Hong Kong Chief Executive Donald Tsang thanked new overseas, Mainland Chinese and Taiwan investors for their substantial contribution to the Hong Kong economy at a reception held in Hong Kong recently.
More than 200 guests, representing some 150 overseas, Mainland Chinese and Taiwan companies that have set up operations or increased their overall investment in Hong Kong from September 2005 to June 2006 attended the reception.
Mr. Tsang said that despite the challenges the community was facing, Hong Kong remained an attractive location for companies from all over the world to come to do business.
Addressing one of the challenges – air pollution, the Chief Executive said, “We are aware of the problem and are taking active steps to deal with it.”
Noting that the greater share of Hong Kong’s air pollution came from South China, Mr. Tsang appealed to Hong Kong business people as well as Hong Kong-based international business people, to do their part by ensuring that their manufacturing operations in the Pearl River Delta were as environmentally friendly as possible.
Mr. Tsang also spoke about the second challenge – the danger of so-called “marginalization” – but noted that “everything in the character of Hong Kong people reassures me that our community will remain alert both to dangers and to opportunities. And the Government behaves similarly.”
Hong Kong Secretary for Commerce, Industry and Technology Mr. Joseph W.P. Wong and the Director-General of Investment Promotion at Invest Hong Kong Mr. Mike Rowse were also present at the reception.
“Invest Hong Kong would like to thank our clients for choosing to invest in Hong Kong,” said Mr. Rowse. “Their decision to set up here shows their confidence in the long-term development of the business environment and economy of Hong Kong. Their presence at today’s event is a strong statement of Hong Kong’s position as the best place to do business in Asia.”
Mr. Rowse added that 2005 was a successful year for investment promotion for Hong Kong.
Invest Hong Kong assisted 232 foreign, Mainland Chinese and Taiwan companies to set up or expand operations in Hong Kong last year. Hong Kong also recorded an all-time high number of nearly 3,800 regional operations run by foreign, Mainland Chinese and Taiwan companies.
Mr. Rowse also noted that inward investments continued to come to Hong Kong.
As at the end of June, Invest Hong Kong had assisted 156 companies to invest or expand in Hong Kong, achieving more than half its annual target of 240 and representing an 8.3% increase from the same period last year.
These projects will create more than 4,285 jobs for Hong Kong. The investors reported that their investments led to the immediate creation of more than 1,699 jobs, and would create at least 2,586 additional jobs in the next two years. Initial investment by these companies investment topped HK$6.82 billion (US$874.36 million).
“In the past few months, we welcomed the arrival of companies involved in a variety of sectors, such as law firms, financial services companies, high-tech and telecom companies,” said Mr. Rowse. “All of these companies bring to Hong Kong their own unique technologies, industry knowledge and international experience, which further enhances our standards and positions in those sectors.
“At the same time, we have seen investment from restaurants and retail operations, which bring more choices of goods and services for the people of Hong Kong. As they set up and further expand, these companies bring economic benefits to Hong Kong by renting retail and office space, hiring commercial services for their daily operations and offering employment and training opportunities for our people at different skills levels,” added Mr. Rowse.
The Closer Economic Partnership Arrangement (CEPA) continued to have a positive impact on attracting investors to Hong Kong. According to Mr. Rowse, about a quarter (23%) of the companies the department had assisted so far this year indicated that CEPA played an important role in their decision to invest in the city. He expected that with the implementation of the new liberalization measures, CEPA’s appeal to current and potential investors would be strengthened, as more qualified Hong Kong-based companies would enjoy greater access to Mainland China.
Mr. Rowse said that the flow of Mainland Chinese investments in Hong Kong remain strong, with Mainland Chinese companies making up 13.5% of the department’s completed projects in the first six months, and now constituted around 20% of the current live caseload.
The traditional source markets of investment projects in Europe, Asia-Pacific, and North America continue to be key contributors to the territory’s economy, representing 35%, 26% and 22%, respectively, of the total number of projects completed in the first six months.
“Invest Hong Kong is experiencing a substantial year-on-year increase in investment projects so far this year – and we are working with many more overseas, Mainland and Taiwan companies to establish and build their operations in Hong Kong,” said Mr. Rowse. “These investments not only bring in capital and create job opportunities, but also provide new ideas and specialist skills that enrich a variety of business sectors in Hong Kong.”
Latest figures show that Hong Kong remains the preferred destination for foreign direct investment (FDI) in Asia. During the first quarter this year, the FDI inflows to Hong Kong reached HK$102.6 billion (US$13.16 billion). The total FDI inflow in the whole year of 2005 was HK$279.24 billion (US$35.9 billion).
Mr. Rowse also extended sincere gratitude to the international business chambers and consulates for their continued support in promoting Hong Kong as the ideal business location.
