In the wake of ongoing geopolitical challenges in Hong Kong over the past 12 months, many businesses have turned bearish on administrative region’s long term stability.
Hong Kong and Singapore have long been considered gateways to emerging markets in Asia, regional hubs for transnational corporations to entrench their regional headquarters, as well as high flying business owners, fund managers and other high-wealth individuals looking to take advantage of the cosmopolitan lifestyle, favourable taxes, ease of doing business and safety.
However there are signs that the attraction to Hong Kong has been tarnished due to significant instability, as well as contentious security legislation, over the past 12-18 months. And Singapore is poised to become the alternative of choice.
Last year a survey by Singapore’s American Chamber of Commerce revealed that out of those businesses planning to relocate from Hong Kong, 90% identified Singapore as their top choice. Foreign Direct Investment in Singapore has soared in parallel with the recent troubles in Hong Kong. The island state has seen $92 billion in foreign direct investment in 2019, up from $72 billion in 2018.
More recently, a notable number of expats have indeed made the move to Singapore since it’s June lockdown abated.
This should come as no surprise perhaps. Singapore consistently tops the World Bank’s Ease of Doing Business rankings. It is one of Asia’s fastest-growing insurance and wealth-management hubs. It is renowned for a culture of competitiveness and innovation. And it’s gateway to visitors, Changi Airport, has been named the best airport in the world for some 8 years running by Skytrax.
