Foreign Skilled Workers' 'Hong Kong Exodus' Amid COVID Zero-Tolerance Policy... Threatening Financial Hub Status

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] As the Hong Kong government’s zero-tolerance COVID-19 policy continues, foreign high-skilled workers are choosing to leave Hong Kong, accelerating the so-called "Hong Kong Exodus."

Accordingly, there is analysis that Hong Kong’s status as a financial hub is also being shaken.

According to major foreign media on the 23rd (local time), as Hong Kong authorities maintain their zero-tolerance COVID-19 policy, the number of foreign professionals leaving Hong Kong is increasing.

It is estimated that the number of foreign professionals who have already left or plan to leave Hong Kong could reach several thousand.

Hong Kong, with a population of 7.4 million, has recorded a cumulative COVID-19 case count of about 13,000. Although this is significantly lower compared to most countries, the authorities’ adherence to the Chinese government’s zero-tolerance policy is accelerating the departure of foreigners residing in Hong Kong.

Hong Kong, which implements some of the world’s strictest quarantine measures, has only allowed entry to existing residents since last year.

Moreover, all entrants are subject to a mandatory three-week self-funded quarantine regardless of vaccination status.

Officials from foreign companies and headhunting firms based in Hong Kong stated, "Hong Kong authorities’ zero-tolerance policy is becoming increasingly strict with no signs of easing," and predicted, "After the first quarter when year-end bonuses are paid, many foreign professionals will turn their backs on Hong Kong."

According to a recent survey by the Hong Kong American Chamber of Commerce (AmCham), over 40% of respondents cited the government’s overseas travel restrictions as the main reason they might leave Hong Kong.

Hong Kong government data shows that between mid-2020 and one year later, 1.2% of the total population, about 75,000 people, left Hong Kong.

Last year, the number of employment visa applicants dropped to 10,073, about one-third less than before, and employment visa applications in the financial sector decreased by 23%.

The Wall Street Journal (WSJ) reported that as the number of foreign executives leaving or planning to leave Hong Kong increases, it is becoming difficult to fill their positions.

In November last year, Tara Joseph, Chairperson of Hong Kong AmCham, who announced plans to resign six months later in protest of the strict quarantine policy, said that if the harsh travel restrictions continue, the manpower shortage problem will become very serious.

She also added that the vacancies left by departing foreign professionals will be filled by Chinese nationals.

Meanwhile, Singapore, which competes with Hong Kong for the position of Asia’s financial hub, appears to be the biggest beneficiary of the outflow of foreign professionals from Hong Kong.

Christian Bruun, CEO of Wellesley, a senior headhunting firm, said, "There is a growing number of foreign financial firms’ senior executives relocating their headquarters from Hong Kong to Singapore."