Dutch electronics giant
Philips is placing its Asia-Pacific regional headquarters in Hong Kong to cut costs and move closer to the Chinese mainland.
Chief executive of Philips Electronics China Group Rob Westerhof said Hong Kong is an excellent place for an Asia-Pacific headquarters because the emphasis of the hi-tech electronics industry is concentrated more and more in northeast Asia, of which the mainland is increasingly becoming a larger part.
ˇ§We see Hong Kong as a major hub between the mainland and the rest of the world. Our presence in the mainland has been growing over the years and the role of Hong Kong is to increase our international activities,ˇ¨ said Mr Westerhof.
Hong Kong benefits as China becomes major ˇĄchipˇ¦ centreˇ¨.
Mr Westerhof said that by consolidating the Singapore and Hong Kong offices into a regional base in Hong Kong by August, there would be substantial savings between US$15-20 million.
ˇ§It is more economical to fly from Hong Kong to the mainland. This is where our markets and our major competitors are. As China becomes the worldˇ¦s semiconductor centre, I can see more and more electronics companies moving to Hong Kong.ˇ¨
In an interview with Hong Kong Trader in October 2000, Mr Westerhof talked about the success factors of companies doing business in the mainland. He said: ˇ§Companies that started doing business with the mainland at an early stage and stayed on did well despite some difficulties. Another major factor was the use of regional expatriates, and another was having very good ties with the Chinese Government at all levels.ˇ¨
