14
WEDNESDAY, FEBRUARY 20, 1991
Q.
SIR, IF YOU COULD SPEAK TO HONG KONG'S FUTURE AS A FINANCIAL CENTRE IN SOUTH-EAST ASIA AND A POSSIBLE CHALLENGE POSED BY SINGAPORE. THE SINGAPORE GOVERNMENT HAS A WIDE PANOPLY OF INCENTIVES IT HAS OFFERED HONG KONG COMPANIES TO SET UP SHOP. THE OTHER DAY 'GOLDPEAK LISTED DOWN THERE ONE OF THE REASONS THEY ARE LISTING IN SINGAPORE AND SETTING UP THEIR MAIN OPERATIONS FOR THEIR MOST PRODUCTIVE PART OF THE COMPANY IS BECAUSE OF A PACKAGE OF TAX- INCENTIVES AND ALSO RESIDENCY. MAJOR UK FUND MANAGERS HAVE SET UP SHOP IN SINGAPORE RATHER THAN HONG KONG BECAUSE THE GOVERNMENT THERE HAS ALLOCATED A PORTION OF THE CPF FOR THEIR MANAGEMENT. HALF-A-DOZEN FOREX DEALERS HAVE MOVED DOWN TO SINGAPORE, IN PART BECAUSE OF LOWER TAXES. MY QUESTION, SIR, IS: DO YOU SEE THIS AS A SIGNIFICANT CHALLENGE FROM SINGAPORE? AND (2): IS THE GOVERNMENT THINKING OF SOME SORT OF PACKAGE WHETHER IT BE TAX-INCENTIVES AND SUCH
IN ORDER TO RETAIN AND ATTRACT COMPANIES TO HONG KONG?
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A.:
GOVERNOR:
I ALWAYS THINK OF OURSELVES AND SINGAPORE, IF YOU WILL FORGIVE THE BRITISH ANALOGY, OF RATHER LIKE RIVALRY BETWEEN OXFORD AND CAMBRIDGE, BECAUSE WE CONSTANTLY ARE RIVALS BUT VERY FRIENDLY RIVALS. THERE IS NO DOUBT THAT SINGAPORE WOULD LIKE TO ATTRACT PEOPLE FROM HONG KONG, AND THAT IS IN THE FINANCIAL SPHERE AND J THINK IT'S IN A WHOLE LOT OF OTHER SPHERES. SO FAR, I'M BOUND то SAY, I DON'T THINK THAT THEY HAVE BEEN TREMENDOUSLY SUCCESSFUL. WE WILL GO ON TRYING TO BUILD UP HONG KONG AS A FINANCIAL SERVICES CENTRE FOR THIS AREA IN THAT SORT OF FRIENDLY RIVALRY.
OUR OWN SYSTEM HERE IS BASED ON, ΤΟ THE EXTENT WE CAN, SIMPLICITY OF STRUCTURE, SIMPLICITY OF TAX. IT IS LOW TAX BUT IT IS ALSO A VERY SIMPLE TAX REGIME. WE ALSO TRY TO HAVE A REGULATORY ENVIRONMENT WHICH IS ADEQUATE BUT NOT EXCESSIVE, AND AGAIN WE HOPE THAT THAT IS GOING TO BE CONDUCIVE TO BUILDING THIS PLACE UP AS A FINANCIAL CENTRE. I WON'T TRY TO DEAL WITH THE FINANCIAL SECRETARY'S BUDGET NOW, I THINK THAT HAS TO WAIT FOR TWO WEEKS, BUT WE ESSENTIALLY ON TAX MEASURES TRY TO KEEP THINGS SIMPLE RATHER THAN TO GIVE SPECIAL CONCESSIONS, AND WE BELIEVE THAT IS WHAT HAS HELPED TO MAKE HONG KONG A SUCCESSFUL PLACE.
IT IS, I THINK, AN INTERESTING POINT THAT ALTHOUGH WE FACE HERE UNCERTAINTIES ABOUT THE FUTURE AND THEREFORE PEOPLE WORRYING ABOUT THAT, ALTHOUGH THERE ARE ATTEMPTS TO BUILD UP RIVALS TO HONG KONG ALL ROUND THE REGION, SO FAR, HAPPILY, THOSE HAVE NOT BEEN PARTICULARLY SUCCESSFUL. I BELIEVE THAT WE HAVE MORE SINGAPOREANS WORKING HERE HONG KONG THAN THERE ARE HONGKONGERS WORKING IN SINGAPORE, AND I DELIGHTED BY THAT.
IN AM
PHILIP BARHAM : SIR, YOU MAY NOT BE IN CHARGE OF THE MOVEMENTS OF THE DALAI LAMA BUT YOU ARE IN CHARGE OF ENTRY INTO HONG KONG. COULD YOU EXPLAIN WHAT PARANOIA GRIPS YOUR GOVERNMENT THAT IT DOESN'T ALLOW THE LIKES OF A DISTINGUISHED SOVIET ACADEMICIAN, GEORGIY ARBATOV, INTO THIS TERRITORY WHICH IS SUPPOSED TO BE AN CITY?
INTERNATIONAL
/A.: GOVERNOR :