Hong Kong’s disruption is Sydney’s opportunity

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Hong Kong houses nearly 2500 Asia-Pacific regional offices. A regional office is one that conducts important cross-border business, but where the parent company is located in an alternative city.

In the Asia-Pacific region, it is generally agreed that there are 5 major regional office hubs – Tokyo, Shanghai, Hong Kong, Singapore and Sydney.

The lead-up to the handover of Hong Kong from British colonial rule to Chinese sovereignty in the 1980s and 1990s created an air of apprehension and uncertainty to the point that many multi or transnational businesses, particularly those across the finance industry, relocated their Asia-Pacific regional offices to Singapore.

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Sydney property markets are attracting money flowing out of Hong Kong.

This shift was not accidental, as the prescient Singapore government actively incentivised companies to relocate.

Which brings us to today. No one can argue that the situation in Hong Kong is not of concern. The recent wave of protests does not look like ending soon.

In fact, many argue that this is the new normal, as Hong Kong and China grapple with each’s interpretation of the "one country, two systems" concept.

The protests, some quite violent, have led to massive business interruption, a declining luxury retail trade, collapsing property values and questioning as to whether Hong Kong can continue as a major regional office hub.

While it is not polite to take advantage of another’s misfortune, Sydney could not be better placed to challenge Singapore in the competition for Asia-Pacific regional offices.

Notwithstanding our recent bushfire crisis, Sydney has a great climate; we have an educated, multi-lingual workforce. Our political, legal and financial systems are stable, sophisticated and provide certainty.

We have outstanding cultural facilities, great sporting amenities (and traditions) and diverse housing opportunities. We have some of the most innovative and inviting office buildings in the world – with more on the way!

More importantly, Australia with its well-crafted immigration system, offers pathways to citizenship that our four competitors do not.

Who would not want to establish an Asia-Pacific regional office here? We can’t simply sit on our hands and wait. We need to throw out the welcoming mat now and build the case for Sydney as THE Asia-Pacific regional centre.

Big business, small business and governments (local, state and federal) should be planning now. Sydney is by far, the most attractive Asia-Pacific regional office location. This time, let’s get the jump on Singapore.

Michael Cook is the group executive at Investa Property Group