As the on-going Hong Kong protest shows no end, firms are suffering more and more. If this continually happens, there will not be much time before the collapse of those companies.
These rallies have cast suffering upon the country’s economy and companies. Hence, as China and the government of Hong Kong are taking their time to ‘deal with’ the protesters, firms cannot wait.
As the current situation do not support business to go on, many companies are thinking of a way out. In general, they have planned to relocate their offices in Hong Kong to somewhere safer.
Aljazeera reported a survey conducted by American Chamber of Commerce on the foregoing. Accordingly, the survey incorporated responses from around 120 diverse companies which have regional heads in Singapore.
The result indicated that 80% experiences negative impacts from the protests. 23% of the firms considers relocating their business, yet only 1% has erected a plan to do so.
Furthermore, above 90% opts Singapore as the best destination for the relocation. This is so for Singapore has become one of the best business hubs in Asia besides Hong Kong.
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Although Hong Kong has been bombarded with continual protests and chaos, analysts think that it is too soon to take the country’s predicate as one of Asia’s best business hubs.
Meanwhile, there is no indication of mass exodus from Hong Kong to Singapore. This is so although companies have considered to do so.
Damien Ryan of Teneo Strategy, a Hong Kong-based communications strategy firm, at a panel discussion on the survey results.
“Are businesses reviewing plans and making those decisions to relocate? I think that’s a little bit early at the moment, simply because we’re in the middle of what is a fairly significant crisis,” Damien Ryan of Teneo Strategy, a Hong Kong-based communications strategy firm, said.
With this in mind, no one truly knows when the protests will surely end. Moreover, we all can agree that businesses cannot wait for this uncertainty.
However, moving out firms might require years and money, meaning that it is not that simple. With that being said, 86% firms in the survey remains optimistic that the relocation to Singapore will bring much profits, a hope.
