The Hong Kong Special Administrative Region government announced new institutional setups and a slew of new initiatives to attract strategic enterprises, investment and professionals to Hong Kong, and to stem the talent exodus and corporate relocation exacerbated by the COVID-19 pandemic.
Financial Secretary Paul Chan Mo-po will lead the Office for Attracting Strategic Enterprises, which will be established within this year.
The office aims to attract high-potential and representative companies from around the globe from industries of strategic importance, such as life and health technology, artificial intelligence and data science, financial technology, and advanced manufacturing and new energy technology.
It will formulate special facilitation measures covering aspects such as land, tax and financing, applicable exclusively to target enterprises, and provide employees of these target enterprises with facilitation services in such areas as visa applications and schooling arrangements for their children.
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OASES will help steer the Dedicated Teams for Attracting Businesses and Talents under the government’s 17 mainland offices and overseas Economic and Trade Offices. Starting this year, the dedicated teams will proactively reach out to target enterprises and the world’s top 100 universities to promote the related programs.
Our goal is to attract not less than 100 high-potential or representative information and technology enterprises to set up or expand their business in Hong Kong in the coming five years.
John Lee Ka-chiu, Chief Executive, HKSAR
“Our goal is to attract not less than 100 high-potential or representative information and technology enterprises to set up or expand their business in Hong Kong in the coming five years, including at least 20 top-notch inno-tech enterprises, bringing more than HK$10 billion ($1.28 billion) of investment to Hong Kong and creating thousands of local job opportunities,” Chief Executive John Lee Ka-chiu pledged when delivering his Policy Address on Wednesday.
The chief executive hopes that by implementing measures to attract top-notch talent, it will boost the city’s competitiveness.
“In the past, Hong Kong has relied on fundamental factors such as rule of law and an efficient government to attract foreign direct investment. Now, the government will adopt a selective approach to lure FDI that can create new business value chains, new jobs, and new engines of economic growth as well as diversify the economy,” a government source said.
Chief Secretary for Administration Eric Chan Kwok-ki will lead the Talents Service Unit, which will mainly focus on the strategic implementation of the facilitation measures. It is expected that the unit will be able to attract at least 35,000 professionals to work in Hong Kong every year.
The administration will set aside HK$30 billion from the Future Fund to establish the Co-Investment Fund, through which the government will be able to coinvest in suitable individual projects undertaken by the target companies. This is expected to help attract such companies to set up their operations in Hong Kong.
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In addition, the Advisory Committee on Attracting Strategic Enterprises will be established to advise the financial secretary on the overall strategy.
At the macro level, the government will establish the Hong Kong Investment Corporation, which will consolidate the Hong Kong Growth Portfolio, the GBA Investment Fund, and the Strategic Tech Fund under the Future Fund, as well as the Co-Investment Fund, in a bid to support and attract more enterprises to develop their business in Hong Kong.
“We understand the importance of housing, tax and finance incentives as a tool for attracting global talent, especially those at senior levels in Hong Kong. We look forward to the new developments that will further facilitate and support companies looking to bring in the best international talent,” said Robert Speers, principal of Financial Services Practice at global executive search firm Heidrick & Struggles Hong Kong.
