Hong Kong seems to have become less appealing as a regional hub than it used to be. The cost of living has increased significantly over recent years and there aren't enough incentives to attract foreign talent.
" The HKMA is ready to take on the challenge to oversee financial institution giants."
Ivy Au Yeung, Chief Executive Officer ANZ Hong Kong
The availability of an appropriately skilled talent pool is a key to attracting high-end services operations that depend on intellectual property (IP) – research, technology, design, analytics.
According to the Global Competitiveness Report 2014-15, the most problematic factors for doing business in Hong Kong is its insufficient capacity to innovate. The quality of its research institutions and the limited availability of scientists and engineers remain the two key issues to be addressed.
In addition, increasing political tensions with Chinese government are causing concerns within the business community. With the recent vote down of the electoral package, Hong Kong's political condition remains uncertain.
The government need to regain its credibility and focus on economic and social development as quickly as possible in order not to deteriorate the city's competitiveness.
Having spent most of my career life in Hong Kong, I believe Hong Kong still has its strengths despite these challenges. The generally observed freedoms, business-friendly policies and approach to regulation are just a few.
Most importantly, Hong Kong is achieving remarkable progress in financial infrastructure development and has reinforced its status as a well-established global financial centre.