Hong Kong financiers press for tax breaks after Singapore’s challenge

August 21, 2026 - 07:30

Industry figures in Hong Kong are pushing lawmakers to move quickly on a proposed tax incentive package, warning that delays could hand more ground to Singapore in the race for wealthy clients and asset management business. The call comes as Singapore continues to strengthen its position as a regional finance hub, drawing in family offices and fund managers with competitive policies.

The proposed law, which has been under discussion for months, would offer tax relief on carried interest and other investment structures. Supporters say this is essential to keep Hong Kong attractive to global firms that are weighing where to base their operations. Without it, they argue, the city risks losing not just new business but also existing players who may shift teams and capital elsewhere.

One senior executive at a global investment firm said the window to act is narrow. "Every quarter that passes without these measures makes it harder to convince clients and partners that Hong Kong is still the best place for their money," he said. Others echoed that sentiment, noting that Singapore has already implemented similar incentives and is actively marketing them to international asset managers.

Lawmakers have expressed general support for the tax breaks but some have raised questions about revenue impact and whether the measures go far enough. The financial services sector is urging a pragmatic approach, stressing that the long-term gains from retaining and attracting fund managers will outweigh the short-term cost to the public purse.

The matter is expected to be taken up in the legislative council in the coming weeks. Industry groups are lobbying hard for a swift vote, saying that any further delay would be a self-inflicted wound in a highly competitive regional market.