Why Hong Kong is the ultimate gateway for scaling into the APAC region
by Jack Large
MEDICI, the conference group and FinTech promoter in the APAC region, latest brochure on their Hong Kong fintech week lists why Hong Kong is the best entry point into the APAC region. Many of attractions also apply to apply to corporate treasury department as well as FinTech companies:
- One of the world’s most competitive economies
- One of the leading innovation and technology hubs
- The center of gravity for Foreign Direct Investments (FDI) & FinTech investments in Asia
- [Financially] dedicated Government
- Financial support for the startup community
- Regulatory push into the "New Era of Smart Banking" with a clear plan as to how they will Authorize Virtual Banks
- Faster Payments scheme goes live this month. The infrastructure will link into 20 banks and eight electronic payment operators, with payers able to use mobile phone numbers or email addresses to make payments in the Hong Kong dollar or renminbi.
- Focus on R&D – The competitive advantage of research in the business space
- A melting pot of unmatched talent
- Highly competitive taxation system - At the end of March, the Government Inland Revenue Ordinance 2018 presented a two-tiered profits tax rates regime announced in the 2017 Policy Address.
- Government-supported world-class sandboxes, fast-tracking innovation adoption by market participants
- Strong international ties.
Corporate Treasury Department and Shared Service Centre location
It is no surprise that the location of corporate treasury departments in the APAC region is heavily concentrated in Hong Kong and Singapore, but the salaries here are too high to make Shared Service Centre cost-effective. Phillipines used to be an attractive alternative, but salaries are rising there too, and some companies are now looking at other lower cost locations, e.g. Vietnam.
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