Introduction: opening up Hong Kong
The substantial relaxation of pandemic-related restrictions in Hong Kong has marked a new turning point in the future growth and development of the territory. The Hong Kong General Chamber of Commerce has stated that the Special Administrative Region’s economy will grow by 3.8% and the jobless rate will ease to 3.3% in 2023 as activity picks up following the reopening of the border with Mainland China.
Last week, John Lee – HKSAR’s Chief Executive – presented “Hello Hong Kong”, stating that the territory is ready to welcome visitors from all around the world and giving away 500,000 air tickets and over a million visitor consumption vouchers with citywide offers for visitors.
Hong Kong is in a new phase of advancing from stability to prosperity and is seamlessly connected to the Mainland and the rest of the world. The Government has reiterated that this is the perfect time for tourists, investors, entrepreneurs and innovators to come and experience the vibrancy of the city and seize opportunities to flourish.
Between 14 and 17 December 2022, an international convention was organized by the Hong Kong Biotechnology Organization (HKBIO) to introduce novel state-of-the-art biotech innovations from around the globe, with the purpose of providing an extensive platform to allow pioneers of the biotech industry to convene. From infectious diseases like COVID-19, to the latest cancer treatments and diagnostics to big data analytics, BIOHK2022 was an unparalleled event covering the most relevant and timely topics in biotechnology.
Asian Fund for Cancer Research Limited (AFCR) was a co-organizer of BIOHK2022 and Lance Kawaguchi (Chairman of AFCR) was a keynote speaker at the convention. AFCR is committed to fund cancer research, especially those cancers prevalent in Asian populations, and promote global collaborations for high impact to save the lives of cancer patients.
Setting up a biotech business in Hong Kong
In the fight against cancer, the biotech industry and research and development (R&D) are vital in discovering cures and treatments. HKSAR offers the security of a well-established and effective business centre, backed by a reliable rule of law. Alongside, there is an abundance of resources in the Guangdong-Hong Kong-Macau’s Greater Bay Area (GBA) presenting considerable prospects and opportunities for businesses looking to set up biotech activities.
For biotech companies, Hong Kong provides a controlled and safe business environment with access to the GBA for research, testing, manufacturing and support services, including R&D projects with a focus on finding treatments, cures and vaccines for cancer, infectious and other diseases.
Biotech companies setting up in the SAR have the security of knowing that their intellectual property is well protected by an ingrained rule of law and the Hong Kong courts. Arrangements have now been put in place for the reciprocal recognition and enforcement of judgments in civil and commercial matters by the courts of Hong Kong and Mainland China. Furthermore, the Hong Kong International Arbitration Centre (HKIAC) is one of Asia’s leading arbitration centres and provides an avenue of recourse should contractual business arrangements be breached.
The SARS outbreak in 2003 has increasingly led to a clear biotech focus, evidenced by the development and establishment of world-class research institutions, which have published hundreds of high-impact biomedical publications. Substantial amounts of investments from the Government in innovation and technology, coupled with Hong Kong’s advanced healthcare system, has now poised it to thrive as a biotech hub.
Hong Kong has long been a gateway to China and it is common for international businesses and investors to reach the Mainland market through Hong Kong. Now, with the access to the GBA and the resources within it, Hong Kong has an even greater potential for its biotech industry to expand. Biotech projects can base their companies in Hong Kong, whilst outsourcing manufacturing, research, equipment and more within the GBA.
New Immigration Policies
On 19 October 2022, John Lee announced proposals to introduce several changes to Hong Kong immigration policies, including the creation of a new pass for top talent and a relaxation of existing visa programs and the rules governing the entry of short-term business visitors. While further details are expected to be released in 2023, currently there are no indications as to when the changes will be implemented.
“Trawl for Talents”
Lee has stated that over the past two years, the local workforce shrank by about 140,000. Apart from actively nurturing and retaining local talents, the Government will proactively “trawl” the world for talents through the following initiatives:
- Top Talent Pass Scheme
The Government will launch the ‘Top Talent Pass Scheme’ for a period of two years. Eligible talents will include individuals whose annual salary reached HK$2.5 million or above in the past year, and individuals graduated from the world’s top 100 universities with at least three years of work experience over the past five years. These two categories of talents will be issued a two-year pass for exploring opportunities in Hong Kong and are not subject to any quota. Individuals who graduated from the world’s top 100 universities in the past five years and have yet to fulfil the work experience requirement will also be eligible, subject to an annual quota of 10,000 individuals. Lee did not mention which rankings the “top 100 universities” would be based on. The scheme will be reviewed after the first year of implementation.
- Streamline the General Employment Policy (GEP) and the Admission Scheme for Mainland Talents and Professionals (ASMTP)
The Government will streamline the General Employment Policy (GEP) and the Admission Scheme for Mainland Talents and Professionals (ASMTP), such that for vacancies falling under the 13 professions with shortage of local supply as listed in the Talent List or for vacancies with annual salary of HK$2 million or above, employers are not required to provide proof to substantiate their difficulties in local recruitment in making applications for talent admission. The Government will update the Talent List as soon as possible to reflect the latest shortage situation in various professions. It aims to complete this in the first quarter of 2023.
- Suspension of annual quota under the Quality Migrant Admission Scheme (QMAS)
The Government will suspend the annual quota under the Quality Migrant Admission Scheme (QMAS) for a period of two years and improve the approval process to attract more world-class talents to relocate to Hong Kong.
- Relaxation of the Immigration Arrangements for Non-local Graduates (IANG)
The Government will relax the Immigration Arrangements for Non-local Graduates (IANG) by extending the limit of stay from one year to two years in order to facilitate their staying in or coming to Hong Kong for work; and expand the scope of the arrangements to cover those who graduated from the GBA campus of a Hong Kong university on a pilot basis for a period of two years. The pilot arrangement will be reviewed after the first year of implementation.
- Enhancement of the Technology Talent Admission Scheme (TechTAS)
The Government will enhance the Technology Talent Admission Scheme (TechTAS) by lifting the requirement for technology firms to employ additional local employees while admitting talents outside Hong Kong, with a view to speeding up talent admission.
- Extension of the limit of stay of employment visas and waiver of requirement of employment visa for short-term visitors
The Government will extend the limit of stay of employment visas so that talents admitted under the existing and newly launched talent admission schemes (and securing employment) may be issued with an employment visa which will be valid for a maximum period of three years.
At the same time, the Government will waive the requirement of applying for an employment visa for more visitors participating in short-term activities in Hong Kong. Apart from existing designated sectors like technology specialists and professional athletes, the Government will explore expanding the arrangements to more categories.
- Establishment of the Talents Service Unit
The Government will soon establish the Talents Service Unit which will be the one-stop shop, co-ordinating with the Immigration Department to process applications received under the talent admission schemes and providing support services. It will also draw up performance pledges to enhance efficiency in processing applications. Moreover, the Government will launch electronic services for all visa applications within this year.
Opportunities ahead in the GBA
The GBA plans to ease cooperation amongst Guangdong, Hong Kong and Macau. Previous regional barriers are being broken down through infrastructure, resource sharing and collaboration. Hong Kong can take part in state technology development programs and has access to key scientific research facilities and equipment in the Guangdong province.
In the GBA, which is home to some 70 million people, tax policies and business registration rules are being introduced to ease corporate deal-making. Consistent government funding will remain an integral part of biotech’s growth, notably for risky, early-stage research.
Hong Kong’s world-class research institutions and its prominent biomedical publications every year indicate the foundation for this new vision is robust. Combined with its advanced healthcare system and heavy government funding allocated to promote innovation and technology, the territory is poised to thrive in biotech.
Hong Kong can take advantage of scientific research institutes, high-tech enterprises and large-scale national scientific projects that have important national and even global influence. Whereas the Mainland China market can take advantage of Hong Kong’s corporate governance,legal system and exposure to the global economy – all in all, the future looks bright.
