********************************************************
Invest Hong Kong (InvestHK) today (January 19) announced that the department assisted 303 overseas and Mainland Chinese companies to set up or expand in Hong Kong in 2011. This was the 11th consecutive year that the department beat its annual target for the number of completed projects.
In announcing the results, the Director-General of Investment Promotion at InvestHK, Mr Simon Galpin, noted that the Department will closely monitor the rapidly changing global economy in order to prepare for any impact on foreign direct investment (FDI) into Hong Kong.
"We are delighted to have had another record year. The numbers are testament to the enduring advantages of Hong Kong as the preferred location for overseas investors and present a substantial vote of confidence in our city," Mr Galpin said.
"But looking ahead to 2012, it seems likely to be a challenging year for the global economy. This motivates us to work harder to encourage and support overseas and Mainland companies to come to Hong Kong, and reinforces the importance of FDI to our economy," he added.
2011 Annual Results: Highlights
The 303 completed projects came from 39 countries. Mainland China continued to be the largest single source of investment into Hong Kong with a total of 56 projects, followed by the U.S. with 48 projects, the UK (30), Japan (23) and Australia (19). New additions to the place of origin list are Iceland, Mongolia, Peru, Samoa and Vietnam. In terms of a breakdown by industry sectors, the top three sectors were "Tourism and Hospitality", "Transport and Industrial" and "Innovation and Technology" respectively.
Meanwhile, almost 31 per cent of the 303 companies indicated that the Mainland and Hong Kong Closer Economic Partnership Arrangement was one of their investment considerations last year. And in encouraging news for the department, over 81 per cent of these companies rated InvestHK's services as "very useful". Mr Galpin described the high rating as a sign "that we're really adding value".
Hong Kong's international business hub status continues to make it an ideal location in terms of attracting a broad spectrum of companies. For multinationals, 2011 saw the setting up in Hong Kong of global operations for General Electric and Schneider Electric, among others. At the other end of the scale, Hong Kong remained a magnet for small and medium-sized enterprises from overseas, which were attracted by the city's ready pool of talent and simple business procedures.
Looking Forward
Mr Galpin noted that the extent of any impact from the global economy on Hong Kong remained to be seen, and added that there will be both pull and push factors.
"In one scenario, overseas-based investors will increase their presence in Asia Pacific because they are trying to offset tough economic times in their home countries. But if the situation worsens so that they have difficulty getting funding, it may delay their expansion plans and hence could pose some impact on FDI into Asia, including Hong Kong," Mr Galpin said.
"Despite this environment, however, we remain optimistic on the back of the expansion of our overseas network into Singapore and Brazil, and the investment promotion unit in the new Hong Kong Economic, Trade and Cultural Office in Taipei, which will come online soon. This year we will also launch our revamped website as well as further review and refine our services to ensure that we're responding to the needs of today's fast-moving companies," Mr Galpin said.
About InvestHK
InvestHK is the department of the Hong Kong Special Administrative Region (HKSAR) Government established in July 2000 to take responsibility for FDI and support overseas and Mainland businesses to set up or expand in Hong Kong. It provides free advice and customised services to help businesses succeed in Hong Kong's vibrant economy. As it enters its 12th year of operation, InvestHK has completed over 2,400 investment projects creating more than 28,700 new jobs in the first year of operation or expansion and HK$61 billion of investment. For more information, please visit www.investhk.gov.hk.
Ends/Thursday, January 19, 2012
Issued at HKT 17:12
NNNN