Mainland, Hong Kong lure multinational HQs
Updated: 2007-12-07 13:24
Companies based in the Asia-Pacific region are beginning to favor the mainland and Hong Kong as preferred locations for their regional headquarters (RHQs), however Singapore still remains the top choice.
The findings were revealed in a survey of more than 100 global companies based in the region by Spire Research & Consulting, one of Asia's leading strategic intelligence consultancies.
"The survey findings are consistent with the thinking of multinational companies (MNCs), based on our experience of working with them on regional business planning projects over the past few years - for example the trend of dual regional headquarters for North and South Asia," Spire's Group Managing Director Leon Perera, said.
Approximately 60 percent of respondents operate in at least three Asian markets, and nearly a third operate in seven or more.
Singapore, the mainland and Hong Kong were respectively preferred as RHQ locations over the other Asian markets. India, Japan and South Korea followed in fourth, fifth and sixth place.
More than half of the respondents ranked Singapore as among their top location choices for RHQs, mainly because of economic policies, infrastructure and political stability. Infocommunications technology, lifestyle and leisure are the main industries that rank Singapore as the best location.
Interestingly many companies are splitting the RHQ function into two zones, seeing Singapore as a South Asian RHQ, and Hong Kong as a North Asian RHQ.
The mainland, which came a close second to Singapore, received 56 votes compared to Singapore's 57 for attractiveness as an RHQ location.
The mainland is an attractive option for international manufacturing companies, which account for roughly half of the mainland's manufactured exports.
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