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Hong Kong’s ‘perfect’ liveability, low taxes are advantages as global finance hub: Paul Chan

  • Hong Kong’s finance chief Paul Chan highlights city’s advantages like low taxes, ‘perfect’ liveability, government-backed ecosystem for start-ups
  • He also makes a strong pitch for the city boosting its status among firms from overseas in emerging sectors within the so-called new economy

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Hong Kong Financial Secretary Paul Chan Mo-po speaks on the second day of SCMP’s China Conference: Southeast Asia on March 30, 2023, in Singapore. Photo: Handout
Hong Kong’s Financial Secretary Paul Chan Mo-po on Thursday continued a charm offensive in Asia, telling a select group of entrepreneurs in Singapore that Hong Kong’s advantages spanned its low taxes to its liveability standards.
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Speaking at the tail end of a packed schedule in Malaysia and Singapore, Chan said Hong Kong was a natural home for regional start-ups given an ecosystem that included government backing and a vibrant private equity sector that ranked number two in Asia – second only to mainland China.

“There is an ecosystem that includes peers. We organise different activities to enable players in the field to interact with. So being in Hong Kong, you won’t be alone,” Chan said.

In a lighthearted speech, Chan’s comments on Hong Kong’s tax regime drew laughter from the audience.

“We also have a very low and simple tax regime … we don’t have GST (goods and services tax), we don’t have VAT (value added tax) and we don’t have capital gains tax,” Chan said.

Other major financial hubs have a form of sales tax as part of their tax regime: Singapore has a good and services tax of 8 per cent, while Britain has a value added tax of 20 per cent.
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Life was “not all about making money”, Chan noted, saying liveability was “perfect” in Hong Kong.

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