Office recently announced an agreement with another group of key enterprises and held a signing ceremony yesterday. The government stated that the two batches of key enterprises, totaling about 50, are expected to bring more than NT$40 billion in investment to Hong Kong in the next few years and create 13,000 jobs, most of which are scientific research and management positions.

In terms of attracting family offices, the latest research by Deloitte in cooperation with Hong Kong family offices shows that there are currently more than 2,700 single-family offices in Hong Kong, and it is expected that at least 200 new offices will be established this year, reflecting the rapid development of the family office industry in Hong Kong. UBS Hong Kong executives also said that they believe that the goal set in the Policy Address last year, which is to promote no less than 200 family offices to come to Hong Kong or expand their business by the end of 2025, can be successfully achieved.

The country is committed to high-quality development. At the same time, amid geopolitical tensions, some mainland companies have also moved some midstream and downstream production processes overseas, hoping to avoid the high U.S. tariffs on Chinese products. These two trends are prompting mainland manufacturers to extend their industrial chains overseas.

This year’s Budget proposes to build Hong Kong into a “transnational supply chain management center” to provide enterprises with one-stop services such as trade financing and supply chain management. It hopes to attract mainland enterprises to Hong Kong and set up regional headquarters to manage offshore trade. It is hoped that the authorities can step up the introduction of measures to seize this opportunity, leverage Hong Kong’s strengths and contribute to the country’s needs.

■/ Glossary new words /

woo : to try to get the support of somebody

reap : to obtain something, especially something good, as a direct result of something that you have done

intensity : the state or quality of being intense