In contrast, Singapore successfully shifted to endemicity earlier this year and has reopened without restrictions. Another significant drawback: Chinas strict capital controls mean that foreign investors who profit on the Shanghai exchange cant bring their money home. Gain insights, analysis, and breaking news from our on-the-ground reporters. ", Dong added: "Hong Kong's status as East Asia's premier financial center is supported by Hong Kong's unique status under "one country two systems" granted by China during the 1997 handover from Britain to China.". Both Singapore and Taiwan could take Hong Kongs place, with the former perhaps having a head start since it is already an important financial hub in Asia. Tensions in Greater China have led analysts to warn that many businesses can move from Hong Kong to Singapore. For the best Barrons.com experience, please update to a modern browser. Read more:GOLDMAN SACHS: Buy these 25 stocks that are wildly popular with hedge funds and have crushed the market this year, "One could say that some rival cities like Singapore or Shanghai may benefit from the chaos but unfortunately, under the current circumstances, I do not see that many winners as the city has been dragged into a recession.". Democratic Party leader Martin Lee told all who would listen (and nearly everyone in the West did listen) that Chinese soldiers would be roaming the streets of Hong Kong arresting people. WebSingapore and Hong Kong, among the worlds most open economies, have practically shut their doors for more than a year to keep Covid-19 in check. Copyright Mediacorp 2023. For cost savings, you can change your plan at any time online in the Settings & Account section. The number of family offices in Singapore grew from 400 at the end of 2020 to 700 as of end-2021. All rights reserved. With nearly 500 executions in the past three decades, 70% of them for drug offences, Singapores use of capital punishment is grotesque. In a 600-word statement responding to the latest GFCI ranking, Hong Kong's government focused on the city scoring a higher points rating than the year before. Two years ago, Subscribe to our newsletter for a look ahead to what drives the worlds biggest cultural consumers. The Shanghai skyline, which sprouted skyscrapers throughout the 1990s and 2000s, now looks the part. And WWD reports that Tokyo, Seoul, and Singapore are all battling for these affluent Chinese shoppers. Singapore doesnt have that edge yet. Most importantly, Singapore has also relaxed its anti-Covid measures: even unvaccinated travelers are not required to test before entering the country, and masks are only obligatory in healthcare facilities and on public transport, which makes life of both locals and visitors much easier. The cities development experienced similar trends in the past years, except for a larger difference in 2022. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices Many citizens still maintain relations with the Peoples Republic. The governments answer to poor job prospects is to urge Hong Kongs young to seek work across the border. The media is cloyingly tame, while foreign journalists, it is made clear, are here on sufferance. However, not all foreign companies are leaving Hong Kong and losing faith in the citys future. Stringent pandemic travel restrictions compounded the sense of claustrophobia. Fred Rocafort Hello Macau, goodbye Hong Kong. It makes no sense for the small country to be as restrictive as the People's Republic, whereas a gradual democratization, which some had hoped would take place in China via Hong Kong, could propel the country forward. Hong Kong is battling its worst Covid outbreak of the pandemic. Transferees who did win visas say theyre scrambling to find housing, with rental prices for private properties leased by expats surging as much as 40% over the past year. All these cities are equally important, but none will replace Hong Kong anytime soon. The small shops on Harajuku are as popular as those in Ginza, which is what makes Tokyo a cool luxury destination. The pleasantness of its urban fabric is thanks mainly to the toil of the foreign migrant workers who make up nearly a third of the workforce. Chinas borders remain effectively closed to non-Chinese travelers. He added that, like Singapore, this was premised on there being no major internal or external disruptions, such as a war or political upheavals. As a response to those foreign organizations that have left, the number of mainland companies is growing and more and more of them are investing into the city, proving their trust in its future. February 20 2023 Receive free Singapore updates Well send you a myFT Daily Digest email rounding up the latest Singapore news every morning. Upgraded but still having issues? This copy is for your personal, non-commercial use only. cookies Demosisto had disbanded in July after Beijing introduced a national security law which effectively labeled pro-democracy campaigning in Hong Kong a crime. "We will continue to listen to views and be bold in taking forward reforms to consolidate and strengthen Hong Kong's capital market and our role as an international financial centre," the government said. Image credit: Shutterstock By Adina-Laura Achim Following Beijing's newly proposed national security law, the Guardian dramatically announced that this would be"the end of Hong Kong." Companies leaving Hong Kong are eyeing Singapore Both built world-beating universities. At the same time, Singapore also partners with Taiwan, for instance, conducting joint military exercises. But Shanghai, like Tokyo, functions almost exclusively as a marketplace for domestic companies and investors. The country's trade ministry warned this week the economy could contract as much as 7% this year and 4% in a best-case scenario. In Singapore, midrange cars can cost five times as much as in the U.S.; in Singapore a Toyota Camry retails for $132,000, compared with $28,000 in the States. Singapore has also had historically better social policies aimed at better accommodation of foreigners, because the country is originally composed of a very multinational population. Zambia uses "X3" in the serial number to mark replacement polymer banknotes. Westerners tend to identify the two thriving gateways to Asia as twins, but they are distinctive markets that cater to separate segments. It paves the way for Hong Kong Exchanges and Clearing to offer options and futures from June based on 37 of MSCI's equities indices. Check if your 8/F, Immigration Tower, 7 Gloucester Road, Wan Chai. A significant number of foreign companies are leaving Hong Kong: almost half of European firms are planning to relocate fully or partially within the next twelve months. But analysts think Singapore is set to outperform Hong Kong significantly and the gap between both countries' rankings could widen further. February 21, 2022, With current news updates, share prices, and stock market data based on Chinese consumer interest, this index monitors the overall health within the market. Version: Chinese and English Document Size: 2 pages PDF File Size: 144 KB. Home ownership in Singapore Can this CEO save the city? Beijing has not shied away from kidnapping pro-democracy activists in Hong Kong and in light of such political developments the island could forfeit its position as an important global financial center. Additionally, the city faced difficult political changes as well as another competitor Shanghai growing by its side. It is the largest offshore yuan centre and is also in China's Greater Bay Area, which has a gross domestic product of about US$2 trillion, he added. On Monday, prominent members of the pro-democracy Demosisto movement including Joshua Wong, Agnes Chow, and Ivan Lam were arrested. Chris McGrath/Getty Images Tensions in Greater China have led analysts to warn that many businesses can move from Hong Kong HONG KONG Hong Kong has lost its crown as Asia's premier finance center to Singapore in a global ranking list where New York and London maintained their number 1 Japan is the worlds third-largest economy and home to 47 Fortune Global500companiesHigh-caliber infrastructure, with the worlds most punctual network of trains and subwaysOnce sky-high rents and property values have declined and, by Hong Kong standards, seem almost affordableA weak currency that has plunged 20% against the dollar this year, a boon for expat bankers paid in USD, Small expat population; few Japanese speak EnglishIts large stock exchangewith 2,200 companies and a market cap of more than $5trillionfeatures few non-Japanese companies. At the same time, Singapore also partners with Taiwan, for instance, conducting joint military exercises. It doesnt help that China has a digital firewall to block internet access to overseas websites; the wall can be hurdled using a VPN, but connections are slow and unreliable. And constant threats from Beijing are not likely to encourage investors to leap from Singapore to Taipei. September 23, 2022, 1:43 AM PDT People gather next to the Merlion statue at Marina Bay waterfront in Singapore on Sept. 23, 2022. Singapore's population is largely Han Chinese. Both Singapore and Taiwan could take Hong Kong's place, with the former perhaps having a head start since it is already an important financial hub in Asia. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Hong Kongs COVID quarantines and new curbs on civil liberties have damaged the former British colonys image as Asias World City, sparked an expat exodus, and stoked rival cities ambitions of replacing Hong Kong as the regions preeminent financial hub. Read more: Chinas tech crackdown, a national security law, and an expat exodus have pummeled Hong Kong. Oversimplified, global businesses that want a strong footprint in China must be present in Hong Kong. Paris took tenth spot, replacing Tokyo which fell to 16th place. The presence of rich foreigners pushing up property prices calls for big public-housing programmes. Nothing tops the drama of Hong Kongs topographical setting. And, unlike Hong Kong, Singapore in April lifted the border restrictions it introduced early in the COVID pandemic to allow entry to all vaccinated travelers. Hong Kong has been competing for some of that business as well but I don't see how they are going to be competitive if Hong Kong is against the Great Firewall of China.". For official use of our department and the Chinese Embassy / Consulate-general. To continue, upgrade to a supported browser or, for the finest experience, download the mobile app. or. Tokyo, with 38 million people, is Asias most populous city, the capital of the worlds third-largest economy, and home to 47 Fortune Global 500 companies. Singapore, Tokyo, and Shanghai all dream of replacing Hong Kong as Asias top financial center. Singapore is also the only meaningful option for many financial services firms, according to Vincent Chan, China strategist for Altheia Capital, an Asian investment Like Hong Kong, Singapore is a former British colony with a British commercial code, and a world-class airport with easy connections to other Asian cities. Many citizens still maintain relations with the People's Republic. Terms & Conditions. Singapore is a local economic leader, and Hong Kong is an extension of China. In short, the economic and political consequences of the pandemic have been severe. Sign up for notifications from Insider! "We will continue to listen to views and be bold in taking forward reforms to consolidate and strengthen Hong Kong's capital market and our role as an international financial centre," the government said. What can luxury learn from the Shein PR debacle? In 1997, the year of Hong Kongs return to China, the two cities GDP per person was remarkably similar ($26,376 in Singapore, $27,330 in Hong Kong). Can this CEO save the city? Its not an unreasonable goal. Both Singapore and Taiwan could take Hong Kongs place, with the former perhaps having a head start since it is already an important financial hub in Asia. EWH versus SPY as of 22nd December 2022 (SA) The 3-year equity beta is 0.52 and its standard deviation over that period was 24.1%. In Hong Kong, by contrast, a transport-news website promoting road safety, of all things, this week became the latest target of the authorities and was forced to close. Heres how they compare BY Clay Chandler August 4, 2022, 2:30 AM The anti-Covid policies indeed prove to be the biggest disturbance to expats: according to the European Chambers report, one in three firms said that more than 25% of their staff consider leaving the city due to quarantine restrictions. Bernd von JutrczenkaPicture Alliance/Getty Images. Chinas legal system is opaque and unpredictable. The 27th edition of the global Financial Centres Index (GFCI) ranked Hong Kong marginally behind Singapore, the world's fifth-largest financial center in 2010. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month. Singapores stock exchange is struggling with a rash of delistings and governance scandals that threaten its ambition to replace Hong Kong as a regional finance All, for different reasons, face daunting challenges in attracting global talent. Hong Kong is also a harder place to live in the literal sense. But this de Singapore Overtakes Hong Kong in World Financial replace Hong Kong In contrast, Singapore successfully shifted to endemicity earlier this year and has reopened without restrictions. In fact, greater market deceleration is expected later this year. For bankers and brokers, Singapores biggest drawback is its dinky stock market. Singapore ", Dr Wu said: "The bill has strengthened the expectation that money would further be leaving the Asian financial hub, such an important bridge between China economic engine and the rest of the world.". WebMay 29, 2020, 11:55 PM PDT Singapore skyline. Hong Kong WebJune 3, 2020 Anti-government protests and COVID-19 have kept wealthy mainland Chinese away from Hong Kong, but will Singapore become the region's nextluxury hub? Download Form ID 845. Hong Kong is still dealing with the pandemic, and the Zero-Covid policy pushes many international workers and locals out of the city. Access your favorite topics in a personalized feed while you're on the go. At the top of the list is Chinas commitment to a COVID-zero approach to combating the coronavirus, leaving residents at risk of extended citywide lockdowns in the event of a minor outbreak. But, Hong Kongs struggle isnt a real opportunity for the Lion City, and it wont replace Hong Kong as the top luxury hub in the region in the near future. These cookies will be stored in your browser only with your consent. The Barron's news department was not involved in the creation of the content above. The Singapore exchange is home to fewer than 700 companies with a total market capitalization of less than $700 billion; Hong Kongs stock exchange has more than 2,500 companies and a market cap of over $5 trillion. Yet so strong is the grip of Hong Kongs property tycoons that less than 50% of the population lives in public housing, for which there is a six-year wait. While the weekly newspaper will talk about the daily business cases of China, important local events and news. The main factor causing the difference between them appears to be the different approach to fighting the pandemic. including Joshua Wong, Agnes Chow, and Ivan Lam, How Hong Kong Activists Are Sustaining Pro-Democracy Movement in Taiwan. In Hong Kong, a similar property will set Singapore, Tokyo, and Shanghai want to be the next Hong Kong Turning to Singapore, Mr Shanmugam saidit was "always a great place to invest", andthe common consensus was that post-COVID, Singapore has emerged even stronger because of how the country handled the pandemic. These cookies do not store any personal information. It's never a zero-sum game," said Mr Shanmugam. We assume that Macao, Guangzhou, and Shenzhen will grow in importance, and Tokyo, Seoul, Kuala Lumpur, Bangkok, and Singapore will continue to exercise authority as regional shopping destinations. Numerous companies are considering relocating to Singapore due to its more stable social and economic environment. Singapore, Hong Kong tighten borders and quarantines as A winner has emerged in the old rivalry between Singapore E-mail address for enquiries:enquiry@immd.gov.hk. Will Singapore or Taiwan Replace Hong Kong as Asias Financial Hub? Hong Kong saw widespread anti-government protestsin 2019. 2023 Fortune Media IP Limited. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. 2023 Herlar, LLC. offers FT membership to read for free. Indeed, the market has experienced another significant drop even after an improvement in 2021. International workers are less willing to relocate to Hong Kong: even schools are experiencing troubles hiring teachers despite high wages offered. Upgraded but still having issues? It makes no sense for the small country to be as restrictive as the Peoples Republic, whereas a gradual democratization, which some had hoped would take place in China via Hong Kong, could propel the country forward. Singapores economy is more innovative and diversified. But for global bankers, brokers, and asset managers, the real dealbreaker is taxes. Singapore is no paradise. Jeffrey Halley, senior market analyst, Asia-Pacific at OANDA, said: "The big winner out of this could be Singapore if we do see an exit of companies from Hong Kong. Excess deaths per 100,000 people were nearly three times higher than in Singapore. Singapore On the contrary, it announced the investment of another 6 billion USD in its business there, saying that the city remains its most lucrative market. In March, 40-year-old activist Jolovan Wham, who has primarily defended the rights of migrant workers in Singapore, was arrested by authorities for standing on a street corner and holding up piece of cardboard with a smiley face scrawled on it. Their success is indisputable, and their growth strategies have served as models for the worldwide community. Taiwan currently seems to lack the drive and ambition to replace for Hong Kong as an Asian financial hub. "Although it is not disclosed where the capital comes from economists perceive it is the signal that money has started to flow out of the city and into Singapore, another regional safe haven," Dr Wu added. Assuming that Singapore can fight off highly developed luxury hubs like Tokyo, Macao, or Seoul is arrogant. All rights reserved. The close business links between Hong Kong and Beijing makes the city the ideal location for enterprises that want to do business with China or invest in mainland companies while still maintaining legal and entrepreneurial flexibility. They are the biggest obstacle for companies operating in the city and the major driver for foreign companies leaving Hong Kong. WebSingapore uses "Z/0" in the serial number to mark replacement banknotes. Singapore Masks are still mandatory in indoor public areas and passengers arriving from abroad must test multiple times and potentially undergo quarantine. Hong Kong A 700-square-foot, fully furnished apartment in central Singapore starts from about $3,500 a month, PropertyGuru data show. Chinese President Xi Jinping has threatened Taiwan with violence and annexation more than once. Singapore jumped three places to third in the twice-a-year Global Financial Centres Index (GFCI) which assesses 119 cities around the world and was published late Thursday. Singapore jumped three places to third in the twice-a-year Global Financial Centres Index (GFCI) which assesses 119 cities around the world and was published late Thursday (Sept 22). Hong Kong was already going through uneasy times and losing trust of some investors and companies, and Singapores exports were declining. Thats on top of the price of the car itself. Indonesia uses "X" in the serial number to mark replacement banknotes. Hong Kong has lost its crown as Asia's premier finance centre to Singapore in a global ranking list where New York and London maintained their number one and two spots. READ NEXT: How Hong Kong Activists Are Sustaining Pro-Democracy Movement in Taiwan, TNL Editor: Bryan Chou (@thenewslensintl). As a consequence, Banyan has moved there. San Francisco came in at number five in the survey, up two spots. VF Corporation (VFC), the owner of North Face, Timberland, and Vans, is leaving the city and relocating their regional management to Singapore due to stronger business infrastructure. Hong Kong came in second with a freedom score of 89.1. Could Taiwan or Singapore serve as alternatives? Today Singapores is 1.7 times higher than Hong Kongs. Hong Kong has hit a dead end. Official vows that Shanghai would eventually eclipse Hong Kong as Asias financial capital go back decades but gained momentum after the global financial crisis. To continue, upgrade to a supported browser or, for the finest experience, download the mobile app. He said that talk of Hong Kong "being in terminal decline, that it does not have democracy and so on leaves me bemused", and that many of the factors necessary for the city to continue to succeed are present. In 1997, the year of Hong Kongs return to China, the two cities GDP per person was remarkably similar ($26,376 in Singapore, $27,330 in Hong Kong). On Thursday, China approved a new law that targets subversion of state power, terrorism activities, and foreign interference in the former British colony. With an economic freedom score of 89.4, Singapore has been the worlds freest economy thus far in 2020. Replacement banknote Both central and Tokyo metropolitan government leaders have said they want Tokyo to reclaim its old position as Asias finance capital. The two cities are major trading partners, so disruptions in Hong Kong also hurt Singapore. Hong Kong ranked as the world's sixth-largest financial center in 2020 and Singapore took the fifth position. Here, too, Taiwan could prove a valuable partner: After all, it was a dictatorship until 1990, but was then able to make a peaceful transition to democracy. Both cities are popular locations for regional headquarters of international companies, offering numerous benefits for businesses, like a friendly tax system, easy company registration processes, open immigration policies, and transparent regulations. Singapores Ministry of Trade and Industry said in a statement that the Singapore economy is expected to shrink by between 1 and 4 percent across 2020. Singapore might have the scintillating Esplanade Mall, The Shoppes at Marina Bay Sands, and Louis Vuittons floating Island Maison, but Hong Kong takes luxury to a different level. Its stock exchange, with total market cap of about $7trillion, is the worlds third-largest and features 85 Global500 companiesA government pledge to make the city one of the worlds leading financial hubs, Chinese exchanges, dominated by retail investors who trade heavily on rumor, are highly volatileA COVID-zero policy that has shut out foreign travelers and subjected residents to mass lockdownsStrict capital controls; profits earned in China have to stay therePersonal income tax rates of up to 45%The Great Firewall, which restricts internet access to websites outside China, A version of this article appears in the August/September 2022 issue of Fortune with the headline, Which city will be the next Hong Kong?. The Shanghai Stock Exchange, with a market cap of $7 trillion, is the worlds third-largest and hosts 85 Fortune Global 500 firms. Premium access for businesses and educational institutions. The city-state is hosting a slew of financial and business conferences in the coming months as well as a Formula 1 night race next week, while about four million people are expected to visit this year. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. From LuisaViaRoma to Mytheresa, how are global luxury e-tailers connecting with China post-pandemic? San Francisco came in at number five in the survey, up two spots. This article was originally published on Deutsche Welle. In a 600-word statement responding to the latest GFCI ranking, Hong Kong's government focused on the city scoring a higher points rating than the year before. Singapore replaces Hong Kong as Asia's top finance center As a result of the declining attractiveness of the city, demographic changes are happening. Theres not a strong, independent retail scene like there is in Tokyo or Seoul cities where shoppers can choose between established European names like Prada or Gucci and local, avant-garde designers. Officials say that companies located in the city have been tending to downsize due to the effects of the pandemic, but most businesses are not leaving. Try full digital access and see why over 1 million readers subscribe to the FT, Purchase a Trial subscription for $1 for 4 weeks, You will be billed $69 per month after the trial ends.
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