When it comes to why you should invest in Hong Kong, you’re often presented with the same generic selling points: global infrastructure, a leading global economy, low and simple taxation, a gateway to Mainland China, an open business environment, an attractive tax system, proximity to Asian growth, complete freedom of capital movement, and a free market.
While these factors are undeniably true, they’ve been repeated ad nauseum and don’t fully capture the current, dynamic landscape that makes Hong Kong a truly exceptional destination for business.
This article takes a fresher approach, offering more recent and up-to-date reasons that go beyond the usual talking points. By focusing on the latest developments and recent initiatives introduced by the government, this list provides a deeper and more relevant understanding of why Hong Kong is an ideal choice for those looking to invest or expand their business operations today.
Record-Breaking Foreign Direct Investment in 2024
Hong Kong continues to be a magnet for foreign direct investment (FDI), having brought in USD 4.9 billion in investments. Over 322 companies set up or expanded operations in the city in the first half of 2024.
This influx of investment, particularly from Mainland China and the United States, underscores Hong Kong’s strategic importance as a gateway to Asia. For companies, this means access to a thriving business environment with strong links to key Asian markets, especially in sectors like technology, logistics, and finance.
Also Read: Why Hong Kong is the Ideal Destination for Fund and Asset Managers
Budget Measures Implemented To Boost Attractiveness To Invest In Hong Kong
The 2024 Hong Kong Budget introduced several initiatives aimed at enhancing the city’s attractiveness to international businesses.
Notably, the Office for Attracting Strategic Enterprises (OASES) is expected to secure over HK$40 billion in investments, focusing on high-growth sectors such as life technology, green technology, and semiconductors. These efforts ensure that companies investing in Hong Kong benefit from a supportive environment rich in opportunities for innovation and collaboration.
Also Read: How The Hong Kong Budget 2024 Will Affect Your Business
Talent Attraction Schemes to Supercharge Competitiveness
In response to the global pandemic, Hong Kong has implemented a range of strategic policies designed to attract international businesses and top global talent.
Programs like the Quality Migrant Admission Scheme (QMAS) and Technology Talent Admission Scheme (TechTAS) are particularly beneficial for companies in the tech and innovation sectors, providing a streamlined process to bring in skilled professionals. This initiative, along with others, helps businesses maintain a competitive edge by ensuring access to world-class talent and cutting-edge technologies.
Empowering SMEs with Digital and E-commerce Support
The government is actively supporting SMEs in their digital transformation and expansion into new markets. Through the Digital Transformation Support Pilot Programme, SMEs in the food and beverage and retail sectors will gain access to ready-made digital solutions for payment systems, shopfront sales, online promotion, and customer management. Additionally, subsidies will be provided to ease the cost of adopting these technologies, with over 8,000 SMEs expected to benefit from this initiative.
At the same time, the Dedicated Fund on Branding, Upgrading, and Domestic Sales (BUD Fund) has been enhanced to empower SMEs in their e-commerce ventures further. The fund’s cumulative ceiling per enterprise has been raised, and the application process has been streamlined. With an additional HK$500 million injected into the fund, SMEs are well-positioned to enter Mainland China and international markets. The ‘E-commerce Easy’ initiative will provide financial support of up to HK$1 million for each enterprise launching e-commerce projects in Mainland China.
Also Read: The Hong Kong Startup Funding & Government Scheme Guide
Where To Next
Hong Kong’s unique combination of strategic location, government support, and a thriving innovation ecosystem makes it an ideal destination for businesses looking to expand in Asia. With robust policies, significant investments, and initiatives designed to attract top talent, Hong Kong offers unparalleled opportunities for growth and success.
If you’re considering expanding your business into Hong Kong, now is the time to act. Contact InCorp Hong Kong today to learn how we can assist you in making the most of these opportunities and successfully navigating the dynamic business environment in Hong Kong.
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