Hong Kong, stepping stone to China for Lankan investors
 

by Channa Kasturisinghe

Hong Kong is a stepping stone for Sri Lankan business people who wish to tap the vast Chinese market, said the visiting Associate Director General of Invest in Hong Kong (InvestHK) Simon Galpin. He said Hong Kong also provides an opportunity for investors to tap other major markets in the South East Asian region by using its geographical advantage.

The foreign direct investment inflows to Hong Kong were a massive US$34 billion in 2004, according to preliminary figures released by the Hong Kong Government in late March. This equates to two and half times the inflows received in 2003.

Galpin, along with InvestHK's Head of Trade Related Services Charles Ng is in Sri Lanka on an investment promotion mission. InvestHK is a Government body set up with the objective of attracting Foreign Direct Investment (FDI) to Hong Kong. It also offers investors free facilitation services to establish or expand businesses in Hong Kong. The Ceylon Chamber of Commerce yesterday arranged one to one meeting among these officials and Sri Lankan businessmen.

Galpin said apart from its strategic location Hong Kong offers the regions best hard and soft infrastructure for smooth operation of businesses.

"When it comes to hard infrastructure Hong Kong has the world is busiest cargo airport and the container seaport. With nearly a dozen fixed telecom network services we have one of the world's best telecommunication network'.

On the other hand Hong Kong is the world's freest economy with a very business friendly tax regime. Compared to Singapore and China our taxes are low and simple. The government has ensured free flow of information which is vital for business. All in all Hong Kong is a hub for foreign investment in the region," Gaplin said.

He said Hong Kong is a leading international financial centre and a major fund raising center in the world.

"Our stock market is the second largest in Asia and the 8th largest in the world. There are over 3,600 Regional Operation Centres of foreign companies in Hong Kong. It is also the world's 11th largest trading economy. Our total merchandise trade for 2004 was recorded at US$ 529.5 billion, representing a surge of 16 percent from 2003. Most importantly, more than 75 percent of international consumer products buyers source Chinese products via Hong Kong," Galpin said.

Charles Ng said among the specific areas of investor interest are retail trading, financial services, Jewellery, health care products and IT related industries.

"Tourism is another area in which Sri Lankans can invest. Tourist arrivals to Hong Kong is expected to reach 35 million by 2010. Upcoming mega projects such as Disneyland and Asia World Expo could attract more tourists," he said.