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Competitive tax rates alongside adaptable land planning policies serve as pivotal incentives in drawing major global corporations to Hong Kong, according to the director-general of the Office for Attracting Strategic Enterprises, Peter Yan King-shun.
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Speaking on a radio public affairs program, Yan explained that development projects across the Northern Metropolis offer considerable planning flexibility, allowing authorities to adjust land regulations to meet the specific requirements of strategic enterprises. He cited recent progress in the Hung Shui Kiu development area, where a major strategic enterprise partnered with several property developers to secure and develop the site.
On the taxation front, Yan noted that strategic enterprises approved by the vetting committee are eligible for corporate tax reductions of up to 50 percent, bringing the effective rate down to as low as 5 percent, which he described as highly appealing to international investors.
Expansion in the healthcare and life sciences sectors
Medical and healthcare services represent a major segment of inbound corporate investment. About half of the world's top ten pharmaceutical giants have established operations in Hong Kong.
These pharmaceutical corporations are not merely setting up corporate offices but are actively pursuing scientific research, innovation, and clinical trials locally. Yan highlighted that their presence delivers substantial upgrades to local industry, particularly in advanced sectors such as precision medicine, cellular therapy, and the treatment of rare diseases, which will ultimately benefit public healthcare in the long term.
Prudent financial safeguards and ongoing policy monitoring
Addressing corporate performance, Yan acknowledged that some ventures might not meet their initial targets due to the rapid shifts and volatile nature of the innovation and technology industry.
His office actively examines the underlying causes of any shortfalls and explores potential avenues to streamline policies or facilitate smooth local onboarding. Nevertheless, current performance figures indicate that the majority of enterprises are exceeding expectations.
Regarding financial backing, Yan emphasized that government support is structured primarily through matching funds, ensuring public resources are safeguarded against potential losses. With no loss-making cases recorded to date, Yan maintained that the existing support framework remains secure and prudent.
