(1st left) Jim Thompson (3rd) Anthony Nightingale and (5th) Norman Lyle point out Hong Kong's competitive advantages

Anthony Nightingale, Chairman of the Hong Kong General Chamber of Commerce believes that Hong Kong's recent rating by the Heritage Foundation as the freest economy in the world highlights the SAR's strengths - among them, low taxes, the openness of foreign investment procedures, the integrity of the financial and legal systems, property rights and labour conditions.

"These stable fundamentals allow businesses to react quickly and effectively to changing economic and market conditions," said Mr Nightingale.

Another unique Hong Kong strength, he stressed, is its competitiveness. "Competitiveness is more than just about cost; it's the ability to do things and to do things well, and this is where Hong Kong has excelled in the past and has the ability to do so in the future."

Mr Nightingale pointed out that as the economies of Hong Kong and the Pearl River Delta region become more deeply integrated, the two regions would complement each other's strengths and enjoy mutual benefits. In addition, the Closer Economic Partnership Arrangement (CEPA) recently signed between Hong Kong and the mainland would allow Hong Kong to attract niche-manufacturing investment and provide bigger gains for Hong Kong's service industries, ensuring that Hong Kong remains the unsurpassed service hub in Asia.

Competitive advantages

Norman Lyle, British Chamber of Commerce Chairman singled out Hong Kong's infrastructure, telecommunications, health care and education system as the SAR's unbeatable advantages.

"Hong Kong has an unshakable well-structured foundation for doing business and has become more cost competitive in the last two or three years," he said.

He added however that Hong Kong would never be the cheapest place to conduct business. "Hong Kong's future lies in its ability to harness and expand on its established areas of expertise and on its well-educated and hard-working citizens who offer real added value in the service industries."

Chairman of the American Chamber of Commerce in Hong Kong Jim Thompson said a faster than expected recovery after the recent Sar's (severe acute respiratory syndrome) outbreak and global political tensions, is a key indicator that Hong Kong can look forward to a bright future.

"I believe Hong Kong's next quarter GDP could surprise everyone and be higher than expected," Mr Thompson said. 

"The positive rebound will build consumer confidence as business investment picks up, which should help to address the issue of rising unemployment."
 
"I think we are in for a good ride, the challenges that Hong Kong was recently faced with make this an even better place for doing business in the future," said Mr Thompson. 

Related links:
Hong Kong General Chamber of Commerce  www.chamber.org.hk
British Chamber of Commerce   www.britcham.com
American Chamber of Commerce    www.amcham.org.hk