SINGAPORE : Hong Kong’s reputation as a stable financial hub has been shaken by a controversial extradition Bill that prompted massive protests, and its loss might just be Singapore’s gain, experts say.
The Chinese territory and the South-east Asian city-state have long vied for the title of Asia’s top financial destination, attracting international business from around the world.
But a decision by Hong Kong’s Beijing-backed government to introduce a Bill allowing extradition to the mainland sparked concern among the business community and brought reportedly up to two million protesters onto the streets.
Hong Kong’s political crisis is “definitely a dent in its reputation”, said Mr Lawrence Loh, director of the Centre for Governance, Institutions and Organisations at the National University of Singapore’s Business School.
“There will be some immediate benefits (for Singapore),” he added, pointing to reports that tycoons were already shifting money from Hong Kong.
Hong Kong offers access to China and enjoys freedoms unseen in the mainland, under the terms of its 1997 handover from Britain to Beijing.
It has a large expatriate community and prides itself on its reputation as a financial capital in the region.
But its status is temporary – the handover agreement expires in 2047 – and in recent years, there has been increasing concern about Beijing’s influence.
Companies were unsettled not only by the massive demonstrations, but also by the proposed law, which they feared could undermine Hong Kong’s reputation as a safe place to do business.
Opponents of the proposal worry it will entangle people in China’s notoriously opaque and politicised justice system, and threaten those critical of Beijing’s policies.
“Enacting such an open-ended law by fiat will only drive business to places like Singapore,” Mr Richard Harris, chief executive of Port Shelter Investment, wrote in Hong Kong’s South China Morning Post.
