Bank of America has reportedly started a review to identify Hong Kong workers who can relocate to Singapore, in yet another example of overbearing pressure from the city’s strict Covid-related measures.
In a process led by Asia Pacific chief operating officer Richard Yacenda, Bank of America is reviewing its Hong Kong staff for relocation to Singapore, according to a «Financial Times» report citing multiple unnamed sources.
Described as «contingency planning», the criteria for relocation will include tax and regulatory considerations and the moves could be permanent or temporary.
It is not yet known how many people will be relocated but there are no expectations for a wholesale shift of business or operations.
Operational Pressure
Hong Kong’s stringent Covid regime – a 21-day quarantine for international arrivals alongside passenger flight bans to eight countries including the U.K. and U.S. – is pressuring businesses including financial institutions to make alternative plans due to its impact on staff.
Recently Hong Kong Association of Banks chair Mary Huen Wai-yi said the city’s talent shortage had been worsened due to the conditions of the pandemic.
Separately, the European Chamber of Commerce in Hong Kong is reportedly preparing documents for its members to better adapt to the situation, forecasting an unprecedented exodus of foreigners and advising businesses to plan for an alternative regional office in Asia.
In addition to Bank of America, rival U.S. lender Wells Fargo is also reducing exposure to Hong Kong with reported plans for a hub relocation to Singapore in April last year and, more recently, consideration of a sale of its minority stake in local player Shanghai Commercial Bank for an estimated $1 billion, according to a «Bloomberg» report.
