Heathcliff said:I think you should move!
It was pretty obvious that HK was going down hill from day one of the handover. You say the educated people are leaving but big business has been leaving for ages. HK is no longer the pan-Asian power house it once was. Singapore has done very well in becoming the Asian headquarters of many global corporations. And those companies that want access to the Chinese market are increasingly heading to Shanghai and this will continue...
Downhill since day one, eh?
I don't really buy that (apart from some of the machinations of the Provisional Legislature in July 1997, which had limited practical impact). Sounds a bit like the "Death of Hong Kong" article published in (I think) Time Magazine, just before the handover. A bit premature it was.
Yes, we have tremendous problems here and yes, we need to be constantly vigilant (which we are), but HK is still a GREAT place to live (see my next post).
We are, IMO, still a Pan-Asian powerhouse. Sure we've been battered by the Asian Financial crisis (six years of constant deflation anyone? Property prices MORE THAN 70% DOWN, from the market peak. Salaries halfed in some instances, real unemployment of over 10%, etc) and are currently struggling with our constitutional future, but do not write us off too soon. We have reinvented ourselves many times over the decades and emerged stronger from many a crisis. I believe we have the commitment, dedication, flexibility and capacity to do so once again. Watch this space!
Singapore is indeed making incremental gains in attracting regional HQ's, mainly through huge tax concessions and other favourable treatment (level playing field my arse). The idea that S'pore threatens HK, however, in this domain, is laughable.
Despite NOT offering tax breaks, etc. HK is a million miles ahead of S'pore in attracting foriegn companies and likely to remain so.
To give just one example:
Singapore to date has lured some 43 foriegn banks to operate in the city state. Hong Kong has over 500 foriegn banks operating out of the (Special Administrative) Region.
Touche!
I agree that Shanghai is emerging fast as a centre for attracting foriegn companies - this is as it should be and is a good thing. Hong Kong remains, however, the centre of choice and until Shanghai can offer the same advantages as HK (financial, design, marketing and logistics expertise, rule of law, (relatively) level playing field, independent judiciary, solid civil service infrastructure, lack of corruption, "Asias Finest" police force, etc, etc.), this will still be the case.
Many analysts reckon that Shanghai remains about 10 - 15 years behind Hong Kong in these areas and, will struggle to catch up due to the inherant problems in China. HK, meanwhile, is not standing still and is progressing steadily in all these areas.
Woof