Business leaders say new Hong Kong chief must open up city, rebuild its image

Drinking water barriers are established up exterior the Hong Kong Conference and Exhibition Centre, in advance of the 25th anniversary of Hong Kong’s handover to China from Britain, in Hong Kong, China June 29, 2022. REUTERS/Lam Yik/File Photograph

HONG KONG, June 30 (Reuters) – Enterprise executives in Hong Kong have a would like record for its new leader: scrap COVID-19 quarantine policies, and encourage the rule of legislation and transparent restrictions to revive foreign trader self-assurance – in advance of the territory will become a hardship submitting.

Previous security chief John Lee, who results in being main government of the former British colony on Friday, needs to reboot the at the time-teeming international monetary hub, 8 business leaders claimed, mainly because its border has effectively been sealed considering that 2020 and intercontinental arrivals matter to stringent quarantine and screening protocols.

These measures, such as a person week of required hotel quarantine, and stool tests of toddlers for coronavirus have hammered Hong Kong’s competitiveness, the executives reported.

“Hong Kong, once just one of the most sought-just after postings for executives, has come to be a hardship submitting due to the deficiency of global connectivity,” said Stuart Bailey, chairman of the Hong Kong Exhibition & Conference Field Affiliation, which has been battered by the restrictions.

“The 1st stage is to resume quarantine-free journey to the town,” he additional. “We are virtually the last position in the earth that nevertheless necessitates travellers to quarantine on arrival and this need to change as quickly as doable. The next action is a major PR training to get people to occur.”

Hong Kong’s after-buzzing nightlife scene has sputtered, with lots of well-known bars empty on what would typically be packed weekends. The metropolis observed a net outflow of much more than 134,000 people in the to start with fifty percent of this yr, when compared with just 1,813 in the identical period of 2021.

Facts shows people leaving the town for superior withdrew a whole of HK$9.014 billion in 2021, up 52% from the earlier yr. For the 1st quarter, withdrawals from MPF accounts – governing administration-mandated discounts, which departing citizens can hard cash out on – amounted to HK$2.014 billion, up from HK$1.931 billion a calendar year earlier, the hottest knowledge demonstrates.

Hong Kong has tried using to emulate China’s “dynamic zero COVID” solution. But as opposed to in the mainland, Hong Kong’s territory, dwelling to a lot more than 7 million folks, continues to be highly reliant on global travel and enterprise.

Talent, organizations and conventions have left in droves for places these types of as Singapore and Dubai, fed up with additional than 3 several years of turbulence, starting up with anti-federal government protests in 2019.

In a indication of the city’s expanding remoteness from the relaxation of the region, Citigroup chief executive Jane Fraser and JPMorgan’s Jamie Dimon have both equally visited Singapore in the previous two months, visits that would typically include Hong Kong, to go to essential banking shoppers and senior staff members.

‘HALT TO HONG KONG’

Lee is faced with controlling the requirements of the global local community and the regional group, whose priority is to open up with mainland China, said authorities adviser Bernard Chan, a convener for the city’s Govt Council and a deputy to China’s Nationwide People’s Congress.

The government “cannot just forego China for the global sector, I consider if we mail that message the local community will be upset. Handling equally is essentially very tough for the upcoming administration.”

When numerous Asia Pacific-headquartered corporations have remaining, individuals whose organization mainly relates to China would still prefer Hong Kong, Chan mentioned. Having said that, the city wants to improve its liveability to entice again talent.

“It’s not just about carrying out enterprise, its exactly where you place your household, schooling, faculty,” he mentioned. “If we carry on to boost on that then we can be aggressive to Singapore, Dubai, but it will consider time mainly because this time all around we have place a halt to Hong Kong.”

Some executives are however optimistic on the outlook for Hong Kong as a finance hub, and they think it will keep on being the springboard for accessing mainland China. read through extra

Emphasizing Hong Kong’s rule of legislation and transparent regulatory system is critical for drawing back again talent, explained Kher Sheng Lee, the Asia Pacific co-head of the Different Investment Administration Affiliation.

“The new administration should emphasis on what are the key things that generate Hong Kong’s competitive strengths against the soaring tide of level of competition at a time when men and women are leaving,” Lee reported.

A timetable for opening to the rest of the environment and a new marketing team to revitalise Hong Kong’s impression are essential, claimed Stewart Aldcroft, a cash management guide who has been in Hong Kong for 37 several years.

Lee should commence by stanching the outflow of talent, mentioned Sally Wong, chief government of at the Hong Kong Financial commitment Funds Association.

“The more time we delay opening up, the more we are turning away talent,” Wong stated. “Correctly, we are chipping away our competitiveness.”

Additional reporting by Clare Jim and Kane Wu Editing by Gerry Doyle

Our Criteria: The Thomson Reuters Rely on Rules.