For the recent business environment, general criticism to the problem of high property prices and rents in Hong Kong and these would discourage oversea entrepreneur and investor. Such as finance, logistics, tourism and professional services which are so-called “conventional economic pillars” are being overly dependent in the past 2 decades.
Source: The Standard Finance
Hong Kong remains the world’s seventh most competitive economy but has been overtaken by Japan, an annual survey by the World Economic Forum has found.
While the SAR tops the world in infrastructure, notably transportation, “it must improve on higher education and innovation,” said the report out yesterday. Hong Kong has featured in the top 10 of the WEF survey since 2012.
Where the SAR underperforms, Japan excels, the report said. The forum thinks highly of the innovation, quality of talents, and research capability of Japan, which has made the largest strides among the top 10 economies, claiming the sixth spot.
Hong Kong continues to dominate the financial market development pillar, thanks to a highly efficient, trustworthy and stable system, according to the report.
Tuesday’s edition of the The Wall Street Journal Asia claimed some pillars that have supported Hong Kong’s commercial success are under threat as the SAR is roiled by a row on how the chief executive should be elected in 2017.
The WEF report has notched down the SAR in judicial independence and government transparency.
Meanwhile, Hong Kong’s arch-rival Singapore occupied the second spot for the fourth consecutive year. It is the only economy to feature in the top three in seven of the pillars.
Switzerland’s slick efficiency, innovation and macroeconomic stability has earned it the crown for a sixth year in a row, despite its difficulty of finding qualified workers.
The United States muscled into third place ahead of Finland and Germany. But the report pointed to uncertain macroeconomic conditions as a major brake on competitiveness for many advanced economies, including the United States, Japan and many EU countries.
While China climbed one rank to 28th and Russia jumped 11 to 53rd spot, India slid 11 to 71st and became the least competitive of the four BRIC economies, 14 places behind Brazil.
The forum bases its assessment on a dozen drivers of competitiveness, including institutions, infrastructure, health and education, market size and the macroeconomic environment.
The report also factors in a survey among business leaders, assessing government efficiency and transparency across all the dimensions of the Global Competitiveness Index.