"Hong Kong Likely to Lose Asia Hub Competition to Singapore"

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Singapore is expected to surpass Hong Kong in the competition to become Asia's hub.

Bloomberg reported on the 11th (local time) that "Singapore and Hong Kong are showing significant differences in their responses to COVID-19."

It is analyzed that Hong Kong, which is maintaining strict travel restrictions due to concerns about the Chinese government, will eventually lose its position as Asia's hub to Singapore, which has declared a 'With COVID' policy.

Carrie Lam, Hong Kong's Chief Executive, reiterated in a Bloomberg TV interview that day, "Hong Kong is the gateway to mainland China. We will follow China's zero-tolerance policy on COVID-19."

Responding to criticism that "Hong Kong cannot independently decide policies and is watching China's stance," Chief Executive Lam countered, "Hong Kong is performing very well as a financial center," suggesting that travel restrictions will not be eased or lifted before changes in the Chinese government's policies.

In Hong Kong, even those who have completed COVID-19 vaccination must quarantine for 21 days after visiting countries such as the United States or the United Kingdom.

On the other hand, Singapore, with a vaccination completion rate exceeding 80%, is focusing on managing severe cases rather than zero confirmed cases, promoting coexistence with COVID-19 under the 'With COVID' approach, while expanding 'quarantine-free entry' measures with many countries including South Korea.

From the 19th, Singapore will allow quarantine-free entry for vaccinated travelers coming from eight countries including the United States, the United Kingdom, France, Canada, Denmark, Italy, the Netherlands, and Spain.

Singapore began quarantine-free entry for Germany and Brunei last month, and plans to include South Korea in the quarantine-free entry list starting from the 15th of next month.

Bloomberg stated, "Due to the contrasting responses to COVID-19, questions are being raised about Hong Kong's future as a regional hub," adding, "These concerns are growing especially among foreign companies in Hong Kong who have experienced turmoil related to the Hong Kong National Security Law."

Regarding Chief Executive Lam's statement that the number of foreign companies in Hong Kong increased to 9,049 this year, a record high, Bloomberg noted, "Most of the foreign companies newly establishing offices in Hong Kong were Chinese companies."

This content was produced with the assistance of AI translation services.