Hong Kong official says Northern Territory flexible for key firms, tax cuts as low as 5 per cent
Yam Ching-sun, director of the Office for Attracting Key Enterprises, says the Northern Territory's flexible land rules and tax cuts to as low as 5 per cent are attracting major firms. Half of the world's top 10 pharmaceutical companies have set up in Hong Kong, boosting precision medicine and rare
The director of Hong Kong's Office for Attracting Key Enterprises, Yam Ching-sun, said the city's land and tax policies are key to drawing major companies. Speaking on RTHK's Saturday Accountability programme on 7 November, Yam noted that the Northern Territory's development allows for flexible land-use adjustments, making it suitable for key enterprises. A recent success was the Hung Shui Kiu area development tender, where a large key firm collaborated with multiple developers to secure the project.
On taxation, Yam said approved key enterprises can receive a 50 per cent tax reduction, with the minimum rate as low as 5 per cent. This, he added, is highly attractive for bringing more major firms to Hong Kong.
Yam highlighted the medical sector as a significant area of growth. He said about half of the world's top 10 pharmaceutical companies have already set up operations in Hong Kong, conducting research and clinical trials rather than just establishing corporate entities. This, he said, greatly benefits the city's industrial development, particularly in high-end areas such as precision medicine, cell therapy and rare disease pharmaceuticals, which in the long run will help the public.
The office also monitors enterprises that may not meet expectations, especially in the volatile innovation and technology sector. Yam said the office examines the reasons and considers improvements in policies or implementation processes. According to current figures, more cases have performed better than expected. Government financial support is provided on a matching basis, which minimises the risk of losses. Yam stated no such losses have occurred, and the existing mechanism is considered "stable".