Singapore previously occupied the spot as chief rival.
Six in 10 (58%) of business professionals believe that Mainland China is the market that challenges Hong Kong’s competitiveness the most, according to an economic sentiment survey released by CPA Australia.
Singapore, who occupied the top spot last year as Hong Kong’s greatest rival, slipped down to second place with 33%.
A measly 3% believe that the Hong Kong economy is not under threat from other competitive markets.
To step up Hong Kong’s competitiveness in the international scene, 32% believe that the government must intensify efforts to develop innovation and technology while 25% believe that the government must extend greater support for businesses to undertake FinTech activities.
24% believe that the government must provide greater tax incentives for businesses.
In terms of increasing innovation, 40% believe that the government should also introduce tax incentives to encourage companies to invest in AI, robotics and other high-tech equipment.
26% believe that actions must be made to increase available funds to Hong Kong universities that promote innovation and entrepreneurship whilst 24% believe that additional funding should go to the government’s Innovation and Technology fund.
“The results show business experts see innovation and technology as the key drivers to Hong Kong’s future. Initiatives set out in recent policy address such as increased resources for R&D and pooling technology talent, show Government investment is targeting key areas,” said CPA Divisional President Ivan Au.
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