Hong Kong and Singapore are two of the primary business hubs of the Asia-Pacific region. Many people who have conducted business activities in either location or even both have seen their businesses excel and thrive. Both locations possess several business similarities as well as differences which must be considered by any prospective business owner. The differences will help a business owner determine which of the two would be more suitable for the establishment of the company.
Hong Kong and Singapore’s Similarities
One of the primary similarities shared by Hong Kong and Singapore lies in the fact that both derive much of their economic might through import and export activity. This is because both Singapore and Hong Kong are home to one of the world’s most active ports. Both Singapore and Hong Kong also grant business owners a high level of corporate and economic freedom. This freedom has allowed the business and financial environments in both locations to become extremely vibrant and attractive. The governments of Hong Kong and Singapore have also formulated policies which have encouraged entrepreneurs to start businesses in those locations. Thus, Singapore and Hong Kong are renowned for being business friendly.
If you have interest in starting your own company in either Hong Kong or Singapore, we at Paul Hype Page & Co are willing to be of assistance. We have qualified and experienced incorporation teams who will serve your needs related to incorporation in either location. We will ensure that the establishment of your company is done in accordance with the local business laws.
It is interesting to note that there is much economic interaction between Singapore and Hong Kong. As mentioned, both are heavily involved in the importing and exporting of goods and products. However, what many do not realize is just how connected both their economies are. A larger portion of Singapore’s exports go to Hong Kong than to anywhere else in the world. Approximately 19% of everything exported from Singapore is bound for Hong Kong. Hong Kong, meanwhile, receives 6.4% of all of its imported goods and products from Singapore. In this statistic, Singapore only trails mainland China. However, Singapore does not import much from Hong Kong.
Hong Kong and Singapore’s Differences
There are also some key differences seen when comparing the conducting of business in Hong Kong and Singapore. One of the differences which favors Singapore is the quality of its business institutions. According to the Global Competitiveness Report, Singapore’s institutional strength and independence easily outrank those of Hong Kong. Singapore’s business sphere is also generally regarded to be more innovative than is Hong Kong’s. Thus, any business owner who prizes innovation might choose to set up a company in Singapore instead of Hong Kong.
One of the most important differences which favors Hong Kong is the size and power of its stock market. There are over three times as many companies which are listed on the Hong Kong Stock Exchange than there are on the Singapore Exchange. Furthermore, the market capitalization of the Hong Kong stock exchange is almost five-and-a-half times more than that of its Singaporean counterpart. Therefore, business owners who plan to have their company listed on a stock exchange might prefer to establish their company in Hong Kong.
The business environments of Singapore and Hong Kong are two of the most active and open in the world. Thus, it is only to be expected that both have emerged as economic, financial, and corporate powerhouses of the Asia-Pacific region. The differences which exist which regard business activities in both locations should not be ignored, however. Business owners who place a premium on institutional stability and innovation are likely to prefer Singapore to Hong Kong. Conversely, business owners who intend to make use of a vibrant stock market would probably establish their business in Hong Kong rather than Singapore.