Singapore Gaining Ground as Headquarters Hub
28 November 2012
According to a recently-released Hong Kong tax survey conducted by CPA Australia, Hong Kong is fast losing its edge against Singapore as a regional headquarters hub in Asia.
The Hong Kong Tax Survey, which was conducted in October 2012, incorporated responses from 254 senior accountants and financial professionals based in the city. Some 59% of them said that they preferred Singapore as their corporate regional headquarters primarily due to the tailor-made tax incentives it offers to those who fulfil stipulated HQ requirements.
The respondents also cited high rental costs (31%), high living costs (19%), pollution (18%), high staff costs (12%) and lack of tax incentives (7%) as primary barriers for establishing a regional headquarters in Hong Kong.
Nonetheless, Singapore is no less immune to the issue of high staff costs as its regional rival. In recent weeks, Singapore media has been abuzz with growing grouses over the successive calibration of the Singapore work visa framework. Since the measures began in 2009, small to medium sized enterprises have been most vocal in articulating their concerns. However, now multinational companies are beginning to voice their concerns as well.
According to a recent report by the Straits Times, Phillip Overmeyer, Singapore’s International Chamber of Commerce chief, has recently said that MNCs may have to invest elsewhere if the foreign manpower tap continues to be tightened.
Matteo Vezzosi, executive director of Singapore’s European Chamber of Commerce, has reported the Chamber’s intent to begin a dialogue with the government to understand its mid to long-term strategy. It has also set up a sub-committee, consisting of 30 representatives of Singapore-based European companies, to look into manpower issues such as talent development and retention.
