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Singapore overtakes Hong Kong as preferred location for MNCs’ Asian headquarters

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Singapore overtakes Hong Kong as preferred location for MNCs’ Asian headquarters

When multinationals choose positions in Asia, they are clearly moreSingaporebetter thanhong kong,

According to a new report by Bloomberg Intelligence (BI), 4,200 multinational companies set up their regional headquarters in Singapore last year, dwarfing Hong Kong, which has only 1,336 regional headquarters. Even Chinese companies will choose Singapore over Hong Kong to avoid geopolitical risks and expand business scope.

“Hong Kong has lost out in the competition for multinationals to set up their Asian headquarters,” the 50-page report said. More and more multinational companies, even Chinese companies, are choosing Singapore as their first choice because Singapore and Singapore are the first choice.” Choice. Western countries have better relations, a relatively abundant supply of talent, more diverse economies and tax advantages. When geopolitical risks increase, Singapore’s political stability and independence could propel it to a higher rank.”

Even if Hong Kong cuts its corporate tax rate to 16.5%, it may not be able to compete with Singapore, which plans to reduce its corporate tax rate from 17% to 13.5%, and this is some There may be even less for activities.

Singapore also offers effective targeted incentives for foreign companies that wish to set up regional hubs.

Famous companies with regional headquarters in Singapore include FedEx, Microsoft, Alphabet’s Google, Johnson & Johnson, Rolls-Royce and General Motors. TikTok and online fast fashion giant Shein is hereSoutheast AsiaThe state establishes its headquarters. Chinese companies like electric car maker NIO have set up branches here, and technology companies like Alibaba and Huawei are also trying to expand their business. Even state-owned enterprises such as China Logistics Group have chosen Singapore to set up their overseas headquarters.

A significant group of businesses and a more diverse economy could help Singapore attract more global business than Hong Kong over the next five years, according to a report by Bloomberg Intelligence.

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