Hong Kong is increasingly losing its edge to Singapore as air pollution and the rising cost of doing business are leading financial institutions and senior executives to relocate to the rival city, a survey has found.
The survey by recruitment and contracting group Ambition also found salary inflation has contributed to the climbing cost of doing business in Hong Kong, with salaries rising an average of 5 to 20 per cent - and 41 per cent in one case - as companies fight for talent.
The group interviewed 50 internal decision-makers from 50 companies in two sectors - commerce and industry, and banking and financial - from mid-May to mid-June. It found that compared with the same period last year, the average base salary rose 5 per cent. For those who changed jobs, it was 10 to 20 per cent.
As demand has outstripped the supply of talent in the first half of this year, the scramble to attract talent is not limited to the executive level.
In one case, a junior accountant resigned after securing a pay rise from HK$34,000 to HK$38,000 by switching companies, but the first firm made a counter-offer with HK$48,000 - a 41 per cent increase.
A highly qualified accountant from one of the four big firms interested in product control or internal audit can secure two to three interviews within a week and be placed within four to six weeks, Ambition's managing director Guy Day said.
