Hong Kong’s ‘draconian’ travel restrictions push out corporate expats, says report
Hong Kong may see even more residents pack their bags, with 44 per cent of Hong Kong expats saying they may leave over the city’s travel restrictions, a new report has revealed.
Some 26 per cent of businesses in the global financial hub are also thinking of relocating, the American Chamber of Commerce in Hong Kong found today – with the lights of Singapore just a stones throw away.
The fellow city-state is also considered Hong Kong’s biggest business rival by around 80 per cent of those polled.
“Hong Kong still holds many business opportunities but an array of issues,” the report said, with the city-state’s ‘Zero Covid-19’ restrictions “out of step” with that of the rest of the worlds.
HSBC told a group of traders in the region on Tuesday that “the risk we now face is not merely about being infected by Covid-19, but most importantly being 1st and 2nd level close contact and being taken to government quarantine”, according to a staff memo seen by Bloomberg.
The city has already seen a mass exodus over the past few years, after Beijing imposed its controversial national security law in June 2020.
The sweeping law has also rattled staff morale, with eight in 10 businesses reporting that their operations have been impacted by the loss of employees who have already emigrated.
Many have also said the law has worsened over the past year.
Paused investments
Hong Kong’s “draconian” travel restrictions, alongside the city’s turbulent political landscape, have pushed over 30 per cent of respondents to delay new investments in the city, the report added.
While a third of corporate representatives have struggled to fill senior executive roles, which JP Morgan’s boss Jamie Dimon cautioned in November last year.
American Chamber president Tara Joseph said: “We have a long-standing role as a partner to the government to advocate for change in public policy that will help Hong Kong thrive as a global business hub.
“For over 50 years, the Chamber has been proud to serve as an objective, honest broker. Given the challenges of the past few years, it is now more important than ever to remain vocal in areas that are relevant to Hong Kong’s sustainable success.”
However, more than half of those surveyed feel the government is either “unconcerned” or “dismissive” about business concerns in the financial hub.