Race to be the preferred Asian HQ location

ASIA, with over 4.3 billion people, accounts for 60 per cent of the world's population. The demand for significant investment for the development of emerging Asian countries and the prospect of leveraging on Asia's enhanced purchasing power makes it imperative for multinational businesses to focus on Asia. This shift towards Asia is further augmented by the economic slowdown in developed markets.

Singapore, Hong Kong, South Korea and Taiwan were once labelled the "Four Asian Tigers" on the back of the economic boom of the 1970s and 1980s. But today, it is quite clear that the race for being the preferred Asian hub location is primarily between the two former colonial cousins, Singapore and Hong Kong.

Many multinationals expanding in the region choose to set up their regional headquarters in either Hong Kong or Singapore to manage and oversee their Asian operations. Their decisions are made taking into consideration the two countries' business-friendly policies, established infrastructure, available local skilled workforce, high standard of living and relatively low taxes.