The number of people emigrating from Hong Kong has been rapidly increasing, Hong Kong Census and Statistics Department data show, with the territory’s population dropping by 110,000 people from 2019 to this year. China’s imposition of a National Security Law has clearly triggered a massive population outflow.
However, not only people but also foreign businesses are leaving Hong Kong. For example, Vanguard Group, the world’s second-largest asset management company, VF Corp and Sony Interactive Entertainment have moved their top regional management from Hong Kong to Singapore. LVMH Moet Hennessy Louis Vuitton, the world’s largest luxury goods company, has also relocated staff from its Hennessy alcoholic beverage department in Hong Kong to Singapore.
Some foreign businesses have considered quitting Hong Kong, but not because of the National Security Law. On Oct. 6, the European Chamber of Commerce in Hong Kong said that the territory’s “zero COVID” strategy and strict quarantine measures have led many European businesses to consider leaving.
The question is: Where do they go? These examples show that many foreign businesses quitting Hong Kong have relocated to Singapore. Could they be persuaded instead to relocate to Taiwan? This would require the government to take the initiative to resolve issues that drive businesses away from Hong Kong — such as strict disease prevention measures and a lack of freedoms — to offer a more attractive environment.
First, Taiwan’s disease prevention measures are more effective than Singapore’s. The city-state has reported a record number of COVID-19 infections, with more than 3,000 new daily cases recorded on the five days to Oct. 9. Singapore’s total number of confirmed COVID-19 cases exceeds 120,000, accounting for 2 percent of its population.
Given its COVID-19 situation, even though Singapore has adopted a “living with COVID” strategy, there are no guarantees that company operations would not be effected, not to mention that the pandemic is not over.
Taiwan currently has a COVID-19 prevalence of 0.067 percent. Apart from the mandatory use of masks, life in Taiwan is basically unaffected by the virus. Amid the pandemic, this is a rare living and business environment for foreign businesses.
Second, Taiwan is safer. According to the Crime and Safety Index published on July 13 last year by the online database Numbeo, Taiwan ranked second for safety, surpassing Singapore, which was ranked 34th.
Third, Taiwan is freer. This year’s annual Freedom in the World report by Freedom House ranked Taiwan second in Asia with 94 points, second only to Japan, while Singapore scored 48 points and was categorized as a “partly free country.”
Based on this analysis, the government should act promptly — and often — to persuade foreign businesses in Hong Kong about the advantages of relocating to Taiwan.
Liu Ming-te holds a doctorate in political science from the Free University of Berlin.
Translated by Lin Lee-kai
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