China Briefing | Hong Kong needs a command centre fast to marshal all resources against Covid-19, or risk losing out to Singapore amid the expat exodus

For decades, Hong Kong and Singapore have provided a fascinating tale of two dynamic cities competing to become Asia’s premier financial and business centre, offering low tax rates, a pro-business climate and global connections as well as close links with China.

For many cynics, though, there is a caveat when it comes to interpreting the success of the two cities: Singapore has thrived because of the government, while Hong Kong has done so despite it.

This observation may sound simplistic and harsh on Hong Kong but it is not far off the mark. One need only look at what has transpired in the two cities in recent decades, particularly since the coronavirus pandemic struck a little more than two years ago.

Singapore has pulled way ahead in seemingly almost every category while Hong Kong has largely wallowed in political mud since 2003 – with its reputation suffering a particularly big dent following mass protests and riots in 2019.

Now the city’s badly mishandled response to the latest wave of Covid-19 infections has further highlighted the incompetence of its bureaucracy, and may have become the final straw for many of the city’s affluent and international residents. They have begun to move their assets, portions of their businesses, and employees overseas, with Singapore being the most favoured destination. Many more are reportedly considering similar moves.

Some people may argue that Hong Kong has a handicap that Singapore does not – the former is ultimately answerable to the mandarins in Beijing, making it difficult for the city to set a clear direction or act promptly or decisively.

This argument may sound convincing on the surface but the reality is that it is mainly the ineptitude of the city’s government that has landed Hong Kong in trouble and stalled the city’s development.