Jim Thompson of Crown Worldwide Movers says overseas firms are expressing their confidence in the Hong Kong economy

Jim Thompson, chief executive of Crown Worldwide Movers, said most corporations believe Hong Kong's strong recovery will be sustained and want to increase their presence here. "Hong Kong is unquestionably the most desirable spot in Asia for expatriate living," he said.
 
Year-to-date figures released in August by Crown show a 65 per cent increase in incoming shipments over the previous year. This is the largest increase for six years, Mr Thompson said, and may well represent an all-time single year high if the numbers continue at their current pace until year-end.

"Outbound moves have also decreased, indicating that those who are here in Hong Kong have decided to stay," Mr Thompson noted.  "I think many firms had reduced staff in the past and have now realised that they should keep their current staff in place while adding additional executives to their current staff."
 
Trend set to continue

Patrick O'Donnell of Links Relocations says Hong Kong offers value for money as a regional base

"I think the fact that China has been so accommodating to Hong Kong has made everyone feel quite optimistic that the current economic upturn should continue for quite a number of years. This creates a positive investment atmosphere."

While most inward investors are interested in China, they also know of Hong Kong's many advantages for living and doing business, Mr Thompson added. "The cost of living has declined significantly to make Hong Kong more affordable. There is an abundance of world-class office space at fair prices, and the professionals required to learn about doing business in China are all here.  All these things and the ease of doing business in Hong Kong have made it very attractive to investors." 

Patrick O'Donnell, director of Links Relocations, said Hong Kong was now a "good deal" for overseas companies because of the slide in the US dollar and the strong HK dollar. This made Hong Kong effectively 20 per cent cheaper than its regional competitors.

Other factors contributing to the upturn were the availability of high quality, international schooling, the surplus of supply in the upper/luxury end of the property market, the convenience of Hong Kong as a base for China operations, its convenience as a regional hub, and the lower cost of living. "The deflationary environment has knocked Hong Kong down the list of most expensive cities and MNCs (multinational companies) are quick to note this," Mr O'Donnell said

Links' inbound business is up 20 per cent on non-Sars levels and Mr O'Donnell said most international real estate agents are noticing a similar upsurge in inquiries from MNC clients.

Cepa a drawcard

Jane Garnett of CB Richard Ellis says Cepa is attracting more companies to use Hong Kong as their regional base

"In particular, we have seen an increasing number of expatriates coming from the manufacturing sector, as well as the traditional sectors of banking, finance, insurance and legal. Following the implementation of Cepa at the beginning of the year, manufacturing companies have come to Hong Kong either to set up or expand existing operations, in order to capture the zero tariff benefit. In addition, the retail sector is booming and many of the luxury goods providers are bringing in more executives to deal with the expanding operations."

Hong Kong offers expatriates a safe, East-meets-West living environment with all the comforts of "home", Ms Garnett added. "We have a world-class health system, international education facilities, some outstanding social and sporting clubs, gastronomic heaven and inexpensive domestic helpers. It's a great place for travelling around the region, with so many exciting destinations just a few hours away.

"Hong Kong is genuinely multicultural and expatriate children grow up exposed to far more languages, cultures, religions and beliefs than they would be likely to find in their home country."

Related links
Crown Worldwide 
Links Relocations
CB Richard Ellis