While Singapore has powered ahead with its vision to create an international maritime centre over the last decade, backed by a raft of government initiatives, there has been a perception that Hong Kong was getting somewhat left behind given its government’s more hands off approach to business.
It was good therefore to see CY Leung, chief executive of the HK Special Administrative Region (SAR), launch a spirited defence of its maritime sector last week saying the government was “fully committed to building on the strengths of the maritime and logistics industries”. Leung could not have chosen a more appropriate event to make these remarks than the official opening of the new premises of the HK Maritime Museum, celebrating Hong Kong’s long and proud maritime heritage.
Yes, Hong Kong may be seeing some of its shipping businesses setting up in Singapore or moving some operations to China but the core of its maritime businesses remain firmly anchored in the fragrant harbour. Indeed Hong Kong boasts the world’s fourth largest shipping registry with just over 79m gt entered, compared to fifth place Singapore with 61.3m gt on its books.
In many ways Hong Kong and Singapore offer remarkably similar propositions. Both have strategic locations within their respective geographies and provide a well-governed free market in which businesses can thrive and offer some of the lowest corporate tax rates in the world and an all important predictability and stability in policies.
The two cities also face many of the same issues with high property prices and operating costs a factor in both land scarce metropolises. In that sense Singapore is to some extent finding itself a victim of its own success with soaring property prices, and a strong Singapore dollar versus the US dollar, driving up business costs.
It is also worth noting though that last week also saw Bimco becoming one of the first international shipping organisations to open an office in Shanghai. Shanghai’s ambitions in maritime are well known, but to date while many shipping related businesses have set up in the thriving city this has been more to access the China market than to act as a wider hub for region.
The regional rivalries are set to continue with Hong Kong, Singapore and Shanghai all offering their own unique propositions. As a result it is likely many maritime and shipping businesses will opt to be in two if not three of these Asian shipping hubs, as many already do.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
