Hong Kong authorities reportedly admitted to complaints by foreign businesses about strict quarantine rules but defended the government’s position to protect health as the «prime objective».
Hong Kong secretary for commerce and economic development Edward Yau said he took complaints about the stringent travel rules «very seriously», according to a «Financial Times» interview, but defended the government’s current position on health protection.
«There’s no secret or surprise that firms are suffering from Covid travel restrictions both locally and regionally,» Yau said, adding that the government had received «constant concerns [from companies] and very candid requests to reconsider».
«We are a very safe city in terms of Covid containment,» he added.
Exit Threats
According to the report, the Asia Pacific head of a large unnamed European firm warned Yau it would shift a large part of its operations to Singapore from Hong Kong, where its regional headquarter resides.
«It’s going to be very difficult for Hong Kong as an international financial center if [other] borders remain closed for six to nine months,» said an anonymous senior banking industry official.
«[Hong Kong’s tight quarantine rules] lead many in the international community to question if they want to remain indefinitely trapped in Hong Kong when the rest of the world is moving on,» according to an open letter recently issued by the European Chamber of Commerce.
Banking Headwinds
Hong Kong’s financial sector continues to face pressure not only from coronavirus-related factors but also ongoing political developments such as the national security law.
Financial firms like Japan’s SBI and Daiwa reportedly spoke about retreating from the city over the law, introduced in June 2020, potentially shifting operations back home or to mainland China instead.
The industry recently breathed a sigh of relief as Beijing delayed plans to introduce the anti-sanctions law that could force financial institutions to choose between complying with U.S. or China, and not both.
