AmCham survey shows HK losing its corporate edge
80% of respondents said city’s turmoil has affected their investment decisions; Singapore is the top relocation destination
The Asia Times article, "AmCham survey shows HK losing its corporate edge," quoted Russell Reynolds Associates Consultant
Anupama Puranik on the importance of Hong Kong to businesses as it remains a gateway to China. The article is excerpted below.
A new American Chamber of Commerce in Singapore (AmCham) survey, conducted in collaboration with market researcher Ipsos, gives arguably the clearest indication yet of how business sentiment and investment decisions are being impacted by Hong Kong’s three-month-old political crisis.
Sixty-seven percent of senior managers, business directors and chief executive officers (CEOs) from company respondents said that Hong Kong’s reputation as a regional base of operations for businesses has been tarnished, according to the survey’s findings released on September 12.
Anupama Puranik, managing director with consultancy firm Russell Reynolds Associates, said organizations with operations in Hong Kong will be reluctant to walk away and “throw the baby out with the bathwater” given that the city is still a gateway to China – a role that analysts acknowledge Singapore cannot easily supplant.
Puranik said most multinationals are still waiting and watching. She expects firms to stay put and wait out the turbulence unless the situation becomes “decisively worse” than it is at present. “If you start seeing things escalate, then that’s the time when the triggers might start getting pulled in terms of thinking about other destinations,” she said.
Job offers and positions in Hong Kong are “no longer as easy to sell” to foreign candidates as it was compared to six months ago, Puranik noted.