HK IS THE HUB TO CHINA, THAI BUSINESESS TOLD

  Meanwhile, the Thai Finance Ministry next month will launch an incentive package to encourage Thais to invest abroad in both the real economic sector and the financial market. The ministry expects the baht to weaken when capital outflows increase.
Speaking at a Hong Kong Trade Development Council seminar in Bangkok on “Hong Kong-Thailand Enhanced Financial Cooperation Opportunities Ahead” yesterday, John Tsang, Hong Kong’s financial secretary, said: “I encourage top Thai brands to consider the potential of a Hong Kong listing. We have a prime location on the doorstep of mainland China. We are in the right place at the right time.”
Global economic power has been seen to shift away from traditional markets in the West towards emerging economies in Asia since the prolonged economic problems in the United States and sovereign debt crisis in Europe.
Given Hong Kong’s highly competitive financial-service industry and higher competition for business in the region since the 2008-09 global financial crisis, Tsang advised both Thailand and Hong Kong to take advantage of this trend by fostering closer financial links.
Last year, despite the floods, bilateral trade between Thailand and Hong Kong surpassed HK$120 billion (Bt476 billion), up 7 per cent year on year. Thailand was Hong Kong’s ninth-largest trading partner and the 11th-largest market for the city’s exports. Hong Kong was Thailand’s seventh-largest trading partner and fourth-largest export market.
“Last year, almost 17 per cent of Thailand’s trade with the mainland was routed through Hong Kong,” Tsang said.
Thai companies could enjoy the benefits of tapping into the Hong Kong financial markets while the special administrative region continues its principle of “one country, two systems”.
“Under the principle, we continue to enjoy a high degree of autonomy. We maintain our own financial system, separate from that of the mainland,” Tsang said.
Besides, Hong Kong enjoying free flow of information, ideas, and capital with low taxes. No withholding, value-added, goods and services or capital-gains taxes are collected.
In a separate news conference, Somchai Sujjapongse, director-general of the Fiscal Policy Office, said that it would submit to Finance Minister Kittiratt Na-Ranong in May incentives for Thais who want to expand business or investment abroad via financial assets including shares and bonds.
The Finance Ministry, the Bank of Thailand and the Securities and Exchange Commission will ease rules to make its easier for Thai investors to buy financial assets abroad, he said.
Small and medium-sized enterprises will be also given incentives to expand overseas, he said.