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Regional rivalries of Asian shipping hubsRegional rivalries of Asian shipping hubs

The rivalry between Hong Kong and Singapore as business hubs is a longstanding one and not just in shipping and maritime, but also areas such as financial services.

Marcus Hand, Editor

March 4, 2013

2 Min Read
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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.

 

 

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SingaporeHong Kong

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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