Scottish connection roots run deep (tdctrade.com)


	Scottish Development International helps Hong Kong businesses reach out to European markets

Scotland offers immense potential for Hong Kong investors wanting a footprint in Europe and local enterprises seeking new business opportunities, says Fiona Donnelly, General Manager of Scottish Development International (SDI).

The Hong Kong representative office is the latest addition to SDI's 22 offices around the world including Shanghai, Beijing and Taiwan in Greater China.

According to Ms Donnelly, the roots connecting Hong Kong and Scotland run deep. "They date back to Mr Jardine and Mr Matheson," she said, referring to Scotsmen William Jardine and James Matheson who founded Jardine Matheson Group, one of the largest trading hongs (conglomerates) in British-ruled Hong Kong in the early 19th century. It has since grown to an Asian-based group with diversified investments in retail, finance, property, hotels, engineering and automobiles.

Scottish brands with a presence in Hong Kong include the Royal Bank of Scotland, Alliance Trust and Standard Life. "The Scots' identity permeates the city from place names like Aberdeen and various medical practitioners citing their Scottish qualifications, to numerous Scottish food and drink brands to the kilt wearing Hong Kong Police Pipe Band," added Ms Donnelly.

English system favourable

There are many advantages for Hong Kong businesses in Scotland, she said. "Being part of the UK, Scotland offers all of the macro strengths of the UK like the English language being the mother tongue, familiar legal framework, favourable workforce ethic and an advantageous tax regime when compared to other places in Europe."

Indeed, many Hong Kong companies have already ventured into Scotland. Fang Brothers acquired Scottish apparel brand Pringles of Scotland, Hutchison is there with their 3G services, retail chain Dickson Concepts acquired the Harvey Nichols brand and expanded into Edinburgh, and technology company Champion Technology also has a presence there.

Ms Donnelly said Scotland works well as a location from where the European market can be served. "JP Morgan has based its European Technology Centre in Glasgow where software design and development work is done." A range of grant funding is available depending on where investment is made and to support investment in disciplines like R&D and training.

"Scotland like Hong Kong is a predominantly service economy, into more niche manufacturing and with particular strengths in value-added products and services," she added.

Need for services

In fact, companies wanting to expand their horizon in Scotland would do well in sectors such as financial services, life sciences, energy and electronics. "Scotland is home to the second largest cluster of life sciences companies in the UK and is now one of Europe's leading financial centres," she explained.

Ms Donnelly said that Scotland was judged to be the "UK Region of the Future" in Financial Times fDi 2007 Awards and the most entrepreneurial region in the UK by UBS - an entrepreneurial spirit is something that Hong Kong can certainly identify with.