HONG KONG OPENS DOORS FOR MALAYSIAN BUSINESSES TO TAP INTO GBA

By Karina Imran

KUALA LUMPUR, Nov 14 (Bernama) -- Malaysian companies are highly encouraged to leverage Hong Kong's strategic position as a gateway to establish and expand their presence in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

The GBA comprises 11 major cities, including the Special Administrative Regions (SAR) of Hong Kong and Macao, Shenzhen, Guangzhou, and seven other cities in Guangdong Province, Mainland China.

This region is one of the world’s most dynamic economic zones, offering vast opportunities for businesses looking to grow in China and across Asia.

Commissioner for the development of the GBA Maisie Chan emphasised that Hong Kong serves as the best international entry point to the GBA and the ideal base for Malaysian companies, with a talent pool to access the region's vast and extensive market potential.

She said that the GBA development has entered a new phase, characterised by a higher speed and broader scope of development.

"The GBA is pursued under 'one country, two systems, three currencies, and three separate customs territories', which is unprecedented worldwide.

"The governments of Hong Kong and Macao SAR, together with Guangdong Province, are actively pursuing innovative policies to facilitate the efficient flow of key factors of production -- people, goods, capital and information -- in the GBA," she said.

For example, starting in December last year, the GBA Standard Contract facilitation measure has been implemented to streamline the arrangements for the cross-boundary flow of personal information from the GBA’s mainland cities to Hong Kong.

The compliance cost of cross-boundary personal data flow can be greatly reduced, thereby promoting more cross-boundary services to benefit the public and businesses within the GBA.

Chan said the Scheme was first implemented on a pilot basis for the banking, credit referencing, and healthcare sectors, allowing individuals and organisations of Hong Kong and GBA’s mainland cities to enter into a standard contract by adopting a standardised template on a voluntary basis. 

“The Scheme has been extended to all sectors starting in November of this year. This is one of the facilitation measures implemented to enhance data flow between the mainland cities and Hong Kong.

“We will continue to seek innovation and breakthrough together with Guangdong and Macao to enhance further the flow of people, goods, capital and information within the GBA and create new opportunities for foreign enterprises in Hong Kong to access the GBA market,” she said.

Meanwhile, InvestHK Director-General of Investment Promotion Alpha Lau said Hong Kong is an important gateway to the GBA as the city has the most comprehensive business environment, a well-established legal system and financial market, and a series of policies that enable Hong Kong companies to do business in Mainland China.

She highlighted the importance of stability for businesses, especially given the current uncertainties in the financial world.

"It is easier for the international community to use Hong Kong to enter the rest of GBA. Of course, businesses can enter directly, but the differences in language, customs, systems and business practices will pose additional hurdles.

"Also, Hong Kong has lower taxes and no tariffs as compared to the rest of the GBA. Hong Kong’s legal stability and accessibility make it ideal for businesses, particularly those headquartered in Malaysia, to establish offices here or in the GBA,” she said.

Lau noted that Hong Kong’s role as a hub within the GBA is supported by its connectivity and advanced infrastructure, allowing companies to operate across multiple cities and sectors.

As for Hong Kong’s subsidies, she said it offers subsidies for start-ups, especially those involved in research and development, companies collaborating with universities, and small and medium enterprises that adopt technology, benefiting sectors like manufacturing.

"The government provides subsidies to any company set up in Hong Kong. If a Malaysian national set up a company here, it qualifies as a Hong Kong entity, regardless of shareholder nationality.

"They (companies) are not restricted by nationality of the shareholders. We look at it purely on the merit of what industry you offer and what research you are doing," she said.

Lau said the Hong Kong government is currently focusing on four major technology sectors: life sciences, artificial intelligence and data science, financial technology, advanced manufacturing, and new energy.

Besides government support, she said Hong Kong’s private sector plays a major role in fostering investments, especially for emerging companies.

With its robust initial public offering market and agreements with other global stock exchanges, Hong Kong offers seamless secondary listing options.

At the same time, Lau also noted the presence of many Malaysian businesses in Hong Kong, which use the city as a base to access the GBA and other regions of China.

However, she encouraged more Malaysian businesses to explore opportunities in Hong Kong, especially within the halal market.

"As a starting point, we see significant demand for halal products, with increasing visitors from Southeast Asia and the Gulf region.

"We need more halal restaurants, food products, and services. And who better to meet this demand than Malaysian entrepreneurs? The opportunities are immense,” she said.

-- BERNAMA