StockTalk (5.5): Singapore VS. Hong Kong - Who Wins in the Battle for Multinational Corporations (MNCs) in Asia-Pacific
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StockTalk (5.5): Singapore VS. Hong Kong - Who Wins in the Battle for Multinational Corporations (MNCs) in Asia-Pacific
According to a recent report from property consultancy CBRE, Singapore and Hong Kong are still fiercely competing to attract multinational corporations (MNCs) seeking to establish their regional headquarters in the Asia-Pacific region.
The report revealed that while office rents in Singapore's CBD are more economical than those in Hong Kong, the latter provides a more cost-effective alternative with its decentralized nodes. Despite declining by 10% in 2020, Grade A office rents in Singapore have rebounded and are now approaching their highest point in the past decade. However, they are approximately 40% lower than those in Hong Kong's CBD. Additionally, despite experiencing a "deep correction" due to the pandemic, rental prices in Hong Kong's Central CBD are expected to remain low for at least three years before stabilizing in 2024.
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Join us and share your thoughts on today's topic. In the race between Singapore and Hong Kong to attract multinational corporations (MNCs) looking to set up their regional headquarters in Asia-Pacific, which city do you think has the advantage? Why? Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.
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Demascus : Both cities have pros and cons. HK is much closer to mainland China though.
GodSpeed289 : While they share many similarities, there are some key differences. Singapore is known for its ease of doing business, low taxes, and transparent regulatory environment. It has consistently ranked high on the World Bank's ease of doing business index. Singapore has a highly educated workforce. It also has a strong focus on training and development, with government support for lifelong learning.
Finally, the political situation in Hong Kong has been more volatile in recent years, which may give some MNCs pause. That will be the key advantage for Singapore in terms of business environment suitability to establish a regional presence. However, Singapore is also well known for its high cost of living, which will be a deterrent factor.
LivingYears GodSpeed289: nicely done analysis. thanks.
ZnWC : I choose other because there are other cities state that can attract investment from MNC such as Ho Chi Minh City. If we look beyond SEA like East Asia, Shanghai, Seoul and Taiwan are also quite competitive. I'm sure you remember the 4 Little Dragons (or 4 Asian Tigers).
Singapore has a strong governance and reliable financial hub. But it's weakness is too dependent on import and high cost. Personally I think competition is good because it encourages us not to let our guard down and work hard to attract investment. Perhaps we should cooperate as a region to attract investment like SG-HK economic partner to strive for win-win situation.
Flying Dolphins : Hong Kong and Singapore both have similarities however it really depends on the objective that the company is seeking for when doing IPO as well as the industry of the company. Singapore will be the better option when it comes to stability and less volatile share price however for Hong Kong the accessibility for China investors is more open. Each will have its plus points.
Emily ZnWC: Quite true
EYSY : While Hong Kong was the popular choice in the last decade, I think Singapore will win in the next decade. Starting to see more MNCs moving their regional offices from Hong Kong to Singapore due to lower office rents. The similarity between Hong Kong and Singapore will make Singapore the next top choice. In addition, the low tax rate, cost of living and political stability attracts the expats. The proximity of Singapore to other South East Asia countries allow for cheaper source of labor from the neighboring countries and lower inter-office travel costs.
gentle Iguana_2693 : What kind of question? There wasnt much SEA all this while, and regardless, for SEA when is HK a choice over Singapore all this while?
Sweet_Lover_8919 : Think HK will still win. No companies in the right mind will forgo the China market with it's huge population and plenty of untapped market.