Commentary

Can Hong Kong hold its competitive position by relying on an open economy, low taxes, rule of law, and excellent infrastructure?

A designer is an emerging synthesis of artist, inventor, mechanic, objective economist and evolutionary strategist.

You buy a liability policy and figure, "That's it I'm covered. If I'm sued, my insurance will take care of it." You hope!

Global economic uncertainty is taking an obvious toll on employment in Hong Kong financial services this year, with cost controls creating redundancies and reducing recruitment, especially at international firms. But that’s not to say the market is completely moribund. A few functions, including those featured below, continue to experience comparatively healthy hiring, all be it typically at lower levels than last year.

If you desire an animated dinner, start a debate about why some countries are rich while others are poor. Asia is the ideal battle ground for this debate: the region has developed and emerging economies, modern and backward nations, democracies and dictatorships. Many Asian countries were poor just 50 years ago, but are now among the richest in the world – Singapore, Taiwan, Japan, Hong Kong and South Korea. And some got poorer in the same period – Sri Lanka, Philippines, Myanmar and North Korea. China is now half way, and on the way up.

The departure of Ina Drew, Chief Investment Officer at JP Morgan Chase, reminds us that things move fast and mercilessly in the world of business. She had been with the company for 30 years. But as the senior manager in charge of the London group (including the colourfully named “London Whale” trader) who made the disastrous bets that caused the US$2 billion debacle, she had to go.

In recent years, increasing attention has been given to the issue of work-life balance. Governments, institutions and individual businesses have recognised that achieving a healthy balance not only boosts workers' health and morale, but also their productivity, ultimately benefitting the business too.

The employment market in financial services in Hong Kong and China has been fairly moribund since the third quarter of last year, but when it comes to bonuses the picture is more complex: some employees enjoyed a rise; high-earning bankers suffered the worst decreases; and while firms generally managed expectations well, many employees ended up dissatisfied with the size and structure of their bonuses.

Since this author last reported on Hong Kong’s emergence as an important regional arbitration venue, two significant developments have further bolstered the standing of the territory.

The Asia Pacific (APAC) airline industry has been experiencing unprecedented growth in recent years. The Chinese airline players, especially, are leading the way with significant growth and expansion. This can be attributed to the country’s rapid urbanization and economic upswing leading to an increase in consumer spending and purchasing power from within (outbound travel) as well as a growing interest in China as a holiday and business destination without (inbound travel). As a result, about 360 million more APAC travelers are expected from the region by 2014. This also means a potential windfall for Hong Kong as it positions itself as the gateway to China as well as a launching pad for the Chinese to the rest of the world; Hong Kong is seen to be a popular first and last stop for travelers when they embark on their journey through the Far East and a popular destination for the Chinese exploring tourism for the first time.

The only solution is to allow the volume of money to be determined entirely by free-market forces.

The recent arrest of the Kwok brothers, members of one of Hong Kong’s highest profile business families, reminds us that doing business with friends and relatives can sometimes end in tears. But that doesn’t mean that Asia’s traditional family-based companies do not have something to teach the wider business world.

It takes just a few minutes for people to realize they have forgotten their mobile phone after leaving home; but it takes in general much longer for people to notice that their wallet is missing.

The financial services employment market in Hong Kong has seen better days. Put simply, there are more redundancies and fewer vacancies than a year ago as many institutions strive to slash costs in an uncertain global economic environment.

I'm sure like me, many of you have been on a corporate training seminar that started the day with a ra-ra session to get you up out of your chair, get the energy flowing and get you in the mood to learn something new. Many of you may also have experienced that terrible feeling when sitting an exam of suddenly not remembering things you definitely knew the night before.

Hong Kong ports have benefited greatly from the region’s thriving trade activity in recent years. But now, the irregular economic ups and downs of the global market and industry changes may threaten future success.