as a vigorous rival that can engage in
cost-based competition.
“It is a challenge indeed,” Sabrina admits
of Singapore’s entry into the space. “It is
expensive to set up and maintain a business
in Hong Kong, especially if expertise has to
be imported from abroad.” Other obstacles to
growth include rising pollution and lack of
international school spaces, which dissuading
people from transferring there long-term.
Sabrina also points to roadblocks at a
government level. “In fact, the cost is not
the only challenge,” she points out. “We are
faced with bureaucracy, outdated legislation
and an uncertain tax regime compared with
Singapore as well.”
She adds that capital flowing into the
industry is being misdirected in many cases.
“These are speculative players and they can
be very harmful to the development of our
industry,” she explains. “They are not driven
by supply and demand fundamentals.
Moreover, there are new regulations coming
into effect over the next two years that willhave a large impact on our industry.”
The industry has also been hampered
by labour shortages, though Sabrina says
the government is now actively trying to
ameliorate the problem. This includes the
founding of the Maritime and Port Board,
which has three working committees that
look at different aspects of the maritime
and port, with the manpower subcommittee
advising the government on specific labour
issues affecting the industry.
The chief government initiative in this
area is the Maritime and Aviation Training
Fund. Approved by Hong Kong’s Legislative
Council in 2014, it allocates HK$100 million
to existing and new measures, including
industry-specific courses, internships and
training programs, designed to attract young
people to maritime work. Students can
learn maritime law, ship repair, logistics and
seagoing skills, which will add significantly
to the competitiveness of the talent pool.
These programs are a start, Sabrina says,
but efforts to address the labour shortage »Interview | INVESTHalf page advert
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