CPA Australia urges reforms to enhance Hong Kong's competitiveness

One of the key proposals includes introducing a Qualified Refundable Tax Credit for multinational enterprises.

CPA Australia has submitted a series of policy recommendations to the Hong Kong Government aimed at strengthening the city’s long-term competitiveness amidst global economic shifts and rapid technological advancement.

The submission outlined proposals across five key areas: reinforcing Hong Kong’s status as an international financial centre, developing the city as an innovation and technology hub, promoting sustainability and green finance, diversifying the economy, and attracting and retaining talent.

Amongst the key proposals is the introduction of a Qualified Refundable Tax Credit (QRTC) for multinational enterprises in maritime services and commodity trading.

According to CPA Australia, this measure would provide a more flexible and effective incentive structure to attract foreign investment.

The organisation also advocated for the development of the low-altitude economy, citing its potential to transform logistics, urban planning, and mobility. Suggested measures include the establishment of demonstration zones and deeper cross-border collaboration within the Greater Bay Area.

Hong Kong’s growing capacity for tech innovation was noted, with Ms Wong pointing to the city’s research strength and government-backed Regulatory Sandbox pilot projects as signs of readiness for practical deployment of emerging technologies.

To improve government efficiency and business-friendliness, CPA Australia recommended adopting a “tell us once” compliance model. This would involve secure data sharing across government departments, streamlined digital authentication, and wider adoption of the iAM Smart platform.

Sustainability was another key focus. The group urged the government to align the Hong Kong Taxonomy for Sustainable Finance with international standards and called for the development of a carbon trading framework, including the potential launch of a “Carbon Connect” initiative.

CPA Australia highlighted Hong Kong’s strong financial system and ongoing investment inflows, noting the city’s ambition to reclaim its position as a top IPO market in 2025.

On private markets, CPA Australia suggested piloting intermittent trading facilities for private companies, which could serve as a bridge to eventual public listings.

Additional proposals include launching a CyberSafe SME Subsidy Programme and creating a CyberSafe HK certification to strengthen cybersecurity resilience. The group also suggested enhancing maternity and paternity leave provisions in line with other developed economies, as part of a broader strategy to attract global talent.