When picking where in SEA to headquarter in, which would a business pick Singapore over Hong Kong, or vice versa? What are the deciding factors for each of them exactly?

Hi anon,

Singapore and Hong Kong have always been competing against each other to be Asia's financial hubs. Singapore is a gateway to Southeast Asia and is seen as a wealth management hub, but Hong Kong has easy access to China’s trade and capital flows.

Probably the biggest factors would be:

• Corporate Tax Rates: HK has the edge if I recall

• Political Stability: Hong Kong faces a challenge on this. SG is extremely neutral. This is probably the biggest problem, on top of the national security law

• Location: HK is nearer to China, which is important to access that growing market. Physical connectivity as well as people and business networks is also important

• Quality of life: I dare say we are ahead on this, especially on housing.

• Ease of doing business: Infrastructure, the banking system, and communication facilities​​​

There are some factors, but not limited to:

• Political climate: May affect regulations/incentives/treaties/etc.

• Location: Accessible to other countries (regional offices)

• Quality of life

• Taxation/Tax-incentives: Lower cost of operation/set-up

• Local workforce quality

• Infrastructure