There are increasing indications that Western financial institutions are shifting their human resources from Hong Kong to Singapore. In the end, they are only reacting to a general need of the customer.
The British newspaper reported that Bank of America (BofA) is considering moving employees from Hong Kong to Singapore “financial times” (Article behind the payment barrier) reported on Thursday. The newspaper wrote that this is another example of the undue pressure exerted by the political climate and the tense housing situation in the city.
Specifically, the US Bank, headed by the Director of Operations (COO) Richard Yasinda Criteria for possible action as part of an ‘contingency plan’. This includes tax and regulatory considerations and the question of whether the job change is of a temporary or permanent nature. It is not yet clear how many people will be affected.
Strict Covid rules
The former British crown colony currently has very strict Covid rules in place, which include a 21-day quarantine for international arrivals and a flight ban for passengers from eight countries, including Great Britain and the USA. It appears that the authorities are also putting pressure on many financial institutions just by looking for alternative jobs in light of the difficult Covid situation.
Against this background, it is not surprising that Mary Hoen Wai-yithe head of the Association of Banks in Hong Kong, said this week that the pandemic had exacerbated an already rampant shortage of skilled workers, too. finews.asia mentioned. Europeans Hong Kong Chamber of Commerce It anticipates an unprecedented mass exodus of foreigners and advises companies to explore an alternative regional presence in Asia.
Also Wells Fargo going
In addition to Bank of America, US financial institution Wells Fargo is also working to reduce exposure to Hong Kong. The company was reportedly planning to move parts of its business to Singapore as early as April 2021.
The Chinese are increasingly active
Other banks do not want to allow their cards to be considered when it comes to moving parts of their business, or else they would have to face penalties from the regulator or authorities in Hong Kong.
However, as many Chinese clients increasingly move their assets from Hong Kong to Singapore or even Switzerland, or manage them from Singapore, it is only a matter of time before staff capacity in Hong Kong is scaled back and expanded into Singapore.
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