A recent seminar by Invest Hong Kong (InvestHK) and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) Development Office presented opportunities for Malaysian businesses in Hong Kong and also in the GBA.
The seminar titled “The Arising Business Opportunities – The Greater Bay Area and Hong Kong,” drew over 140 business leaders, co-organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).
The event highlighted Hong Kong’s unique advantages for overseas companies seeking access to the GBA’s robust market, a region including nine Guangdong cities along with Hong Kong and Macao.
In an interview with Focus Malaysia following the seminar, InvestHK Director-General of Investment Promotion Alpha Lau, stressed Hong Kong’s strategic gateway position.
“Hong Kong is the most internationalised city in the GBA region, with a sophisticated financial market, well-established legal system, and business-friendly policies,” Lau said, adding that for Malaysian businesses, it is an ideal stepping stone into the Chinese market.
New policies for smoother GBA access
GBA development has entered a new phase characterised by a higher speed and broader scope of development.
The Governments of Hong Kong and Macao Special Administrative Regions, and the Guangdong Province have been pursuing further policy innovations to strengthen inter-connectivity and to enhance the efficient flow of people, goods, capital and information within the GBA.
Commissioner for the Development of the GBA Maisie Chan underlined that a wide array of GBA policy initiatives have been implemented successfully. She outlined recent changes policy measures introduced to facilitate the flow of essential factors of production in the GBA.
For example, in facilitating people flow, foreign employees of Hong Kong-based firms may apply for multiple-entry visas to the Mainland with validity of up to a maximum of five years, enabling easier access to the Mainland.
This visa creates a seamless experience for Malaysian professionals eyeing the GBA. “Each time they travel to the Mainland, they no longer need to reapply for visa, reducing time and costs,” said Chan.
Non-Chinese permanent residents in Hong Kong, such as Malaysians who have stayed for seven years, can now apply for a new card-type travel document allowing stays of up to 90 days in the Mainland each time. These is no restriction on nationality or industry.
For companies set up in certain designated zones like Qianhai in Shenzhen and Nansha in Guangzhou, preferential corporate tax rates of 15% make the GBA even more attractive.
Chan said this is significantly lower than Mainland rates, a key draw for Malaysian investors.
Legal and financial certainty through Hong Kong
The GBA also offers enhanced legal and financial certainty which is crucial for foreign businesses.
Currently, wholly-owned Hong Kong enterprises and foreign-invested enterprises registered in Qianhai, which is part of Shenzhen, can opt to choose Hong Kong law and use Hong Kong’s arbitration in their civil and commercial contracts.
This measure could expand dispute resolution options for business enterprises. As announced in the Chief Executive’s 2024 Policy Address, the aforesaid measure will be extended to other GBA Mainland cities next year.
“With this measure, Malaysian companies operate in a more familiar legal environment,” Chan said.
Lau further highlighted Hong Kong’s financial flexibility, noting that capital controls in China make Hong Kong an essential base for cross-border financial transactions.
“Hong Kong’s system allows unrestricted capital movement, which is vital for international businesses,” she said.
Industry leaders share insights on GBA market entry
During the fireside chat, Lau, Kairous Capital managing partner Joseph Lee and Malaysia Chamber of Commerce (Hong Kong and Macao) sub-committee member Lawrence Liu discussed practical strategies for Malaysian companies entering the GBA market.
Lee emphasised the value of Hong Kong’s stable regulatory environment. “Hong Kong’s legal system offers certainty, which is crucial in navigating China’s vast market,” said Lee.
Lau further noted the GBA’s focus on sectors beyond manufacturing, such as finance, technology, and professional services.
“The GBA is diversifying, which opens broader opportunities across industries,” she added.
The GBA is becoming a major driver of growth in China, offering Malaysian firms an array of options to penetrate this expanding market through Hong Kong.
For businesses ready to capitalise on the GBA’s potential, Hong Kong not only provides a pathway into China but also a long-term base for regional growth in Asia. —Nov 13, 2024
Main image: Invest Hong Kong
